LONDON (Alliance News) - The outgoing portfolio manager of Edinburgh Investment Trust PLC Thursday said that returns over the next three years are likely to be lower than over the last three years, citing the "higher valuations we now see in our market."
Edinburgh Investment Trust also said that it is currently reviewing its investment management arrangements, as Neil Woodford, the trust's portfolio manager, is leaving Invesco Perpetual, in April 2014, though he continue to manage the company's portfolio until then.
Woodford's departure from Invesco Perpetual, which forms part of Invesco Ltd, an independent investment management company, was disclosed in October.
"Although the timing is impossible to predict, the withdrawal of extraordinary monetary policy in the US is ultimately inevitable. We expect the pace of withdrawal to be gradual but, like the US Federal Reserve, we do worry about the near-term implications of tapering for our asset class. It is even more difficult than usual to predict the path that the market will take over the next few months but the fund is positioned, with a focus on companies which can deliver attractive cash flows, earnings and dividend growth. It therefore has the potential to deliver an attractive positive return over more sensible, longer time horizons," Woodford said in a statement, before cautioning on returns over the next three years.
The trust's share price with dividends reinvested gave a total return of 7.2% over the course of the half-year, compared to the 3.8% rise by its benchmark, the FTSE All-Share index.
The trust declared an interim dividend of 5.0 pence per share, unchanged.
Edinburgh Investment Trust shares were Thursday quoted at 586.50 pence, up 1.47%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright © 2013 Alliance News Limited. All Rights Reserved.
Edinburgh Investment Trust PLC (EDIN)