Edinburgh Worldwide makes progress on reset plan amid small-cap challenges

Published 15/08/2025, 15:58
Edinburgh Worldwide makes progress on reset plan amid small-cap challenges

LONDON - Edinburgh Worldwide Investment Trust (LSE:EWI) has made "significant progress" on its "Reset for growth" plan launched last November, according to a statement based on an annual overview from QuotedData.

The trust’s plan, approved by shareholders in December 2024, included team changes, process adjustments, portfolio focusing, and a commitment to return up to £130 million to shareholders in 2025.

EWI has implemented a new enhanced portfolio construction framework that tilts more toward cash-generative businesses, with at least 50% of listed assets required to be free cash flow positive. This strategic shift has contributed to recent performance improvements and a narrowing discount to net asset value.

Despite these positive developments, the trust’s small-cap growth exposure "remains significantly out of favor" in current market conditions, the statement noted.

The investment manager expressed optimism about the portfolio companies’ prospects, suggesting that "a change in sentiment towards small caps is overdue" and that markets will eventually recognize the success of these businesses.

The trust’s reset initiative represents a strategic repositioning aimed at improving performance after a challenging period for growth-oriented small-cap investments. The plan’s implementation appears to be proceeding according to the timeline established when it was announced in late 2024.

The information was shared in an annual overview published by QuotedData on August 13, 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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