No dividend at Edinburgh Worldwide Investment Trust as capital growth drive continues

Douglas Brodie

The performance stands favourably against comparative index, the S&P Global Small Cap Index’s total return, which increased by 0.1 per cent in sterling terms.

The trust, managed by asset managed by Baillie Gifford’s Doug Brodie, said its objective “remains that of generating capital growth” and “should the level of underlying income increase in future years, the board will seek to distribute the minimum permissible to maintain investment trust status”.

A number of the trust’s holdings contributed to the positive performance, notably online grocery company, Ocado, Wayfair, a US online furniture and homeware retailer, and STAAR Surgical, a US developer and manufacturer of visual implants.

As at the year end, the company held five unlisted investments accounting for 3.2 per cent of total assets (2017 – 2.1 per cent of total assets in three holdings).

As part of the business of the company’s AGM, the trust’s board said it is seeking shareholder approval to increase the permissible limit in unlisted investments, from 5 per cent of total assets at the time of initial investment at present, to 15 per cent.

It added that it is seeking shareholder approval at the company’s AGM to subdivide each existing ordinary share of 5p nominal value into five ordinary shares of 1p nominal value.