TIDMEWI
RNS Number : 4653N
Edinburgh Worldwide Inv Trust PLC
23 January 2023
RNS Announcement
Edinburgh Worldwide Investment Trust plc
Legal Entity Identifier: 213800JUA8RKIDDLH380
Results for the year to 31 October 2022
Regulated Information Classification: Additional regulated
information required to be disclosed under the applicable laws and
regulations.
The following is the results announcement for the year to 31
October 2022 which was approved by the Board on 20 January
2023.
3/4 Over the year to 31 October 2022, the Company's net asset
value ('NAV') per share, cum income with debt at fair value,
decreased by 40.3% and the share price by 46.0%. The comparative
index, the S&P Global Small Cap Index* total return, decreased
by 6.8% in sterling terms.
3/4 Over five years to 31 October 2022, the Company's NAV per
share, cum income with debt at fair value, increased by 37.5%, the
share price increased by 25.0% and the comparative index* increased
by 36.5%.
3/4 The Company's portfolio has been managed with a focus on the
opportunity set lower down the market capitalisation spectrum since
the end of January 2014. Since then to 31 October 2022, the
Company's NAV per share, cum income with debt at fair value,
increased by 127.3%, the share price increased by 114.2% and the
comparative index* increased by 132.9%.
3/4 The top detractors to performance over the year were Ocado,
an online grocery retailer and technology provider, Codexis, an
industrial and pharmaceutical enzyme developer, and Upwork, an
online freelancing and recruitment services platform. Among the top
contributors to performance over the year were Space Exploration
Technologies (SpaceX), which designs, manufactures and launches
advanced rockets and spacecraft, ShockWave Medical, a manufacturer
of medical devices, and Alnylam Pharmaceuticals, which develops
drugs focussed on harnessing gene silencing technology.
3/4 No final dividend is being paid. The Company's objective
remains that of generating capital growth. Should the level of
underlying income increase in future years, the Board will seek to
distribute the minimum permissible to maintain investment trust
status.
3/4 Over the course of the financial year, 550,000 new shares
were issued and 13,468,672 shares were bought back for
treasury.
3/4 Invested equity gearing stood at +12.3% of shareholders'
funds at the financial year end (2021 - +2.5%).
3/4 As at the year end, the Company held fourteen private
companies accounting for 20.1% of total assets (2021 - 10.8% of
total assets in twelve companies). In a year in which shareholders
approved a limit of 25% of total assets in unlisted investments,
measured at time of investment, we added to two existing private
company holdings, initiated three new positions and a private
company holding listed and is still held.
3/4 Despite a stock market that is increasingly impatient and
where the supply of capital is restricted, the fundamental
opportunity for innovation and tech-led progress are strong. The
Board and Managers are of the view that across numerous frontiers
entrepreneurs and innovative companies are building solutions that
will likely transform societal expectations. These frontiers span a
seismic shift in what we can anticipate in diverse areas such as
healthcare, communications, computing and how businesses function.
The rewards to the brave and patient investor look increasingly
attractive.
* Source: Refinitive and relevant underlying index providers.
See disclaimer at the end of this announcement.
For a definition of terms see Glossary of Terms and Alternative
Performance Measures at the end of this announcement.
Edinburgh Worldwide's objective is the achievement of long term
capital growth by investing primarily in listed companies
throughout the world. The Trust has total assets of GBP879.4
million (before deduction of loans of GBP103.8 million) as at 31
October 2022.
Edinburgh Worldwide is managed by Baillie Gifford & Co
Limited, the Edinburgh based fund management group with over GBP235
billion under management and advice as at 19 January 2022.
Past performance is not a guide to future performance.
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 stock markets
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 edinburghworldwide.co.uk
(++)
(++) Neither the contents of the Managers' website nor the
contents of any website accessible from hyperlinks on the Managers'
website (or any other website) is incorporated into, or forms part
of, this announcement.
23 January 2023
For further information please contact:
Anzelm Cydzik, Baillie Gifford & Co
Tel: 0131 275 2000
Jonathan Atkins, Director, Four Communications
Tel: 0203 920 0555 or 07872 495396
Chairman's Statement
Performance
In the year to 31 October 2022, the Company's net asset value
('NAV') per share, when calculated by deducting borrowings at fair
value, decreased by 40.3% and the share price by 46.0%, both in
total return terms. The comparative index, the S&P Global Small
Cap Index* total return, decreased by 6.8% in sterling terms during
this period. The Company's share price discount/premium to NAV
ranged between a 20.1% discount and a 5.5% premium, averaging a
discount of 9.9%, and ended the period at a 12.7% discount.
Portfolio turnover was 10.8% compared to 7.1% for the Company's
financial year to 31 October 2021 and the ongoing charge has
decreased to 0.63%.
Whilst disappointing, this set of results should be assessed in
the context of the longer term performance, in particular the
general volatility experienced during and after the Covid pandemic.
The table below shows the very strong outperformance by the Company
during the year to 31 October 2020 when it became clear that
several of the Company's investments were well-positioned to help
address many of the challenges posed by the Covid pandemic.
Conversely there was significant underperformance in the year to 31
October 2022 as markets focussed on the potential negative
implications of higher interest rates for 'growth stocks'; leading
to a shift into 'value stocks'.
Year to
31.10.18 31.10.19 31.10.20 31.10.21 31.10.22
===================== ======== ======== ========= ======== ========
NAV * 14.9% 7.4% 57.8% 18.3% (40.3%)
S&P Global Small Cap
Index * 0.1% 7.2% 0.4% 35.9% (6.8%)
===================== ======== ======== ========= ======== ========
The Company's portfolio has been managed with a focus on the
opportunity set lower down the market capitalisation spectrum since
the end of January 2014. The Board remains committed to this and
the Managers' approach of investing with a five year plus
investment horizon in innovative entrepreneurial immature growth
businesses that display the characteristics for being much larger
companies in the future, which typically are at the forefront of
technology and/or disrupting traditional business models
irrespective of sector or industry.
Being able to survive turbulent times is crucial for all
businesses and the portfolio managers have been buoyed following a
number of positive company meetings with management teams. It is
reassuring to note that the majority of companies in the portfolio
are financially secure over the near term and that c.61% of the
Company's listed portfolio has positive earnings or positive cash
flow. The aggregate operational performance of the portfolio has
been sound, with many of the holdings growing at attractive rates.
As outlined in the Managers' Report, the portfolio managers have
put capital to work in a number of new and existing names following
the derating of growth companies, many of which now trade at
attractive depressed valuations.
Among the top contributors to performance over the year were
Space Exploration Technologies (SpaceX), which designs,
manufactures and launches advanced rockets and spacecraft,
ShockWave Medical, a manufacturer of medical devices, and Alnylam
Pharmaceuticals, which develops drugs focussed on harnessing gene
silencing technology. The top detractors to performance over the
year were Ocado, an online grocery retailer and technology
provider, Codexis, an industrial and pharmaceutical enzyme
developer, and Upwork, an online freelancing and recruitment
services platform. The Managers' Report below provides further
background on the investments.
As mentioned, the Company's portfolio has been managed with a
focus on the opportunity set lower down the market capitalisation
spectrum since the end of January 2014. The chart below shows the
distribution of returns for all the stocks held within the
portfolio since then; each bar representing the return of each
stock whilst held in the portfolio. This cumulative period holding
analysis shows the broad distribution of returns achieved by the
holdings from time of initial purchase to 31 October 2022 or the
date in which the holding was fully sold from the portfolio.
http://www.rns-pdf.londonstockexchange.com/rns/4653N_1-2023-1-20.pdf
Share Buybacks, Treasury and Issuance
Over the course of the last financial year, 550,000 new shares
were issued, at a premium to the Company's NAV per share, raising
proceeds of GBP1.7 million. The Company also bought back 13,468,672
shares for treasury, at a discount to the Company's NAV per share,
at a cost of GBP25.3 million. On a net basis, this resulted in the
Company's issued share capital reducing by 3.2%.
The Company will once again be seeking to renew its share
buyback, issuance and treasury share authorities. The buyback
facility is sought to allow the Company to buy back its own shares
when the discount is substantial in absolute terms and relative to
its peers. Issuance, either from treasury or of new shares, will
only be undertaken at a premium to the prevailing NAV, with debt
calculated at par, in order to satisfy natural market demand.
Unlisted Investments
At last year's Annual General Meeting, shareholders approved an
increase in the permissible limit of investment in unlisted
investments from 15% to 25% of total assets, measured at the time
of initial investment.
As at the Company's year end, the portfolio weighting in private
companies stood at 20.1% of total assets, invested in fourteen
companies (2021 - 10.8% of total assets in twelve companies). Three
new private company investments were made during the year:
BillionToOne, a precision molecular diagnostics company, DNA
Script, a synthetic biology company specialising in synthetic DNA
and oligos, and Echodyne, a metamaterial radar sensors and software
company. Akili Interactive Labs, a digital medicine company, which
listed on Nasdaq in August 2022 following its merger with Social
Capital Suvretta Holdings Corp is still held in the portfolio.
The Board and Managers remain of the view that private companies
are becoming an increasingly relevant part of the Company's
objective and, as highlighted in my statement last year, the Board
will keep the matter of the weighting to unlisted investments under
review. Details on the process and quantum of valuations of the
portfolio's private company holdings undertaken, over the course of
the financial year, can be found immediately after the Managers'
Review.
Borrowings
The extent and range of equity gearing is discussed by the Board
and Managers at each Board meeting. Both parties agree that the
Company should typically be geared to equities to maximise
potential returns, with the current aspirational parameters set at
+5% to +15% of shareholders' funds. Over the year, the invested
equity gearing ranged between +2.4% and +13.1%, and stood at +12.3%
of shareholders' funds at the financial year end (2021 -+2.5%).
At present, the Company has a five year GBP100 million multi-
currency revolving credit facility, with The Royal Bank of Scotland
International Limited, with an expiry date of 9 June 2026. In
addition, a five year GBP25 million multi-currency revolving credit
facility, with National Australia Bank Limited, with an expiry date
of 29 June 2023 and a five year GBP36 million multi-currency
revolving credit facility, with National Australia Bank Limited,
with an expiry date of 30 September 2024. As at 31 October 2022,
the Company had drawings of EUR10,600,000, US$77,150,000 and
GBP27,720,000.
Earnings and Dividend
The Company's objective is that of generating capital growth and
investors should not expect any income from this investment.
This year the net revenue return per share was a negative 0.49p
per share (2021 - negative 0.62p per share). As the revenue account
is running at a deficit, no final dividend is being recommended by
the Board. Should the level of underlying income increase in future
years, the Board will seek to distribute to shareholders the
minimum permissible to maintain investment trust status by way of a
final dividend.
Board Composition
Mr Donald Cameron has confirmed that he will not be standing for
re-election to the Board at the Company's Annual General Meeting
('AGM') taking place on 7 March 2023. I would like to place on
record my and the Board's thanks for his effective Chairing of the
Audit and Management Engagement Committee and for his contribution
to Company discussions. I'm pleased to report that during the year
the Company announced two new appointments to the Board, Ms Jane
McCracken, with effect from 1 November 2022, and Dr Mary Gunn, with
effect from 1 March 2023. Both appointments fall to be ratified by
shareholders as part of the 7 March 2023 AGM business.
Jane has spent her career working with high growth technology
businesses based in the USA and UK as an entrepreneur, equity
investor, board member and advisor. Mary is a scientist, lawyer and
C-level executive in life science companies. Further information on
their respective backgrounds can be found on page 28 of the Annual
Report and Financial Statements.
Investment Outlook
The past year has been marked by notable market volatility,
arising from a number of factors, and it is unlikely that there
will be an easing of the challenging economic and political
backdrop in the immediate future. Business confidence and
consumption are likely to remain muted against a backdrop of
inflationary pressure, despite the best efforts of some Central
Banks and governments to keep it in check. The effects of a
slowdown in Chinese economic activity are also being felt, although
ironically this is likely to be a deflationary influence for
certain industries and sectors.
Whilst markets exhibit volatility, the investment trust
structure permits the portfolio managers and discerning long-term
investors to take positions in exciting, dynamic and innovative
companies for the long term. Companies that can enhance
productivity or deliver cost and/or productivity efficiency, should
be amongst those able to navigate through the current turbulence;
many of these are currently immature but with a scalable business
model and ambitious management teams with a vision and desire to
succeed.
An overview of the Company's portfolio is provided in the
Managers' Review below.
Annual General Meeting
The Company's next Annual General Meeting ('AGM') will be held
in person at Baillie Gifford's offices in Edinburgh at 12 noon on
Tuesday 7 March 2023. The portfolio managers will be presenting and
I and the Board look forward to seeing as many of you there as
possible.
Should the situation change and it not be possible to meet in
person, further information will be made available through the
Company's website at edinburghworldwide.co.uk and the London Stock
Exchange regulatory news service. Further information, including
the proposed resolutions and information on the deadlines for
submitting votes by proxy should you not be able to attend, can be
found on pages 69 to 71 of the Annual Report and Financial
Statements. Shareholders who hold shares in their own name on the
main register will be provided with a Form of Proxy and there are
also special arrangements for holders of shares through the abrdn
Investment Trusts Share Plan, Individual Savings Account and
Investment Plan for Children who are provided with a Form of
Direction.
If you hold shares through a share platform or other nominee,
the Board would encourage you to contact these organisations
directly as soon as possible to arrange for you to submit votes in
advance of the AGM.
Henry CT Strutt Chairman
20 January 2023
* Source: Refinitiv and relevant underlying index providers. See
disclaimer at the end of this announcement.
For a definition of terms see Glossary of Terms and Alternative
Performance Measures at the end of this announcement
Past performance is not a guide to future performance.
Managers' Review
Investing involves both respecting those things that are
constants and navigating the many variables. To the mathematically
orientated this might suggest it can be distilled down to a simple
equation with neat outputs and defined probabilities. But the
repeating pattern of investment return over any sensible time
period is that such an algebraic approach is a fallacy - the path
of equity markets over the past ten years is testament to this.
The global Covid pandemic and conflict in Europe are recent
arrivals into the mix of variables that investors have had to
navigate, and they have complicated the landscape considerably.
Their unpredictable nature brings with them a host of second order
variables straddling supply chain and labour force challenges
through to an emerging tussle for a new world order. A decade of
low interest rates was mistaken by many as a quasi-constant that
has now returned as a dynamic variable as central banks wrestle
with high inflation.
The temptation is often to view the individual challenges
discussed above as isolated discrete events, but we think there is
an underlying connection. Not in a conspiratorial sense but one
which highlights that instability in a system tends to create
instability elsewhere with rippling out effects.
This instability will ultimately pass but it is sculpting a new
investment backdrop, one where capital is less freely available,
the hurdle rate for returns is higher and the tolerance of
uncertainty is lower. As discussed in the Interim Report, this
adjustment phase is shortening the time horizon of many investors
and lulling them into a mindset where the near-term resiliency of
what they invest in is viewed with higher priority than its
long-term relevance.
For an investment strategy such as that pursued by Edinburgh
Worldwide, this adjustment in the backdrop has been painful. We are
unashamedly long-term growth focused investors; we respect
resilience in our holdings but what excites us is their relevance
and long-term impact. By pointing our analytical focus lower down
the market capitalisation spectrum, we seek to identify high
potential growth businesses when they are early in their lifecycle
and benefit from the compounding of long-term growth off a low
base. Past investments in businesses such as Tesla and Dexcom
clearly illustrate the potential returns available through such an
approach.
We pursue a growth focus as we believe it aligns with the
overarching constant in equity investing of long-term progress
being driven by innovation and adoption of technology. While the
mix of technologies is always evolving and compounding, it is
underwritten by another non-numerical constant, that of human
ingenuity and the ability to innovate solutions to problems.
The whims of a stock market can come and go but the legacy of
innovation remains and is all around us. We think the fundamental
opportunity for innovation and tech-led progress are as strong as
we have seen. Across numerous frontiers we see entrepreneurs and
innovative companies building solutions that we think will
transform what society can expect. These frontiers span a seismic
shift in what we can anticipate in diverse areas such as
healthcare, communications, computing and how businesses function.
While many of these advances are likely to appear in a five to ten
year time frame, we are equally excited about the possibilities
that sit beyond this.
Although our enthusiasm for what the future offers is
undiminished, the share price performance of many of the holdings
in the portfolio has been sharply impacted by the changing backdrop
discussed above. For many of the companies held, this feels a
largely mechanical based valuation reset as interest rates have
risen and consequently their future cashflows are deemed to be
worth less. More recently, this has been exacerbated as stock
markets have begun to price in lower economic growth
assumptions.
Our bottom-up, growth-orientated investment style will always
leave us at the mercy of fear-driven market sell offs. Simply put,
the current areas of angst (volatility in interest rates and
economic cyclicality) are not inputs that we think carry much
insight when performing long term analysis on a company. Our
analysis skews heavily to understanding how the operations of a
business might perform over the 10+ year timeframe. For most
businesses, and especially younger/smaller ones, that path will be
most heavily influenced by both the decision that a company takes
and how its industry evolves. We don't seek to duck the topic of
valuation, far from it. Rather, we seek to project where a business
might get to and what it might be worth at that point. The real
unlock in achieving that is not the immediate finessing of complex
valuation spreadsheets but it's the passage of time and the
delivery of real tangible progress by the companies themselves. In
a stock market that is increasingly impatient, we think the rewards
to the brave and patient look increasingly attractive.
The decade long era of abundant and overly cheap capital has run
its course. The premium placed on stable long-term capital will be
higher. As the pendulum of power is shifting from the users of
capital towards the providers of capital, we think the relevance of
Edinburgh Worldwide's structure and philosophy will, once again,
come to the fore. A transition period is just that.
With the technology-led opportunity plentiful, yet the supply of
capital restricted, we see greater opportunity for our analysis to
actively focus on companies that are in a capital consumptive phase
of growth.
Portfolio update
With international travel now largely restored, we have embraced
the opportunity to check-in in person with many of the holdings and
further develop new ideas that intrigue us. Video conferencing
aided hugely in the pandemic environment but it skewed management
interactions towards a transactional exchange of information. By
meeting companies on their own turf, the narrative brings more
colour to aspects of long-term strategy, opportunity and threats.
These conversations have emboldened our belief that many of the
businesses held are in a unique position to radically transform
their industries.
The backdrop of instability discussed earlier is widely expected
to lead to a near term recessionary environment and a muted outlook
for economic growth in the medium term. No equity portfolio can
claim to be devoid of economic cyclicality, but our impression is
that the portfolio's exposure to highly discretionary consumer or
business spending is modest. Moreover, we believe that it's the
structural drivers of market adoption and disruption which are
usually the most significant determinants of a holding's growth
trajectory. The biggest determinants here will be how a company's
product/service offering stacks up against alternatives and
consequently we aspire for our holdings to rank well on a 'better
and cheaper' axis.
Many of the holdings have posted negative returns over the past
year but the most acute impact of this on performance came from
some of the portfolio's larger positions in companies such as
Ocado, Codexis and Upwork. These companies are active in very
different business activities, but they do share a commonality of
being early enthusiasts of rewiring their respective industries
alongside having a degree of discretionary spend attached to how
their products/services are used. We see undiminished potential for
these companies and have been content with how they continue to
navigate a challenging environment. In the case of Ocado, we also
note that, following Edinburgh Worldwide's year end, it has
announced a sizable partnership with the leading grocery chain in
South Korea indicating that forward-thinking grocers are still very
much looking to a more automated future.
For a small minority of holdings such as Teladoc and Wayfair,
the scars of the pandemic are still to properly heal. But for
others, such as Chegg and Zillow, we are pleased to see some of the
distortions to business washing through.
Progress in some of our most innovative healthcare companies has
been robust and clearly indicates how removed underlying business
progress can be from the market's current angst. The long standing
holding Alnylam Pharmaceutical, the leading gene silencing company,
had a successful readout on its high-profile phase 3 clinical trial
in TTR-mediated cardiomyopathy. While the RNAi drug in this trial
is the same as Alnylam Pharmaceutical's existing approved drug for
polyneuropathy, the opportunity is greater in the cardiac setting
given a larger and sicker patient population. Stepping back from
the detail, this progress reflects Alnylam's ongoing move from rare
inherited diseases into much bigger aspects of chronic medical
need. In this regard, we look forward to upcoming clinical trial
data in disease areas such as Alzheimer's, Fatty Liver disease,
Diabetes and Hypertension.
Other notable contributors throughout the year included
ShockWave Medical, where adoption of its calcium cracking
technology in arterial plaque removal has been very strong, and
Genmab, where its lead drug Daratumumab for Multiple Myeloma is
migrating towards a hoped for standard of care and as excitement
grows around the company's novel antibody pipeline.
The private market has continued to be a source of promising
opportunities, and Edinburgh Worldwide's private company holdings
have been making steady progress despite the volatility in
financial markets. SpaceX has been pivotal in keeping Ukraine's
population online this last year and is now on the cusp of
launching the most powerful rocket in history. Growing interest in
radiopharmaceuticals and nuclear power has increased the relevance
of SHINE Technologies' manufacturing solutions. Relativity Space
recently unveiled a transformational 3D printer, capable of
horizontally printing huge metal objects up to 120 feet long and 24
feet wide.
We reported on six new holdings in the Interim Report to the end
of April 2022 and we detail below a further six names (five listed
businesses and one private) purchased over the subsequent six
months, funded in part through the use of bank borrowings.
Beam Therapeutics is a biotechnology company focused on
precision genetic medicine, specifically the correction of harmful
inherited mutations. Through pioneering the use of a heavily
adapted form of the CrispR DNA editing system, Beam can precisely
and reproducibly switch an individual targeted base in a genome.
With around 60% of genes associated with disease being related to a
single base pair change there is ample scope to take this system
into the clinic. Moreover, the use of this technology in a genetic
'optimise' versus 'fix' manner could take it into areas where other
editing technologies would struggle.
Fiverr is an Israeli-based freelancing platform. We are
intrigued by the company's efforts to convert knowledge-based work
into packages that are easy for companies to purchase. This is
known as 'service as a product'. In this way, Fiverr is offering
companies access to globally outsourced task-based solutions and
provides an avenue for a global talent pool to seamlessly access
work. As the world of knowledge work transforms through digital
access and deliverance, we believe Fiverr's platform will have a
secular appeal, particularly to SMEs, and as a result drive revenue
growth in what is an eminently scalable business model.
Twist Biosciences is a leading provider of synthetic DNA for a
variety of uses in research, medical and industrial applications.
The DNA 'writing' market is at a much earlier stage than the DNA
sequencing market, but Twist has built an enviable position as the
provider of choice. Through emphasising efficiency and parallel
production, Twist has built an offering with market leading price
points and rapid-turnaround times. While Twist primarily operates
as a supplier of DNA-derived reagents to its customers, we are
intrigued by the company's efforts to move into more value-added
end applications. Albeit early, the recent moves into generating
optimised antibodies for bio-pharma industry are an interesting
example of such activity.
Doximity is a US software company that produces tools for
doctors to improve their medical awareness, streamline workflow and
increase productivity. Doximity has created free-to-use products
within a social network of doctors that allows them to communicate
better with patients and colleagues and to access information more
efficiently. This is monetised by selling hyper-targeted,
unobtrusive advertising to pharmaceutical companies. The
pharmaceutical industry spends only c.20% of marketing budgets on
digital, compared to c.80% for Fortune 100 companies. The
inefficiencies of the current in-person sales reps present a
remarkable opportunity to disrupt the pharma marketing model whilst
also improving access to the best drugs for patients. With a user
base consisting of c.80% of all US Doctors and c.90% of US Medical
students, we feel Doximity is well positioned to become the
dominant player in the space and its critical mass offers
additional routes for monetisation.
Echodyne is a private US company that uses metamaterial
technology to produce high-performance radar systems at affordable
price points. This is a disruptive proposition for the sensing
market, making it practical to employ more advanced capabilities in
a range of existing and new defence, security and autonomous
machine applications. The company has early demand from leading US
organisations and is set to expand its reach and product set
further.
TransMedics is a medical technology company which has developed
and sells a proprietary system which is used in the transportation
of donated organs from donors to recipients. The system mimics the
conditions of the human body and perfuses the donated organs with
nutrient rich oxygenated blood, minimising damage due to oxygen
deprivation. This substantially reduces the waste associated with
the current standard 'cold- box' approach to transportation. What
intrigues us even more is the potential of the technology to unlock
the use of organs after circulatory death, which would meaningfully
increase the supply of organs available for transplant. At present
the company has a regulatory approval for its system for lung,
liver and heart.
We exited 15 positions over the year, the most notable of which
were Tesla, Seek and iRobot (the complete sale of Galapagos was
completed shortly after the period end). In selling Tesla we have
closed out one of the most successful investments in the portfolio.
We remain fans of the business and the broader adoption of electric
vehicles. Our concerns were related to how much of the growth,
market share gains and superior margin potential were reflected in
the Tesla share price. With numerous holdings elsewhere in the
portfolio which we felt were earlier in their lifecycle and with
greater valuation upside, we sought to recycle capital.
Valuing Private Companies
We aim to hold our private company investments at 'fair value',
i.e. the price that would be paid in an open-market transaction.
Valuations are adjusted both during regular valuation cycles and on
an ad hoc basis in response to 'trigger events'. Our valuation
process ensures that private companies are valued in both a fair
and timely manner.
The valuation process is overseen by a valuations committee at
Baillie Gifford which takes advice from an independent third party
(S&P Global). The valuations committee is independent from the
portfolio managers as well as Baillie Gifford's Private Companies
Specialist team, with all voting members being from different
operational areas of the firm, and the portfolio managers only
receive final valuation notifications once they have been
applied.
We revalue the private holdings on a three-month rolling cycle,
with one-third of the holdings reassessed each month. For Edinburgh
Worldwide, and our investment trusts, the prices are also reviewed
twice per year by the respective boards and are subject to the
scrutiny of external auditors in the annual audit process.
Recent market volatility has meant that recent pricing has moved
much more frequently than would have been the case with the
quarterly valuations cycle.
Beyond the regular cycle, the valuations committee also monitors
the portfolio for certain 'trigger events'. These may include
changes in fundamentals, a takeover approach, an intention to carry
out an Initial Public Offering ('IPO'), company news which is
identified by the valuation team or by the portfolio managers, or
changes to the valuation of comparable public companies.
The valuations committee also monitors relevant market indices
on a weekly basis and update valuations in a manner consistent with
our external valuer's (S&P Global) most recent valuation report
where appropriate. When market volatility is particularly
pronounced the team undertakes these checks daily. Any ad hoc
change to the fair valuation of any holding is implemented swiftly
and reflected in the next published net asset value. There is no
delay.
Edinburgh Worldwide Investment Trust*
====================================== =====
Instruments valued 24
Revaluations performed 124
Percentage of portfolio revalued
4+ times 87.5%
Percentage of portfolio revalued
6+ times 37.5%
====================================== =====
* Data reflecting period 1 November 2021 to 31 October 2022 to
align with the Company's reporting period end.
Year to date, most revaluations have been decreases. The average
movement in both valuation and share price for those which have
decreased in value is shown below.
Average movement Average movement
in investee company in investee company
valuation share price
==================== ==================== ====================
Instruments valued* (26.5%) (35.4%)
==================== ==================== ====================
* Data reflecting period 1 November 2021 to 31 October 2022 to
align with the Company's reporting period end.
Share prices have decreased more than headline valuations,
because Edinburgh Worldwide typically holds preference stock, which
provides some downside protection.
Four companies have raised capital at an increased valuation
reflecting exceptional performance.
The share price movement reflects a probability-weighted average
of both the regular valuation, which would be realised in an IPO,
and the downside protected valuation, which would normally be
triggered in the event of a corporate sale or liquidation.
The following chart quantifies the movements over the year
influencing the fair value of the private company investments at 31
October 2022.
http://www.rns-pdf.londonstockexchange.com/rns/4653N_2-2023-1-20.pdf
Investment Philosophy
Most small businesses are destined to stay small given their
limited scope for both structural growth and meaningful
differentiation.Such businesses constitute the bulk of the smaller
companies' universe yet are of no appeal to us. However, what is
intriguing about the smaller companies' universe is that it
contains a subset of immature but potentially high growth
companies. By identifying attractive growth companies earlier we
seek to benefit from growth at an earlier stage in a company's
lifecycle and retain ownership of successful companies as they grow
and thrive; we see our role as investing in what are potentially
the larger companies of the future as opposed to the smaller
companies of today.
We are looking to concentrate on the part of the market where we
believe our analytical effort and the pursuit of genuinely
transformational growth can be better exploited. The focus at time
of initial investment is on younger, more immature companies that
are global and exhibiting strong growth.
It is important to remember that big successful ideas typically
start out as small, tentative and unproven. Early iterations are
easy to dismiss as unworkable but experimentation with, and
evolution of, an initially raw concept can, over time, yield huge
commercial relevance. Our philosophy involves weighing up what is
proven and tangible alongside what has promise and long term
potential. Integral to this approach is recognising the role of
innovation in business development; it provides the fuel for
business creation, growth and long term competitive
differentiation. Consequently, identifying companies that value
innovation, having both a cultural acceptance of it and a means to
develop commercial opportunities around it, is fundamental to our
investment approach.
Growth companies, especially those which are young and hard to
model, are difficult businesses to value. The wide range of
potential outcomes and profitability that is heavily skewed to
future years is a combination of uncertainties that many investors
struggle with. We do not have all the answers but by approaching
the challenge with a genuine long term perspective, accepting a
degree of uncertainty, backing robust innovation and
entrepreneurial management, we believe we are well positioned to
identify the smaller businesses most likely to shape the world in
which we live. As technological advancements encroach into an
increasing pool of opportunity, the rate and extent of growth that
a small business can achieve, in a relatively short period of time,
is almost unrecognisable to that of a few years ago. Innovative
smaller businesses that are unburdened by the legacy of historic
business practices, or those willing to adapt to change, are best
positioned to harness this opportunity.
Baillie Gifford Statement on Stewardship
Baillie Gifford's over-arching ethos is that we are 'actual'
investors. We have a responsibility to behave as supportive and
constructively engaged long-term investors. We invest in companies
at different stages in their evolution, across vastly different
industries and geographies and we celebrate their uniqueness.
Consequently, we are wary of prescriptive policies and rules,
believing that these often run counter to thoughtful and beneficial
corporate stewardship. Our approach favours a small number of
simple principles which help shape our interactions with
companies.
Our Stewardship Principles
Prioritisation of Long-Term Value Creation
We encourage our holdings to be ambitious and focus their
investments on long-term value creation. We understand that it is
easy to be influenced by short-sighted demands for profit
maximisation but believe these often lead to sub-optimal long-term
outcomes. We regard it as our responsibility to steer holdings away
from destructive financial engineering towards activities that
create genuine economic and stakeholder value over the long run. We
are happy that our value will often be in supporting management
when others don't.
A Constructive and Purposeful Board
We believe that boards play a key role in supporting corporate
success and representing the interests of all capital providers.
There is no fixed formula, but it is our expectation that boards
have the resources, information, cognitive and experiential
diversity they need to fulfil these responsibilities. We believe
that good governance works best when there are diverse skillsets
and perspectives, paired with an inclusive culture and strong
independent representation able to assist, advise and
constructively challenge the thinking of management.
Long-Term Focused Remuneration with Stretching Targets
We look for remuneration policies that are simple, transparent
and reward superior strategic and operational endeavour. We believe
incentive schemes can be important in driving behaviour, and we
encourage policies which create genuine long-term alignment with
external capital providers. We are accepting of significant payouts
to executives if these are commensurate with outstanding long-run
value creation, but plans should not reward mediocre outcomes. We
think that performance hurdles should be skewed towards long-term
results and that remuneration plans should be subject to
shareholder approval.
Fair Treatment of Stakeholders
We believe it is in the long-term interests of all enterprises
to maintain strong relationships with all stakeholders - employees,
customers, suppliers, regulators and the communities they exist
within. We do not believe in one-size-fits-all policies and
recognise that operating policies, governance and ownership
structures may need to vary according to circumstance. Nonetheless,
we believe the principles of fairness, transparency and respect
should be prioritised at all times.
Sustainable Business Practices
We believe an entity's long-term success is dependent on
maintaining its social licence to operate and look for holdings to
work within the spirit and not just the letter of the laws and
regulations that govern them. We expect all holdings to consider
how their actions impact society, both directly and indirectly, and
encourage the development of thoughtful environmental practices and
'net-zero' aligned climate strategies as a matter of priority.
Climate change, environmental impact, social inclusion, tax and
fair treatment of employees should be addressed at board level,
with appropriately stretching policies and targets focused on the
relevant material dimensions. Boards and senior management should
understand, regularly review and disclose information relevant to
such targets publicly, alongside plans for ongoing improvement.
Income Statement
For the year ended 31 October
2022 2022 2022 2021 2021 2021
Revenue Capital Total Revenue Capital Total
Notes GBP'000 GBP'000 GBP000 GBP'000 GBP'000 GBP'000
============================== ===== ======== ========= ========= ======== ======== ========
(Losses)/gains on investments - (528,279) (528,279) - 178,323 178,323
Currency losses - (6,070) (6,070) - (1,631) (1,631)
Income 2 986 - 986 827 - 827
Investment management
fee (1,277) (3,830) (5,107) (1,952) (5,857) (7,809)
Other administrative
expenses (953) - (953) (907) - (907)
============================== ===== ======== ========= ========= ======== ======== ========
Net return before
finance costs
and taxation (1,244) (538,179) (539,423) (2,032) 170,835 168,803
============================== ===== ======== ========= ========= ======== ======== ========
Finance costs of borrowings (675) (2,026) (2,701) (340) (1,019) (1,359)
============================== ===== ======== ========= ========= ======== ======== ========
Net return before
taxation (1,919) (540,205) (542,124) (2,372) 169,816 167,444
============================== ===== ======== ========= ========= ======== ======== ========
Tax (57) - (57) (50) - (50)
============================== ===== ======== ========= ========= ======== ======== ========
Net return after taxation (1,976) (540,205) (542,181) (2,422) 169,816 167,394
============================== ===== ======== ========= ========= ======== ======== ========
Net return per ordinary
share 4 (0.49p) (134.82p) (135.31p) (0.62p) 43.37p 42.75p
============================== ===== ======== ========= ========= ======== ======== ========
The total column of this Statement represents the profit and
loss account of the Company. The supplementary revenue and capital
columns are prepared under guidance published by the Association of
Investment Companies.
All revenue and capital items in this Statement derive from
continuing operations.
A Statement of Comprehensive Income is not required as the
Company does not have any other comprehensive income and the net
return after taxation is both the profit and comprehensive income
for the year.
Balance Sheet
As at 31 October
2022 2022 2021 2021
Notes GBP'000 GBP'000 GBP'000 GBP'000
======================================= ===== ========= =========== ======== ===========
Fixed assets
Investments held at fair value through
profit or loss 6 872,804 1,376,365
======================================= ===== ========= =========== ======== ===========
Current assets
Debtors 4,882 322
Cash and cash equivalents 11,131 33,127
======================================= ===== ========= =========== ======== ===========
16,013 33,449
======================================= ===== ========= =========== ======== ===========
Creditors
Amounts falling due within one year 8 (113,251) (68,459)
======================================= ===== ========= =========== ======== ===========
Net current liabilities (97,238) (35,010)
======================================= ===== ========= =========== ======== ===========
Net assets 775,566 1,341,355
======================================= ===== ========= =========== ======== ===========
Capital and reserves
Share capital 4,058 4,052
Share premium account 499,723 497,999
Special reserve 35,220 35,220
Capital reserve 242,654 808,197
Revenue reserve (6,089) (4,113)
======================================= ===== ========= =========== ======== ===========
Shareholders' funds 775,566 1,341,355
======================================= ===== ========= =========== ======== ===========
Net asset value per ordinary share 197.70p 331.03p
======================================= ===== ========= =========== ======== ===========
Ordinary shares in issue 9 392,285,023 405,203,695
======================================= ===== ========= =========== ======== ===========
Statement of Changes in Equity
For the year ended 31 October 2022
Share
Share premium Special Capital Revenue Shareholders'
capital account reserve Reserve* reserve funds
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
========================== ===== ======== ======== ======== ========= ======== =============
Shareholders' funds at
1 November 2021 4,052 497,999 35,220 808,197 (4,113) 1,341,355
Ordinary shares issued 9 6 1,724 - - - 1,730
Ordinary shares bought
back into treasury - - - (25,338) - (25,338)
Net return after taxation - - - (540,205) (1,976) (542,181)
========================== ===== ======== ======== ======== ========= ======== =============
Shareholders' funds at
31 October 2022 4,058 499,723 35,220 242,654 (6,089) 775,566
========================== ===== ======== ======== ======== ========= ======== =============
For the year ended 31 October 2021
Share
Share premium Special Capital Revenue Shareholders'
capital account reserve Reserve* reserve funds
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP000
========================== ===== ======== ======== ======== ========= ======== =============
Shareholders' funds at
1 November 2020 3,543 316,281 35,220 638,381 (1,691) 991,734
Ordinary shares issued 9 509 181,718 - - - 182,227
Net return after taxation - - - 169,816 (2,422) 167,394
========================== ===== ======== ======== ======== ========= ======== =============
Shareholders' funds at
31 October 2021 4,052 497,999 35,220 808,197 (4,113) 1,341,355
========================== ===== ======== ======== ======== ========= ======== =============
* The capital reserve balance as at 31 October 2022 includes
investment holding losses on fixed asset investments of
GBP3,223,000 (2021 - gains of GBP591,196,000).
Cash Flow Statement
For the year ended 31 October
2022 2022 2021 2021
Notes GBP'000 GBP'000 GBP'000 GBP'000
=========================================== ===== ========= ========= ========= =========
Cash flows from operating activities
Net return before taxation (542,124) 167,444
Net losses/(gains) on investments 528,279 (178,323)
Currency losses 6,070 1,631
Finance costs of borrowings 2,701 1,359
Overseas withholding tax incurred (57) (50)
Changes in debtors and creditors (754) 416
=========================================== ===== ========= ========= ========= =========
Cash from operations * (5,885) (7,523)
Interest paid (1,942) (1,244)
=========================================== ===== ========= ========= ========= =========
Net cash outflow from operating activities (7,827) (8,767)
=========================================== ===== ========= ========= ========= =========
Cash flows from investing activities
Acquisitions of investments (138,189) (305,256)
Disposals of investments 115,592 108,235
=========================================== ===== ========= ========= ========= =========
Net cash outflow from investing activities (22,597) (197,021)
=========================================== ===== ========= ========= ========= =========
Cash flows from financing activities
Ordinary shares issued 9 1,730 182,227
Ordinary shares bought back into treasury
and stamp duty thereon (24,906) -
Bank loans drawn down 335,346 318,406
Bank loans repaid (306,862) (299,373)
=========================================== ===== ========= ========= ========= =========
Net cash inflow from financing activities 5,308 201,260
=========================================== ===== ========= ========= ========= =========
Decrease in cash and cash equivalents (25,116) (4,528)
Exchange movements 3,120 (3,239)
Cash and cash equivalents at 1 November 33,127 40,894
=========================================== ===== ========= ========= ========= =========
Cash and cash equivalents at 31 October 11,131 33,127
=========================================== ===== ========= ========= ========= =========
* Cash from operations includes dividends received of GBP956,000
(2021 - GBP781,000) and interest received of GBP100,000 (2021 -
nil).
Twenty Largest Holdings and Twelve Month Performance at 31
October 2022
Fair value %
2022 of total Absolute Relative
Name Business Country GBP'000 assets* Performance Performance
============================ =========================== ======== ========== ========= ============ ============
Drug developer focused on
harnessing gene
Alnylam Pharmaceuticals silencing technology USA 67,286 7.7 54.7 66.1
Space Exploration Designs, manufactures and
Technologies# launches advanced
(U) rockets and spacecraft USA 62,861 7.2 65.4 77.5
Ophthalmic implants for
STAAR Surgical vision correction USA 30,984 3.5 (28.7) (23.4)
Developer of commercial
PsiQuantum# (U) quantum computing USA 27,682 3.2 (16.1) (10.0)
Manufacturer of medical
devices for cancer
Novocure treatment USA 26,862 3.1 (17.6) (11.6)
Electronic bond trading
MarketAxess platform USA 23,688 2.7 (28.4) (23.1)
Online grocery retailer and
technology
Ocado provider UK 20,917 2.4 (73.5) (71.5)
Antibody based drug
Genmab development Denmark 18,474 2.1 2.3 9.8
US online real estate
Zillow# portal USA 18,070 2.1 (64.6) (62.0)
Small unmanned aircraft and
tactical missile
AeroVironment systems USA 17,521 2.0 22.2 31.2
Oxford Nanopore Technologies Novel DNA sequencing
(P) technology UK 17,295 2.0 (53.1) (49.6)
Law enforcement equipment
and software
Axon Enterprise provider USA 16,712 1.9 (3.8) 3.3
Non-invasive molecular
tests for early
Exact Sciences cancer detection USA 15,663 1.8 (56.5) (53.3)
Chegg Online educational company USA 15,587 1.8 (56.5) (53.3)
Online freelancing and
recruitment services
Upwork platform USA 15,249 1.7 (66.0) (63.5)
Kingdee International Enterprise management
Software software provider China 14,450 1.6 (41.1) (36.7)
Opioid free analgesics
Pacira BioSciences developer USA 14,419 1.6 17.9 26.5
Medical devices
ShockWave Medical manufacturer USA 13,638 1.6 62.0 73.9
Enterprise financial
BlackLine software provider USA 13,625 1.5 (47.4) (43.6)
Cloud based software for
social media
Sprout Social management USA 12,883 1.5 (43.6) (39.5)
============================ =========================== ======== ========== ========= ============ ============
437,033 53.0
================================================================= ========== ========= ============ ============
* Total assets comprises all assets held less all liabilities
other than liabilities in the form of borrowings.
Absolute and relative performance has been calculated on a total
return basis over the period 1 November 2021 to 31 October 2022.
Absolute
performance is in sterling terms; relative performance is
against S&P Global Small Cap Index (in sterling terms).
# More than one line of stock held. Holding information
represents the aggregate of both lines of stock.
(U) Denotes unlisted security.
(P) Denotes listed security previously held in the portfolio as
an unlisted security.
Source: Baillie Gifford/StatPro and relevant underlying index
providers. See disclaimer at the end of this announcement
Past performance is not a guide to future performance
List of Investments as at 31 October 2022
Name Business Country Fair % Fair
Value of total value
2022 assets 2021
GBP'000 GBP'0000
=================================== =================================== ============ ======== ========= =========
Drug developer focused on
harnessing gene
Alnylam Pharmaceuticals silencing technology USA 67,286 7.7 46,706
Space Exploration Technologies Designs, manufactures and launches
Series advanced
N Preferred (U) rockets and spacecraft USA 36,028 4.1 21,788
Space Exploration Technologies Designs, manufactures and launches
Series advanced
J Preferred (U) rockets and spacecraft USA 16,343 1.9 9,884
Space Exploration Technologies Designs, manufactures and launches
Series advanced
K Preferred (U) rockets and spacecraft USA 7,450 0.8 4,506
Space Exploration Technologies Designs, manufactures and launches
Class advanced
A Common (U) rockets and spacecraft USA 2,323 0.3 1,405
Space Exploration Technologies Designs, manufactures and launches
Class advanced
C Common (U) rockets and spacecraft USA 717 0.1 433
======== ========= =========
62,861 7.2 38,016
Ophthalmic implants for vision
STAAR Surgical correction USA 30,984 3.5 39,236
Developer of commercial quantum
PsiQuantum Series C Preferred (U) computing USA 14,860 1.7 20,626
Developer of commercial quantum
PsiQuantum Series D Preferred (U) computing USA 12,822 1.5 13,131
======== ========= =========
27,682 3.2 33,757
Manufacturer of medical devices for
cancer
Novocure treatment USA 26,862 3.1 27,476
MarketAxess Electronic bond trading platform USA 23,688 2.7 33,953
Online grocery retailer and
Ocado technology provider UK 20,917 2.4 45,747
Genmab Antibody based drug development Denmark 18,474 2.1 18,001
Zillow Class C (U) US online real estate portal USA 15,632 1.8 44,097
Zillow Class A (U) US online real estate portal USA 2,438 0.3 6,998
======== ========= =========
18,070 2.1 51,095
Small unmanned aircraft and
tactical missile
AeroVironment systems USA 17,521 2.0 14,318
Oxford Nanopore Technologies (P) Novel DNA sequencing technology UK 17,295 2.0 25,910
Law enforcement equipment and
Axon Enterprise software provider USA 16,712 1.9 17,351
Non-invasive molecular tests for
early cancer
Exact Sciences detection USA 15,663 1.8 17,900
Chegg Online educational company USA 15,587 1.8 26,259
Online freelancing and recruitment
services
Upwork platform USA 15,249 1.7 41,225
Enterprise management software
Kingdee International Software provider China 14,450 1.6 24,591
Pacira BioSciences Opioid free analgesics developer USA 14,419 1.6 12,235
ShockWave Medical Medical devices manufacturer USA 13,638 1.5 13,366
Enterprise financial software
BlackLine provider USA 13,625 1.6 25,922
Cloud based software for social
Sprout Social media management USA 12,883 1.5 18,599
SHINE Technologies (Illuminated
Holdings)
Series C-5 Preferred (U) Medical radioisotope production USA 11,581 1.3 8,754
SHINE Technologies (Illuminated
Holdings)
Series D-1 Preferred (U) Medical radioisotope production USA 869 0.1 -
======== ========= =========
12,450 1.4 8,754
Appian Enterprise software developer USA 12,247 1.4 20,944
IP commercialisation focused on
PureTech Health healthcare UK 11,601 1.3 17,701
Video game platform and software
Epic Games (U) developer USA 10,427 1.1 7,911
Communication satellite
Astranis Space Technologies Series manufacturing and
C Preferred (U) operation USA 9,638 1.1 9,329
Antibody design and development
AbCellera Biologics company Canada 9,438 1.1 -
CyberArk Software Cyber security solutions provider Israel 9,242 1.1 15,115
Software development tools and
JFrog management Israel 9,128 1.0 9,860
Cloud based accounting software for
small
Xero and medium-sized enterprises New Zealand 9,080 1.0 21,537
Drug discovery and simulation
Schrödinger software USA 8,793 1.0 -
Freelance services marketplace for
Fiverr businesses Israel 8,693 1.0 -
Fertility benefits management
Progyny company USA 8,418 1.0 -
Relativity Space Series D Preferred 3D printing and aerospace launch
(U) company USA 5,193 0.6 7,812
Relativity Space Series E Preferred 3D printing and aerospace launch
(U) company USA 3,178 0.3 3,648
======== ========= =========
8,371 0.9 11,460
Trupanion Pet health insurance provider USA 8,102 0.9 13,790
Industrial and pharmaceutical
Codexis enzyme developer USA 7,820 0.9 33,953
Twist Bioscience Biotechnology company USA 7,770 0.9 -
Teladoc Telemedicine services provider USA 7,647 0.8 32,447
M3 Online medical database Japan 7,274 0.8 12,017
Affinity based diagnostic reagents
Avacta Group and therapeutics UK 7,100 0.8 6,642
Manufacturer of insulin pumps for
diabetic
Tandem Diabetes Care patients USA 7,236 0.8 14,746
Reaction Engines (U) Advanced heat exchange company UK 7,000 0.8 5,750
IPG Photonics High-power fibre lasers USA 6,719 0.8 10,473
Echodyne Corp. Series C-1 Preferred Metamaterial radar sensors and
(U) software USA 6,676 0.8 -
Solid-state batteries for electric
QuantumScape (P) vehicles USA 6,608 0.8 19,255
Akili Interactive (P) Digital medicine company USA 6,561 0.7 12,369
Snyk Ordinary Shares (U) Security software UK 1,989 0.2 2,736
Snyk Series F Preferred (U) Security software UK 4,394 0.5 4,560
======== ========= =========
6,383 0.7 7,296
Chinese bio-pharmaceutical
development and
Zai Lab HK Line distribution company China 6,131 0.7 23,525
Ceres Power Holding Developer of fuel cells UK 6,192 0.7 23,497
Lightning software that enables
Lightning Labs Series B Preferred users to
(U) send and receive money USA 5,972 0.7 7,295
Livestock breeding and technology
Genus services UK 5,931 0.7 12,842
Adaptimmune Therapeutics ADR Cell therapies for cancer treatment UK 5,770 0.6 12,135
DNA Script Series C Preferred (U) Synthetic DNA fabricator France 5,536 0.6 -
Online healthcare resource and
interactive
Doximity platform developer USA 5,534 0.6 -
Specialised processor chips for
machine
Graphcore Series D2 Preferred (U) learning applications UK 3,945 0.4 5,244
Specialised processor chips for
machine
Graphcore Series E Preferred (U) learning applications UK 1,437 0.2 1,672
======== ========= =========
5,382 0.6 6,916
Splunk Data diagnostics USA 5,328 0.6 8,884
Enterprise sales management
Zuora software USA 5,219 0.6 12,451
Measurement and calibration
Renishaw equipment UK 4,926 0.6 7,055
Biotechnology company focused on
next generation
Sutro Biopharma protein therapeutics USA 4,779 0.5 11,041
Temenos Group Banking software provider Switzerland 4,738 0.5 10,210
LiveRamp Marketing technology company USA 4,706 0.5 11,523
Video compression and image
Ambarella processing semiconductors USA 4,637 0.5 13,232
Cloud based virtual banking
Sensirion Holding solutions provider Switzerland 4,463 0.5 5,939
Beam Therapeutics Biotechnology company USA 4,459 0.5 -
Online platform for restaurant
InfoMart supplies Japan 4,387 0.5 11,039
MonotaRO Online business supplies Japan 4,169 0.5 11,489
KSQ Therapeutics Series C Preferred Biotechnology target identification
(U) company USA 4,151 0.5 2,744
BillionToOne Series C Preferred (U) Pre-natal diagnostics USA 3,706 0.4 -
BillionToOne Promissory Note (U) Pre-natal diagnostics USA 434 0.1 -
======== ========= =========
4,140 0.5 -
Expensify Expense management software USA 4,077 0.5 -
Critical event management software
Everbridge provider USA 4,040 0.5 17,253
Clinical stage biotechnology
company focussing
on autoimmune and
Galapagos fibrosis diseases Belgium 3,978 0.5 5,187
Rightmove UK online property portal UK 3,393 0.4 4,771
Cloud based virtual banking
Q2 Holdings solutions provider USA 3,284 0.4 6,997
Intellectual property
IP Group commercialisation UK 3,229 0.4 6,601
Designs and manufactures power
systems and
American Superconductor superconducting wire USA 3,002 0.3 10,292
Hydrogen energy solutions
ITM Power manufacturer UK 2,880 0.3 13,811
Online furniture and homeware
Wayfair retailer USA 2,865 0.3 15,783
Advanced instrumentation and
Oxford Instruments equipment provider UK 2,819 0.3 5,144
LendingTree Online consumer finance marketplace USA 2,565 0.3 13,786
TransMedics Medical device company USA 2,438 0.3 -
Discovery and development of novel
materials
Ilika for mass market applications UK 2,318 0.3 5,379
Messaging tools for business and
customer
LivePerson interactions USA 2,274 0.3 9,315
Rational drug design and
C4X Discovery Holdings (U) optimisation UK 2,273 0.3 2,178
C4X Discovery Warrants (U) Software to aid drug design UK - 0.0 37
======== ========= =========
2,273 0.3 2,215
Cloud based accounting software for
small
freee K.K. and medium-sized enterprises Japan 2,231 0.2 6,833
Chinook Therapeutics (formerly
Aduro
Biotechnology) (U) Immunotherapy drug development USA 2,212 0.3 917
Chinook Therapeutics (formerly
Aduro
Biotechnology) CVR Line (U) Immunotherapy drug development USA 0 0.0 0
======== ========= =========
2,212 0.3 917
Digital watermarking technology
Digimarc provider USA 2,186 0.2 5,693
Cardlytics Digital advertising platform USA 2,167 0.2 11,770
Victrex High-performance thermo-plastics UK 2,101 0.2 2,909
Quanterix Ultra-sensitive protein analysers USA 2,014 0.2 7,742
Licenses IP to the semiconductor
CEVA industry USA 1,980 0.2 2,743
Nanomedicine company focused on
Nanobiotix ADR cancer radiotherapy France 1,846 0.2 4,066
Peptide based drug discovery
PeptiDream platform Japan 1,829 0.2 3,377
Stratasys 3D printer manufacturer USA 1,817 0.2 3,327
Therapies for gastrointestinal
Cosmo Pharmaceuticals diseases Italy 1,688 0.2 1,846
Antibody based drug discovery
Morphosys platform Germany 1,641 0.2 3,451
Benefitfocus Employee benefits software provider USA 1,386 0.2 1,810
New Horizon Health Cancer screening company China 1,365 0.2 1,870
Biotechnology company focused on
age related
Adicet Bio (formerly resTORbio) disorders USA 1,261 0.1 553
Online marketplace for buying
EverQuote insurance USA 1,221 0.1 2,329
Commerce platform for small and
medium-sized
BASE enterprises Japan 1,087 0.1 3,951
Satellite powered data collection
and analysis
Spire Global company USA 1,083 0.1 3,570
Next generation chemotherapy
NuCana SPN ADR developer UK 1,065 0.1 2,178
Huya ADR A live game streaming platform China 993 0.1 3,725
Analytics and data collection
technology
Catapult Group International for sports teams and athletes Australia 823 0.1 1,752
Cloud-based healthcare software
Tabula Rasa HealthCare developer USA 810 0.1 4,711
Voice and video platform technology
Agora ADR provider China 616 0.1 4,056
Genetic engineering for cell based
Cellectis therapies France 523 0.1 1,915
Biotechnology tools focused on cell
Berkeley Lights characterisation USA 474 0.1 4,186
Angelalign Technology Medical devices manufacturer China 67 0.0 261
Developer of novel therapies using
engineered
Rubius Therapeutics red blood cells USA 45 0.0 1,596
4D Pharma (U) Microbiome biology therapeutics UK 0 0.0 1,105
4D Pharma Warrants (U) Microbiome biology therapeutics UK 0 0.0 0
======== ========= =========
0 0.0 1,105
Mines, processes and manufactures
natural
China Lumena New Materials (D) thenardite products China 0 0.0 0
Total equities 872,804 99.3
====================================================================================== ======== ========= =========
Net liquid assets 6,589 0.7
====================================================================================== ======== ========= =========
Total assets at fair value * 879,393 100.0
====================================================================================== ======== ========= =========
* Total assets comprises all assets held less all liabilities
other than liabilities in the form of borrowings.
(U) Denotes unlisted security.
(P) Denotes listed security previously held in the portfolio as
an unlisted security.
(D) Denotes delisted security.
Listed equities Unlisted securities Net liquid Total assets
% % assets %
%
================ =============== =================== ========== ============
31 October 2022 79.2 20.1 0.7 100.0
================ =============== =================== ========== ============
31 October 2021 87.0 10.8 2.2 100.0
================ =============== =================== ========== ============
Figures represent percentage of total assets.
Includes holdings in preference shares, ordinary shares and
convertible promissory note
Distribution of total assets* by industry
Portfolio Weightings
Industry Analysis (% points overweight/(underweight)
31 October 2022 relative to comparative index )
% of total assets* at 31 October 2022
================================================= ==================== ===================================
Biotechnology 20.3 16.8
Software 16.3 12.0
Aerospace and Defence 12.8 11.6
Healthcare Equipment and Supplies 9.2 6.9
Life Sciences Tools and Services 4.5 3.4
Healthcare Technology 4.2 3.9
Technology Hardware, Storage and Peripherals 4.0 3.4
Pharmaceuticals 3.2 1.4
Capital Markets 3.1 0.3
Electronic Equipment, Instruments and Components 3.0 0.7
Electrical Equipment 2.7 1.1
Food and Staples Retailing 2.4 1.3
Real Estate Management and Development 2.1 0.4
Professional Services 1.9 0.1
Diversified Consumer Services 1.8 1.1
Healthcare Providers and Services 1.6 (0.5)
Internet and Direct Marketing Retail 1.3 0.8
Insurance 0.9 (2.0)
Semiconductors and Semiconductor Equipment 0.8 (1.5)
Auto Components 0.8 (0.7)
IT Services 0.6 (1.9)
Interactive Media and Services 0.5 (0.1)
Trading Companies and Distributors 0.5 (0.9)
Consumer Finance 0.3 (0.5)
Media 0.2 (1.2)
Chemicals 0.2 (3.0)
Entertainment 0.1 (0.6)
Net Liquid Assets 0.7
================================================= ==================== ===================================
Total assets* 100.0
================================================= ==================== ===================================
* Total assets comprises all assets held less all liabilities
other than liabilities in the form of borrowings.
S&P Global Small Cap Index (in sterling terms). Weightings
exclude industries where the Company has no exposure. See
disclaimer at the end of this announcement.
Distribution of total assets
Geographical Analysis
31 October 2022 31 October 2021
% %
================================================== ================ ================
North America 71.7 66.9
USA 70.6 66.9
Canada 1.1 -
Europe 21.5 20.9
United Kingdom 13.5 15.6
Eurozone 1.8 1.1
Developed Europe (non-euro) 6.2 4.2
Asia 5.0 8.0
Japan 2.3 3.5
China 2.7 4.5
Australasia 1.1 2.0
Australia 0.1 0.5
New Zealand 1.0 1.5
================================================= ================ ================
Total equities 99.3 97.8
================================================== ================ ================
Net liquid assets 0.7 2.2
================================================== ================ ================
Total assets* 100.0 100.0
================================================== ================ ================
Sectoral Analysis
31 October 2022 31 October 2021
% %
========================= ================ ================
Communication Services 2.9 5.6
Consumer Discretionary 6.3 15.0
Financials 4.3 4.9
Healthcare 43.2 32.3
Industrials 17.7 14.2
Information Technology 24.7 25.6
Materials 0.2 0.2
Net Liquid Assets 0.7 2.2
========================= ================ ================
Total assets* 100.0 100.0
========================= ================ ================
* Total assets comprises all assets held less all liabilities
other than liabilities in the form of borrowings.
Notes to the condensed Financial Statements (unaudited)
1. Basis of Accounting
The Financial Statements for the year to 31 October 2022 have
been prepared in accordance with FRS 102 'The Financial Reporting
Standard applicable in the UK and Republic of Ireland' and on the
basis of the accounting policies set out below which are unchanged
from the prior year and have been applied consistently.
2. Income
2022 2021
GBP'000 GBP'000
=================================================== ======== ========
Income from Investments
UK dividends 410 411
Overseas dividends 472 402
Overseas interest 4 14
=================================================== ======== ========
886 827
=================================================== ======== ========
Other Income
Deposit interest 100 -
=================================================== ======== ========
Total income 986 827
=================================================== ======== ========
Total income comprises
Dividends from financial assets designated at fair
value through profit or loss 882 813
Interest from financial assets designated at fair
value through profit or loss 4 14
Interest from financial assets not at fair value
through profit or loss 100 -
=================================================== ======== ========
986 827
=================================================== ======== ========
3. Investment Manager
The Company has appointed Baillie Gifford & Co Limited, a
wholly owned subsidiary of Baillie Gifford & Co, as its
Alternative Investment Fund Manager and Company Secretaries.
Baillie Gifford & Co Limited has delegated portfolio management
services to
Baillie Gifford & Co. Dealing activity and transaction
reporting have been further sub-delegated to Baillie Gifford
Overseas Limited
and Baillie Gifford Asia (Hong Kong) Limited. The Management
Agreement can be terminated on three months' notice.
The annual management fee is 0.75% on the first GBP50 million of
net assets, 0.65% on the next GBP200 million of net assets and
0.55% on the remaining net assets. Management fees are calculated
and payable quarterly.
4. Net Return Per Ordinary Share
2022 2021
Revenue Capital Total Revenue Capital Total
======================== ======= ========= ========= ======= ======== =======
Net return per ordinary
share (0.49p) (134.82p) (135.31p) (0.62p) 43.37p 42.75p
======================== ======= ========= ========= ======= ======== =======
Revenue return per ordinary share is based on the net revenue
loss after taxation of GBP1,976,000 (2021 - net revenue loss of
GBP2,422,000) and on 400,679,723 (2021 - 391,579,802) ordinary
shares, being the weighted average number of ordinary shares in
issue (excluding treasury shares) during the year.
Capital return per ordinary share is based on the net capital
loss for the financial year of GBP540,205,000 (2021 - net capital
gain of
GBP169,816,000) and on 400,679,723 (2021 - 391,579,802) ordinary
shares, being the weighted average number of ordinary shares in
issue (excluding treasury shares) during the year.
There are no dilutive or potentially dilutive shares in
issue.
5. Dividends
There are no dividends paid and proposed in respect of the
financial year. There is no revenue available for distribution by
way of dividend for the year to 31 October 2022, revenue loss of
GBP1,976,000 (2021 - revenue loss of GBP2,442,000) which is the
basis on which the requirements of section 1158 of the Corporation
Tax Act are considered.
6. Fair Value Hierarchy
Level Level Level
1 2 3 Total
As at 31 October 2022 GBP'000 GBP'000 GBP'000 GBP'000
===================================== ======== ======== ======== ========
Listed equities 696,135 - - 696,135
Unlisted ordinary shares - - 22,456 22,456
Unlisted preference shares* - - 153,779 153,779
Unlisted convertible promissory note - - 434 434
===================================== ======== ======== ======== ========
Total financial asset investments 696,135 - 176,669 872,804
===================================== ======== ======== ======== ========
Level Level Level
1 2 3 Total
As at 31 October 2021 GBP'000 GBP'000 GBP'000 GBP'000
===================================== ========= ======== ======== ==========
Listed equities 1,224,768 - - 1,224,768
Unlisted ordinary shares - - 18,235 18,235
Unlisted preference shares* - - 133,362 133,362
Unlisted convertible promissory note - - - -
===================================== ========= ======== ======== ==========
Total financial asset investments 1,224,768 - 151,597 1,376,365
===================================== ========= ======== ======== ==========
* The investments in preference shares are not classified as
equity holdings as they include liquidation preference rights that
determine the repayment (or multiple thereof) of the original
investment in the event of a liquidation event such as a
take-over.
Investments in securities are financial assets designated at
fair value through profit or loss. In accordance with Financial
Reporting Standard 102, the tables above provide an analysis of
these investments based on the fair value hierarchy described
below, which reflects the reliability and significance of the
information used to measure their fair value.
Fair Value Hierarchy
The fair value hierarchy used to analyse the fair values of
financial assets is described below. The levels are determined by
the lowest (that is the least reliable or least independently
observable) level of input that is significant to the fair value
measurement for the individual investment in its entirety as
follows:
Level 1 - using unadjusted quoted prices for identical
instruments in an active market;
Level 2 - using inputs, other than quoted prices included within
Level 1, that are directly or indirectly observable (based on
market data); and
Level 3 - using inputs that are unobservable (for which market
data is unavailable).
7. Transaction Costs
The purchases and sales proceeds figures above include
transaction costs of GBP155,000 (2021 - GBP129,000) and GBP25,000
(2021 - GBP32,000) respectively.
8. Bank Loans
The Company has a five year GBP100 million multi-currency
revolving credit facility, with The Royal Bank of Scotland
International Limited, with an expiry date of 9 June 2026, a five
year GBP25 million multi-currency revolving credit facility, with
National Australia Bank Limited, with an expiry date of 29 June
2023 and a five year GBP36 million multi-currency revolving credit
facility, with National Australia Bank Limited, with an expiry date
of 30 September 2024. As at 31 October 2022, the Company had
drawings of EUR10,600,000, US$77,150,000 and GBP27,720,000 (2021 -
. EUR7,200,000, US$53,150,000 and GBP21,300,000) under the GBP100
million multi- currency revolving credit facility, with The Royal
Bank of Scotland International Limited. At 31 October 2022 and 2021
there were no drawings under the GBP25 million and GBP36 million
multi-currency revolving credit facilities with National Australia
Bank Limited.
All short term floating rate borrowings are stated at book cost
which is considered to be equal to their fair value given the
facilities are revolving credit facilities and as at 31 October
2022 amounted to GBP103,827,000 (2021 - GBP66,153,000).
9. Share Capital
The Company has authority to allot shares under section 551 of
the Companies Act 2006. The Board has authorised use of this
authority to issue new shares at a premium to net asset value in
order to enhance the net asset value per share for existing
shareholders and improve the liquidity of the Company's shares. In
the year to 31 October 2022 the Company issued a total of 550,000
shares on a non pre-emptive basis (nominal value of GBP6,000,
representing 0.1% of the issued share capital at 31 October 2021)
at a premium to net asset value (on the basis of debt valued at
book value) raising net proceeds of GBP1,730,000 (in the year to 31
October 2021 - 50,885,000 shares with a nominal value of
GBP509,000, representing 14.4% of the issued share capital at 31
October 2020 raising net proceeds of GBP182,227,000).
Over the period from 31 October 2022 to 19 January 2023 the
Company has issued no further shares.
The Company also has authority to buy back shares. In the year
to 31 October 2022 13,468,672 shares with a nominal value of
GBP135,000 were bought back at a total cost of GBP25,338,000 and
held in treasury (2021 - none). At 31 October 2022 the Company had
authority to buy back a further 47,316,331 ordinary shares.
Over the period from 31 October 2022 to 19 January 2023 the
Company has bought back a further 1,215,382 shares at a total cost
of GBP2,181,000.
10. Analysis of Change in Debt
At 31 October Cash Exchange At 31 October
2021 flows movement 2022
GBP'000 GBP'000 GBP'000 GBP'000
========================== ============= ======== ========= =============
Cash and cash equivalents 33,127 (25,116) 3,120 11,131
Loans due within one year (66,153) (28,484) (9,190) (103,827)
========================== ============= ======== ========= =============
(33,026) (53,600) (6,070) (92,696)
========================== ============= ======== ========= =============
11. Financial Information
The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 October 2022 or
the year ended 31 October 2021 but is derived from those accounts.
Statutory accounts for the period to 31 October 2021 have been
delivered to the Registrar of Companies, and those for the year to
31 October 2022 will be delivered in due course. The auditor has
reported on those accounts; the reports were (i) unqualified, (ii)
did not include a reference to any matters to which the auditor
drew attention by way of emphasis without qualifying their report
and (iii) did not contain a statement under section 498 (2) or (3)
of the Companies Act 2006.
Glossary of Terms and Alternative Performance Measures
('APM')
Total Assets
This is the Company' definition of Adjusted Total Assets, being
the total value of all assets held less all liabilities (other than
liabilities in the form of borrowings).
Net Asset Value ('NAV')
Also described as shareholders' funds, net asset value is the
value of total assets less liabilities (including borrowings). Net
asset value can be calculated on the basis of borrowings stated at
book value and fair value. An explanation of each basis is provided
below. The net asset value per share is calculated by dividing this
amount by the number of ordinary shares in issue excluding any
shares held in treasury.
Net Asset Value (Borrowings at Book Value) Borrowings are valued
at their nominal book value. The value of the borrowings at book
and fair value are set out on in note 8 above.
Net Asset Value (Borrowings at Fair Value) (APM) Borrowings are
valued at an estimate of their market worth. The value of the
borrowings at book and fair value are set out in note 8 above.
Net Asset Value (Reconciliation of NAV at Book Value to NAV at
Fair Value)
31 October 31 October
2022 2021
=================================== ================ ================
Net Asset Value per ordinary share
(borrowings at book value) 197.70p 331.03p
Shareholders' funds (borrowings at
book value) GBP775,566,000 GBP1,341,355,000
Add: book value of borrowings GBP103,827,000 GBP66,153,000
Less: fair value of borrowings (GBP103,827,000) (GBP66,153,000)
=================================== ================ ================
Shareholders' funds (borrowings at
fair value) GBP775,566,000 GBP1,341,355,000
=================================== ================ ================
Number of shares in issue 392,285,023 405,203,695
=================================== ================ ================
Net Asset Value per ordinary share
(borrowings at fair value) 197.70p 331.03p
=================================== ================ ================
At 31 October 2022 and 31 October 2021 all borrowings are in the
form of short term floating rate borrowings and their fair value is
considered equal to their book value, hence there is no difference
in the net asset value at book value and fair value.
Net Liquid Assets
Net liquid assets comprise current assets less current
liabilities, excluding borrowings.
Discount/Premium (APM)
As stock markets and share prices vary, an investment trust's
share price is rarely the same as its net asset value. When the
share price is lower than the net asset value per share it is said
to be trading at a discount. The size of the discount is calculated
by subtracting the share price from the net asset value per share
and is usually expressed as a percentage of the net asset value per
share. If the share price is higher than the net asset value per
share, this situation is called a premium.
31 October 31 October
2022 2021
=================== =================== ========== ==========
Net asset value
per share (a) 197.70p 331.03p
Share price (b) 172.60p 319.50p
=================== =================== ========== ==========
((b) - (a)) ÷
(Discount)/premium (a) (12.7%) (3.5%)
=================== =================== ========== ==========
Total Return (APM)
The total return is the return to shareholders after reinvesting
the net dividend on the date that the share price goes
ex-dividend.
Compound Annual Return (APM)
The compound annual return converts the return over a period of
longer than one year to a constant annual rate of return applied to
the compound value at the start of each year.
Ongoing Charges (APM)
The total recurring expenses (excluding the Company's cost of
dealing in investments and borrowing costs) incurred by the Company
as a percentage of the average net asset value (with debt at fair
value). The ongoing charges have been calculated on the basis
prescribed by the Association of Investment Companies.
Ongoing Charges Calculation
31 October 31 October
2022 2021
========================================= ============== ================
Investment management fee GBP5,107,000 GBP7,809,000
Other administrative expenses GBP953,000 GBP907,000
========================================= ============== ================
Total expenses (a) GBP6,060,000 GBP8,716,000
========================================= ============== ================
Average daily cum-income net asset value
(with debt at fair value) (b) GBP959,272,000 GBP1,324,089,000
========================================= ============== ================
Ongoing charges (a) as a percentage
of (b) 0.63% 0.66%
========================================= ============== ================
Gearing (APM)
At its simplest, gearing is borrowing. Just like any other
public company, an investment trust can borrow money to invest in
additional investments for its portfolio. The effect of the
borrowing on the shareholders' assets is called 'gearing'. If the
Company's assets grow, the shareholders' assets grow
proportionately more because the debt remains the same. But if the
value of the Company's assets falls, the situation is reversed.
Gearing can therefore enhance performance in rising markets but can
adversely impact performance in falling markets.
Gearing is the Company's borrowings at book value less cash and
cash equivalents (including any outstanding trade settlements)
expressed as a percentage of shareholders' funds.
31 October 31 October
2022 2021
================================ =============== ================
Borrowings (at book value) GBP103,827,000 GBP66,153,000
Less: cash and cash equivalents (GBP11,131,000) (GBP33,127,000)
Less: sales for subsequent
settlement (GBP4,598,000) -
Add: purchases for subsequent
settlement GBP6,719,000 -
Add: buy-backs awaiting
settlement GBP433,000 -
================================ =============== ================
Adjusted borrowings (a) GBP95,250,000 GBP33,026,000
================================ =============== ================
Shareholders' funds (b) GBP775,566,000 GBP1,341,355,000
================================ =============== ================
Gearing: (a) as a percentage
of (b) 12% 2%
================================ =============== ================
Potential gearing is the Company's borrowings expressed as a
percentage of shareholders' funds.
31 October 31 October
2022 2021
=========================== ============== ================
Borrowings (at book value)
(a) GBP103,827,000 GBP66,153,000
Shareholders' funds (b) GBP775,566,000 GBP1,341,355,000
=========================== ============== ================
Potential gearing (a) as
a percentage of (b) 13% 5%
=========================== ============== ================
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers
Regulations, leverage is any method which increases the Company's
exposure, including the borrowing of cash and the use of
derivatives. It is expressed as a ratio between the Company's
exposure and its net asset value and can be calculated on a gross
and a commitment method. Under the gross method, exposure
represents the sum of the Company's positions after the deduction
of sterling cash balances, without taking into account any hedging
and netting arrangements.
Under the commitment method, exposure is calculated without the
deduction of sterling cash balances and after certain hedging and
netting positions are offset against each other.
Active Share (APM)
Active share, a measure of how actively a portfolio is managed,
is the percentage of the portfolio that differs from its
comparative index. It is calculated by deducting from 100 the
percentage of the portfolio that overlaps with the comparative
index. An active share of 100 indicates no overlap with the index
and an active share of zero indicates a portfolio that tracks the
index.
Share Split
A share split (or stock split) is the process by which a company
divides its existing shares into multiple shares. Although the
number of shares outstanding increases, the total value of the
shares remains the same with respect to the pre-split value.
Unlisted Company
An unlisted company means a company whose shares are not
available to the general public for trading and not listed on a
stock exchange.
Third Party Data Provider Disclaimer
No third party data provider ('Provider') makes any warranty,
express or implied, as to the accuracy, completeness or timeliness
of the data contained herewith nor as to the results to be obtained
by recipients of the data. No Provider shall in any way be liable
to any recipient of the data for any inaccuracies, errors or
omissions in the index data included in this document, regardless
of cause, or for any damages (whether direct or indirect) resulting
therefrom.
No Provider has any obligation to update, modify or amend the
data or to otherwise notify a recipient thereof in the event that
any matter stated herein changes or subsequently becomes
inaccurate.
Without limiting the foregoing, no Provider shall have any
liability whatsoever to you, whether in contract (including under
an indemnity), in tort (including negligence), under a warranty,
under statute or otherwise, in respect of any loss or damage
suffered by you as a result of or in connection with any opinions,
recommendations, forecasts, judgements, or any other conclusions,
or any course of action determined, by you or any third party,
whether or not based on the content, information or materials
contained herein.
S&P Index Data
The S&P Global Small Cap Index ('Index') is a product of
S&P Dow Jones Indices LLC, a division of S&P Global, or its
affiliates ('SPDJI'). Standard & Poor's(R) and S&P(R) are
registered trademarks of Standard & Poor's Financial Services
LLC, a division of S&P Global ('S&P'); Dow Jones(R) is a
registered trademark of Dow Jones Trademark Holdings LLC ('Dow
Jones'). Neither S&P Dow Jones Indices LLC, Dow Jones Trademark
Holdings LLC, their affiliates nor their third party licensors make
any representation or warranty, express or implied, as to the
ability of any index to accurately represent the asset class or
market sector that it purports to represent and neither S&P Dow
Jones Indices LLC, Dow Jones Trademark Holdings LLC, their
affiliates nor their third party licensors shall have any liability
for any errors, omissions,or interruptions of any index or the data
included therein.
Sustainable Finance Disclosure Regulation ('SFDR')
The EU Sustainable Finance Disclosure Regulation ('SFDR') does
not have a direct impact in the UK due to Brexit, however, it
applies to third-country products marketed in the EU. As Edinburgh
Worldwide Investment Trust is marketed in the EU by the AIFM, BG
& Co Limited, via the National Private Placement Regime 'NPPR'
the following disclosures have been provided to comply with the
high-level requirements of SFDR.
The AIFM has adopted Baillie Gifford & Co's Governance and
Sustainable Principles and Guidelines as its policy on integration
of sustainability risks in investment decisions.
Baillie Gifford & Co's approach to investment is based on
identifying and holding high quality growth businesses that enjoy
sustainable competitive advantages in their marketplace. To do this
it looks beyond current financial performance, undertaking
proprietary research to build an in-depth knowledge of an
individual company and a view on its long-term prospects. This
includes the consideration of sustainability factors
(environmental, social and/ or governance matters) which it
believes will positively or negatively influence the financial
returns of an investment.
More detail on the Managers' approach to sustainability can be
found in the Governance and Sustainability Principles and
Guidelines document, available publicly on the Baillie Gifford
website (bailliegifford.com/en/uk/about-us/ literature-library/
corporate-governance/our-stewardshipapproach-esg-
principles-and-guidelines-2022/).
Taxonomy Regulation
The Taxonomy Regulation establishes an EU-wide framework of
criteria for environmentally sustainable economic activities in
respect of six environmental objectives. It builds on the
disclosure requirements under SFDR by introducing additional
disclosure obligations in respect of alternative investment funds
that invest in an economic activity that contributes to an
environmental objective.
The Company does not commit to make sustainable investments as
defined under SFDR. As such, the underlying investments do not take
into account the EU criteria for environmentally sustainable
economic activities.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR EAPFEAEFDEFA
(END) Dow Jones Newswires
January 23, 2023 02:00 ET (07:00 GMT)
Edinburgh Worldwide Inve... (LSE:EWI)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Edinburgh Worldwide Inve... (LSE:EWI)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024