New Scottish fund management company Edinburgh Partners has
established the EP global opportunities trust, an investment trust that
invests in undervalued companies around the world.
Edinburgh Partners was founded earlier this year by Sandy Nairn and
Graham Campbell, who previously worked together at Scottish
Widows Investment Partnership. They will be the lead managers of
the investment trust.
Nairn joined SWIP in 2000 as its chief investment officer after
spending 10 years at Templeton. Campbell was head of retail funds
at SWIP and has also worked as an UK equity fund manager at
Edinburgh Fund Managers.
At Edinburgh Partners, Nairn and Campbell will focus on investment
trusts and institutional funds because that is where their experience
lies. They established the EP global opportunities trust because they
think the recent bear market has created good growth opportunities
for undervalued stocks, with price anomalies being corrected over
The trust will invest in a concentrated portfolio of between 30 and 40
companies. The managers have the discretion to invest up to 15 per
cent in other investment trusts but have no intention of doing so at
The managers want this trust to have a wider remit than some trusts,
which may be constrained by benchmarks. Companies that could
make the portfolio are analysed in terms of projected earnings, cash
flow and balance sheets for the next five years. Edinburgh Partners
will then apply its own valuation to see how much company is worth
and how much of a risk it is.
Sophisticated investors who understand that the split-cap debacle
has not affected all investment trusts may feel this trust's investment
strategy suits the current environment. But this trust's ability to invest
in other trusts, however unlikely it is to do so, may do little to improve
negative views of the sector.