EDINBURGH Worldwide Investment Trust has cited a "seemingly indiscriminate" sell-off in technology and biotechnology stocks during the spring as a key factor in its under-performance of its benchmark index during its financial year to October 31.

The trust, which had shareholders funds of £206 million at its year-end and is managed by Edinburgh-based investment house Baillie Gifford, said yesterday that its net asset value per share had fallen by 2.7 per cent during the 12 months to October.

Its benchmark index, calculated using the MSCI All Countries World Index until January 31 and the S&P Citigroup Global Small Cap Index thereafter, rose by 1.1 per cent in sterling terms during the year to October 31.

Edinburgh Worldwide's remit was broadened in January, with shareholder approval, to enable it to invest in smaller, less mature companies.

In his statement on the results, trust chairman David Reid says: "Although the reorganised portfolio initially performed well, absolute and relative performance were impacted negatively during March and April due to a seemingly indiscriminate sell-off in technology and biotech stocks, an area of the market to which the portfolio is exposed."

He noted that, in the second half of the financial year, Edinburgh Worldwide's net asset value had risen by 11.6 per cent, ahead of a 4.3 per cent increase in its benchmark.

The managers of Edinburgh Worldwide highlight encouraging developments at several healthcare companies in its portfolio, including newly-listed UK biotech 4D Pharma and Boston-based Alnylam.

However, they add: "Disappointingly, several...holdings suffered share-price falls during the sell-off in growth and technology shares that occurred in March and April; this included online grocer Ocado and cloud-based accounting software company, Xero."

Edinburgh Worldwide declared an unchanged final dividend of 1.5p-a-share. This makes a total dividend for the financial year of 2p-a-share, matching the payout for the prior 12 months.