HALF-YEARLY FINANCIAL REPORT 2024 - Flipbook - Page 27
THE EDINBURGH INVESTMENT TRUST PLC / OTHER INFORMATION FOR SHAREHOLDERS / 25
GLOSSARY OF TERMS AND ALTERNATIVE
PERFORMANCE MEASURES
ALTERNATIVE PERFORMANCE MEASURE (APM)
An APM is a measure of performance or financial position that is not defined in applicable accounting standards and cannot
be directly derived from the financial statements. The calculations shown in the corresponding tables are for the interim period
ended 30 September 2024 and the year ended 31 March 2024. The APMs listed here are widely used in reporting within the
investment company sector and consequently aid comparability, providing useful additional information.
BENCHMARK (OR BENCHMARK INDEX)
A standard against which performance can be measured, usually an index that averages the performance of companies in a
stock market or a segment of the market. The benchmark most often referred to in this Half-Yearly Financial Report is the FTSE
All-Share Index.
BENCHMARK RETURN
Total return on the benchmark is on a mid-market value basis, assuming all dividends received were reinvested, without
transaction costs, into the shares of the underlying companies at the time the shares were quoted ex-dividend.
DISCOUNT OR PREMIUM (APM)
Discount is a measure of the amount by which the mid-market price of an investment company share is lower than the
underlying net asset value of that share. Conversely, Premium is a measure of the amount by which the mid-market price of an
investment company share is higher than the underlying net asset value of that share. In this Half-Yearly Financial Report, the
discount is expressed as a percentage of the NAV per share with debt at fair value (see reconciliation of NAV per share with
debt at fair value below on page 27) and is calculated according to the formula set out below. If the shares are trading at a
premium the result of the below calculation will be positive and if they are trading at a discount, it will be negative.
30 September
2024
31 March
2024
a
750.00p
690.00p
b
830.39p
779.97p
c = (a-b)/b
(9.7)%
(11.5)%
Page
Share price
3
Net asset value per share – debt at market value
3
Discount
GEARING
The gearing percentage reflects the amount of borrowings that a company has invested. This figure indicates the extra amount
by which net assets, or shareholders’ funds, would move if the value of a company’s investments were to rise or fall. A positive
percentage indicates the extent to which net assets are geared; a nil gearing percentage, or ‘nil’, shows a company is ungeared.
A negative percentage indicates that a company is not fully invested and is holding net cash as described below.
There are several methods of calculating gearing and the following has been used in this report:
