267694 EdinburghIT AR 2024 WEB - Flipbook - Page 75
THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 73
2024
2023
Within
one year
£’000
Between
one
and five
years
£’000
36,314
–
–
–
(120,000) (120,000)
36,314
–
(120,000)
After
five
years
£’000
Total
£’000
Within
one year
£’000
Between
one
and five
years
£’000
36,314
22,488
–
–
–
(120,000) (120,000)
22,488
–
(120,000)
After
five
years
£’000
Total
£’000
Exposure to floating interest
rates:
Cash and cash equivalents
Unsecured Senior Loan Notes debt at par value
Total exposure to interest
rates
(83,686)
22,488
(97,512)
16.1.4 Other price risk
Other price risks (i.e. changes in market prices other than those arising from interest rate risk or currency risk) may affect the
value of the equity investments, but it is the business of the Manager to manage the portfolio to achieve the best return that
he can.
Management of the other price risks
The Directors manage the market price risks inherent in the investment portfolio by meeting regularly to monitor on a formal
basis the Manager’s compliance with the Company’s stated objectives and policies, and to review investment performance.
The Company’s portfolio is the result of the Manager’s investment process and need not be highly correlated with the
Company’s benchmark or the market in which the Company invests. The value of the portfolio will not move in line with the
market but will move as a result of the performance of the company shares within the portfolio.
If the value of the portfolio fell by 10% at the balance sheet date, the profit after tax for the year and the net assets of the
Company would decrease by £120.7 million (2023: £122.7 million). Conversely, if the value of the portfolio rose by 10%, the
profit after tax and the net assets of the Company would increase by the same amounts.
16.2 Liquidity risk
Liquidity risk is minimised as the majority of the Company’s investments constitute a diversified portfolio of readily realisable
securities which can be sold to meet funding commitments as necessary.
