Company Announcements

Results analysis from Kepler Trust Intelligence

Source: RNS
RNS Number : 4143N
Edinburgh Investment Trust PLC
31 May 2022

Edinburgh Investment Trust (EDIN)



Results analysis from Kepler Trust Intelligence

Edinburgh Investment Trust (EDIN) has released its financial results for the year ending 31/03/2022. The trust delivered outperformance of its benchmark, with a NAV total return of 14.1% over the period, compared to a 13.0% rise in its benchmark, the FTSE All-Share Index. This marks the second full-year period since Majedie/Liontrust and James de Uphaugh were appointed to manage the trust. Both full-year periods have seen total NAV returns in excess of the benchmark's, despite extremely challenging market conditions.

Total dividends per share rose to 24.80p for the year, a 3.3% year-on-year increase compared with the ordinary dividends paid in the prior financial year. Revenue per share rose by 38.2% year-on-year to 22.41p. This reflects the growing strength of the companies in the portfolio, after a difficult couple of years in which dividend payouts fell. EDIN retains a robust revenue reserve of £50.8m, which can be used to smooth out any short-term drops in income from the portfolio.

Chairman of the board Glen Suarez said: "I am pleased to report that the Company has recorded its second consecutive year of strong investment returns - both absolute and relative to the comparator index…the Company is in the fortunate position of owning a distinctive set of businesses that are performing strongly on the world stage. Their robust underlying operational progress, combined with attractive starting valuations, should underpin attractive returns to shareholders over the long term.

Kepler View

We think Edinburgh Investment Trust (EDIN) remains an appealing option for investors looking for a core UK equity holding in their portfolio. No style reigns supreme, with trust manager James de Uphaugh presiding over a portfolio that typically holds a mix of value, growth, and recovery stocks. Although two years is not really a long enough period by which to judge performance, the strategy James and his team have managed since 2003 has proven successful and looks well placed to navigate the mix of inflation and political instability we're seeing now.

For much of the past decade, the seemingly unstoppable rise of richly valued growth stocks meant other strategies, like those pursued by EDIN, were shunned by many investors. The crimping of UK share prices in the years following the Brexit vote only served to make matters worse for managers focused on London-listed companies. As such, current market conditions represent something of a sea change. In our view, it's hard to see the previous dynamics coming back into play any time soon, and so trusts in EDIN's position look much better-positioned to surmount the problems the world is likely to be facing over the next couple of years. As the manager writes in his report to shareholders, "the UK equity market is in the foothills of a multi-year rehabilitation". Major holdings such as Shell, NatWest, and BAE Systems, for example, look capable of passing costs on to customers, and may even benefit from higher commodities prices and rising rates.

Despite active discount management that started in the new year, the trust has seen its discount widen to 7.4% as of 26/05/2022. We note that market volatility this year has led to discounts across the investment trust sector widening. Should market conditions return to a more stable footing, and confidence returns to the UK market, the discount might be expected to narrow.


Visit for more high quality independent investment trust research.


Important information

This report has been issued by Kepler Partners LLP.  The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.  

Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request.


Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 70 Conduit Street, London W1S 2GF with registered number OC334771.


This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word “Reach” in the source column of the News Explorer pages of London Stock Exchange’s website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

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.