View transcript
<p><strong>As with any investment, your capital is at risk.</strong></p>
<p> </p>
<p><strong>Douglas Brodie</strong>: Hello, I'm Douglas Brodie, co-manager of Edinburgh Worldwide Investment Trust (EWIT). Today I'm going to touch on recent performance and update you on our thinking regarding the prospects and positioning of the portfolio.</p>
<p>EWIT strives to understand how the world is evolving and which companies are best positioned to both drive and benefit from that evolution. And against that long-term, forward-looking remit, we are pleased to report that our 2025 EWIT portfolio delivered strong investment returns. The Trust's net asset value comfortably outstripped the benchmark, while the share price returns were broadly in line. </p>
<p>Throughout the year markets remained volatile, with geopolitical developments or monetary policy projections driving wild swings in sentiment. Yet the materialisation and onward visibility of technology-led structural growth, whether in AI, industrialisation or groundbreaking healthcare, prompted investors to re-evaluate many of our holdings. Pleasingly, several of our larger holdings have made outsized positive contributions to the Trust's strong returns. For example Alnylam, the clinical biotech, grew revenues by more than 80 per cent to nearly $3 billion, powered by its portfolio of medicines, especially its new drug called Amvuttra for age-related cardiomyopathy.</p>
<p>A formal review of the position in September reasserted our excitement about this special business and our conviction in the potential for further upside as their pipeline evolves. Similarly, SpaceX, launch and satellite company, continued its remarkable progress. Its Starlink service now has over 9 million subscribers and is continuing its path to become the world's first global utility.</p>
<p>Its acquisition of additional radio frequencies from EchoStar opens up the possibility of satellite-based, high bandwidth data services direct to mobile devices, hinting at further optionality in their commercial path.</p>
<p>One of the most pleasing things in 2025 has been the elevation in the portfolio's competition for capital. This was supported by the successful implementation of meaningful process changes introduced 12 months ago in collaboration with the board. These have helped us be more disciplined with names that haven't been delivering relative to our expectations, demonstrated by the decisions to sell out of companies like BlackLine and Digimarc.</p>
<p>Alongside this, we've seen a tick up in M&A activity with holdings like CyberArk, Exact Sciences and Confluent being acquired by trade buyers. But a more positive driver of portfolio evolution has been the rich flow of new investment ideas generated by the team. Over the year, we've taken initial positions in over 20 new companies and these span a range of opportunities from traditional areas rich in opportunity like automation and biotech, through to much more idiosyncratic opportunities in uranium enrichment and autonomous flying taxis. As a result of this trading, two increasingly significant areas within the portfolio our exposure to meet the current need for national security and data center infrastructure serving the AI boom. For example, we've taken initial positions in Kratos Defense, which designs and manufactures solid fuel rocket boosters, small turbo fan engines, and relatively low cost long-range drones. And Exail, which manufactures advanced precise positioning technology for devices like satellites and underwater drones that can't access conventional GPS.</p>
<p>These join existing holdings like AeroVironment and SpaceX, and providing exposure to the advances in defence technology. Over the last few years, we've recognized the potential of generative artificial intelligence, but frankly, it's taken time to access these opportunities within our market cap range. Recently, however, we've uncovered several companies driving the boom in AI datacenters. Companies like IREN, which builds datacenters capitalising on its valuable connection to the electrical grid or Astera Labs, which provides critical components to improve the GPU efficiency within server racks.</p>
<p>Opportunities like this have resulted in the portfolio having a differentiated exposure to this groundbreaking technology, which is at odds with the high levels of concentration and valuation of large cap indices.</p>
<p>The portfolio has exposure to the most exciting areas of technology enabled structural growth from the earlier mentioned security and AI themes to physical and digital automation and groundbreaking medicines. From our work, we perceive the pace of change in these areas to be accelerating, providing ample opportunity for our approach. And while we recognise that markets continue their unpredictable path, we take confidence from the portfolio's operational strength that is growing at a much faster rate than the market and is forecast to continue doing so with improving profitability.</p>
<p>This, combined with valuations that look undemanding relative to other fast-growing market areas, will provide the foundations for future outperformance. So thank you, as always, for your continued support and especially for those that took time to vote in the recent general meeting. For more details on the Trust, we invite you to read its latest annual report available on our website.</p>
<p>And we look forward to seeing many of you at the next AGM.</p>
<p> </p>
<p class="MsoNormal"><strong>Edinburgh Worldwide Investment Trust plc </strong></p>
<p class="TABLEHEADER1212pt"><strong>Annual past performance to 31 December each year (net %)</strong></p>
<table border="1" style="border-collapse: collapse; width: 100%; border-width: 0px; height: 74.4923px;">
<tbody>
<tr style="height: 18.6641px;">
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px;"> </td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px;"><strong>2021</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px;"><strong>2022</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px;"><strong>2023</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px;"><strong>2024</strong></td>
<td style="border-width: 1px 1px 2px; border-style: solid; border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-image: initial; padding: 10px; height: 18.6641px;"><strong>2025</strong></td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px;">Share price</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px;">-20.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px;">-39.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px;">-10.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px;">23.9</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px;">9.5</td>
</tr>
<tr style="height: 18.6641px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.6641px;">Net asset value</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px;">-17.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px;">-34.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px;">-4.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px;">6.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.6641px;">17.1</td>
</tr>
<tr style="height: 18.5px;">
<td style="border: 1px solid rgb(204, 204, 204); padding: 10px; height: 18.5px;">Index*</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px;">16.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px;">-7.8</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px;">9.4</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px;">10.3</td>
<td style="border: 1px solid rgb(204, 204, 204); padding-top: 10px; padding-right: 10px; padding-bottom: 10px; height: 18.5px;">9.9</td>
</tr>
</tbody>
</table>
<p><span class="source-text" lang="EN-US">Source: Morningstar, S&P. Total return in sterling. </span></p>
<p><span class="source-text">*S&P Global Small Cap Index</span>.</p>
<p> </p>
<p><strong>Past performance is not a guide for future returns. </strong></p>
<p><strong>Legal notice</strong>: The S&P Global Small Cap Index is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by Baillie Gifford & Co. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Baillie Gifford & Co. Baillie Gifford & Co Product(s) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P Global Small Cap Index.</p>
<p> </p>
<h3>Important information and risk factors</h3>
<p>This film was produced and approved in February 2026 and has not been updated subsequently. It represents views held at the time and may not reflect current thinking.</p>
<p>This communication does not constitute, and is not subject to the protections afforded to, independent research. Baillie Gifford and its staff may have dealt in the investments concerned. The views expressed are not statements of fact and should not be considered as advice or a recommendation to buy, sell or hold a particular investment.</p>
<p>Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA).</p>
<p>The investment trusts managed by Baillie Gifford & Co Limited are listed on the London Stock Exchange and are not authorised or regulated by the FCA. The value of their shares, and any income from them, can fall as well as rise and investors may not get back the amount invested.</p>
<p>All information is sourced from Baillie Gifford & Co and is current unless otherwise stated.</p>
<p>Further details of the risks associated with investing in the Trust, including a Key Information Document and how charges are applied, can be found in the Trust specific pages at www.bailliegifford.com, or by calling Baillie Gifford on 0800 917 2113.</p>
<p> </p>
<h4>Australia</h4>
<p>Baillie Gifford Overseas Limited (ARBN 118 567 178) is registered as a foreign company under the Corporations Act 2001 (Cth) and holds Foreign Australian Financial Services Licence No 528911. This material is provided to you on the basis that you are a “wholesale client” within the meaning of section 761G of the Corporations Act 2001 (Cth) (“Corporations Act”). Please advise Baillie Gifford Overseas Limited immediately if you are not a wholesale client. In no circumstances may this material be made available to a “retail client” within the meaning of section 761G of the Corporations Act.</p>
<p>This material contains general information only. It does not take into account any person’s objectives, financial situation or needs.</p>
