Half Yearly Report

RNS Number : 0513N

Edinburgh Worldwide Inv Trust PLC

04 June 2010

 



EDINBURGH WORLDWIDE INVESTMENT TRUST plc

Results for the six months to 30 April 2010

Over the six month period the Company's net asset value (NAV) per share increased by 20.4% while the MSCI All Countries World Index (in sterling terms) increased by 17.1%.  The share price increased by 22.4%.

Over the six and a half years that Baillie Gifford has been managing the Company's assets, NAV per share has increased by 90.0% and the share price by 107.1%.  The index has risen by 46.1%.

·	Equity turnover of 21% in the period is higher than usual.  Four new holdings have been bought: CFAO; Intuitive Surgical; MedAssets; and Flir Systems.  These have been funded by sales of Canon, Inspur and Walgreen.
·	Many companies are showing very good rates of growth as the demand backdrop improves, particularly those exposed to the emerging consumer, such as Li Ning, or areas of secular growth, such as Apple.
·	As evidenced recently, those polities who are most indebted face the hardest route to recovery.  The financial crisis has challenged the prevailing order of dominant Western economies and we believe the next decade and beyond will continue to see radical shifts in global GDP which will continue to create exciting global investment opportunities.
·	Revenue earnings per share were 0.88p (six months to 30 April 2009: 2.35p) and the interim dividend is unchanged at 0.50p.

Past performance is not a guide to future performance.

Edinburgh Worldwide aims to achieve long term capital growth by investing in listed companies throughout the world. The Trust has total assets of £175.6 million (before deduction of loans of £24.1 million) as at 30 April 2010.

Edinburgh Worldwide is managed by Baillie Gifford & Co, the Edinburgh based fund management group with around £60 billion under management and advice as at 3 June 2010.

The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. This is because the share price is determined by the changing conditions in the relevant stockmarkets in which the Company invests and by the supply and demand for the Company's shares. Investment in investment trusts should be regarded as medium to long-term. You can find up to date performance information about Edinburgh Worldwide on the Edinburgh Worldwide page of the Managers' website at www.edinburghworldwide.co.uk .

                                                                 - ends -                                                   3 June 2010

For further information please contact:

Mark Urquhart, Manager,                                                                                            

Edinburgh Worldwide Investment Trust plc                                           0131 275 2070

Anzelm Cydzik

Baillie Gifford & Co                                                                              0131 275 2000

Roland Cross, Director,

Broadgate Mainland                                                                             020 7726 6111

The following is the unaudited Half-Yearly Financial Report for the six months

to 30 April 2010

 

EDINBURGH WORLDWIDE INVESTMENT TRUST PLC

Half-Yearly Financial Report 30 April 2010

Responsibility Statement

 

We confirm that to the best of our knowledge:

a)   the condensed set of financial statements has been prepared in accordance with the Accounting Standards Board's statement 'Half-Yearly Financial Reports';

b)   the Half-Yearly Management Report includes a fair review of the information required by Disclosure and Transparency Rules 4.2.7R (indication of important events during the first six months, their impact on the financial statements and a description of principal risks and uncertainties for the remaining six months of the year); and

c)   the Half-Yearly Financial Report includes a fair review of the information required by Disclosure and Transparency Rules 4.2.8R (disclosure of related party transactions and changes therein - see note 3 at the end of this document).

By order of the Board

David A Coltman

Chairman

3 June 2010

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

 

Half-Yearly Management Report

Our aim continues to be to run a concentrated portfolio of companies with good growth prospects for the long-term. It is now six and a half years since Baillie Gifford started to manage Edinburgh Worldwide Investment Trust and since then the net asset value has increased by 90.0% and the share price by 107.1% while the MSCI All Countries World Index (in sterling terms) has risen by 46.1%. We would reiterate that five years and more is a sensible timeframe over which to judge performance.

For the record, over the period from 31 October 2009 to 30 April 2010, Edinburgh Worldwide's net asset value rose by 20.4% which compares to a 17.1% increase in the MSCI All Countries World Index over the same period. The share price over the six months rose by 22.4% to 270.25p representing a discount of 12.6% to the net asset value at 30 April 2010 which compares to a discount of 14.0% at the beginning of the period. The Directors have declared an interim dividend of 0.50p per share, unchanged from last year. The interim dividend will be paid on 22 July 2010 to shareholders on the register on 25 June 2010. The final dividend of 1.50p last year was augmented with a special dividend of 1.00p and the Directors will consider this year's payment over the remainder of the financial year.

Economies have continued to recover from the financial crisis of 2008 although at very different paces. Many companies are showing very good rates of growth as the demand backdrop improves particularly those exposed to the emerging consumer or areas of secular change such as e-commerce. At the macro level, much of the market's focus has been on the ongoing issue of debt burdens although the focus has moved from the corporate sector to the issue of sovereign debt in areas ranging from Dubai to Greece. Just as with companies, those polities who are most indebted face the hardest route to recovery - we continue to steer the portfolio towards those areas with better growth prospects.

Within the Eurozone, the well documented travails of Greece have been extrapolated to Portugal, Ireland, Italy and Spain with the pressure on the Euro culminating in the recent German-led bailout. We see little of surprise in this modern Greek tragedy given our core belief that the most indebted countries will have the most challenging paths out of recession. Some are grasping the nettle such as Ireland where several austerity budgets have led to cuts of more than 10% in government spending whilst others have less political consensus for tough decisions.  We think the market hysteria which has accompanied these events misses the underlying point that these travails are further evidence of the changing shape of the global economy. Despite the market's intense desire to link events we believe strongly, for instance, that the plight of Greek taxpayers has no bearing on the Chinese consumers' appetite for luxury goods.

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

Half-Yearly Management Report (Ctd)

Away from Europe, the news has been rather more upbeat. The US continues to show decent signs of recovery albeit with wide state and sectoral variations (e.g. the housing market remains anaemic). Asia continues to be the world's growth engine with strong figures from the two powerhouses of China and India. Of course, easy monetary policy has been a key prompt to such strong growth and, with some inflationary pressures building, it is pleasing to see Asian central banks take some pre-emptive action in terms of raising reserve requirements. In contrast, most Western central banks continue to signal an elongated period of low rates which raises long-term inflationary spectres.

Over these six months, we have been more active in the portfolio than usual with equity turnover of 21%. We have bought new holdings in CFAO - an African distribution business; Intuitive Surgical - the leader in robotic surgery; MedAssets - a US healthcare technology business and Flir Systems - an infra-red technology company. These purchases have been funded by sales of Canon, Inspur and Walgreen where we feel future growth prospects have dimmed. At the end of April, gearing stood at 12.9% - a level we are comfortable with given the growth prospects of the companies owned in the portfolio.

Looking back on the last couple of years, it is our strong belief that many of the changes in the shape of the world's economies have been accelerated by the events of the financial crisis. The prevailing order of dominant Western economies has been challenged profoundly and we believe the next decade and beyond will continue to see radical shifts in global GDP which will continue to create exciting global investment opportunities.

The principal risks and uncertainties are set out in note 11 at the end of this document.

By order of the Board

Baillie Gifford & Co

3 June 2010

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

INCOME STATEMENT

(unaudited)

	for the six months ended 30 April 2010					for the six months ended 30 April 2009					for the year ended 31 October 2009
	Revenue £'000	Capital £'000		Total £'000		Revenue £'000	Capital £'000	Total £'000		Revenue £'000		Capital £'000	Total £'000
Gains/(losses) on sales of investments	-	4,673		4,673		-	376	376		-		(2,546)	(2,546)
Movements in investment holding gains/losses	-	22,573		22,573		-	21,169	21,169		-		45,991	45,991
Currency losses	-	(254)		(254)		-	(2,553)	(2,553)		-		(1,825)	(1,825)
Income from investments and interest receivable	912	-		912		1,871	-	1,871		3,088		-	3,088
Investment management fee	(120)	(360)		(480)		(79)	(238)	(317)		(179)		(538)	(717)
Recoverable VAT (note 4)	8	49		57		-	-	-		-		-	-
Other administrative expenses	(219)	-		(219)		(204)	-	(204)		(422)		-	(422)
Net return before finance costs and taxation	581	26,681		27,262		1,588	18,754	20,342		2,487		41,082	43,569
Finance costs of borrowings	(60)	(179)		(239)		(40)	(121)	(161)		(96)		(286)	(382)
Net return on ordinary activities before taxation	521	26,502		27,023		1,548	18,633	20,181		2,391		40,796	43,187
Tax on ordinary activities	(90)	-		(90)		(395)	271	(124)		(575)		266	(309)
Net return on ordinary activities after taxation	431	26,502		26,933		1,153	18,904	20,057		1,816		41,062	42,878
Net return per ordinary share (note 5)	0.88p		54.08p	54.96p		2.35p	38.57p	40.92p		3.71p		83.78p	87.49p
Dividends paid and proposed per ordinary share (note 6)	0.50p					0.50p				3.00p

   The total column of this statement is the profit and loss account of the Company.

   All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

  A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement.

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

BALANCE SHEET

 (unaudited)

	At 30 April 2010		At 30 April 2009		At 31 October 2009
	£'000		£'000		£'000
FIXED ASSETS
Investments held at fair value through profit or loss	170,766		124,400		143,655
CURRENT ASSETS
Debtors	1,525		2,375		2,988
Cash and short term deposits	4,995		1,547		5,042
	6,520		3,922		8,030
CREDITORS
Amounts falling due within one year (note 7)	(25,767)		(25,087)		(25,874)
NET CURRENT LIABILITIES	(19,247)		(21,165)		(17,844)
TOTAL NET ASSETS	151,519		103,235		125,811
CAPITAL AND RESERVES
Called-up share capital	2,450		2,450		2,450
Share premium	82,180		82,180		82,180
Special reserve	35,220		35,220		35,220
Capital reserve	29,624		(19,036)		3,122
Revenue reserve	2,045		2,421		2,839
SHAREHOLDERS' FUNDS	151,519		103,235		125,811
NET ASSET VALUE PER ORDINARY SHARE (After deducting borrowings at fair/par value) (note 7)	309.19p		210.66p		256.73p
Ordinary shares in issue (note 8)	49,004,319		49,004,319		49,004,319

 

 

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

(unaudited)

For the six months ended 30 April 2010

		Called-up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Total  shareholders' funds £'000
Shareholders' funds at 1 November 2009	2,450		82,180	35,220	3,122	2,839	125,811
Net return on ordinary activities after taxation	-		-	-	26,502	431	26,933
Dividends paid during the period#	-		-	-	-	(1,225)	(1,225)
Shareholders' funds at 30 April 2010	2,450		82,180	35,220	29,624	2,045	151,519

 

For the six months ended 30 April 2009

	Called-up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Total  shareholders' funds £'000
Shareholders' funds at 1 November 2008	2,450	82,180	35,220	(37,940)	2,346	84,256
Net return on ordinary activities after taxation	-	-	-	18,904	1,153	20,057
Dividends paid during the period#	-	-	-	-	(1,078)	(1,078)
Shareholders' funds at 30 April 2009	2,450	82,180	35,220	(19,036)	2,421	103,235

 

For the year ended 31 October 2009

	Called-up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Total shareholders' funds £'000
Shareholders' funds at 1 November 2008	2,450	82,180	35,220	(37,940)	2,346	84,256
Net return on ordinary activities after taxation	-	-	-	41,062	1,816	42,878
Dividends paid during the year#	-	-	-	-	(1,323)	(1,323)
Shareholders' funds at 31 October 2009	2,450	82,180	35,220	3,122	2,839	125,811

*    The capital reserve as at 30 April 2010 includes investment holding gains of £63,452,000 (30 April 2009 - gains of £16,058,000 and 31 October 2009 - gains of £40,879,000).

^#      See note 6.

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

CONDENSED CASH FLOW STATEMENT (unaudited)
	Six months to 30 April 2010 £'000		Six months to 30 April 2009 £'000		Year to 31 October 2009 £'000
Net cash inflow from operating activities	35		606		1,957
Net cash outflow from servicing of finance	(226)		(182)		(364)
Total tax paid	(92)		(110)		(288)
Net cash inflow from financial investment	1,461		983		3,732
Equity dividends paid (note 6)	(1,225)		(1,078)		(1,323)
NET CASH (OUTFLOW)/INFLOW BEFORE FINANCING	(47)		219		3,714
Net cash outflow from bank loans	-		(121)		(121)
(DECREASE)/INCREASE IN CASH	(47)		98		3,593
RECONCILIATION OF NET CASH (OUTFLOW)/INFLOW TO MOVEMENT IN NET DEBT
(Decrease)/increase in cash in the period	(47)		98		3,593
Net cash outflow from bank loans	-		121		121
Exchange movement on bank loans	(586)		(2,767)		(2,022)
MOVEMENT IN NET DEBT IN THE PERIOD	(633)		(2,548)		1,692
Net debt at start of the period	(18,459)		(20,151)		(20,151)
NET DEBT AT END OF THE PERIOD	(19,092)		(22,699)		(18,459)
RECONCILIATION OF NET REVENUE BEFORE FINANCE COSTS AND TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Net revenue before finance costs and taxation	27,262		20,342		43,569
Gains on investments	(27,246)		(21,545)		(43,445)
Currency losses	254		2,553		1,825
Other non-cash movements	-		-		(44)
Changes in debtors and creditors	(235)		(744)		52
NET CASH INFLOW FROM OPERATING ACTIVITIES	35		606		1,957

 

DISTRIBUTION OF ASSETS

(unaudited)

 

		30 April 2010         %			31 October 2009            %
Equities:	Continental Europe	28.0			30.5
	North America	33.6			27.9
	Japan	2.7			3.6
	Asia Pacific	10.9			11.1
	Emerging Markets	22.0			21.9
Total equities		97.2			95.0
Bonds		-			1.2
Net liquid assets		2.8			3.8
Total assets (before deduction of bank loans)		100.0			100.0

 EDINBURGH WORLDWIDE INVESTMENT TRUST plc

PORTFOLIO AND EQUITY PERFORMANCE at 30 April 2010 (unaudited)
Name	Business	Value £'000	% of total assets	Performance†
				Absolute %	Relative%
Equities
Amazon.com	Online retailer	10,569	6.0	24.2	4.8
Petrobras	Oil exploration and production	10,039	5.7	(0.1)	(15.7)
Vale (or CVRD)	Mining	8,162	4.6	26.1	6.5
Atlas Copco	Industrial compressors and mining    equipment	7,259	4.1	29.9	9.6
Baidu	Chinese online search engine	6,798	3.9	97.5	66.7
Apple	Computing and media equipment	6,582	3.7	49.2	25.9
Google	Web-based search engine	5,341	3.0	5.5	(10.9)
Sandvik	Tools and mining equipment	5,122	2.9	36.7	15.4
Gazprom	Gas exploration and production	5,013	2.9	3.8	(12.4)
Banco Santander	Retail and commercial bank	4,714	2.7	(14.8)	(28.1)
Nintendo	Gaming consoles and software	4,714	2.7	43.8	21.4
First Solar	Designs and manufactures solar modules	4,614	2.6	26.7	6.9
Tencent	Internet service portal	4,587	2.6	28.3	8.3
Deere	Farm and construction machinery	4,548	2.6	42.6	20.3
Novozymes	Enzyme manufacturer	4,542	2.6	41.9	19.8
BYD	Battery technology and cars	4,105	2.3	5.3	(11.1)
L'Oréal	Personal Care	3,952	2.2	10.9	(6.4)
ABB	Power systems and automation	3,896	2.2	10.9	(6.4)
Whole Foods Market	Organic food stores	3,831	2.2	31.1	10.6
New Oriental Education   and Technology	English Language schools	3,715	2.1	44.1	21.6
Straumann	Dental implants	3,641	2.1	11.4	(5.9)
Flir Systems	Infra-red technology	3,640	2.1	4.6*	(2.7)*
PPR	Luxury brand conglomerate	3,560	2.0	32.4	11.7
Teva Pharmaceuticals	Generic drugs manufacturer	3,463	2.0	25.9	6.3
Housing Development  Finance Corporation	Indian mortgage provider	3,423	1.9	20.7	1.9
VCA Antech	Animal hospitals and veterinary  diagnostics	3,354	1.9	28.7	8.6
eBay	Internet auction	3,336	1.9	15.3	(2.7)
Intuitive Surgical	Surgical robots	2,993	1.7	27.0*	18.2*
Porsche	Luxury automobiles	2,882	1.6	(18.5)	(31.2)
SAP	Business software	2,816	1.6	14.2	(3.7)
Monsanto	Agricultural biotechnology	2,808	1.6	1.8	(14.1)
Li Ning	Chinese sportswear	2,802	1.6	52.1	28.4
Itau Unibanco	Brazilian retail and commercial bank	2,753	1.6	23.7	4.4
Iron Mountain	Document management services	2,753	1.6	11.1	(6.3)
Vestas Windsystems	Wind turbines	2,751	1.6	(7.4)	(21.8)
MedAssets	Medical software	2,731	1.6	15.3*	3.8*
ALL America Latina  Logistica	Brazilian railways	2,588	1.5	32.3	11.6
CFAO	African distribution	2,161	1.2	(8.5)*	(17.9)*
Hermès	Luxury goods	2,044	1.2	2.3	(13.7)
Berkshire Hathaway	Insurance	1,883	1.1	25.4	5.9
Inspur International	Software and computer services	281	0.2	(20.7)	(33.1)

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

PORTFOLIO AND EQUITY PERFORMANCE (Ctd) at 30 April 2010 (unaudited)
Name	Business	Value £'000	% of total assets
Total equities		170,766	97.2
Net liquid assets		4,840	2.8
Total Assets at Fair Value (before deduction of loan)		175,606	100.00

†    Absolute and relative performance has been calculated on a total return basis over the period 1 November 2009 to 30 April 2010. Absolute performance is in sterling terms; relative performance is against MSCI All Countries World Index (in sterling terms).

* Figures relate to part-period returns where the equity has been purchased during the period.

 

Source: Baillie Gifford & Co, StatPro

Past performance is not a guide to future performance.

 

 

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

1.	The condensed financial statements have been prepared on the basis of the same accounting policies as set out in the Company's Annual Financial Statements at 31 October 2009 and in accordance with the ASB's Statement 'Half-Yearly Financial Reports' and have not been audited or reviewed by the Auditors pursuant to the Auditing Practices Board Guidance on 'Review of Interim Financial Information'.  They have been prepared on the going concern basis as it is the Directors' opinion that the Company will continue in operational existence for the foreseeable future.
2.	The financial information contained within this half-yearly financial report comprises non-statutory accounts as defined in sections 434-436 of the Companies Act 2006. The financial information for the year ended 31 October 2009 has been extracted from the statutory accounts which have been filed with the Registrar of Companies and contain an unqualified Auditors' Report and do not contain a statement under sections 498(2) or (3) of the Companies Act 2006.
3.	Related Party Transactions - Baillie Gifford & Co are appointed as Managers and Secretaries. The management agreement is terminable on not less than three months' notice. The fee in respect of each quarter is 0.2% of the market value of the Company's shares on each valuation date. In addition, Baillie Gifford are entitled to a performance fee, calculated annually in arrears. The performance fee is based on any out-performance of the net asset value per share by comparison to the MSCI All Countries World Index (in sterling terms) and is calculated as a percentage of the market value of the Company. The fee is 5% of the out-performance between zero and 2%, and 10% of the out-performance thereafter. A relative high water mark with neither cap nor collar will apply. A performance fee could be payable in periods when the net asset value falls by a lesser rate than the comparative index.  No performance fee is payable for the six months to 30 April 2010 (30 April 2009 and 31 October 2009 - nil). In addition to the investment management fee, the Company also pays a secretarial fee to Baillie Gifford which is adjusted annually in line with the Retail Price Index.  The secretarial fee for the six months to 30 April 2010 was £36,000 (six months to 30 April 2009 - £36,000; year to 31 October 2009 - £72,000).
4.	Recoverable VAT - In 2007 the European Court of Justice ruled that investment trust management fees should be exempt from VAT. HMRC accepted the Managers' repayment claims for the periods from 2003 to 2007.  £257,000 of VAT together with £22,000 of interest was received by the Managers on behalf of the Company in respect of these periods and was recognised in the year to 31 October 2008. The Board is in discussion with the previous Managers, Aberdeen Asset Management, about the recovery of VAT suffered over the periods from 2001 to 2003.  The Board is satisfied that £57,000 is virtually certain to be recovered and has therefore recognised this amount in the current period. In accordance with AIC guidance, recoverable VAT has been allocated between revenue and capital on the same basis as the VAT expense was originally charged.
		Six months to 30 April  2010		Six months to 30 April  2009		Year to 31 October 2009
		£'000		£'000		£'000
5.	Net return per ordinary share
	Revenue return on ordinary activities after taxation	431		1,153		1,816
	Capital return on ordinary activities after taxation	26,502		18,904		41,062
	Total return	26,933		20,057		42,878
	Net return per ordinary share is based on the above totals of revenue and capital and on 49,004,319 ordinary shares, being the number of ordinary shares in issue during each period. There are no dilutive or potentially dilutive shares in issue.

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Ctd)

		Six months to 30 April  2010				Six months to 30 April  2009				Year to 31 October 2009
		£'000				£'000				£'000
6.	Dividends
	Amounts recognised as distributions in the period:
	Previous year's final dividend of 1.50p (2008 - 1.50p), paid 9 February 2010.	735				735				735
	Previous year's special dividend of 1.00p (2008 - 0.70p), paid 9 February 2010	490				343				343
	Interim dividend for the year ending 31 October 2009 paid 23 July 2009	-				-				245
		1,225				1,078				1,323
	Dividends paid and proposed in respect of the financial period:
	Interim dividend for the year ending 31 October 2010 of 0.50p (2009 - 0.50p)		245				245				245
	Final dividend (31 October 2009 - 1.50p)		-				-				735
	Special dividend (31 October 2009 -1.00p)		-				-				490
			245				245				1,470
	The interim dividend was declared after the period end date and has therefore not been included as a liability in the balance sheet.  It is payable on 22 July 2010 to shareholders on the register at the close of business on 25 June 2010.  The ex dividend date is 23 June 2010.  The registrars offer a dividend reinvestment plan.  The final date for the receipt of elections for the dividend reinvestment plan is 1 July 2010.
7.	Creditors include borrowings of £24,087,000 (30 April 2009 - £24,246,000 and 31 October 2009 - £23,501,000) drawn down in loans of US$9.1 million, ¥820 million, CHF10.5 million and €7 million); 30 April 2009 and 31 October 2009 - US$9.1million, ¥820 million, CHF 10.5 million and €7 million).  The loans are renewable monthly, with interest currently being paid at a rate linked to LIBOR (for the relevant currency). The loan facility expires on 1 July 2010. All borrowings are short term and are stated at fair value, which is considered to be equal to their par value.
8.	The Company has authority to buy back its ordinary shares.  In the six months to 30 April 2010 no ordinary shares were bought back therefore the Company's authority remains unchanged at 7,345,747 ordinary shares.
9.	During the period the Company incurred transaction costs on purchases of £15,000 (30 April 2009 - £7,000; 31 October 2009 - £23,000) and transaction costs on sales of £18,000 (30 April 2009 - £3,000; 31 October 2009 - £23,000).
10.	None of the views expressed in this document should be construed as advice to buy or sell a particular investment.
11.	Principal Risks and Uncertainties The principal risks facing the Company relate to the Company's investment activities. These risks are market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk. An explanation of these risks and how they are managed is contained in note 19 of the Company's Annual Report and Financial Statements for the year to 31 October 2009. The principal risks and uncertainties have not changed since the publication of the Annual Report which can be obtained free of charge from Baillie Gifford & Co: www.bailliegifford.com and is available on the Edinburgh Worldwide page of the Managers' website: www.edinburghworldwide.co.uk. Other risks facing the Company include the following: gearing risk (the use of borrowing can magnify the impact of falling markets), the risk that the discount can widen and regulatory risk (that the loss of investment trust status or a breach of the UKLA Listing Rules could have adverse financial consequences and cause reputational damage).
12.	The Half-Yearly Financial Report is available at www.edinburghworldwide.co.uk  and will be posted to shareholders on or around 11 June 2010.

 

END

 

 

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