Edinburgh Investment Trust : EDIN – results

Edinburgh Investment Trust has published its results covering the year ended 31 March 2014, they show that the NAV total return for the year was 14.4% – well ahead of the 8.8% return on the FTSE All-Share Index. The portfolio delivered 12.5% of the return and the balance came from the gradual unwinding of fair value effect of Edinburgh’s expensive debt (as it nears maturity). The £100m 11.5% debenture matures in June this year and will be replaced with a revolving credit facility. The Board is proposing to raise the maximum gearing limit on the fund to 25% (from the current limit of £200m).

The major story of the year was the departure of Edinburgh Investment Trust’s fund manager, Neil Woodford, and Mark Barnett’s assumption of the role. This had an effect on the company’s share price and, as the fund moved to trading at a discount, the return to shareholders was 8.0% for the year.

The dividend for the year was upped by 3.1% to 23.5p.

The basic management fee was reduced to 0.55% of net assets from 0.6% from April 2014 and the Board also knocked £7.5m off this year’s performance fee and scrapped any future performance fee.

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