Trust outguns stock market benchmark
The Edinburgh Investment Trust has outperformed its stock market benchmark over the past six months despite several headwinds.
The trust, one of Scotland’s oldest, saw its net asset value in total return terms grow by 9.8 per cent over the six months to the end of September, compared to an 8 per cent rise in the Ft se all-share index. an interim dividend of 6 pp er share is due to be paid later this week.
Fund manager James de Uphaugh of Majedie Asset Management, which last year took over the running of the 132-year-old trust after several years of underperformance, said :“There are several compellingreasons to think that the UK equity market can generate further attractive returns on a medium-term view.
“The gains we are reporting on for the last six months were despite a combination of tempering growth rates here and abroad, ongoing supply bottlenecks, and rising energy prices.
“There is no question pricing pressures are more prevalent now than in other inflationary spikes over the last decade, but we take reassurance from the fact that the portfolio is dominated by companies that have pricing power and strategic strength that we believe will afford greater protection against cost inflation.”
Since maje die became the day to-day manager of the trust at the end of march 2020, net asset value has risen by 48 per cent, compared with 36.8 percent for the FTSE All-share.
De Uphaugh added: “Overall, the UK is widely regarded as a great place to do business with strong companies. The return of overseas/ marginal investors, boosted by the growing appetite for takeovers from foreign companiesor private equity funds, is a positive endorsement.”