267694 EdinburghIT AR 2024 WEB - Flipbook - Page 88
86 / OTHER INFORMATION FOR SHAREHOLDERS / THE EDINBURGH INVESTMENT TRUST PLC
GLOSSARY OF TERMS AND ALTERNATIVE PERFORMANCE MEASURES / CONTINUED
NET ASSET VALUE (NAV) – DEBT AT FAIR VALUE
The fair value of each tranche of the £120m Unsecured Senior Loan Notes is ascertained by the administrator by aggregating
the discounted value of future cashflows, being the contractual interest payments and the repayment of capital at maturity as
each falls due. The discount factor used for each tranche is based on the market yield of UK Treasuries with similar maturity
dates adjusted to incorporate a credit spread.
The net asset value per share adjusted to include the Unsecured Senior Loan Notes at fair value rather than at par is as follows:
NAV
per share
pence
2024
NAV - debt at par
Unsecured Senior Loan Notes
Shareholders’
funds
NAV
per share
pence
2023
Shareholders’
funds
749.25
1,135,047
688.52
1,139,344
79.21
120,000
72.52
120,000
- debt at fair value
(48.49)
NAV - debt at fair value
779.97
(73,461)
1,181,586
(47.29)
(78,253)
713.75
1,181,091
ONGOING CHARGES RATIO (APM)
The ongoing administrative costs of operating the Company are encapsulated in the ongoing charges ratio, which is calculated
in accordance with guidance issued by the AIC. The calculation incorporates charges allocated to capital in the financial
statements as well as those allocated to revenue, but excludes non-recurring costs, transaction costs of investments, finance
costs, taxation, and the costs of buying back or issuing shares. The ongoing charges ratio is the aggregate of these costs
expressed as a percentage of the daily average net asset value reported in the year.
Page
2024
£’000
2023
£’000
Investment management fee
58
4,976
4,974
Other expenses
58
1,193
1,099
Total recurring expenses
a
6,169
6,073
Average daily net assets
b
1,163,962
1,137,946
c = a/b
0.53%
0.53%
Ongoing charges ratio %
RETURN
The return generated in a period from the investments.
CAPITAL RETURN
Reflects the return on NAV, excluding any dividends reinvested.
TOTAL RETURN
Total return is the theoretical return to shareholders that measures the combined effect of any dividends paid together with
the rise or fall in the share price or NAV. In this annual financial report these return figures have been sourced from LSEG Data &
Analytics who calculate returns on an industry comparative basis.
TREASURY SHARES
Shares previously issued by a Company that have been bought back from shareholders to be held by the Company for
potential sale or cancellation at a later date. Such shares are not capable of voting and carry no rights to dividends.
NET ASSET VALUE TOTAL RETURN (APM)
Total return on net asset value per share, with debt at fair value, assuming dividends paid by the Company were reinvested into
the shares of the Company at the NAV per share at the time the shares were quoted ex-dividend.
