Edinburgh Investment Trust's call on pharmaceuticals pays off

The FTSE 250-listedEdinburgh Investment Trust, which invests primarily in UK securities, produced a net asset value (NAV) total return for the year to March 31st of 21.1 per cent debt at par and 22.4 per cent debt at market value.

The FTSE 250-listedEdinburgh Investment Trust, which invests primarily in UK securities, produced a net asset value (NAV) total return for the year to March 31st of 21.1 per cent debt at par and 22.4 per cent debt at market value.

This was far above the total return of 16.8% for the FTSE All-Share Index, the company's benchmark.

It its annual financial report, issued on Wednesday, the company reported that it had produced a share price total return of 20.1%, which compared to the Index's total return of 16.8%. The discount of the share price to NAV debt at par increased from 0.9% at March 31st 2012 to 1.7% at March 31st 2013.

The portfolio is concentrated in a relatively small number of sectors and its overweight position in the pharmaceutical sector and the underweight position in the mining sector were described as having been material drivers of the company's investment outperformance in the year.

The Edinburgh Investment Trust was down 1.18% to 588p at 08:18 on Wednesday.

MF

Recommended

Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Three hidden gems from Japan’s overlooked stockmarket
Share tips

Three hidden gems from Japan’s overlooked stockmarket

Professional investor Eiji Saito of JPMorgan’s Japan Small Cap Growth & Income fund picks three promising stocks from Japan's vibrant but under-resear…
13 Sep 2021
Share tips of the week – 10 September
Share tips

Share tips of the week – 10 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
10 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
How you can profit from the power of the grey pound
Share tips

How you can profit from the power of the grey pound

Higher life expectancy and surging asset prices have proved a boon for the baby-boomer generation, which has accumulated vast wealth. Younger generati…
10 Sep 2021