Edinburgh Investment trumps FTSE index

14th Nov 2012 08:35

FTSE 250 Edinburgh Investment Trust, which invests primarily in UK securities, said net asset value (NAV) increased more than the FTSE All-Share Index. NAV with debt at market value rose by 3% on a total return basis compared with a 1.9% rise in the FTSE index.Chairman Jim Pettigrew commented: "The ongoing difficult macroeconomic environment continued to present challenges for financial markets during the period. There have been no changes to the company's investment approach and its portfolio has delivered investment out-performance against benchmark in the 6 month period to September 30th 2012."The interim dividend of 5p will be paid on November 30th 2012, unchanged from last year. Looking ahead Pettigrew added: "Economic growth in the western world remains anaemic at best. Furthermore, growth in China showed signs of further slowdown in quarter three."Although there has been a recent rally in European Bond markets following the President of the European Central Bank Mario Draghi's pledge to `do whatever it takes' to preserve the Euro, this in itself does not resolve the fundamental issues facing Europe."Pettigrew said the company's investment strategy remains the same and as already highlighted, the concentrated nature of the portfolio may from time to time give rise to material short-term under-performance against benchmark. However, the group believes its investment portfolio from a medium to longer term perspective, has been built with stocks which should be resilient in difficult times, whilst still providing potential upside in more positive market environments.CJ