How Edinburgh Worldwide Trust aims to increase savers' money by helping companies around the world
City & Finance reporter for the Daily Mail
The Edinburgh Worldwide Investment Trust, operated by investment firm Baillie Gifford, aims to increase savers' money by investing in companies around the world.
Though heavily represented in the US, the company is less weighted than some of its competitors compared to FAANG stocks – Facebook, Apple, Amazon, Netflix, and Google – and is instead looking for promising smaller companies.
WHAT DOES THE MANAGER INVEST?
Douglas Brodie, who has managed the trust for five years, has weighted the portfolio so that 58 percent of his positions are in the US.
It includes a number of sectors – the online home-based retailer Wayfair is the largest holding, but the cancer treatment company Novocure is among the top ten.
WHAT DO THE EXPERTS SAY?
Tom Stevenson, Investment Director for Personal Investments at Fidelity International, says there are "legitimate fears" that the revenue spike fueled by tax cuts in the US is unsustainable.
The economy seems to be in good shape at the moment and profits have turned out to be good or better than expected in the last round of the report.
WHAT DO THE EXPERTS LIKE?
Edinburgh Worldwide "hammered" in October. It is trading at 832p from 1020p in September. Stevenson says the cheaper stock price causes it to be considered an "interesting" asset.
IS THERE DNSNSIDES?
Stevenson says, "Its technological focus and leaning toward smaller companies may not be so popular if investors' risk appetite diminishes in the face of the October turmoil."