• c263043 EdinburghIT_AR_2021_Cover Spread1
• c263043 EdinburghIT_AR_2021_Cover Spread2
• c263043 EdinburghIT_AR_2021_pp 01_29
• c263043 EdinburghIT_AR_2021_pp 30_45
• c263043 EdinburghIT_AR_2021_pp 46_75
• c263043 EdinburghIT_AR_2021_pp 76_end

The Edinburgh
Investment Trust plc
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The Edinburgh Investment Trust plc ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2022
The Edinburgh
Investment Trust plc
Quartermile One
15 Lauriston Place
Edinburgh
EH3 9EP
www.edinburghinvestmenttrust.com

The Edinburgh
Investment Trust plc
If you wish to contact members of the Edinburgh Investment Trust
Board then please get in touch with the Company Secretary on
+44 (0)20 3327 9720. If you have any enquiries for the Manager,
please contact them on +44 (0)20 7412 1700.
www.edinburghinvestmenttrust.com
STRATEGY
OVERVIEW
 2-4
Chairman’s Statement 5-7
STRATEGIC REPORT
 9-12
 13
Business Review 14-15
 16-17
 18
 19-21
Viability Statement 22
 23-25
GOVERNANCE
The Directors 28-29
The Company’s Corporate Governance Framework 30
Corporate Governance Statement 31
 32-34
Directors’ Report 35-41
 42
 43-45
FINANCIAL REVIEW
Independent Auditor’s Report 47-53
Income Statement 54
Balance Sheet 55
Statement of Changes in Equity 56
Cash Flow Statement 57
Notes to the Financial Statements 58-75
OTHER INFORMATION FOR SHAREHOLDERS
 77-80
 81
Advisors and Principal Service Providers 82
 83-85
 86
The Company is a
member of

THE EDINBURGH INVESTMENT TRUST PLC / OVERVIEW / 1
Investment Objective
The Edinburgh Investment Trust plc (‘The Company’) is an investment trust whose investment

1. an increase of the Net Asset Value per share in excess
of the growth in the FTSE All-Share Index; and
2. growth in dividends per share in excess of the rate of





Nature of the Company
The Company is a public listed Investment Company whose shares are traded on the London Stock

14





PLC



are
£1,176m
Net assets
634.00p
Share price
(7.7)%
Discount*
0.52%

4.4%
Gearing (net)*

83 to 85

given on page 2
3.9%
Dividend Yield

2 / OVERVIEW / THE EDINBURGH INVESTMENT TRUST PLC
Total Return
(1)(4)
(all with dividends reinvested)
Year Ended
31 March 2022
Year Ended
31 March 2021
Net asset value
(1)
(NAV) - debt at market value +14.1% +34.8%
Share price
(2)
+10.6% +46.4%
FTSE All-Share Index
(2)
+13.0% +26.7%

Capital Return
(1)
At 31 March
2022
At 31 March
2021
Change
%
Net asset value - debt at market value 686.69p 628.29p +9.3
Share price
(2)
634.00p 600.00p +5.7
FTSE All-Share Index
(2)
4,187.78 3,831.05 +9.3
Discount
(1)(4)
– debt at market value (7.7)% (4.5)%
Gearing (debt at market value)
(1)(4)
– gross gearing 10.3% 10.1%
– net gearing 4.4% 7.1%
Revenue and Dividends
(4)
Year Ended
31 March 2022
Year Ended
31 March 2021
Change
%
Revenue return per ordinary share 22.41p 16.21p +38.2
  6.00p 6.00p
– second interim 6.00p 6.00p
– third interim 6.40p 6.00p
  6.40p 6.00p
– total dividends excluding special dividend 24.80p 24.00p +3.3
– special dividend nil 4.65p
– total dividends including special dividend 24.80p 28.65p -13.4
Retail Price Index
(2)(3)
– annual change 9.0% 1.5%
Consumer Price Index
(2)
– annual change 7.0% 0.7%
Dividend Yield
(1)(4)
3.9% 4.0%

(1)(4)(5)
0.52% 0.43%

(1)
83
to 85

dividend y
(2)

(3)


(4)

(5)
 
  
at
Financial Information and
Performance Statistics

THE EDINBURGH INVESTMENT TRUST PLC / OVERVIEW / 3
Ten Year Historical Information
Year ended
31 March
Per ordinary share
Ordinary
shareholders’
funds
£m
Shares
(bought
back)/
issued
m
Revenue
return
p
Dividend
rate
p
Net asset
value
(debt at
market
value)
p
Share
price
p
(Discount)/
Premium
(debt at
market
value)
%
Gross
gearing
(debt at
market
value)
%
Net gearing
(debt at
market
value)
%
2013 1,138 – 22.01 22.80 559.01 572.00 2.3 22.4 22.4
2014 1,228 – 23.18 23.50 613.25 594.00 (3.1) 19.1 18.6
2015 1,376 – 24.83 23.85 686.07 662.00 (3.5) 13.9 13.8
2016 1,392 0.55 26.66 24.35 695.30 665.00 (4.4) 15.5 15.3
2017 1,535 – 27.94 25.35 768.81 713.50 (7.2) 15.9 15.7
2018 1,400 – 29.25 26.60 703.34 642.00 (8.7) 12.1 11.8
2019 1,382 (0.19) 28.66 28.00 696.91 644.00 (7.6) 11.0 10.8
2020 872 (20.80) 27.83 28.65 490.40 434.00 (11.5) 13.4 8.3
2021 1,091 (2.50) 16.21 28.65
(1)
628.29 600.00 (4.5) 10.1 7.1
2022 1,176 (1.10) 22.41 24.80 686.89 634.00 (7.7) 10.3 4.4
(1)

Capital Returns (excluding dividends paid) to 31 March 2022
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 3yr 5yr 10yr
NAV (debt at market value) (%) 16.9 9.7 11.9 1.3 10.6 -8.5 -0.9 -29.6 28.1 9.3 -1.5 -10.7 43.6
Share Price (%) 15.0 3.8 11.4 0.5 7.3 -10.0 0.3 -32.6 38.2 5.7 -1.6 -11.1 27.4
FTSE All-Share Index (%) 12.6 5.2 3.0 -7.3 17.5 -2.4 2.2 -21.9 23.3 9.3 5.3 5.0 39.5

Total Returns (with dividends reinvested) to 31 March 2022
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 3yr 5yr 10yr
NAV (debt at market value) (%) 22.9 14.3 16.2 5.0 14.7 -5.9 2.9 -26.7 34.8 14.1 12.7 9.8 114.0
Share Price (%) 20.1 8.0 15.7 4.0 11.2 -6.7 4.6 -29.4 46.4 10.6 14.3 11.5 93.8
FTSE All-Share Index (%) 16.8 8.8 6.6 -3.9 22.0 1.2 6.4 -18.5 26.7 13.0 16.8 25.8 99.5


4 / OVERVIEW / THE EDINBURGH INVESTMENT TRUST PLC
Ten Year Historical Information / continued
Capital Returns Over Ten Years
Rebased to 100 at 31 March 2012
50
100
150
2022
Share price Net Asset Value - debt at market value FTSE All-Share Index
200
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Total Returns Over Ten Years
Rebased to 100 at 31 March 2012
150
100
200
50
Share price Net Asset Value - debt at market value FTSE All-Share Index
20222012 2013 2014 2015 2016 2017 2018 2019 2020 2021
250

One Year Three Years
Cumulave Dividend Growth
-20%
0%
40%
-10%
10%
20%
30%
Dividends (excluding specials) Inflaon (RPI)*
Five Year
sT
en Years
to 31 March 2022
34.3%
12.7%
20.1%
13.5%
9.0%
-11.4%
-2.2%
3.3%
7.0%
9.4%
14.2%
22.7%
Inflaon (CPI)

 


THE EDINBURGH INVESTMENT TRUST PLC / OVERVIEW / 5


recently a challenging two year period during the
Covid pandemic markets now have to contend
with a crisis in Ukraine and all the economic

T







Budget Responsibility and the Monetary Policy












Company – and I am pleased to report that the









The

announced on 7  James will
 Manager and we are


 We expect (and have been


term


I


able to report another year in which the growth

I

 Manager’s Report on the



is driven by the  Manager’s total return






table on page 15






basis are 


and capital return is explained not only by the
dividends paid 

to pay dividends to shareholders (discussed in

%

index returning 

been 
benchmark index returning % over the same


I would like to take this opportunity to remind



 

Chairman’s Statement
GLEN SUAREZ
DEAR SHAREHOLDER RETURNS

6 / OVERVIEW / THE EDINBURGH INVESTMENT TRUST PLC





case that under the new  Manager we have made a very
encouraging
DIVIDENDS












 Manager’s
Report
James




in the Board’s view and was behind the Board’s decision to
increase the third interim dividend and to recommend the same

he Board


last year at a much lower cost will allow the interest expense
urther capacity to support the

a healthy ‘r which can be distributed
should allow the Board to address any














normalised 
SHARE PRICE DISCOUNT TO NET ASSET VALUE
The Board keeps the Company’s share price discount under

the 23 May




 


the Board will do what we can to





This would enhance net asset value per share and enable the

BORROWINGS








be available to replace the debenture when it matures this
 new 


that raising the same sums today would incur an equivalent





borrowings should provide a structure to enhance shareholder





4net gearing would have
been 3

Chairman’s Statement / continued

THE EDINBURGH INVESTMENT TRUST PLC / OVERVIEW / 7
APPOINTMENT OF MANAGER











concernin








s












. 


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BOARD
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OUTLOOK


es


 












GLEN SUAREZ 

Strategic Report

THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 9
For much of the last twelve months there
has been improving economic sentiment,
as western economies have emerged from
varying degrees of Covid restrictions.
However, much of the economic progress
has been overturned by the depressing
turn of events in Ukraine.






Naturally our core task is to meet the Company’s



























to shareholders; the key point is that capital


remains
the same


detail on page 13


 
INVESTMENT RESULTS












Company has been buying back shares since the





 

retailer that was acquired by private equity during






Portfolio Manager’s Report
For the year ended 31 March 2022
JAMES DE UPHAUGH /

CHRIS FIELD /


10 / STRATEGIC REPORT / THE EDINBURGH INVESTMENT TRUST PLC





Weir (engineering) which had modestly weaker share prices and







ACTIVITY OVER THE YEAR








































gradually embraces sustainability in clothing to the detriment
 


group is now undergoing a cultural and capex reset under the new









CURRENT PORTFOLIO










(Compass and Intel) and 






that can address – and indeed capitalise on – these changes









turn support Edinburgh Investment Trust’s ability to deliver a


Portfolio Manager’s Report / continued

THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 11
DIVIDENDS
















Company’s balance
s 
this
dividend 







BORROWINGS





4




LOOKING TO THE FUTURE: WHY INVEST IN THE
UK EQUITY MARKET?


















macro level but the companies we invest in certainly do not lag






So what are the trends? Economies are late cycle and central
bankers are looking to raise interest rates and where applicable
















concern


The next concern



(“”) 
have been eaten up in conduct charges – remember PPI? – but
 
convert into distributable cash and has a chunky dividend and an


are the ienergy c





12 / STRATEGIC REPORT / THE EDINBURGH INVESTMENT TRUST PLC
Portfolio Manager’s Report / continued



 



This is also an excellent example



 
take 



has been huge over the last decade – “dry powder” that needs

there will be more Morrisons as the gap between the earnings




















JAMES DE UPHAUGH / PORTFOLIO MANAGER
CHRIS FIELD / DEPUTY PORTFOLIO MANAGER
252

THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 13



 


ACTIVE MANAGEMENT
Stock-driven.






Risk.




FLEXIBLE INVESTMENT STYLE
Open-minded approach. 






Disciplined, rigorous, fundamental research. In keeping with the










TOTAL RETURN STRATEGY
A focus on both capital growth and income. We take a total







LONG TERM
Typical holding period of 3-5 years. This is an appropriate period



Gearing should enhance shareholder returns. 



CAPACITY MANAGEMENT
Scale diseconomies. 






DEEP INVESTMENT RESOURCE WITH GLOBAL
PERSPECTIVE
A close-knit investment team.


Challenge and debate. This is encouraged within a structured

Team members own Liontrust equity and coinvest in the team’s


The Portfolio Manager’s Core Investment Beliefs

14 / STRATEGIC REPORT / THE EDINBURGH INVESTMENT TRUST PLC
STRATEGY AND BUSINESS MODEL
The Edinburgh Investment Trust plc is an investment company and





The business model the Company has adopted to achieve its








Sanne

Limited)
INVESTMENT OBJECTIVE AND POLICY

term

 

 

Investment Policy
The Company will generally invest in companies quoted on a




by the  











The Company may borrow money to provide gearing to the equity













RESULTS AND DIVIDENDS





 

2022


which is the same as the third interim dividend declared last
month i
This represents

31 
PERFORMANCE


page 2



The Chairman’s Statement on pages 5 to 7 gives a commentary on









Business Review

THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 15

22

Company was ranked 5
17th over three years and 

OUTLOOK, INCLUDING THE FUTURE OF THE COMPANY




pages 
FINANCIAL POSITION AND BORROWINGS
The Company’s balance sheet on page 55 shows the assets and


Unsecured Senior Loan Notes1
25
  

PERFORMANCE ATTRIBUTION
for year ended
31 March 2022
%
Total Return Basis
(1)
NAV (debt at market value) 14.1
Less: Benchmark 13.0
 1.1

 13.9
Less: Benchmark total return
(1)
13.0
 0.9
Borrowings:

0.8
Interest
-0.7
Market value movement
0.7
 -0.4
Other expenses -0.1
Tax -0.1
Share buybacks 0.0
Total 1.1
(1)

– 


















Interest 

Market value movement – represents the change in market
’


Management fee 

Other expenses and tax

Share buybacks



16 / STRATEGIC REPORT / THE EDINBURGH INVESTMENT TRUST PLC
Investments in Order of Valuation
At 31 March 2022
UK LISTED ORDINARY SHARES UNLESS OTHERWISE STATED
Company Sector
Value
£’000
% of
Portfolio
Shell Oil, Gas and Coal 89,094 7.3
Tesco Personal Care, Drug and Grocery Stores 63,192 5.2
Anglo American Industrial Metals and Mining 60,815 5.0
AstraZeneca  54,918 4.5
BAE Systems  53,545 4.4
Unilever Personal Care, Drug and Grocery Stores 52,043 4.3
NatWest Banks 45,242 3.7
Ashtead  44,743 3.7
Electrocomponents Industrial Support Services 36,994 3.0
Weir Industrial Engineering 36,567 3.0
TEN TOP HOLDINGS 537,153 44.1
Newmont - US Listed Precious Metals and Mining 35,458 2.9
GlaxoSmithKline  32,290 2.6
KPN - Dutch Listed  31,396 2.6
  30,760 2.5
Smith & Nephew Medical Equipment and Services 30,114 2.5
Hays Industrial Support Services 29,484 2.4
HSBC Banks 29,051 2.4
TotalEnergies - French Listed Oil, Gas and Coal 27,865 2.3
Centrica  27,488 2.3
Dunelm Retailers 26,127 2.1
TWENTY TOP HOLDINGS 837,186 68.7
Standard Chartered Banks 24,831 2.0
WPP Media 23,344 1.9
Compass Consumer Services 23,258 1.9
Mondi General Industrials 22,178 1.8
Serco Industrial Support Services 21,552 1.8
 Personal Care, Drug and Grocery Stores 21,037 1.7
Diageo Beverages 19,442 1.6
Direct Line  18,311 1.5
Greggs Personal Care, Drug and Grocery Stores 17,934 1.5
  17,588 1.5
THIRTY TOP HOLDINGS 1,046,661 85.9
Marks & Spencer Retailers 14,902 1.2
Marshalls  14,805 1.2
Genuit  12,906 1.1
easyJet Travel and Leisure 12,810 1.1
Bellway  12,731 1.0
Whitbread Travel and Leisure 12,400 1.0
ConvaTec Medical Equipment and Services 12,060 1.0
Redrow  11,624 0.9
Thales - French Listed  10,771 0.9
  10,068 0.8
FORTY TOP HOLDINGS 1,171,738 96.1

THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 17
Company Sector
Value
£’000
% of
Portfolio
Roche - Swiss Listed  10,047 0.8
Intel - US Listed Technology Hardware and Equipment 9,054 0.8
Domino's Travel and Leisure 8,409 0.7
St James's Place Investment Banking and Brokerage Services 5,148 0.4
Dr. Martens Personal Goods 4,711 0.4
RELX Media 4,025 0.3
Made.com  3,158 0.3
Cazoo - US Listed Retailers 2,129 0.2
Raven Property
S
 Real Estate Investment and Services 237 –
Eurovestech
UQ
Investment Banking and Brokerage Services 69 –
 1,218,725 100.0
S
Temporary suspension

Unquoted investment

18 / STRATEGIC REPORT / THE EDINBURGH INVESTMENT TRUST PLC
Portfolio Analysis
Financials Ulies
30%
5%
10%
15%
20%
25%
2022 2021
Porolio Analysis by Industry
At 31 March 2022 and 2021
Technology Tele-
communicaons
Health
Care
Real Estate
Consumer
Discreonary
Consumer
Staples
Industrials Basic
Materials
Energy
0%
30%
25%
20%
15%
10%
5%
0%
Porolio FTSE All-Share Index
Comparison of Porolio to FTSE All-Share Index by Industry
At 31 March 2022
Technology Tele-
communicaons
Health
Care
Financials Real
Estate
Consumer
Discreonary
Consumer
Staples
IndustrialsBasic
Materials
EnergyUlies

THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 19
Principal Risks and Uncertainties
RISK MANAGEMENT AND MITIGATION



























Russia’s invasio
Ukraine 


MARKET RISK






geo war in Ukraine and government








Market risk is included in the risk control summary report that is


INVESTMENT PERFORMANCE RISK


individual investment decisions are delegated
to the   Manager’s approach is to

 Manager


 

 Manager


The  Manager’s style may result in a concentrated

in individual stocks or sectors compared to the index and


 Manager manages

 


 Manager believe


Value per share
dividend per share 
to the  

the benchmark and peer group is provided to the Board at each


 Manager is responsible











20 / STRATEGIC REPORT / THE EDINBURGH INVESTMENT TRUST PLC
Principal Risks and Uncertainties / continued
BORROWING RISK
The Company may borrow to provide gearing to the equity

 which will mature at 30
September 2022Unsecured
Senior Loan Notes

debenture 



which is
currently undrawn can be renewed and on terms acceptable to





Borrowing and gearing risk is included in the risk control summary

compliance with the Company’s investment policy guidelines


INCOME/DIVIDEND RISK





contained within the Board papers and the Board considers the

SHARE PRICE RISK




within agreed parameters which are regularly reviewed with




Share price risk is included in the risk control summary report that

CORPORATE GOVERNANCE AND INTERNAL CONTROLS
RISK
The Board has delegated to third party service providers the














providers is carried out by the Company Secretary who provides



RELIANCE ON THE MANAGER AND OTHER THIRD PARTY
PROVIDERS RISK












appointment could have a materially detrimental impact on the









being unwilling to deal with the Manager and by extension the



 


 

has the power to replace the Manager and reviews the


THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 21
 




4


 
 

 



 




EMERGING RISKS



















The  



 Manager

  



-e or
other p



























22 / STRATEGIC REPORT / THE EDINBURGH INVESTMENT TRUST PLC
Viability Statement


investment vehicle rather than a commercial business venture



 

has thus been assessed
 




The investment strategy and its associated risks are kept under




pandemic
set out on page 






detail in the Going Concern Statement on page 






processes set out on page 34


level at the year end and the board considers this implausible














THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 23
Section 172 Statement, Company
Sustainability and Stakeholders
BOARD RESPONSIBILITIES
35 to 41 the Directors








COMPANY SUSTAINABILITY AND STAKEHOLDERS




ENGAGEMENT WITH SHAREHOLDERS



the Company communicates with shareholders is through the









Shareholders can also visit the Company’s website
m in order to access copies













 s
the Board and Manager will host a shareholder event in London
on 22 September 2022 and shareholders can register via the
Company’s website

Regular dialogue is maintained between the Manager and major




 

Stheeman


 The
Company Secretary passes to the Chairman all correspondence






provided by the Company’s broker and Manager is a major

ENGAGEMENT WITH THE MANAGER






arranged
new debt which will be available to replace the debenture when it

ENGAGEMENT WITH SERVICE PROVIDERS







the internal control reports on a quarterly basis covering their


and assesses annually whether the services meet the requirements







24 / STRATEGIC REPORT / THE EDINBURGH INVESTMENT TRUST PLC
ENGAGEMENT WITH INVESTEE COMPANIES



and the Manager believe that engagement with investee companies





The Board supports the Manager’s approach to ESG in the context




CONCLUSION



all the Company’
’
longly to


MATTERS

 environmental policy has limited
In respect  the Company’s investments Manager
and the other members  investment team integrate ESG risks
and  as part  
 
this analysis is   risks
and  that each holding aces over a three to 
period  Many  these issues
  The issues that
are 
discussions on 
the manager 
over the three   
 ussl
risks legislan  The Manager is a
signatory to the Princ  
d through the

EXERCISE OF VOTING POWERS AND STEWARDSHIP CODE
Stewardship
The Board considers that the Company has a responsibility as a

Governance standards are maintained in the companies in which







The Manager has adopted a clear and considered policy towards






on the Manager’s website at  together with a


M
















The Manager publishes a quarterly
year on its website 
MODERN SLAVERY DISCLOSURE




Section 172 Statement, Company Sustainability
and Stakeholders / continued

THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 25
The Company is an investment vehicle and does not provide goods











PREVENTION OF THE FACILITATION OF TAX EVASION


GREENHOUSE GAS EMISSIONS AND STREAMLINED











This Strategic Report was approved by the Board on 25 May 2022
SANNE FUND SERVICES (UK) LIMITED / 

26 / STRATEGIC REPORT / THE EDINBURGH INVESTMENT TRUST PLC


Governance

28 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC
The Directors
All Directors are
non-executive
and considered
independent.
GLEN SUAREZ

24 May 2013
Became Chairman on
22 November 2017

M
Management Engagement
N

A












VICKY HASTINGS

23 May 2013

M
Management Engagement
N

A

Vicky was appointed Senior
Independent Director on 25 July

experience in the investment
management industry and is a

Environmental Markets plc and




held investment leadership roles
at Merrill Lynch Investment


non
include Investment Trusts as well





STEVE BALDWIN

10 September 2018

M
Management Engagement
N

A




director at Plus500 Ltd and a
Trustee at Howard de Walden


Elegant Hotels Group plc and


Equity Capital Markets and
Corporate Broking at Macquarie

Prior to this Steve was a Director





THE EDINBURGH INVESTMENT TRUST PLC / GOVERNANCE / 29
ELISABETH STHEEMAN



M
Management Engagement
N

A

Elisabeth is an External Member


























LaSalle Investment Management


PATRICK EDWARDSON



M
Management Engagement
N

A

Patrick Edwardson joined Baillie






Company plc between 2004 and









The Company’s Corporate Governance Framework
30 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC
THE BOARD AND COMMITTEES


and other external service providers.
The Board
Chairman Glen Suarez

 (NEDs)
Chairman

– to set strategy, values and standards;
– 
– to appoint the Manager and other external service providers; and
– 

Management Engagement
 


All NEDs All NEDs All NEDs The Board as a whole performs

Chairman
Steve Baldwin
Chairman
Glen Suarez
Chairman
Glen Suarez

– to oversee the control


– 
for the appointment of the
auditor; and
– to review the performance
of other service providers,
including the auditor.

– to review regularly the
management contract and
the performance of the
Manager.

– to review regularly
the Board’s structure,

performance; and
– 
for any changes or new
appointments.

– 
policy of the Company.

THE EDINBURGH INVESTMENT TRUST PLC / GOVERNANCE / 31
Corporate Governance Statement
For the year ended 31 March 2022
This Corporate Governance statement forms part of the Directors’

Corporate Governance and is accountable to shareholders for the


of the 2019 AIC Code of Corporate Governance (the “AIC Code”).


disclose how they have applied the principles and complied with
the provisions of The UK Corporate Governance Code 2018 (the

The UK Code can be viewed on the FRC’s website.


the AIC Code adapts the Principles and Provisions set out in the
UK Code to make them relevant for investment companies.

AIC Code and the relevant provisions of the UK Code, except the

 
 
 
The Board considers these provisions are not relevant to the



through the Manager’s own control environment which itself is

therefore not reported further in respect of these provisions.

AIC Code and the UK Code is provided in the Directors’ Report as

 
30, and page 32 in

– the Company’s approach to internal control and risk
management is summarised on page 34;
– the contractual arrangements with, and assessment of, the
Manager are summarised on page 39;
 
summarised on pages 39 and 40;
 
on page 40;
– the rules concerning the appointment and replacement

36 and 37. There
are no agreements between the Company and its directors

– powers to issue or buy back the Company’s shares, which
are sought annually, and any amendments to the Company’s

shareholders.
By order of the Board

COMPANY SECRETARY / 25 MAY 2022

32 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC
Audit Committee Report
For the year ended 31 March 2022
COMMITTEE COMPOSITION AND ROLE


reviewed


the Company or viewed on the Company’s website.
AUDIT COMMITTEE RESPONSIBILITIES

 





 

balanced and understandable and provides the necessary

and performance, business model and strategy;
 
and risk management systems, including reports received on

and the Manager’s whistleblowing arrangements;
 
Manager’s compliance department, monitoring and reviewing


 



their appointment, reappointment and removal and for the
terms of their audit engagement;
 

– considering annually whether there is a need for the Company

AUDIT COMMITTEE ACTIVITIES






with the Manager, reviews the Company’s compliance with










The 



There have been no such issues raised during the year. The
auditor’s report, together with reports from the Manager, the
Manager’s Compliance Department and the depositary, form the



statements.

THE EDINBURGH INVESTMENT TRUST PLC / GOVERNANCE / 33
ACCOUNTING MATTERS AND SIGNIFICANT AREAS

 How addressed
A


prices provided by third party pricing vendors. Investments that




 The Manager 

records.
R
dividend income.

policies note 1F. The Manager provides detailed revenue

ensure it is complete and accounted for correctly. Careful

revenue or capital according to the nature of the payment by the

auditor.

revenue and capital.








with, the Manager and the auditor at the conclusion of the audit
process.

2022
Board that the report taken as a whole is fair, balanced and


business model and strategy.

AUDIT SERVICES

of the external auditor and their audit process. This included a


sought the view of the Manager in their dealings with the



external audit approach. Combining the output of all the above,




independence.


auditor make them a suitable supplier of such services and

conduct of the audit as a result. Excluding VAT and any expenses,
the annual audit fee was £41,0003,000). and the
 fee was £nil, see note 4 on page 62. The





34 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC
AUDITOR
PwC were appointed as the Company’s Auditors at the AGM on



Company’s shareholders at the 2022 AGM.
INTERNAL CONTROLS AND RISK MANAGEMENT

which the Company is exposed by reference to a risk control



the Directors to concentrate on those risks that are most

19 to 21.

ensuring that the Company maintains a sound system of

assets. The 

management systems, is reviewed at least annually. Appropriate





administrator, custodian, company secretary and registrar. These

INTERNAL AUDIT
The Company, being an externally managed investment company



reviews.
COMMITTEE EVALUATION



Performance Appraisal’ on page 37.
 / CHAIRMAN OF THE AUDIT
COMMITTEE / 25 MAY 2022
Audit Committee Report / continued

THE EDINBURGH INVESTMENT TRUST PLC / GOVERNANCE / 35
Directors’ Report
For the year ended 31 March 2022
BUSINESS AND STATUS
The Company was incorporated and registered in Scotland on
1 March 1889 as a public limited company, registered number

of the Companies Act 2006 and operates as an investment trust


HM Revenue & Customs have approved the Company’s status
as an investment trust and, in the opinion of the Directors, the

such approval.
CORPORATE GOVERNANCE
The Corporate Governance Statement set out on page 31 is
included in this Directors’ Report by reference.
THE BOARD
At the year end the Board comprised 
The Company’s Corporate Governance Framework is set out on
page 30




The Board regards all of the Directors to be wholly independent of
the Company’s Manager.
Chairman
The Chairman of the Company is Glen Suarez. He has been a
member of the Board since 2013 and was appointed Chairman on
22 November 2017.
Senior Independent Director

was appointed to the role on 25 July 2019.
Board Balance and Diversity


experience, skills, length of service and backgrounds, including
but not limited to gender diversity. The Board has considered

reviews as well as the Parker review, but does not consider it

policy is always to appoint the best person for the job and there


aim of the policy is to ensure that the Board is composed of a





present, two are female. Summary biographical details of the
Directors are set out on pages 28 and 29.
BOARD RESPONSIBILITIES


the success of the Company and for the proper conduct of the




the environment; the desirability of the Company maintaining a

act fairly between shareholders of the Company. This is reported
in the Strategic Report on page 23

and, taking account of the nature of the Company’s business


persons associated with it from engaging in bribery. It has a zero



shareholders and that the interests of creditors and suppliers to the
Company are properly considered.







payable; managing the capital structure; reviewing investment
performance; assessing risk; approving borrowing; and reviewing,






which they are exposed by holding their shares, through the

factsheets and daily NAV disclosures.

are arranged as necessary. Regular contact is maintained by




against stock market indices and the Company’s peer group, asset


36 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC


and industry and other issues.

Manager and Company Secretary ensure that all Directors have


There is an agreed procedure for the Directors, in the furtherance





into account all factors which are deemed necessary in order to
ensure that members of the Board are provided with appropriate




AUDIT INFORMATION


unaware; and each Director has taken steps that he or she ought
to have taken as a Director to make himself/herself aware of any


and should be interpreted in accordance with the provisions of

THE COMMITTEES






available on the Company’s page of the Manager’s website.


32 to 34,
which is included in this Directors’ Report by reference.



least annually to review the investment management agreement
and to review the services provided by the Manager.

of the Manager.





skills, experience, independence and knowledge of the Company;

directors at AGMs.





(including gender). The Board has not set any measurable targets




recruitment process. The Company and the Directors have no

their criteria for the appointment. Odgers Berndtson introduced

It has

that Aidan Lisser will join the Board from 27 May 2022.
No Director has a contract of employment with the Company.





all the other Directors.

New Directors are appointed by the Board following




Code of Corporate Governance, the Board has resolved that all

On being appointed to the Board, Directors are fully briefed as


Company Secretary and the Board have formulated a programme

also put arrangements in place to address ongoing training

Company Secretary which ensure that Directors can keep up to

Directors’ Report / continued

THE EDINBURGH INVESTMENT TRUST PLC / GOVERNANCE / 37


who have served for more than nine years should be presumed
not to be independent. The AIC does not believe that this


prevented from forming part of the independent majority of an
investment trust board. It is the Board’s policy that all Directors,
including the Chairman, shall normally have tenure limited to

the Board may determine otherwise if it is considered that the

or the Chairman, is in the best interests of the Company and its
shareholders. This is also subject to the Director’s 
annually by shareholders. The Board considers that this policy
encourages regular refreshment and is conducive to fostering
diversity. Glen Suarez reached the ninth anniversary of his

at the AGM on 21 July 2022 and is therefore not standing for
re

appointment to the Board during the year. The Board has asked


Stheeman is appointed as Chairman. The Board has considered




.
BOARD, COMMITTEE AND DIRECTORS’ PERFORMANCE
APPRAISAL
The Directors recognise the importance of the AIC Code’s


individual Directors.
In 2020 the Board appointed Linstock Limited, an external

and the Directors individually. As no concerns were raised
in these reports, the Board opted to conduct the 2022

discussion between the Directors, the Chairman and the

each Director’s independence. The conclusion was that the


Board’s considered view, all Directors were independent.
ATTENDANCE AT BOARD AND COMMITTEE MEETINGS





during the year.
ATTENDANCE AT BOARD AND COMMITTEE MEETINGS

31 

Board
Audit

Management
Engagement

s

 5 2 2 3
Glen Suarez 5 2 2 3
Steve Baldwin 5 2 2 3
Patrick Edwardson 5 2 2 3
 5 2 2 3
Elisabeth Stheeman 5 2 2 3
Gordon McQueen 2 1 1 1
Maxwell Ward 2 1 1 1


38 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC
DIRECTORS
Directors’ Interests in Shares
The Directors’ interests in the ordinary share capital of the

page 45.
Disclosable Interests
No Director was a party to, or had any interests in, any contract or

the year end.




executed on behalf of the Company for each of the Directors




their appointment.
CONFLICTS OF INTEREST





which apply when Directors decide whether to do so. First, only

are able to take the relevant decision, and second, in taking the
decision the Directors must act in a way they consider, in good
faith, will be most likely to promote the Company’s success.





the Board and Directors know to advise the Company Secretary as

STREAMLINED ENERGY & CARBON REPORTING ‘SECR’

in the Strategic Report on page 25.
PROPOSED DIVIDENDS

shareholders, the details of this are given on page 14 of the
Strategic Report.
INTERNAL CONTROLS AND RISK MANAGEMENT

the Company’s system of internal controls. The Board assumes


internal controls is designed to manage rather than eliminate the

reasonable assurance against material misstatement or loss. The
Board has undertaken a review of the aspects covered by the





represent an appropriate framework to meet the internal control


the year and up to the date of this report.
The Company’s internal controls and risk management systems
have been reviewed with the Manager against risk parameters
approved by the Board. The Board reviews a risk control summary

the risk procedures and controls in place at the Manager and
other key service providers is performed.



compliance and risk management systems. The Company’s
system of internal controls is designed to manage rather than
eliminate risk of failure to achieve the Company’s investment
and/ or adhere to the Company’s investment policy
and/or investment limits. This system can therefore provide
only reasonable and not absolute assurance against material
misstatement or loss.


weaknesses occurred throughout the year ended 31 March 2022


forecasts, relevant stock market criteria and the Company’s peer

systems of internal controls and risk management and the Board

Department of the Manager. Formal reports are also produced
annually on the internal controls and procedures in place for the


Directors’ Report / continued

THE EDINBURGH INVESTMENT TRUST PLC / GOVERNANCE / 39
GOING CONCERN

basis. The Directors consider this is the appropriate basis as they have


taken as at least 
sheet, for the same reasons as set out in the Viability Statement
on page 22. In considering this, the Directors took into account

borrowing (each of the debenture, unsecured notes and the bank
facility). In reaching this conclusion, the Directors have considered

 March 2022, the
 and cash

investments. The Company’s audited net assets at 31 March 2022
were £1,175.8 

 and Russia’s invasion of Ukraine, the




held at the year end could be realised in one month under normal


Company’s borrowing. On 30 September 2021, the Company
Unsecured
Senior Loan Notes
which £20m was drawn in October 2021. The other £100m will be
drawn in September 2022 to repay  debenture
on its maturity. 
the Company to remain not less than £300m. The Board, which

 The £100 million debenture matures in
September 2022. The bank facility which is not currently drawn,
remains available whilst the Company’s Net Asset Value is above
£300 million
The bank facility was renewed on 16 June 2021 at £25 million
and matures on 15 June 2022. This facility is not expected to be
renewed.


31 March 
THE MANAGER
On 4 March 2020, the Board appointed Majedie Asset Management
Limited (‘Majedie’) as its AInvestment Fund Manager.

from 1 April 2022, Liontrust Fund Partners LLP was appointed the



delegated to Liontrust Investment Partners LLP.
Investment Management Agreement (‘IMA’)

the Company under an investment management agreement dated
3 March 2020. The agreement is terminable by either party by

The monthly 
 



There is no performance fee. 

Assessment of the Manager

review following the Company’s takeover of Majedie by Liontrust


appointment of Liontrust Fund Partners LLP as Manager is in the
best interests of the Company and its shareholders.
COMPANY SECRETARY
On 3 March 2020, the Board appointed PraxisIFM Fund Services
(UK) Limited as secretary to the Company. The Board has

Company Secretary, who are responsible for ensuring that the

 The Company Secretary
provides full company secretarial services to the Company, ensuring
that the Company complies with all legal, regulatory and corporate




the Company Secretary is responsible for advising the Board

2022 PraxisIFM Fund Services (UK) Limited was renamed Sanne
Fund Services (UK) Limited 
by Sanne Group PLC.
SHARE CAPITAL
Capital Structure

capital consisted of 195,666,734 ordinary and treasury shares
of 25p each of which 24,588,605 shares are held in treasury.

overhang or shortage of shares in the market, it seeks approval

40 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC
SUBSTANTIAL HOLDINGS IN THE COMPANY
T

Shares %
Rathbone Investment Management 10,390,173 6.08
Directors’ Report / continued
from shareholders every year to buy back and sell shares. No
shares were issued in the year. During the year 1,104,800 ordinary
shares were repurchased for holding in treasury at an average
price of 632.95p per share (including costs). Since the year end,
290,000 ordinary shares have been bought back for holding in
treasury.







control following a successful takeover bid.


one vote on a show of hands and, on a poll, one vote for each



Repurchase Powers
The Board’s current powers to repurchase shares and proposals
for their renewal are disclosed on page 41.
DISCLOSURES REQUIRED BY UKLA LISTING RULE 9.8.4



Company for the year under review.




The following summarises the business of the forthcoming
AGM of the Company, which is to be held on 21 July 2022
at 11am. 
on pages 77 to 80

is for members to receive and consider this Annual

auditor’s report.

set out on page 43.
3 is for members to approve the Annual Statement

4 
5 to 8 
Directors can be found on pages 28 and 29.
Resolu is to elect Aidan Lisser as a Director. Aidan's
biography can be found in the Chairman’s Statement on page 7.

the AGM having completed a nine year term as a director of
the Company. All other Directors will stand for 
shareholders at the AGM. The Board has determined that each

and demonstrates commitment to their role. Their balance of
knowledge and skills combined with their diversity and business

Elisabeth Stheeman has extensive

and real estate that bring highly relevant and valuable skills to
the Board. Steven Baldwin is a Chartered Accountant and his
experience in a range of industries brings a breadth of experience

investment management industry that has brought her broad
sector experience to the Board. Patrick Edwardson has years of
investment experience as a fund manager and deep knowledge
 Aidan Lisser



10 and 11 



THE EDINBURGH INVESTMENT TRUST PLC / GOVERNANCE / 41
Special Business
2 is an Ordinary


this being an aggregate nominal amount of £4,269,703 as at
23 May 2022.
3 Authority to Allot Shares is a Special




shares to be issued to new shareholders, within the prescribed

thus broadening the shareholder base of the Company. The

using the authority to issue shares at a price which is less than
the Net Asset Value (calculated with debt at market value) of the



4Authority to Buy Back Shares


this being 25,601,140 ordinary shares as at 23 May 2022. The
authority will expire at the Company’s next AGM or 15 months

purpose of share buy backs is to enhance the net asset value for
remaining shareholders and purchases will only be made if they
do so.


(i) 

higher of the price of the last independent trade in the shares and
the highest then current independent bid for the shares on the
London Stock Exchange. The minimum price which may be paid
will be 25p per share, this being the nominal value of a share. In

of the London Stock Exchange.



The Directors might consider holding repurchased shares as
treasury shares with a view to possible resale.
5



A 

 



used only where the Board believes it is in the best interests of



them all to be in the best interests of shareholders as a whole.
The Directors therefore recommend that shareholders vote in


By order of the Board

COMPANY SECRETARY / 25 MAY 2022

Statement of Directors’ Responsibilities
in respect of the preparation of the Annual Financial Report
42 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC






The Financial





disclosures have changed as a result of the revised SORP.



for that period.


 
consistently;
 
prudent;
 
followed, subject to any material departures disclosed and

 

and
 







They are responsible for such internal control as they determine is

are free from material misstatement, whether due to fraud or
error, and have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the Company


responsible for preparing a Strategic Report, Directors’ Report,


The Directors are responsible for the maintenance and integrity

Company’s website, which is maintained by the Company’s



RESPONSIBILITY STATEMENT OF THE DIRECTORS IN
RESPECT OF THE ANNUAL FINANCIAL REPORT

 


loss of the Company; and
– the Strategic Report includes a fair review of the development






performance, business model and strategy.
Signed on behalf of the Board of Directors
/ CHAIRMAN / 25 MAY 2022

THE EDINBURGH INVESTMENT TRUST PLC / GOVERNANCE / 43
Directors’ Remuneration Report
For the year ended 31 March 2022

The 


disclosures provided in this Report. Where disclosures have
been audited, they are indicated in this Report. The independent
auditor’s opinion is included on pages 47 to 53.
REMUNERATION RESPONSIBILITIES






DIRECTORS’ REMUNERATION POLICY
 (the ‘Policy’) is put before
shareholders for approval every three years and was approved by

that date. The Policy will be put before shareholders for approval
at the AGM on 21 July 2022.





candidates of a high calibre are recruited to the Board but not be


Fees for the Directors are determined by the Board within the

The maximum currently is £250,000 in aggregate per annum.
Directors do not have service contracts. Directors are appointed










which, in the opinion of the Directors, are outside the scope of




new directors, who will be paid the appropriate fee based on
the Directors’ fees level in place at the date of appointment.
The Board will consider, where raised, shareholders’ views on




followed by the Board as disclosed in last year’s Directors’



ANNUAL STATEMENT ON DIRECTORS’ REMUNERATION
For the year ended 31 March 2022, fees paid to the Directors per

Role
Current fee
from
1 December
2021
£
Previous fee
before
1 December
2021
£
Percentage
increase
during the
year
%
Chairman 44,000 44,000 –
Senior Independent
Director
31,500 30,250 4.0

Chairman
35,000 33,000 6.0
Director 28,500 26,500 7.5
During the year the Board reviewed Directors’ fees and considered

The Directors’ fees had previously been increased in 2020. The
increases in 2021 
line with market rates and 
. The increases also

the period of Board succession. The Chairman’s fee remains
unchanged. 
compared to 2021.

44 / GOVERNANCE / THE EDINBURGH INVESTMENT TRUST PLC
REMUNERATION FOR THE YEAR ENDED 31 MARCH 2022
THE COMPANY’S PERFORMANCE
The following graph plots, in annual increments, the net asset value total return and share price total return to ordinary shareholders

the Company for comparison purposes.
Total Return Graph
Figures have been rebased to 100 at 31 March 2012.
Directors’ Remuneration Report / continued



Fees
£
2022
Taxable

(1)
£
Total
£
Fees
£
2021
Taxable

(1)
£
Total
£
Percentage
change of
basic fees
(2)
Glen Suarez 44,000 4,887 48,887 44,000 – 44,000 –
Steve Baldwin 31,720 – 31,720 24,967 – 24,967 7.5%
 30,667 320 30,987 33,416 – 33,416 4.1%
Patrick Edwardson 27,167 1,226 28,393 3,515 – 3,515 7.5%
Elisabeth Stheeman 27,167 228 27,395 24,967 – 24,967 7.5%
 10,239 289 10,528 31,000 – 31,000 –
 8,222 – 8,222 24,967 – 24,967 –
Total 179,182 6,950 186,132 186,832 186,832
(1)

(2)





250
200
150
100
Total Return Graph (Figures have been rebased to 100)
Share price Net Asset Value – debt at market value FTSE All-Share Index
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2022
At 31 March 2012

THE EDINBURGH INVESTMENT TRUST PLC / GOVERNANCE / 45





31 March
2022
31 March
2021
Glen Suarez 37,000 37,000
Steve Baldwin - –
 9,000 9,000
Elisabeth Stheeman 6,000 3,000
Patrick Edwardson
1
60,000 60,000
(1)
Patrick Edwardson’s holding includes 13,000 shares which are being held by a connected person.
RELATIVE IMPORTANCE OF SPEND ON PAY


2022
£’000
2021
£’000
Change
£’000
 185 187 (2)
 42,512 49,331 (6,819)
VOTING AT LAST ANNUAL GENERAL MEETING
A

Votes
For %
Votes
Against %
Votes

A 52,829,474 98.67 712,465 1.33 59,536
Approval
25 May 2022.
 / CHAIRMAN
Signed on behalf of the Board of Directors

46 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
Financial Review

THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 47
Independent Auditor’s Report
To the members of The Edinburgh Investment Trust plc
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion

 
ended;
 


 




Basis for opinion



Independence





Our audit approach
Overview
 
 
 
 
 




 


 



48 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC









– 
– 













 
















THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 49
 





































Materiality





Overall Company materiality 
How we determined it 
 











50 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC


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









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





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
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


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
 
 













52 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC









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













THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 53
OTHER REQUIRED REPORTING


 
 

 
 


Appointment



Jeremy Jensen



London


54 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
Income Statement
For the year ended 31 March
Notes
Revenue
£’000
2022
Capital
£’000
Total
£’000
Revenue
£’000
2021
Capital
£’000
Total
£’000
 9(b) – 101,815 101,815 – 247,596 247,596
 – (148) (148) – (91) (91)
 2 44,211 10,036 54,247 32,842 11,041 43,883
 3 (1,512) (3,528) (5,040) (1,016) (2,371) (3,387)
 4 (977) (9) (986) (814) (13) (827)


41,722 108,166 149,888 31,012 256,162 287,174
 5 (2,492) (5,815) (8,307) (2,438) (5,690) (8,128)


39,230 102,351 141,581 28,574 250,472 279,046
 6 (663) – (663) (495) – (495)


38,567 102,351 140,918 28,079 250,472 278,551
Return per ordinary share:
 7      






THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 55
Notes
2022
£’000
2021
£’000
Fixed assets
 9(a) 1,218,725 1,151,008
Current assets

10 10,824 7,974
 68,728 32,570
79,552 40,544
Creditors: amounts falling due within one year

11 (2,566) (698)

11 (99,874) –
(102,440) (698)
 (22,888) 39,846

1,195,837 1,190,854

12 (20,000) (99,623)
Net assets
1,175,837 1,091,231
Capital and reserves

13 48,917 48,917

14 10,394 10,394

14 24,676 24,676

14 1,041,086 945,728
 14 50,764 61,516
Total Shareholders’ funds
1,175,837 1,091,231
:

15  

15  

GLEN SUAREZ / 


Balance Sheet
As at 31 March

56 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
Notes
Share
Capital
£’000
Share
Premium
£’000
Capital

Reserve
£’000
Capital
Reserve

£’000
Revenue
Reserve

£’000
Total
£’000
At 31 March 2020 48,917 10,394 24,676 706,726 81,771 872,484

– – – 250,472 28,079 278,551

8 – – – – (48,334) (48,334)

– – – (11,470) – (11,470)
At 31 March 2021 48,917 10,394 24,676 945,728 61,516 1,091,231

– – – 102,351 38,567 140,918

8 – – – – (49,319) (49,319)

– – – (6,993) – (6,993)
At 31 March 2022 48,917 10,394 24,676 1,041,086 50,764 1,175,837

 

Statement of Changes in Equity

THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 57
Notes
2022
£’000
2021
£’000

 149,888 287,174

6 (663) (495)


(426,367) (417,672)

462,132 437,425
35,765 19,753

(101,815) (247,596)
 (3,201) (2,303)
 128 (141)

80,102 56,392


(1) –

(85) (158)

(7,994) (7,750)

20,000 –
 (6,545) (11,538)

8 (49,319) (48,334)

(43,944) (67,780)

36,158 (11,388)

32,570 43,958
Cash and cash equivalents at the end of the year
68,728 32,570


1,021 844

47,727 31,726

19,980 –
Cash and cash equivalents
68,728 32,570


50,447 39,963

– 4
At 1 April 2021
£’000

£’000
Non-cash
movement
£’000
At 31 March 2022
£’000

 32,570 36,158 – 68,728

(99,623) – (251) (99,874)
 – (20,000) – (20,000)
Total
(67,053) 16,158 (251) (51,146)
Cash Flow Statement
For the year ended 31 March

58 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
1. PRINCIPAL ACCOUNTING POLICIES















 






these
 


 
 

 
 




 

Notes to the Financial Statements

THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 59
C. Financial Instruments

 
 


 
 




 

 

 
  
  
  

  




  
  

D. Cash and Cash Equivalents





E. Hedging


F. Income






60 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
G. Expenses and Finance Costs














I. Dividends Payable















  











THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 61


2. INCOME


2022
£’000
2021
£’000
Income from investments:

11 –

32,253 26,028

6,689 2,432

5,193 4,368
 28
11
44,174 32,839
Other income:
 – 3
 37 –
37 3
Total income 44,211 32,842

3. INVESTMENT MANAGEMENT FEE

2022 2021
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
 1,512 3,528 5,040 1,016 2,371 3,387



62 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
4. OTHER EXPENSES


2022 2021
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Other expenses 977 9 986 814 13 827


(i)
184 – 184 187 – 187
 
(ii)
:

41 – 41 33 – 33

 – – – 8 – 8

 – – – 3 – 3

 

 

  

  
5. FINANCE COSTS

 
2022 2021
Revenue
£’000
Capital
£’000
Total
£’000
Revenue
£’000
Capital
£’000
Total
£’000



18 42 60 38 89 127

– 1 1 – – –

2,325 5,425 7,750 – – –

– – – 2,325 5,425 7,750
– 
73 171 244 – – –
 76 176 252 75 176 251
2,492 5,815 8,307 2,438 5,690 8,128


THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 63
6. TAX AND TOTAL RETURN ON ORDINARY ACTIVITIES




2022
£’000
2021
£’000
 663 495

2022
£’000
2021
£’000

141,581 279,046

26,900 53,019


(6,128) (4,945)

(972) (2,560)

(3,178) (830)

(19,345) (47,037)

28 11

2,693 2,340

2 2
 663 495
Tax charge for the year 663 495










64 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC





8. DIVIDENDS ON ORDINARY SHARES


2022 2021
pence £’000 pence £’000
Dividends paid and recognised in the year:

6.00 10,331 6.40 11,180

6.00 10,331 9.45 16,492

4.65 8,006 – –

6.00 10,331 6.00 10,331
 6.00 10,320 6.00 10,331
28.65 49,319 27.85 48,334
2022 2021
pence £’000 pence £’000
Dividends payable in respect of the year:

6.00 10,331 6.00 10,331

6.00 10,320 6.00 10,331

6.40 10,934 6.00 10,331
 6.40 10,927 6.00 10,331
24.80 42,512 24.00 41,324
 0.00 0 4.65 8,007
24.80 42,512 28.65 49,331



THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 65
9. INVESTMENTS


Gains or losses are either:
 
 

2022
£’000
2021
£’000

1,218,419 1,150,903
 306 105
1,218,725 1,151,008

2022
£’000
2021
£’000

1,026,675 1,068,853

124,333 (146,420)

1,151,008 922,433


427,683 416,676

(461,781) (435,697)
 101,815 247,596
 1,218,725 1,151,008

1,048,510 1,026,675
 170,215 124,333
 1,218,725 1,151,008






66 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
10. DEBTORS


2022
£’000
2021
£’000

1,138 1,489

1,897 1,592
 7,789 4,893
10,824 7,974
11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR



2022
£’000
2021
£’000

99,874 –

1,316 –

448 –
 802 698
102,440 698








12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022
£’000
2021
£’000


20,000 –

– 100,000
 – (377)
20,000 99,623


THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 67
13. SHARE CAPITAL

2022 2021


42,770 43,046
 6,147 5,871
48,917 48,917
2022 2021


172,182,929 174,682,929
 (1,104,800)
(2,500,000)
Carried forward 171,078,129 172,182,929


23,483,805 20,983,805
 1,104,800 2,500,000
Carried forward 24,588,605 23,483,805
Total ordinary shares 195,666,734 195,666,734



14. RESERVES










68 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
15. NET ASSET VALUE PER ORDINARY SHARE


, issued
their combined







2022 2021
NAV
per share
pence
Share-
holders’
funds
£’000
NAV
per share
pence
Share-
holders’
funds
£’000

687.31 1,175,837 633.76 1,091,231

 (0.07) (126) (0.22) (377)
 687.24 1,175,711 633.54 1,090,854



 

2022 2021
NAV
per share
pence
Share-
holders’
funds
£’000
NAV
per share
pence
Share-
holders’
funds
£’000

687.24 1,175,711 633.54 1,090,854

70.14 120,000 58.08 100,000
  (70.69) (120,938) (63.33) (109,041)
 686.69 1,174,773 628.29 1,081,813


THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 69
16. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS



Financial instruments
,









 

 

 


















70 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
16.1.1 Currency risk















2022 2021
USD
£’000
CHF
£’000
EUR
£’000
USD
£’000
CHF
£’000
EUR
£’000

3,793 1,106 2,389 1,915 859 979

 46,641 27,635 70,032 39,881 12,393 39,593
Total net foreign currency exposure 50,434 28,741 72,421 41,796 13,252 40,572











16.1.2 Interest rate risk






 


THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 71








Interest rate exposure



2022 2021
Within
one
year
£’000
Between
one and

£’000


years
£'000
Total
£’000
Within
one
year
£’000
Between
one and

£’000
Total
£’000


48,748 – – 48,748 32,570 – 32,570


19,980 – – 19,980 – – –

(100,000) – – (100,000) – (100,000) (100,000)


– – (20,000) (20,000) – – –
Total exposure to interest rates (31,272) – (20,000) (51,272) 32,570 (100,000) (67,430)
16.1.3 Other price risk

M










72 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC







2022
Three
months
or less
£’000
More
than three
months
but
less than
one year
£’000
More than
one year
£’000
Total
£’000

– 100,000 – 100,000

– – 20,000 20,000

– 3,875 – 3,875

– 506 14,421 14,927

1,316 – – 1,316

448 – – 448
 802 – – 802
2,566 104,381 34,421 141,368
2021
Three
months
or less
£’000
More
than three
months
but
less than
one year
£’000
More than
one year
£’000
Total
£’000

– – 100,000 100,000

– 7,750 3,875 11,625
 698 – – 698
698 7,750 103,875 112,323












THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 73
17. FAIR VALUE



Fair Value Hierarchy Disclosures










2022
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000



1,218,419 – – 1,218,419
 – – 306 306
 1,218,419 – 306 1,218,725
2021
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000



1,150,903 – – 1,150,903
 – – 105 105
 1,150,903 – 105 1,151,008

l







74 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC

2022 2021

Value
£’000
Fair
Value
£’000

Value
£’000
Fair
Value
£’000

7 ¾2022
100,000 102,734 100,000 109,041

(126) – (377) –

 20,000 18,204 – –
119,874 120,938 99,623 109,041
debt
18. CAPITAL MANAGEMENT



,











  


19. CONTINGENCIES, GUARANTEES AND FINANCIAL COMMITMENTS





THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 75
20. RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH THE MANAGER





21. POST BALANCE SHEET EVENTS

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other

76 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
Other Information
for Shareholders

THE EDINBURGH INVESTMENT TRUST PLC / OTHER INFORMATION FOR SHAREHOLDERS / 77
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR
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
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
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NOTICE OF ANNUAL GENERAL MEETING
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







AGM VOTING







ORDINARY BUSINESS


 

 
 

 
 
6 
 
 
 




SPECIAL BUSINESS



















Notice of Annual General Meeting

78 / OTHER INFORMATION FOR SHAREHOLDERS / THE EDINBURGH INVESTMENT TRUST PLC






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







Notice of Annual General Meeting / continued

THE EDINBURGH INVESTMENT TRUST PLC / OTHER INFORMATION FOR SHAREHOLDERS / 79
Notes
1.


 Shareholders



2.
 

his stead. A proxy need not be a member of the Company. In


  
  


  


 


 




by 11.00 am on 19





3.



Personal Members or other CREST sponsored members, and




made by means of CREST to be valid, the appropriate CREST





the appointment of a proxy or to an amendment to the










be 










personal member or sponsored member or has appointed a










 
 





19

 
19









6.
 





80 / OTHER INFORMATION FOR SHAREHOLDERS / THE EDINBURGH INVESTMENT TRUST PLC

 



 









 




 




 





 





 




 







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
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
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
 
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








Notice of Annual General Meeting / continued

THE EDINBURGH INVESTMENT TRUST PLC / OTHER INFORMATION FOR SHAREHOLDERS / 81
Shareholder Information
HOW TO INVEST IN THE EDINBURGH INVESTMENT

The Company’s shares are quoted on the London Stock Exchange.
There are a variety of ways by which investors can buy the shares.






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

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
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
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
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


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


31 March

The one hundred and thirty second
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
Secretary whose correspondence address is shown on the
next page.

82 / OTHER INFORMATION FOR SHAREHOLDERS / THE EDINBURGH INVESTMENT TRUST PLC
Advisors and Principal
Service Providers
REGISTERED OFFICE




COMPANY NUMBER


ALTERNATIVE INVESTMENT FUND MANAGER





 
COMPANY SECRETARY

6





INDEPENDENT AUDITOR




DEPOSITARY AND CUSTODIAN




BANKER




CORPORATE BROKER




THE ASSOCIATION OF INVESTMENT COMPANIES





LAWYER





REGISTRAR



















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










THE EDINBURGH INVESTMENT TRUST PLC / OTHER INFORMATION FOR SHAREHOLDERS / 83















Page 2022 2021
Share price
2 a 634.00p 600.00p
Net asset value per share – debt at market value (note 15) 68 b 686.69p 628.29p
Discount c = (a-b)/b (7.7)% (4.5)%
DIVIDEND YIELD

Page 2022 2021
Dividends per share payable in respect of the year (note 8)
64 a 24.80p 28.65p
Share price
2
b 634.00p 600.00p
 c = a/b 3.9% 4.8%
GEARING








Page
2022
£’000
2021
£’000
Unsecured Senior Loan Notes – debt at market value (note 15)
68 18,204 –
Debenture stock – debt at market value (note 15)
68 102,734 109,041
Gross borrowings
a 120,938 109,041
Net asset value – debt at market value (note 15) 68 b 1,174,773 1,081,813
Gross gearing c = a/b 10.3% 10.1%
Glossary of Terms and Alternative
Performance Measures

84 / OTHER INFORMATION FOR SHAREHOLDERS / THE EDINBURGH INVESTMENT TRUST PLC




Page
2022
£’000
2021
£’000
Unsecured Senior Loan Notes – debt at market value (note 15)
18,204 –
Debenture stock – debt at market value (note 15)
68 102,734 109,041
Less: cash and cash equivalents 55 (68,728) (32,570)
Net borrowings
a 52,210 76,471
Net asset value – debt at market value (note 15) 68 b 1,174,773 1,081,813
Net gearing
c = a/b 4.4%
7.1%
LEVERAGE



















Page
2022
£’000
2021
£’000
Investment management fee
61 5,040 3,387
Other expenses
62 986 827


(34) (38)
Total recurring expenses a 5,992 4,176
Average daily net assets b 1,157,887 974,141
 c = a/b 0.52% 0.43%
Investment management fee waiver d – 750
 c = (a+d)/b 0.52% 0.51%
Glossary of Terms and Alternative
Performance Measures / continued

THE EDINBURGH INVESTMENT TRUST PLC / OTHER INFORMATION FOR SHAREHOLDERS / 85
RETURN

CAPITAL RETURN

TOTAL RETURN









2022 Page
Net Asset

Share
Price
As at 31 March 2022
2 686.69p 634.00p
As at 31 March 2021 2 628.29p 600.00p
Change in year
a 9.3% 5.7%
Impact of dividend reinvestments
(1)
b 4.8% 4.9%
 c = a+b 14.1% 10.6%
2021 Page
Net Asset

Share
Price
As at 31 March 2021
2 628.29p 600.00p
As at 31 March 2020 3 490.40p 434.00p
Change in year
a 28.1% 38.2%
Impact of dividend reinvestments
(1)
b 6.7% 8.2%
 c = a+b 34.8% 46.4%

 





COMPANY NAME


86 / OTHER INFORMATION FOR SHAREHOLDERS / THE EDINBURGH INVESTMENT TRUST PLC
Alternative Investment Fund
Managers Directive Disclosure

AND THE ALTERNATIVE INVESTMENT FUND MANAGERS

























 



 



 

AIFM REMUNERATION


















The Edinburgh
Investment Trust plc
If you wish to contact members of the Edinburgh Investment Trust
Board then please get in touch with the Company Secretary on
+44 (0)20 3327 9720. If you have any enquiries for the Manager,
please contact them on +44 (0)20 7412 1700.
www.edinburghinvestmenttrust.com
STRATEGY
OVERVIEW
 2-4
Chairman’s Statement 5-7
STRATEGIC REPORT
 9-12
 13
Business Review 14-15
 16-17
 18
 19-21
Viability Statement 22
 23-25
GOVERNANCE
The Directors 28-29
The Company’s Corporate Governance Framework 30
Corporate Governance Statement 31
 32-34
Directors’ Report 35-41
 42
 43-45
FINANCIAL REVIEW
Independent Auditor’s Report 47-53
Income Statement 54
Balance Sheet 55
Statement of Changes in Equity 56
Cash Flow Statement 57
Notes to the Financial Statements 58-75
OTHER INFORMATION FOR SHAREHOLDERS
 77-80
 81
Advisors and Principal Service Providers 82
 83-85
 86
The Company is a
member of

The Edinburgh
Investment Trust plc
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The Edinburgh Investment Trust plc ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2022
The Edinburgh
Investment Trust plc
Quartermile One
15 Lauriston Place
Edinburgh
EH3 9EP
www.edinburghinvestmenttrust.com