Edinburgh Worldwide IT PLC

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Ediburgh Wrldwide Ivetet Trut lAnnual Report and Financial Statements 31 October 2010


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Contents

1CompanySummary 2YearsSummary 3FiveYearSummary 4ChairmansStatement 6DirectorsandManagement 8 ManagersOverview10ManagersPor tfolioReview12 PortfolioandEquityPerformance13DistributionofTotalAssets13InvestmentChanges14TenYearRecord15DirectorsReport22DirectorsRemunerationReport

Investmentismadeincompaniesfromaroundtheworld

24StatementofDirectorsResponsibilities25IndependentAuditorsReport26IncomeStatement27BalanceSheet28ReconciliationofMovementsin ShareholdersFunds29CashFlowStatement30NotestoFinancialStatements41NoticeofAnnualGeneralMeeting45FurtherShareholderInformation46Cost-effectiveWaystoBuyandHold SharesinEdinburghWorldwide48 CommunicatingwithShareholders

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt as to the action you should takeyou should consult your stockbroker, bank manager, solicitor, accountant or other independent nancial advisor authorised under the FinancialServices and Markets Act 2000 immediately.

If you have sold or otherwise transferred all of your ordinary shares in Edinburgh Worldwide Investment Trust plc, please forward thisdocument and the accompanying form of proxy as soon as possible to the purchaser or transferee or to the stockbroker, bank or other agentthrough whom the sale or transfer was or is being effected for delivery to the purchaser or transferee.


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EDINBURGH WORLDWIDE INVESTMENT TRUST PLC 1

company smmay

Company Summary

Company data at 31 October 2010Total assets Shareholders funds Market capitalisation

178m 153m 135m beforedeductionofloan.

Objective and PolicyEdinburghWorldwidesobjectiveistheachievementoflongtermcapitalgrowthbyinvestinginlistedcompaniesthroughouttheworld.

TheCompanysinvestmentpolicyiscontainedwithintheBusinessReviewonpage15.

Comparative IndexTheindexagainstwhichperformanceiscomparedistheMSCIAll

CountriesWorldIndex(insterlingterms).

Management DetailsBaillieGifford&CowereappointedasInvestmentManagersandSecretariestotheCompanywitheffectfrom1November2003.Themanagementcontractcanbeterminatedat3monthsnotice.

Capital StructureAttheyearendtheCompanyssharecapitalconsistedof49,004,319ordinarysharesof5peachwhichwereissuedandfullypaid.TheCompanyhasbeengrantedauthoritytobuybackalimitednumberofitsownordinarysharesforcancellationandtoholdsharesboughtbackintreasury.TheDirectorsareseekingto

renewthisauthorityattheforthcomingAnnualGeneralMeeting.

Management FeeBaillieGifford&Cosannualremunerationis0.8%ofthemarketvalueoftheCompanysshares,calculatedandpayableonaquarterlybasis.

Thereisalsoaperformance-relatedmanagementfeewhichiscalculatedandpaidannuallyinarrears.Thefeeisbasedonanyout-performanceofthenetassetvaluepersharerelativetotheMSCIAllCountriesWorldIndex(insterlingterms)andiscalculatedasapercentageofthemarketvalueoftheCompanysshares.Thefeeis5%oftheout-performancebetweenzeroand2%,and10%oftheout-performancethereafter.Out-performanceisdeterminedbyreferencetoahighwatermark,beingthepreviouslevelofout-performance.Thereisnocapontheamountofperformance

feepayableinanyyear.Aperformancefeecouldbepayableinperiodswhenthenetassetvaluefallsbyalesserratethanthecomparativeindex.

Savings VehiclesEdinburghWorldwidesharescanbeheldthroughavarietyofsavingsvehicles(seepage46fordetails).

AICTheCompanyisamemberoftheAssociationofInvestmentCompanies.

NotesNoneoftheviewsexpressedinthisdocumentshouldbeconstruedasadvicetobuyorsellaparticularinvestment.

InvestmenttrustsareUKpubliclistedcompaniesandassuchcomplywiththerequirementsoftheUKListingAuthority.TheyarenotauthorisedorregulatedbytheFinancialServicesAuthority.

Edinburgh Worldwides equity portfolio consists of 39 investments drawnfrom around the world.


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2 ANNUAL REPORT 2010

yEas smmay

31 October 31 October

2010 2009 % change

Totalassets(beforedeductionofloan) 177.7m 149.3mLoan 24.8m 23.5mShareholdersfunds 152.9m 125.8m

Netassetvalueperordinaryshare(afterdeductingborrowingsatfair/parvalue)* 312.04p 256.73p 21.5Shareprice 275.00p 220.75p 24.6MSCIAllCountriesWorldIndex(insterlingterms) 197.62 171.44 15.3

Dividendspaidandproposedperordinaryshare 2.00p 3.00p (33.3)Revenueearningsperordinaryshare 1.86p 3.71p (49.9)Totalexpenseratio 1.06% 1.08%

Discount(afterdeductingborrowingsatfair/parvalue)* 11.9% 14.0%

Year to Year to

31 October 2010 31 October 2009

Years high and low High Low High Low

Shareprice 279.75p 216.50p 241.25p 116.50pNetassetvalue(afterdeductingborrowingsatfair/par)* 324.97p 254.30p 280.34p 131.92pDiscount 7.7% 17.9% 7.4% 26.2%

31 October 31 October

2010 2009Net return per ordinary share

Revenue 1.86p 3.71pCapital 56.45p 83.78p

Total 58.31p 87.49p

* Borrowingsareeitherdeductedatfairvalue(theestimateofmarketworth)oratpar(redemptionvalue).Throughouttheyearto31October2010totalborrowingshadafairvalueequaltopar.

Atmidmarketprice.

One Year Performance(guresplottedonamonthlybasisandrebasedto100at31October2009)

Source: Thomson Reuters Datastream/Baillie Gifford & Co

Share price

NAV (after deducting borrowings at fair/par value)

MSCI All Countries World Index(in sterling terms)

Dividends are not reinvested.

O2010

N D J F M A M J J A S O2009

90

115

120

125

130

110

105

100

95

Years SummaryThe following information illustrates how Edinburgh Worldwide has

performed over the year to 31 October 2010.

Pastperformanceisnotaguidetofutureperformance.


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fIE yEa smmay fIE yEa smmay


5 Year Total Return Performance(guresrebasedto100at31October2005)

Discount to Net Asset Value(plottedonamonthlybasis)

Source: Thomson Reuters Datastream

Share price total return

NAV (par) total return

MSCI All Countries World Index(in sterling terms) total return

CUMULATIVE TO 31 OCTOBER

20102005 2006 2007 2008 2009

60

90

100

110

120

130

140

150

80

70

YEARS TO 31 OCTOBER

Source: Thomson Reuters Datastream/Baillie Gifford & Co

Edinburgh Worldwide discount

The discount is the difference between Edinburgh

Worldwides quoted share price and its underlying netasset value (after deducting borrowings at par).

(20%)

(15%)

(10%)

(5%)

0%

20102005 2006 2007 2008 2009

Annual Net Asset Value and Share PriceTotal Returns

Relative Annual Net Asset Value and SharePrice Total Returns (relative to thebenchmark total return)

(60%)

(40%)

(20%)

0%

20%

40%

60%


NAV (par) total return

Share price total return

YEARS TO 31 OCTOBER

20102006 2007 2008 2009

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%


NAV (par) total return relative to MSCI AllCountries World Index (in sterling terms)

total returnShare price total return relative to MSCIAll Countries World Index (in sterling terms)total return

YEARS TO 31 OCTOBER

20102006 2007 2008 2009

Five Year SummaryThe following charts indicate how Edinburgh Worldwide has performed

relative to its comparative index, the MSCI All Countries World Index in sterling

terms, and the relationship between share price and net asset value over the ve

year period to 31 October 2010.


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Chairmans Statement

caImans sTaTEmEnT

Performance

Intheyearto31October2010netassetvaluepershareincreasedby21.5%andthesharepriceby24.6%.TheMSCIAllCountriesWorldIndex(insterlingterms),roseby15.3%duringthisperiod.Equitygearingwasmaintainedthroughouttheyearandwas13.6%attheyearend.TheCompanysdiscountendedtheyearat11.9%havingstarteditat14.0%.

ThestrategycontinuestobefortheManagerstoselectsharesonaglobalbasis,unconstrainedbyanyrequirementtomatchan

index,withaconcentratedportfolioofapproximately40equityholdings.Theportfolioiscomprisedofholdingsthatarebelievedtohavelongtermattractions,typicallyoveratleastveyears,andwillbegearedtomaximisethepotentialreturns.OverthesevenyearsthatBaillieGifford&CohasbeenmanagingtheCompanysassets,intotalreturnterms,netassetvaluepersharehasincreasedby105.5%,thesharepriceby129.6%andtheMSCIAllCountriesWorldIndexby71.0%.

Performance Fee

HavingoutperformedtheMSCIAllCountriesWorldIndexthisyearandlast,theunderperformanceoftwoyearsagohasbeen

recoupedandtherelativehighwatermarkpassed.Therefore,aperformancefeeisduetotheManagersforthersttimeinthreeyears.Detailsofthefeearrangementsareshownonpage31.

Earnings and Dividend

TheCompanysobjectiveremainsthatofcapitalgrowthandanyincomereceivedfromtheunderlyingholdingsissubsidiarytothisobjective.Thenetrevenuereturnfortheyearwas1.86p(2009:3.71p)down49.9%.Ashighlightedinlastyearsreport,therewasdoubtastowhetherthehighlevelofincomereceivedin2009wouldbemaintained;thishasprovedtobethecase.The

reductioninrevenuereturnisduetoalowerlevelofdividendsreceivedfromtheCompanysunderlyingholdingsandthematuringoftheBayHavenbond.Anunchangednaldividendof1.50pisbeingrecommended,makingthetotalfortheyear2.00p.Lastyearstotaldividendof3.00pincludedaspecialdividendof1.00pduetothehighlevelofincomeinthatyear.

TheCompanysregistrarsoperateaDividendReinvestmentPlanwhichcanbeusedtobuyadditionalshares.Furtherdetailscanbefoundonpage45.

Investment Background and Outlook

Althoughmarketsinaggregatearehigherthanayearago,theclimbhasnotbeensmooth,withnotableperiodsofvolatilityacrossassetclassesandgeographies.MostEuropeanbanksappeartobeinamuchhealthierstatethaninrecentyears,inlargepartthankstotheirrespectivetaxpayers.However,sovereigndebtissuesinEuroperemain,withtheparlousstateofIrelandsnancesandchatterthatPortugalmighthavetodepartfromtheEuroofconcerntosome.However,itisfarfromclearthatthecurrenttravailsoftheEuropeanperipherywillhavelargeeffectsonthelargerEuropeanorrapidlygrowingso-calledEmerging

economies;GermanyseconomyisvetimesthesizeofthatofPortugal,GreeceandIrelandcombinedandisafarclearerbeneciaryofaweakEuroasevidencedbyGDPgrowthofnearly10%.Meanwhileelsewhere,GDPgrowthonanannualisedlevelof8-9%isbeingachievedinBrazil,ChinaandIndia.

TherecenteffortsinChinatoslowcertainareasoftheeconomyaresensible,andfurtherincrementaltighteningmeasuresarelikelyduringthersthalfof2011.TheUSeconomy,bycontrast,despiteperformingbetterthananticipated,isdeemedbytheFederalReservetorequirefurtherstimulusandasecondroundofquantitativeeasinghasbeenannounced.


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caImans sTaTEmEnT

TheManagersexpectongoingnotabledisparitiesinglobaleconomicgrowth,stemmingfromthemisplacedlendingpracticesofmanyWesternnationsoverrecentyears.BeingabletoidentifythecompaniesbestplacedtotakeadvantageofthisisthekeyfocusoftheManagers.AnoverviewisprovidedbytheManagersonpages8and9whileonpages10and11thereisaportfolioreviewwhichexaminessomeofourindividualholdingsinmoredetail.

The Board

ForsometimeyourBoardhasbeenconsideringhowtopassthebatontothenextgenerationofDirectorsattheappropriatetime,aprocessstartedwiththeappointmentofJakeLeslieMelville.WearenowdelightedthatHelenJamesandDonaldCameronhaveagreedtojoinus,bothofwhomhaveallthecharacteristicsweneedforabalancedboardinthefuture.Itwillmeanthattemporarilywewillhavesevenmembers,butoverthenextfewyearsthatwillreduceassomeofusretire.

Annual General Meeting

TheAnnualGeneralMeetingoftheCompanywillbeheldatBaillieGiffordsofcesinEdinburghat12noononThursday3

February2011.TheCompanywillagainseektorenewitssharebuybackandtreasurysharepowers.Furtherinformationinrespectofthisresolutionandotherscanbefoundonpages20and21.

MarkUrquhart,thePartneratBaillieGiffordwhomanagesyourportfolio,willmakeapresentationandansweranyquestions.YourBoardwillalsobeavailabletorespondtoanyquestionsthatyoumaywishtoputtoit.Ihopethatyouwillbeabletoattend.

DavidAColtman


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IEcTos an manaEmEnT

Directors and ManagementMembers of the Board come from a broad variety of backgrounds. The Board candraw on a very extensive pool of knowledge and experience. Baillie Gifford & Co, aleading UK investment management rm, who act as Managers and Secretaries tothe Company have done so since November 2003.

Directors

DA ColtmanDavidColtmanwasappointedaDirectorandChairmanon1May1998.HeisChairmanoftheNominationCommittee.HeisadirectorofJohnMenzies,EredeneCapitalPLCandseveralotherprivatecompanies.PreviouslyhewaschiefmarketingofcerofUnitedAirlines,basedinChicagoandchiefexecutiveofBritishCaledonianAirways.

DAJ CameronDonaldCameronwasappointedDirectoron2December2010.

HeisanadvocateattheScottishBarwherehehasageneralcivilpractice,withaparticularemphasisonpubliclaw.HeisalsoaqualiedbarristerinEnglandandWales.

WJ DucasWilliamDucaswasappointedaDirectoron22March2002.HeisamemberoftheBoardoftheWeirFoundationcharitabletrustandisontheInternationalAdvisoryboardofZamoranoUniversity.HewaspreviouslyadirectorofWestLBMellonAssetManagementandamanagingdirectorofF&CManagementLtdofNorthAmerica.

The Hon. Kim FraserTheHon.KimFraserwasappointedaDirectoron11December1998.Heisanindependentnancialadvisorresponsiblefor

adiversefamilybusinessandisadirectorofseveralprivatecompanies.Previously,hewasadirectorofStraussTurnbull&Co.

H JamesHelenJameswasappointedaDirectoron2December2010.SheistheManagingDirectorofInvestisEuropesleaderinonlinecorporatecommunications.PreviouslysheworkedatHSBCandParibas.

J Leslie MelvilleJakeLeslieMelvillewasappointedaDirectoron1August2007.HeisapartneratBooz&CompanyandcurrentlyleadsalloftheirEuropeanenergyandutilitiesactivity.

DHL ReidDavidReidwasappointedaDirectoron1May1998andisChairmanoftheAudit&ManagementEngagementCommittee.HewaspreviouslyadirectorofSmithandWilliamsonandofFlemingPrivateAssetManagement.

AllDirectorsaremembersoftheNominationandAudit&ManagementEngagementCommittees.

Managers and Secretaries

EdinburghWorldwideismanagedbyBaillieGifford&Co,aninvestmentmanagementrmformedin1927outofthelegalrmBaillie&Gifford,WS,whichhadbeeninvolvedininvestmentmanagementsince1908.

BaillieGiffordisoneofthelargestinvestmenttrustmanagersintheUKandcurrentlymanageseightinvestmenttrusts.BaillieGiffordalsomanagesunittrustsandopenendedinvestmentcompanies,togetherwithinvestmentportfoliosonbehalfofpensionfunds,charitiesand

otherinstitutionalclients,bothintheUKandoverseas.FundsunderthemanagementoradviceofBaillieGiffordtotalover69billionasat9December2010.BasedinEdinburgh,itisoneoftheleadingprivatelyownedinvestmentmanagementrmsintheUK,with35partnersandastaffofaround700.

ThemanagerofEdinburghWorldwidesportfolioisMarkUrquhart,apartnerofBaillieGifford.Stockselectionisprimarilytheresponsibilityoftheglobalequityteamwhichcoversalltheregionsoftheworld.

ThermofBaillieGifford&CoisauthorisedandregulatedbytheFinancialServicesAuthority.


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IEcTos an manaEmEnT

David Coltman Donald Cameron William Ducas

Helen James David Reid

The Hon. Kim Fraser

Jake Leslie Melville


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Managers Overv ew

manaEs oEIEW

WereiterateeveryyearthatourobjectiveinmanagingEdinburghWorldwideistorunaconcentratedportfolioofcompanieswithgoodgrowthprospectsforthelongterm.Inthiscontext,whilstitispleasingthatthelastyearhasseenadecentmarginofoutperformanceagainstourcomparativeindex,itisfarmoreimportanttousthattheperformanceoverthesevenyearsofBaillieGiffordsmanagementoftheCompanyhasbeensatisfactoryashighlightedintheChairmansStatement.Ourtaskoverthenext

yearandfarbeyondremainstocontinuetoattempttonavigatetheinevitableshorttermnoiseofequitymarketstowardsourfocuson

providinglongtermshareholderrewardthroughselectingthebestinvestments.

Inthislongtermcontext,thelasttwelvemonthshavefeltlikeagoodtestofourresolveasthedemarcationofprospectsfollowingthenancialcrisishasbecomestarker.NowhereisthisbifurcationmoreapparentthaninEuropeattimesithasfeltasiftheself-imposeddebtproblemsoftwoofthecontinentssmallesteconomiesGreeceandIrelandhavemesmerisedmarketparticipantssomuchthattheyignorethefactGermanybyfarEuropeslargestandmostimportanteconomyisgrowingatthefastestpaceintwodecadessincereunication.ElsewhereBrazil,India,Turkeyand,inevitably,ChinahaveshownratesofgrowthwhichWesternpoliticianscanonlydreamofbutmanyaredismissedaschimericalbycommentatorsmiredinthelocaldifcultiesoftheUKorUS.

Thecoreworryofpessimistsliesintheriskofdoublediprecessionwherecutsinpublicspendingarenotreplacedbyprivatedemandsendingeconomiesbacktowardrecession.Thisscenariocouldthenbeexacerbatedbyrisinginterestratestocombatinationarypressures.Asever,wethinkthatonemustbeawareoftheverydifferentstartingpointsofeconomies.Ourcorebeliefremainsthatthenextfewyearswillseesomeverydifferentmacroeconomicoutcomesasthoseeconomiesmostexposedtothedebtcrisispayfortheirfollywhichacceleratesmanyofthetectonicshiftsalreadyunderwayintheglobaleconomy.

Thisisnotmeanttobedismissiveoftheproblemswhichmanyindebtednationsfacebutisanattempttoplacetheminabalancedglobalcontext.Forinstance,therealreadyhavebeenverytoughconsequencesoftheverypoorlendingdecisionsmadeinDublinandthereisundoubtedlymoreausteritytocomewithorwithoutabailout.WhilsthugelydepressingfortheIrishpopulaceandstrainingonthatnationsnances,thereislittleobviousconnectiontotheconsumptiondecisionsofthoseinBerlinyetaloneMumbaiorShanghai.Runningaglobalportfolioaffordsusthegreatluxuryofnavigatingaroundthosecountriesandcompanieswiththelargest

problems.Awayfromthemacrodebatesandprognostications,andfarmoreimportanttousasstock-pickers,therehasbeengoodencouragementfromtheoperationalresultsofbusinessesthatweown.Threeareasstandoutoverthelasttwelvemonths:technology;luxurygoods;andconsumptionindevelopingnations.IntechnologyexamplesofstronggrowthincludeApplewheretherecentlylaunchediPaddevicehasseenthecompanysfastesteveradoptioncurve;Amazonwhichisraisingcapextoopenmorefullmentcentrestokeepupwithboomingdemandandseeingahugesecondbusinessincloudcomputingrapidlygrow;eBaywheretheprospectsofthepaymentsbusinessPayPalcontinuetobrighten;andBaiduwherethewithdrawalofGooglefromtheChinesesearchmarkethasledtoadelugeofnewclientsatloweracquisitioncosts.

LuxuryconsumptioncontinuestoshowverystronggrowthfromHermes,attheveryhighestend,toPPRscollectionofassetsincludingGucci&BottegaVenetaandWholeFoodsMarkethasstagedaverystrongrecoveryintheUS.

IntermsofstrongconsumptiongrowthweremainhappytoinvestinGarantiBank(aTurkishholdingpurchasedthisyearduringGreekwobbles),HDFCinIndiaandItauUnibancoinBrazilandavoidthosenancialinstitutionsclosertotheepicentreofthecrisiswherewefullyexpecttoseefurtheractionsontighterregulation,


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remunerationandevenbreakingupofinstitutions.WealsothinkbusinessessuchasNewOrientalandVanceInfoTechnologiesprovideexcitingwaysofgainingexposuretorisingspendinginChineseeducationandtechnologyoutsourcingrespectively.

Thenumberofequityholdingsstoodat39attheyearendwhichcomparesto41asatOctober2009andequityportfolioturnovercontinuedtobelowat18.0%.Wewouldagainreiteratethatwepaynoheedtocountryorsectorweightsinconstructingtheportfolio-itiscomprisedpurelyofcompanieswherewearegenuinelyenthusiasticabouttheirgrowthprospectsforthenextdecade.Wefeaturetenofthesecompaniesonthefollowingpagesandalsoprovidefullperformanceguresforeveryholding.

NotablenewholdingspurchasedduringtheyearincludeCFAOanAfricandistributionbusiness;IntuitiveSurgicalwhichmakessurgicalrobots;FLIRSystemswherewethinkitsinfra-redmilitarytechnologyhasmanypotentialcommercialapplicationsandInditextheSpanish-basedretailerwhichwethinkhastremendousglobalpotential.ThesepurchaseswerefundedbysaleswhichincludedBerkshireHathaway,Canon,IronMountain,Lukoil,PorscheandWalgreen.

Weremainexcitedbytheprospectsofthebusinessesthatweownandbelievethatpatientinvestorswillberewardedforstrongoperationalperformanceoverthelongterm.Itremainsourstrongbeliefthatbytryingtoseparatethelongtermvalueofbusinessesfromtheinevitableshorttermnoiseofevents,wecancreateaportfoliowhichrewardsourshareholderswithoutperformanceoverlongtermperiodsofmeasurement.

MarkAUrquhart

manaEs oEIEW


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manaEs poTfoIo EIEW

Managers Portfolio Review

EdinburghWorldwidesportfolioisconstructedentirelyfromtheattractionsofindividualstockspayingnoheedtoregionalorsectoralweights.

Wehaveselectedthefollowingtencompaniesfromdifferentregionsandsectorsandwehopetoprovideaninsightintoourlongtermrationaleforholdingthem.

Baidu

BaiduisChinasleadingInternetsearchengine,witharound75%

marketshareofinternetsearch.Baidusdomesticbrandisverystronganditsclevermarketpositioningsuchasitswillingnesstooffersearchformusicdownloadsalsolendssupporttoitsuserbase.TheonlineadvertisingmarketremainsatanearlystageinChinaandpaidsearchhasahugeopportunityaheadofit.TheincreasingsophisticationofChinesecommerceandtheriseofdistinctiveuserpatternshavemadelocalknowledgeandinvestmentcritical.ThecompanyhasalsobeenhelpedbythespatbetweenGoogleandtheChineseauthorities.WethinkthatBaiduhasanopportunitytogrowtomanymultiplesofitscurrentsizeoverthenextdecade.

CFAO

CFAOisaleadingdistributionandservicecompanyinAfricawhich

wasspunoutofPPRattheendof2009.CFAOoperatesin34Africancountrieswhichmitigatessomeoftheobviouspoliticalrisksandhasonlyeverleftonecountryinoveracenturyofoperation.Itsmainbusinessesareautomotiveandpharmaceuticaldistribution,bothofwhichwethinkshouldseestronglongtermgrowthfromverylowpenetrationlevels.WethinkthecompanyisaninterestingwaytoplaythepotentiallongtermemergenceoftheAfricanconsumer.

eBay

WebelievethatthemarketisunderestimatingeBayslongtermgrowthpotentialespeciallyatthePayPalbusiness.ManagementhasmadechangesthatareleadingtobetterperformanceatthecoreMarketplacesbusinessandimportantlyseemedtohavelearned

lessonsfrompreviousmistakesinhowtheyapproachthegrowthofPayPal.Specically,theyarewillingtoinvestattheexpenseofnear-termmarginstohelpthelongtermgrowthofthePayPalpaymentplatform.Webelievethatitsbarrierstoentryarehighasillustrated

bythefailureofGooglesCheckoutproducttogainanymarket-shareandthatthedecisiontoopenPayPalssourcecodetooutsidedevelopersin2008willprovetobeaveryimportantone.WithstrongnetworkeffectsandplentyofcashfromthecorebusinesstofunditsexpansionwebelievePayPalhasagoodopportunitytobecomethedominantmethodofonlinepayment.

FLIR Systems

FLIRSystemsisasupplierofinfraredvisionandthermographysystemsfordefenceandindustrialapplications.Thesearemarkets

whichhaveenormouspotentialandareintheearlystagesofdevelopment.Inthemilitarysetting,penetrationofinfraredproductsislikelytoincreaseaseffortstoendangerfewerpeople,operatemoreatnightandtoghtnon-traditionalwarswillallrequiregreateruseofthetechnology.Theindustrialmarketisinitsinfancywithpotentiallyhugeapplicationsforthetechnologyinthesecurity,marine,automotiveandlawenforcementindustries.FLIRisthedrivingforceindevelopingindustrialapplicationsandthisisallowingittogeneratethevolumegrowthnecessarytopushdownpricing.Thereremainhugeuncertaintiesabouthowthemarketwilldevelopbutwebelievethecompanysapproachtodrivingitssalesgrowthanddevelopingnewproductsputitinastrongpositiontobenetaspenetrationincreases.

Garanti Bankasi

GarantiisoneofTurkeysleadingprivatesectorbanks.Weareattractedbyitslongtermgrowthprospects,whichderivefromTurkeysexpandingeconomy,largeandyoungpopulationandthelowlevelofpenetrationofretailbankingservices.Thebankoffersthefullspectrumofnancialproductsandisrankedrstinthecreditcard,mortgageandbusinessloanmarket.TheTurkishbankingindustrystructurehasbeenhonedbyexperienceofpreviouscrises,leavingitinasignicantlymorefavourablepositionthanthepoorlyregulated,andcapital-starved,regimesfoundelsewhere.Wethinkthebankhasstronggrowthpotentialunderpinnedbyyouthfuldemographicsalongwithasoundcapitalpositionandsensibleregulation.


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manaEs poTfoIo EIEW

21

3 Whole Foods MarketThe leading organic foodretailer in North America.

Picture courtesy of WholeFoods Market.

2 InditexA global fashion retailer with brands such as Zara.

Picture courtesy of Inditex.

1 BaiduChinas leading internet search engine.

Picture courtesy of Baidu.

3

Inditex

InditexistheholdingcompanybehindZara,thesuccessfulfashionretailer.Itsprimarycompetitiveadvantageisitsabilitytotakeproductsfromconceptiontosaleinashortperiod,thusrespondingtocustomerdemandmuchmorequicklythanitscompetitors.Higheraveragecostsareoffsetbygreaterfashionexibility,lowerinventoryriskandnoadvertisingspend.InditexhassuccessfullytransferredthecoreZaraformattomanynewcountriesitsfashionappealappearstobeglobalanditssubstantialinvestmentinlogisticsinSpainallowsitefcientlytoservestorelocationsaroundtheworldatverylowcost.

Intuitive Surgical

IntuitiveSurgicalistheleaderinrobot-assisted,minimallyinvasivesurgery.Muchoftheoriginalresearchimpetusinthiseldcamefromthemilitary,withtheallureofremotesurgerybecomingobviousaftertheVietnamera.TheFDArstapprovedIntuitivesrobotin1999anditisyettolicenseanalternative.Thistechnologyappearstoofferthecompellingpropositionofreducingcostsforhealthcareproviderswhilstimprovingmedicaloutcomesforpatientsand,assuch,themarketopportunitycouldbevastasthenumberoftreatmentsforwhichroboticsurgerycanbeusedexpands.

Teva Pharmaceuticals

Tevaistheworldsleadingmanufacturerofgenericdrugs.Thedemographictrendsfacingmostdevelopedsocieties(namelyanincreasinglyelderlypopulation)aresupportiveoftheoverallmarket,andwhilebrandeddrugcompaniesareexposedtopatentexpiries,highpricelevelsandpipelinerisks,thelargenumberandsalesbaseofproprietaryproductsthatwillgooffpatentinthenextfew

yearsshouldprovidesignicantgrowthopportunitiesforthegenericcompaniessuchasTeva.WebelievethatTevaspositionastheleaderinthegenericsindustrylooksevenmoreattractiveinaworldofincreasingpressureongovernmentbudgets.AfurtherpotentiallylargeopportunityforTevaliesinthewaveofbiotechdrugswhich

comeoffpatentinthemiddleofthecomingdecade.

VanceInfo

VanceInfoisaleadingChineseIToutsourcingcompany.TheChineseITindustryisinitsinfancywithhugegovernmentsupportandabundantintellectualcapital.Webelievethereisavastpotentialforgrowthdrivenbytwodynamics.ChinaisbecomingamajorstrategicmarketformanyglobalcompaniesandtheneedforonshoreITservicesisincreasing;concomitantlythedomesticcompaniesarebecomingmoresophisticatedandarestartingtooutsource.VanceInfohasquicklybuiltanimpressiveclientbaseandbroadcapabilities.Webelieveitislikelytoemergeasanindustryleaderandbenetfromthisrapidlygrowingindustry.

Whole Foods Market

WholeFoodsMarketwasfoundedin1980andhasgrownsteadilytobeAmericaslargestretailerofnaturalandorganicfoods.Naturalandorganicproducerepresentsaround2%ofoverallUSfoodsalesandwebelievethatWholeFoodshasthescopetogrowitsmarketshareoverthelongtermasconsumersstrivetobuyhealthierproducts.Whilstthecompanywasguiltyofstretchingitsbalancesheetwithover-expansioninthelastfewyears,ithasrecognisedthatthesizeofstoresandspeedofroll-outshouldbemorecarefullycontrolledgoingforward.Wethinkthemannerinwhichthe

companyhasweatheredtheeconomicdownturnwithonlysmalldeclinesinsamestoresalesisevidencethatthisismoreofalifestylechoicethanapassingfad.Mostinterestingly,manycompetitorshavebeencuttingthespacetheydevotetoorganicandnaturalfoods.WethinkthelongtermgrowthopportunitybothintheUSandpotentiallybeyondremainsaverylargeone.


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Fair Fair

value % of Performance value

2010 total Absolute Relative 2009

Name Business 000 assets % % 000

poTfoIo an EqITy pEfomancE as aT 31 ocToE 2010

Absoluteandrelativeperformancehasbeencalculatedonatotalreturnbasisovertheperiod1November2009to31October2010.Forinvestmentsheldforpartoftheyearthereturnisfortheperiodtheywereheld.Absoluteperformanceisinsterlingterms;relativeperformanceisagainstMSCIAllCountriesWorldIndex(insterlingterms).

* Figuresrelatetopart-periodreturns.Source:BaillieGifford&Co/StatPro.


Equities

Amazon.com Onlineretailer 12,188 6.9 43.3 21.2 8,503Baidu Chineseonlinesearchengine 10,383 5.8 201.8 155.3 1,605AtlasCopco Industrialcompressorsandminingequipment 8,921 5.0 59.2 34.6 8,696Vale(orCVRD) Mining 8,329 4.7 30.1 10.1 6,395Petrobras Oilexplorationandproduction 7,725 4.3 (22.2) (34.2) 10,149Apple Computingandmediaequipment 7,264 4.1 64.6 39.2 4,414eBay Internetauctionandpayments 6,944 3.9 38.2 16.9 2,192PPR Luxurybrandconglomerate 6,155 3.5 58.0 33.7 2,689Google Web-basedsearchengine 5,965 3.4 17.9 (0.3) 5,060Deere Farmandconstructionmachinery 5,595 3.1 76.6 49.4 3,219Sandvik Toolsandminingequipment 5,079 2.9 37.0 15.9 4,826

Novozymes Enzymemanufacturer 4,803 2.7 49.9 26.8 3,230Tencent Chinesesocialnetwork 4,783 2.7 34.0 13.3 2,885BancoSantander Retailandcommercialbank 4,621 2.6 (13.9) (27.2) 5,072FirstSolar Designsandmanufacturessolarmodules 4,236 2.4 16.4 (1.6) 3,545NewOrientalEducation andTechnology English-languageschools 4,086 2.3 58.3 33.9 2,004HousingDevelopmentFinance Corporation Indianmortgageprovider 3,999 2.3 42.7 20.7 2,836ABB Powersystemsandautomation 3,998 2.2 16.8 (1.2) 3,513WholeFoodsMarket Organicfoodstores 3,736 2.1 27.8 8.1 2,924Nintendo Gamingconsolesandsoftware 3,465 1.9 6.2 (10.1) 3,324Gazprom Gasexplorationandproduction 3,457 1.9 (5.3) (19.9) 4,823VanceInfo ChineseIToutsourcing 3,398 1.9 36.0* 26.2* LOral Personalcare 3,315 1.9 19.7 1.2 3,622GarantiBankasi Turkishbank 3,245 1.8 26.3* 24.5* FLIRSystems Infraredsensors 3,165 1.8 (8.8)* (15.0)* IntuitiveSurgical Roboticsurgery 3,026 1.7 (11.7)* (17.7)* ItauUnibanco Brazilianretailandcommercialbank 2,985 1.7 35.2 14.4 2,257Straumann Dentalimplants 2,948 1.7 (9.8) (23.7) 3,304TevaPharmaceuticals Genericdrugsmanufacturer 2,930 1.6 7.2 (9.3) 2,761CFAO Africandistribution 2,650 1.5 16.0* 4.3* BYD Batterytechnologyandcars 2,639 1.5 (32.3) (42.8) 4,658Herms Luxurygoods 2,613 1.5 57.9 33.6 1,595ALLAmericaLatinaLogistica Brazilianrailroads 2,605 1.5 0.3* 2.3* 1,658Monsanto Agriculturalbiotechnology 2,533 1.4 (7.3) (21.5) 2,035VCAAntech Animalhospitalsandveterinarydiagnostics 2,332 1.3 (10.5) (24.3) 2,605Inditex Fashionretail 2,190 1.2 22.8* 13.2* Medassets Hospitalmanagementsoftware 2,127 1.2 (10.4)* (19.1)* LiNing Chinesesportswear 1,957 1.1 9.1 (7.7) 1,225VestasWindsystems Windturbines 1,373 0.8 (53.8) (60.9) 2,967

Total Equities 173,763 97.8

Net Liquid Assets 3,953 2.2

Total Assets at Fair Value (before deduction of loans) 177,716 100.0


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Distribution of Total Assets

Geographical 2010 (2009) Sectoral 2010 (2009)

IsTITIon of ToTa assETs an InEsTmEnT canEs

Theguresabovefortotalassetsaremadeupoftotalassetslesscurrentliabilitiesbeforedeductionofloans.

Investment Changes (000)

Valuation at Net acquisitions/ Appreciation/ Valuation at31 October 2009 (disposals) (depreciation) 31 October 2010

Equities:ContinentalEurope 45,508 (4,322) 7,480 48,666NorthAmerica 41,326 6,750 11,036 59,112

Japan 5,450 (2,303) 318 3,465AsiaPacic 19,558 2,113 5,575 27,246EmergingMarkets 29,976 (156) 5,454 35,274

Totalequities 141,818 2,082 29,863 173,763

Fixedinterest:USdollardenominatedbonds 1,837 (1,805) (32)

Totalxedinterest 1,837 (1,805) (32)

Totalinvestments 143,655 277 29,831 173,763Netcurrentassets 5,657 (1,861) 157 3,953

Totalassets 149,312 (1,584) 29,988 177,716

Net liquid assets 2.2% (3.8%)

Asia Pacific17.6% (13.0%)

ContinentalEurope27.5% (30.5%)

North America 33.3% (27.9%)

Japan1.9% (3.6%)

Emerging Markets17.5% (20.0%)

Bonds nil (1.2%)

Basic Materials8.8% (7.9%)

Financials8.4% (7.8%)

Net liquid assets 2.2% (3.8%)

Oil & Gas 6.2% (11.3%)

Consumer Goods 4.5% (6.7%)Health Care6.3% (5.7%)

Consumer Services23.3% (17.6%)

Technology17.6% (12.2%)

Bonds nil (1.2%)

Industrials22.7% (23.9%)

Telecommunicationsnil (1.9%)


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TEn yEa Eco

CapitalNet asset

At Total Shareholders value per share Share31 October assets * Borrowings funds (at par) price Discount

000 000 000 p p %

2000 195,719 (41,951) 153,768 313.78 270.00 14.0

2001 142,389 (41,521) 100,868 205.84 174.50 15.22002 104,964 (30,626) 74,338 151.70 123.00 18.92003 109,008 (29,255) 79,753 162.75 130.50 19.82004 110,796 (27,604) 83,192 169.76 138.50 18.42005 135,861 (27,825) 108,036 220.46 200.00 9.32006 150,098 (26,062) 124,036 253.11 234.00 7.62007 173,633 (24,326) 149,307 304.68 267.75 12.12008 105,856 (21,600) 84,256 171.94 141.00 18.02009 149,312 (23,501) 125,811 256.73 220.75 14.02010 177,716 (24,803) 152,913 312.04 275.00 11.9

* Totalassetscomprisetotalassetslesscurrentliabilities,beforedeductionofbankloans. DiscountisthedifferencebetweenEdinburghWorldwidesquotedsharepriceanditsunderlyingnetassetvalueexpressedasapercentageofnetassetvalue. Thegurespriorto2005havenotbeenrestatedforchangesinaccountingpoliciesimplementedin2006.

Dividend Total

Net return Revenue paid and expenseon ordinary earnings per proposed per Total ratio (excl.Year to activities ordinary ordinary share expense performance Actual Potential31 October Income after tax share (net) ratio fee) # gearing gearing II

000 000 p p % %

2000 2,713 1,041 2.12 2.20 1.40 1.40 111 1272001 3,037 1,620 3.13 2.60 1.17 1.17 106 1412002 2,521 1,306 2.66 2.20 1.41 1.41 110 1412003 2,251 1,007 2.06 2.20 1.38 1.38 106 1372004 1,940 869 1.77 2.20 1.21 1.16 119 1332005 2,379 1,105 2.26 2.00 2.11 1.17 115 1252006 2,116 817 1.67 2.00 1.29 1.22 115 1212007 2,827 1,287 2.63 2.00 1.57 1.04 112 1162008 3,280 1,705 3.48 2.70 1.10 1.10 122 1262009 3,088 1,816 3.71 3.00 1.08 1.08 113 119

2010 1,931 910 1.86 2.00 1.06 1.03 114 116

Ratiooftotaloperatingcoststoaverageshareholdersfundsincludinganyperformancefeecharged(seenote3onpage31).The2008and2010guresexcludetheimpactoftheVATonmanagementfeesreclaimed(seenote4onpage31).

# Ratiooftotaloperatingcoststoaverageshareholdersfundsexcludinganyperformancefeecharged.The2008and2010guresexcludetheimpactoftheVATonmanagementfeesreclaimed.

Totalassets(includingalldebtusedforinvestmentpurposes)lessallcashandxedinterestsecurities(exconvertibles)dividedbyshareholdersfunds.II Totalassets(includingalldebtusedforinvestmentpurposes)dividedbyshareholdersfunds. Includesspecialdividend. Netoffuturescontracts.

Revenue Gearing Ratios

DividendNet Comparative Revenue paid and

asset value Net index Share price earnings per proposed per RetailAt per share asset value Comparative total Share total ordinary ordinary price

31 October (at par) total return index return price return share share (net) index2000 100 100 100 100 100 100 100 100 1002001 66 66 74 75 65 65 148 118 1022002 48 49 58 60 46 47 125 100 1042003 52 54 65 69 48 51 97 100 1062004 54 57 68 73 51 55 83 100 1102005 70 75 79 87 74 80 107 91 1132006 81 86 88 99 87 95 79 91 1172007 97 105 98 114 99 109 124 91 1222008 55 59 70 83 52 58 164 123 1272009 82 90 82 100 82 92 175 136 1262010 99 111 94 119 102 116 88 91 132

Compound annual returns5year 7.2% 8.2% 3.7% 6.4% 6.6% 7.7% (3.8%) 0.0% 3.2%10year (0.1%) 1.0% (0.6%) 1.7% 0.2% 1.5% (1.3%) (0.9%) 2.8%

Cumulative Performance (taking 2000 as 100)

Thegurespriorto2005havenotbeenrestatedforthechangesinaccountingpoliciesimplementedin2006.Pastperformanceisnotaguidetofutureperformance.Baillie Gifford & Co was appointed as Investment Managers and Secretaries to the Company with effect from 1 November 2003 and thecomparative index was changed from MSCI World Index (in sterling terms) to MSCI All Countries World Index (in sterling terms) with effectfrom that date.


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D rectors Report

TheDirectorspresenttheirReporttogetherwiththenancialstatementsoftheCompanyfortheyearto31October2010.

Business Review

Business and StatusTheCompanyisaninvestmentcompanywithinthemeaningofsection833oftheCompaniesAct2006.TheCompanycarriesonbusinessasaninvestmenttrust.Itwasapprovedasaninvestmenttrustundersection842oftheIncomeandCorporationTaxesAct1988fortheyearended31October2009,subjecttomattersthat

mayarisefromanysubsequentenquirybyHMRevenue&CustomsintotheCompanystaxreturn.IntheopinionoftheDirectors,theCompanyhassubsequentlyconducteditsaffairssoastoenableittoseekapprovalundersection1158oftheCorporationTaxesAct2010(formerlysection842ICTA1988).

Objective and PolicyEdinburghWorldwidesobjectiveistheachievementoflongtermcapitalgrowthbyinvestinginlistedcompaniesthroughouttheworld.

Whilethepolicyisglobalinvestment,theapproachadoptedistoconstructaportfoliothroughtheidenticationofindividualcompanieswhichofferlongtermgrowthpotential,typicallyoveratleastaveyearhorizon.Theportfolioisactivelymanagedanddoesnotseektotrackthecomparativeindexhenceadegreeofvolatilityagainsttheindexisinevitable.

Inconstructingtheequityportfolioaspreadofriskisachievedbydiversifyingtheportfoliothroughinvestmentin:

25to50holdings

aminimumofsixcountries

aminimumofsixsectors

Onacquisition,noholdingshallexceed5%oftotalassetsandnomorethan15%oftheCompanysgrossassetswillbeinvestedinotherlistedinvestmentcompanies.

Fromtimetotime,xedinterestholdings,ornonequityinvestments,

maybeheldonanopportunisticbasis.

Derivativeinstrumentsarenotnormallyusedbut,incertaincircumstancesandwiththepriorapprovaloftheBoard,theirusemaybeconsideredeitherasahedgeortoexploitaninvestmentopportunity.

TheCompanyrecognisesthelongtermadvantagesofgearingandwouldseektohaveamaximumequitygearinglevelof30%ofshareholdersfundsintheabsenceofexceptionalmarketconditions.

BorrowingsareinvestedinequitymarketswhenitisconsideredthatinvestmentgroundsmerittheCompanytakingagearedpositiontoequities.Gearinglevels,andtheextentofequitygearing,arediscussedbytheBoardandManagersateveryBoardmeeting.

AnoverviewandportfolioreviewbytheManagersisgivenonpages8to11andtheinvestmentsheldattheyearendarelistedonpage12.

DiscountTheBoardconsidersthatthekeydriverofthediscountisagoodlongtermperformancerecord.TheCompanyhasbuybackpowerswhicharetobeusedonoccasionswhentheBoardconsidersthatthereisaneedtobalancesupplyanddemandfactorsintheinterestofallshareholders.ThediscountisdiscussedateveryBoardmeeting.Shareswhichareboughtbackmaybeheldintreasurywithaviewtopossiblefuturere-issueatapremiumshouldtherebedemandfromappropriatepotentiallongtermholders.Noshares

wereboughtbackduringtheyear.

PerformanceAteachBoardmeeting,theDirectorsconsideranumberofperformancemeasurestoassesstheCompanyssuccessinachievingitsobjectives.

Thekeyperformanceindicators(KPIs)usedtomeasuretheprogressandperformanceoftheCompanyovertimeareestablishedindustrymeasuresandareasfollows:

themovementinnetassetvalueperordinarysharecomparedtothecomparativeindex;

themovementintheshareprice;and

thediscount.

Theone,ve,andtenyearrecordsoftheKPIsareshownonpages2,3and14.

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BorrowingsThe30mmulti-currencyfacilitywithLloydsTSBScotlandplcwasextendedonthesametermsuntil30September2011.Further

informationcanbefoundinnote12onpage35.Results and DividendsThenetassetvaluepershareincreasedby21.5%duringtheyear,comparedtoanincreaseinthecomparativeindexof15.3%.Thediscountdecreasedfrom14.0%to11.9%.

TheBoardrecommendsanaldividendof1.50pperordinarysharewhich,togetherwiththeinterimof0.50palreadypaid,makesatotalof2.00pfortheyear.Ifapproved,therecommendednaldividendwillbepaidon9February2011toshareholdersontheregisteratthecloseofbusinesson14January2011.Theex-dividenddateis12January2011.Theregistrarsofferadividendreinvestmentplan(seepage45).Thenaldateforthereceiptofelectionsforthedividendreinvestmentplanis21January2011.

Review of the Year and Future TrendsAreviewoftheyearandtheinvestmentoutlookiscontainedintheChairmansStatementonpages4and5andtheManagersOverviewandPortfolioReviewonpages8to11.

Principal Risks and UncertaintiesTheCompanysassetsconsistoflistedsecuritiesanditsprincipalrisksarethereforemarketrelatedandincludemarketrisk(comprisingcurrencyrisk,interestrateriskandotherpricerisk),liquidityriskandcreditrisk.Anexplanationofthoserisksandhowtheyaremanagediscontainedinnote19totheaccountsonpages36to40.

OtherrisksfacedbytheCompanyincludethefollowing:

Regulatory riskfailuretocomplywithapplicablelegalandregulatoryrequirementscouldleadtosuspensionoftheCompanysStockExchangeListing,nancialpenaltiesoraqualiedauditreport.Breachofsection1159oftheCorporationTaxesAct2010(formerlysection842ICTA1988)couldleadtotheCompanybeingsubjecttotaxoncapitalgains.TheManagersmonitorinvestmentmovementsandthelevelofforecastincomeandexpendituretoensuretheprovisionsofsection1159arenotbreached.

BaillieGiffordsHeadsofBusinessRisk&InternalAuditandRegulatoryRiskprovideregularreportstotheAuditandManagementEngagementCommitteeonBaillieGiffordsmonitoringprogrammes.

Operational/Financial Risk failureoftheManagersaccountingsystemsorthoseofotherthirdpartyserviceproviderscouldleadtoaninabilitytoprovideaccuratereportingandmonitoringoramisappropriationofassets.TheBoardreviewstheManagersReportonInternalControlsandthereportsbyotherkeythirdpartyprovidersarereviewedbytheManagersonbehalfoftheBoard.

Discount VolatilitythediscountatwhichtheCompanyssharestradecanwiden.TheBoardmonitorsthelevelofdiscountandtheCompanyhasauthoritytobuybackitsownshares.

Gearing RisktheCompanymayborrowmoneyforinvestmentpurposes(sometimesknownasgearing).Iftheinvestmentsfallinvalue,anyborrowingswillmagnifytheextentofthisloss.If

borrowingfacilitiesarenotrenewed,theCompanymayhavetosellinvestmentstorepayborrowings.

AllborrowingsrequirethepriorapprovaloftheBoardandgearinglevelsarediscussedbytheBoardandManagersateverymeeting.TheCompanysinvestmentsareinquotedsecuritiesthat

arereadilyrealisable.EmployeesTheCompanyhasnoemployees.TheexecutiveresponsibilityforinvestmentmanagementhasbeendelegatedtoBaillieGifford&Co.

Social and Community IssuesAsaninvestmenttrust,theCompanyhasnodirectsocialorcommunityresponsibilities.TheCompanyhoweverbelievesthatitisintheshareholdersintereststoconsiderenvironmental,socialandgovernancefactorswhenselectingandretaininginvestments.DetailsoftheCompanyspolicyonsociallyresponsibleinvestmentcanbefoundunderCorporateGovernanceandStewardshiponpage19.

Corporate Governance

TheBoardiscommittedtoachievinganddemonstratinghighstandardsofCorporateGovernance.ThisstatementoutlineshowtheprinciplesofTheCombinedCodeonCorporateGovernance,publishedin2008(theCombinedCode)andtheAICCodeofCorporateGovernancewereappliedthroughoutthenancialyear.

ComplianceTheBoardconrmsthattheCompanyhascompliedthroughouttheyearunderreviewwiththeprovisionsoftheCombinedCodeincludingtherelevantprovisionsofsection1andwiththerecommendationsoftheAICCode.

The BoardTheBoardhasoverallresponsibilityfortheCompanysaffairs.It

hasanumberofmattersreservedforitsapprovalincludingstrategy,investmentpolicy,borrowings,gearing,treasurymatters,dividendandcorporategovernancepolicy.TheBoardalsoreviewsthenancialstatements,investmenttransactions,revenuebudgetsandperformance.FullandtimelyinformationisprovidedtotheBoardtoenabletheBoardtofunctioneffectivelyandtoallowDirectorstodischargetheirresponsibilities.

FollowingtheappointmentofMrDAJCameronandMrsHJameson2December2010theBoardcomprisessevenDirectorsallofwhomarenon-executive.TheexecutiveresponsibilitiesforinvestmentmanagementhavebeendelegatedtotheCompanysManagersandSecretaries,BaillieGifford&Co,andinthecontextofaBoardcomprisedentirelyofnon-executiveDirectors,thereisnochief

executiveofcer.TheseniorindependentdirectorisMrDHLReid.

TheDirectorsbelievethattheBoardhasabalanceofskillsandexperiencewhichenableittoprovideeffectivestrategicleadershipandpropergovernanceoftheCompany.InformationabouttheDirectors,includingtheirrelevantexperience,canbefoundonpage6.

ThereisanagreedprocedureforDirectorstoseekindependentprofessionaladviceifnecessaryattheCompanysexpense.

Terms of AppointmentLetterswhichspecifythetermsofappointmentareissuedtonewDirectors.Thelettersofappointmentareavailableforinspectiononrequest.


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UndertheprovisionsoftheCompanysArticlesofAssociation,aDirectorappointedduringtheyearisrequiredtoretireandseekelectionbyshareholdersatthenextAnnualGeneralMeeting.

Directorsarerequiredtosubmitthemselvesforre-electionatleastonceeverythreeyearsandDirectorswhohaveservedformorethannineyearsofferthemselvesforre-electionannually.

Independence of DirectorsAlloftheDirectorsareconsideredbytheBoardtobeindependentoftheManagersandfreeofanybusinessorotherrelationshipwhichcouldinterferewiththeexerciseoftheirindependentjudgement.

MrDAColtman,MrDHLReidandTheHon.KimFraserhaveservedontheBoardformorethannineyears,althoughtherehasonlybeenarelationshipwiththecurrentManagersforsevenyearsasBaillieGiffordwereappointedin2003.TheDirectorsrecognisetheimportanceofsuccessionplanningforcompanyboardsandreviewtheBoardcompositionannually.However,theBoardis

oftheviewthatlengthofservicewillnotnecessarilycompromisetheindependenceorcontributionofDirectorsofaninvestmenttrustcompany,wherecontinuityandexperiencecanbeabenettotheBoard.TheBoardconcurswiththeviewexpressedintheAICCodeofCorporateGovernancethatlongservingDirectorsshouldnotbepreventedfrombeingconsideredindependentandthatindependencestemsfromtheabilitytomakethoseobjectivedecisionsthatmaybeinconictwiththeinterestsofmanagement.Thisinturnisafunctionofcondence(bornofcourageandexperience),integrity(personalcharacter)andjudgement(bornofknowledgeandexperience).

FollowingformalperformanceevaluationtheBoardconsidersthatMrDAColtman,MrDHLReidandTheHon.KimFrasercontinuetobeindependentincharacterandjudgementandtheirexperienceaddssignicantlytothestrengthoftheBoard.

MeetingsThereisanannualcycleofBoardmeetingswhichisdesignedtoaddressinasystematicway,overallstrategy,reviewofinvestmentpolicy,investmentperformance,marketing,revenuebudgets,dividendpolicyandcommunicationwithshareholders.TheBoardconsidersthatitmeetssufcientlyregularlytodischargeitsdutieseffectively.ThetablebelowshowstheattendancerecordfortheBoardandCommitteemeetingsheldduringtheyear.AlltheDirectorswhoweremembersoftheBoardduringtheyearattendedtheAnnualGeneralMeeting.

Nomination CommitteeTheNominationCommitteeconsistsofthewholeBoardandtheChairmanoftheBoardisChairmanoftheCommittee.The

Committeemeetsonanannualbasisandatsuchothertimesasmayberequired.TheCommitteehaswrittentermsofreferencewhichincludereviewingtheBoard,identifyingandnominatingnewcandidatesforappointmenttotheBoard,Boardappraisal,successionplanningandtraining.TheCommitteealsoconsiderswhetherDirectorsshouldberecommendedforre-electionbyshareholders.TheCommitteeisresponsibleforconsideringDirectorspotentialconictsofinterestandformakingrecommendationstotheBoardonwhetherornotthepotentialconictsshouldbeauthorised.TheCommitteestermsofreferenceareavailableonrequestfromtheCompanyandontheCompanyspageontheManagerswebsite:www.edinburghworldwide.co.uk.

TheNominationCommitteereviewedtheDirectorsbalanceofage,

skills,knowledgeandexperienceduringtheyear.TheCommitteeconcludedthat,inlinewiththepolicyforregularrefreshmentoftheBoard,twonewDirectorsshouldbeappointed.TheCommitteeidentiedtheskillsandexperiencethatwouldstrengthentheBoard,havingdueregardforthebenetsofdiversityontheBoard.TheCommitteeconsideredseveralhighqualitycandidatesandidentiedMrDonaldCameronandMrsHelenJamesasthepreferredcandidatesandtheywereappointedtotheBoardon2December2010.Giventhequalityofthecandidatesidentied,itwasnotnecessarytoeitherappointexternalsearchconsultantsoruseopenadvertisingonthisoccasion.

Performance EvaluationAnappraisaloftheChairman,eachDirectorandaperformance

evaluationandreviewoftheBoardasawholeanditsCommitteeswascarriedoutduringtheyear.TheChairmanandeachDirectorcompletedaperformanceevaluationquestionnaireandeachDirectorhadaninterviewwiththeChairman.TheappraisaloftheChairmanwasledbyMrDHLReid.Theappraisalsandevaluationsconsidered,amongstothercriteria,thebalanceofskillsoftheBoard,thecontributionofindividualDirectorsandtheoveralleffectivenessoftheBoardanditsCommittees.FollowingthisprocessitwasconcludedthattheperformanceofeachDirector,theChairman,theBoardanditsCommitteescontinuestobeeffectiveandeachDirectorandtheChairmanremaincommittedtotheCompany.

AreviewoftheChairmansandotherDirectorscommitmentswascarriedoutandtheNominationCommitteeissatisedthattheyare

capableofdevotingsufcienttimetotheCompany.Induction and TrainingNewDirectorsappointedtotheBoardareprovidedwithaninductionprogrammewhichistailoredtotheparticularcircumstancesoftheappointee.RegularbriengsareprovidedonchangesinregulatoryrequirementsthatcouldaffecttheCompanyandtheDirectors.TheDirectorsreceiveothertrainingasnecessary.

RemunerationAsalltheDirectorsarenon-executive,theprovisionsoftheCombinedCodeinrespectofDirectorsremunerationarenotrelevanttotheCompanyexcepttotheextentthattheyrelatespecicallytonon-executivedirectors.Consequentlythereisno

requirementforaseparateRemunerationCommittee.Directorsfees

Directors Attendance at Meetings

Audit &

Management

Engagement Nomination

Board Committee Committee

Number of meetings 6 2 1

DAColtman 6 2 1WJDucas 6 2 1 JLeslieMelville 4 1DHLReid 6 2 1TheHon.KimFraser 6 1 1

MrDAJCameronandMrsHJameswereappointedfollowingtheyearend,

on2December2010.


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IEcTos EpoT

areconsideredbytheBoardasawholewithinthelimitsapprovedbyshareholders.TheCompanyspolicyonremunerationissetoutintheDirectorsRemunerationReportonpages22and23.

Internal Controls and Risk ManagementTheDirectorsacknowledgetheirresponsibilityfortheCompanyssystemofinternalcontrolsandforreviewingitseffectiveness.Thesystemofinternalcontrolsisdesignedtomanageratherthaneliminatetheriskoffailuretoachievebusinessobjectivesandcanonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatementorloss.

TheBoardconrmsthatthereisanongoingprocessforidentifying,evaluatingandmanagingthesignicantrisksfacedbytheCompanyinaccordancewiththeguidanceInternalControl:RevisedGuidanceforDirectorsontheCombinedCode.

TheDirectorsconrmthattheyhavereviewedtheeffectivenessofthe

systemandtheyhaveproceduresinplacetoreviewitseffectivenessonaregularbasis.Nosignicantweaknesseswereidentiedintheyearunderreview.

Thepracticalmeasurestoensurecompliancewithregulationandcompanylaw,andtoprovideeffectiveandefcientoperationsandinvestmentmanagement,havebeendelegatedtotheManagersandSecretaries,BaillieGifford&Co,underthetermsoftheManagementAgreement.TheBoardacknowledgesitsresponsibilitiestosuperviseandcontrolthedischargebytheManagersandSecretariesoftheirobligations.

BaillieGifford&Cohasbeendelegatedresponsibilityforthedesign,implementationandmaintenanceofcontrolpoliciesandprocedurestosafeguardtheassetsoftheCompanyandtomanageitsaffairsproperly.Thisresponsibilityalsoextendstomaintainingeffectiveoperationalandcompliancecontrolsandriskmanagement.

TheBaillieGifford&CoHeadsofBusinessRisk&InternalAuditandRegulatoryRiskprovidetheBoardwithregularreportsonBaillieGifford&Cosmonitoringprogrammes.Thereportingproceduresforthesedepartmentsaredenedandformalisedwithinaservicelevelagreement.BaillieGifford&CoconductsanannualreviewofitssystemofinternalcontrolswhichisdocumentedwithinaninternalcontrolsreportwhichcomplieswithTechnicalReleaseAAF01/06AssuranceReportsonInternalControlsofServiceOrganisationsmadeavailabletoThirdParties.ThisreportisindependentlyreviewedbyBaillieGifford&CosauditorsandacopyofthereportissubmittedtotheAuditandManagementEngagementCommittee.

TheCompanysinvestmentsaresegregatedfromthoseofBaillieGifford&CoanditsotherclientsthroughtheappointmentofRBCDexiaInvestorServicesTrustasindependentcustodianoftheCompanysinvestments.

AdetailedriskmapispreparedwhichidentiesthesignicantrisksfacedbytheCompanyandthekeycontrolsemployedtomanagetheserisks.

TheseproceduresensurethatconsiderationisgivenregularlytothenatureandextentoftherisksfacingtheCompanyandthattheyarebeingactivelymonitored.Wherechangesinriskhavebeenidentiedduringtheyeartheyalsoprovideamechanismtoassesswhetherfurtheractionisrequiredtomanagetherisksidentied.TheBoardconrmsthattheseprocedureshavebeeninplacethroughouttheCompanysnancialyearandcontinuetobeinplaceuptothedateofapprovalofthisReport.

Internal AuditTheAuditandManagementEngagementCommitteecarriesoutanannualreviewoftheneedforaninternalauditfunction.The

CommitteecontinuestobelievethatthecomplianceandinternalcontrolsystemsandtheinternalauditfunctioninplacewithintheInvestmentManagersprovidesufcientassurancethatasoundsystemofinternalcontrolwhichsafeguardsshareholdersinvestmentandtheCompanysassetsismaintained.Aninternalauditfunction,specictotheCompany,isthereforeconsideredunnecessary.

Accountability and AuditTherespectiveresponsibilitiesoftheDirectorsandtheAuditorsinconnectionwiththeFinancialStatementsaresetoutonpages24and25.

Going ConcernInaccordancewithTheFinancialReportingCouncilsguidanceongoingconcernandliquidityriskissuedin2009,theDirectorshaveundertakenarigorousreviewoftheCompanysabilitytocontinueasagoingconcern.TheCompanysassets,themajorityofwhichareinvestmentsinquotedsecuritieswhicharereadilyrealisable,exceeditsliabilitiessignicantly.AllborrowingsrequirethepriorapprovaloftheBoard.GearinglevelsandcompliancewithborrowingcovenantsarereviewedbytheBoardonaregularbasis.

Aftermakingenquiries,thenancialstatementshavebeenpreparedonthegoingconcernbasisasitistheDirectorsopinionthattheCompanywillcontinueinoperationalexistencefortheforeseeablefuture.

Audit and Management Engagement CommitteeAnAuditandManagementEngagementCommitteehasbeenestablishedconsistingofallindependentDirectors.ItsauthorityanddutiesareclearlydenedwithinitswrittentermsofreferencewhichareavailableonrequestfromtheCompanyandatwww.edinburghworldwide.co.uk.MrDHLReidisChairmanoftheAuditandManagementEngagementCommittee.TheCommitteesdutieswhichweredischargedduringtheyearinclude:

monitoringandreviewingtheintegrityofthehalf-yearlyandannualnancialstatementsandanyformalannouncementsrelatingtotheCompanysnancialperformance;

reviewingstandardsofinternalcontrolandriskmanagement;

makingrecommendationstotheBoardinrelationtotheappointmentoftheexternalauditorsandapprovingtheremunerationandtermsoftheirengagement;

developingandimplementingpolicyontheengagementoftheexternalauditorstosupplynon-auditservices(therewerenonon-auditservicesprovidedduringtheyear);

reviewingandmonitoringtheindependence,objectivityandeffectivenessoftheexternalauditors;

reviewingthearrangementsinplacewithinBaillieGifford&Cowherebytheirstaffmay,incondence,raiseconcernsaboutpossibleimproprietiesinmattersofnancialreportingorothermattersinsofarastheymayaffecttheCompany;

reviewingthetermsoftheInvestmentManagementAgreement

andmakingrecommendationstotheBoardastothecontinuingappointmentoftheInvestmentManager;and

consideringannuallywhetherthereisaneedfortheCompanytohaveitsowninternalauditfunction.


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IEcTos EpoT

KPMGAuditPlchavebeentheCompanysAuditorssince1998.Havingconsideredtheexperienceandtenureoftheauditpartnerandstaffandthelevelofserviceprovided,theCommitteeremains

satisedwiththeAuditorseffectiveness.Accordingly,theCommitteehasnotconsidereditnecessarytodatetorequireKPMGAuditPlctotenderfortheauditwork.Theauditpartnersresponsiblefortheauditarerotatedeveryveyearsandthecurrentleadauditpartnerhasbeeninplaceforoneyear.TherearenocontractualobligationsrestrictingtheCompanyschoiceofexternalauditor.TheCommitteereceivesconrmationfromtheAuditorsthattheyhavecompliedwiththerelevantUKprofessionalandregulatoryrequirementsonindependence.TheCommitteedoesnotbelievethattherehasbeenanyimpairmenttotheAuditorsindependence.

Relations with ShareholdersTheBoardplacesgreatimportanceoncommunicationwithshareholders.TheCompanysManagersmeetregularlywith

shareholdersandtheirrepresentativesandreportshareholdersviewstotheBoard.TheChairmanisavailabletomeetwithshareholdersasappropriate.ShareholderswishingtocommunicatewithanymemberoftheBoardmaydosobywritingtothemattheCompanysregisteredofce.

TheCompanysAnnualGeneralMeetingprovidesaforumforallcommunicationwithshareholders.ThelevelofproxieslodgedforeachresolutionisannouncedattheMeetingandpublishedatwww.edinburghworldwide.co.uk.ThenoticeperiodfortheAnnualGeneralMeetingisatleasttwentyworkingdays.Shareholdersandpotentialinvestorsmayobtainup-to-dateinformationontheCompanyatwww.edinburghworldwide.co.uk.

Corporate Governance and StewardshipTheCompanyhasgivendiscretionaryvotingpowerstotheinvestmentmanagers,BaillieGifford&Co.TheManagersvoteagainstresolutionstheyconsidermaydamageshareholdersrightsoreconomicinterests.

TheCompanybelievesthatitisintheshareholdersintereststoconsiderenvironmental,socialandgovernance(ESG)factorswhenselectingandretaininginvestmentsandhaveaskedtheManagerstotaketheseissuesintoaccount.TheManagersdonotexcludecompaniesfromtheirinvestmentuniversepurelyonthegroundsofESGfactorsbutadoptapositiveengagementapproachwherebymattersarediscussedwithmanagementwiththeaimofimprovingtherelevantpoliciesandmanagementsystemsandenablingtheManagerstoconsiderhowESGfactorscouldimpactlongterminvestmentreturns.TheManagersstatementofcompliancewiththeUKStewardshipCodecanbefoundontheManagerswebsiteatwww.bailliegifford.com .TheManagerspolicyhasbeenreviewedandendorsedbytheBoard.

TheManagersaresignatoriestotheUnitedNationsPrinciplesforResponsibleInvestmentandtheCarbonDisclosureProject.

Conicts of Interest

EachDirectorsubmitsalistofpotentialconictsofinteresttotheNominationCommitteeonanannualbasis.TheCommitteeconsidersthesecarefully,takingintoaccountthecircumstancessurroundingthemandmakesarecommendationtotheBoardonwhetherornotthepotentialconictsshouldbeauthorised.Boardauthorisationisfor

aperiodofoneyear.HavingconsideredthelistsofpotentialconictstherewerenosituationswhichgaverisetoadirectorindirectinterestofaDirectorwhichconictedwiththeinterestsoftheCompany.

Investment Manager

AnInvestmentManagementAgreementbetweentheCompanyandBaillieGifford&CosetsoutthemattersoverwhichtheManagers

haveauthorityinaccordancewiththepoliciesanddirectionsof,andsubjecttorestrictionsimposedby,theBoard.TheManagementAgreementisterminableonnotlessthan3monthsnotice.DetailsofthefeearrangementswithBaillieGifford&Coareshowninnote3onpage31.

TheBoardconsiderstheCompanysinvestmentmanagementandsecretarialarrangementsonacontinuingbasisandaformalreviewisconductedbytheAuditandManagementEngagementCommitteeannually.TheCommitteeconsiders,amongstothers,thefollowingtopicsinitsreview:

investmentperformance;

thequalityofthepersonnelassignedtohandletheCompanys

affairs;developmentsattheManagers,includingstaffturnover;

theadministrativeservicesprovidedbytheSecretaries;

sharepriceanddiscount;and

chargesandfees.

FollowingthemostrecentreviewtheAuditandManagementEngagementCommitteeconcludedthatthecontinuingappointmentofBaillieGifford&CoasManagersandSecretaries,onthetermsagreed,isintheinterestsofshareholdersasawhole.ThiswassubsequentlyapprovedbytheBoard.

DirectorsInformationabouttheDirectors,includingtheirrelevantexperiencecanbefoundonpage6.

MrDAJCameronandMrsHJameshavingbeenappointedtotheBoardon2December2010,arerequiredtoseekelectionbytheshareholdersattheAnnualGeneralMeeting.TheDirectorsbelievethattheBoardwillbenetfromtheirskillsandexperienceandrecommendtheirelectiontoshareholders.

MrDAColtman,MrDHLReidandTheHon.KimFraser,allhavingservedmorethannineyears,andMrJLeslieMelville,havingservedforthreeyearssinceelection,offerthemselvesforre-election.

Followingperformanceevaluation,theirperformancecontinues

tobeeffectiveandtheyremaincommittedtotheCompany.TheircontributiontotheBoardisgreatlyvaluedandtheBoardrecommendstheirre-electiontoshareholders.

Directors Interests

Nature Ordinary 5p shares

Name of interest 31 Oct 2010 31 Oct 2009

DAColtman Benecial 233,000 133,000WJDucas Benecial 35,000 35,000JLeslieMelville Benecial 2,000 2,000DHLReid Benecial 474,715 369,715TheHon.KimFraser Benecial 2,900 2,900

TheDirectorsattheyearend,andtheirinterestsintheCompany,wereasshownabove.TherehavebeennootherchangesintimatedintheDirectorsinterestsupto9December2010.


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Director Indemnication and Insurance

TheCompanyhasenteredintodeedsofindemnityinfavourofeachofitsDirectors.Thedeedscoveranyliabilitiesthatmayarise

toathirdparty,otherthantheCompany,fornegligence,defaultorbreachoftrustorduty.TheDirectorsarenotindemniedinrespectofliabilitiestotheCompany,anyregulatoryorcriminalnes,anycostsincurredinconnectionwithcriminalproceedingsinwhichtheDirectorisconvictedorcivilproceedingsbroughtbytheCompanyinwhichjudgementisgivenagainsthim.Inaddition,theindemnitydoesnotapplytoanyliabilitytotheextentthatitisrecoveredfromanotherperson.

TheCompanymaintainsDirectorsandOfcersLiabilityInsurance.

Share Capital

Capital structureTheCompanyscapitalstructureconsistsof49,004,319ordinarysharesof5peachat31October2010(200949,004,319ordinaryshares).TherearenorestrictionsconcerningtheholdingortransferoftheCompanysOrdinarySharesandtherearenospecialrightsattachedtoanyoftheshares.

DividendsTheordinarysharescarryarighttoreceivedividends.InterimdividendsaredeterminedbytheDirectors,whereastheproposednaldividendissubjecttoshareholderapproval.

Capital EntitlementOnawindingup,aftermeetingtheliabilitiesoftheCompany,thesurplusassetswillbepaidtoordinaryshareholdersinproportionto

theirshareholdings.

VotingEachordinaryshareholderpresentinpersonorbyproxyisentitledtoonevoteonashowofhandsand,onapoll,toonevoteforeveryshareheld.

Informationonthedeadlinesforproxyappointmentscanbefoundonpage43.

Share Issuance Authority

Resolution12intheNoticeofAnnualGeneralMeetingseekstorenewtheDirectorsgeneralauthoritytoissuesharesuptoanaggregatenominalamountof808,571.Thisamountrepresents

33.0%oftheCompanystotalordinarysharecapitalcurrentlyinissueandmeetsinstitutionalguidelines.NoissueofordinaryshareswillbemadepursuanttotheauthorisationinResolution12whichwouldeffectivelyalterthecontroloftheCompanywithoutthepriorapprovalofshareholdersingeneralmeeting.

Resolution13,whichisproposedasaspecialresolution,seekstoprovidetheDirectorswithauthoritytoissuesharesorsellsharesheldintreasuryonanon-pre-emptivebasisforcash(i.e.

withoutrstofferingsuchsharestoexistingshareholderspro-ratatotheirexistingholdings)uptoanaggregatenominalamountof122,510(representing5%oftheissuedordinarysharecapitaloftheCompanyasat9December2010).TheauthoritiessoughtinResolutions12and13willcontinueuntiltheconclusionoftheAnnualGeneralMeetingtobeheldin2012orontheexpiryof15monthsfromthepassingofthisresolution,ifearlier.

Suchauthoritieswillonlybeusedtoissuesharesorre-sellsharesfromtreasuryatapremiumtonetassetvalueandonlywhentheDirectorsbelievethatitwouldbeinthebestinterestsoftheCompanytodoso.TheDirectorsbelievethattheabilitytobuy-backsharesatadiscountandre-sellthemorissuenewsharesatapremiumareusefultoolsinsmoothingsupplyanddemand.No

shareswereissuedduringtheyearto31October2010andnoshareswereheldintreasuryasat9December2010.

Market Purchases of Own Shares

AtthelastAnnualGeneralMeetingtheCompanywasgrantedauthoritytopurchaseupto7,345,747ordinaryshares(equivalentto14.99%ofitsissuedsharecapital),suchauthoritytoexpireattheAnnualGeneralMeetinginrespectoftheyearending31October2010.Noshareswereboughtbackduringtheyearunderreviewandnosharesareheldintreasury.

Sharebuy-backsmaybemadeprincipally:

(i) toenhancenetassetvalueforcontinuingshareholdersby

purchasingsharesatadiscounttotheprevailingnetassetvalue;and

(ii) toaddressanyimbalancebetweenthesupplyofandthedemandfortheCompanyssharesthatresultsinadiscountofthequotedmarketpricetothepublishednetassetvaluepershare.

TheCompanymayholdbought-backsharesintreasuryandthen:

(i) sellsuchshares(oranyofthem)forcash(oritsequivalentundertheTreasurySharesRegulations);or

(ii) canceltheshares(oranyofthem).

Allbuy-backswillinitiallybeheldintreasury.Shareswillonlyberesoldfromtreasuryatapremiumtonetassetvalue.

TheDirectorsareseekingshareholdersapprovalattheAnnualGeneralMeetingtorenewtheauthoritytopurchaseupto7,345,747ordinarysharesrepresentingapproximately14.99%oftheCompanysordinarysharesinissueatthedateofpassingoftheresolution,suchauthoritytoexpireattheAnnualGeneralMeetingoftheCompanytobeheldin2012.

InaccordancewiththeListingRulesoftheUKListingAuthority,themaximumprice(excludingexpenses)thatmaybepaidontheexerciseoftheauthoritymustnotexceedthehigherof:

(i) 5percentabovetheaverageclosingpriceontheLondonStockExchangeofanordinaryshareoverthevebusinessdaysimmediatelyprecedingthedateofpurchase;and

(ii) thehigherofthelastindependentbidandthehighestcurrentindependentbidontheLondonStockExchange.

IEcTos EpoT

Major Interests in the Companys Shares

No. of ordinary

Name 5p shares held % of issue

D.C.Thomson&CompanyLimited(direct) 3,250,000 6.6LazardAssetManagementLLC(indirect) 2,975,600 6.1JPMorganAssetManagement HoldingsInc.(indirect) 2,485,113 5.1Legal&GeneralGroupPlc(direct) 1,956,344 4.0

TheaboveinformationhasbeenintimatedtotheCompanyasat9December2010.


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IEcTos EpoT

Theminimumprice(exclusiveofexpenses)thatmaybepaidwillbe5ppershare.Purchasesofshareswillbemadewithinguidelinesestablished,fromtimetotime,bytheBoard.Yourattentionisdrawn

toResolution14intheNoticeofAnnualGeneralMeeting.Increase in Ceiling on Directors Fees

Article113oftheCompanysArticlesofAssociationprovidesthatthefeespaidtotheDirectorsshallnotexceedinaggregate100,000perannum.Basedoncurrentlevels,theChairmantoreceive23,000andeachDirectortoreceive15,500,thefeesfortheyearto31October2011wouldexceedthislimitgiventheappointmentofMrDAJCameronandMrsHJameson2December2010.Accordingly,itisproposedthat,pursuanttoResolution15,assetoutintheNoticeofAnnualGeneralMeeting,themaximumaggregateamountoffeespayabletotheDirectorsbeincreasedto150,000perannum.

TheDirectorsconsiderthattheincreaseinthelimitonremunerationpayabletotheDirectorsisinthebestinterestsofshareholdersasawholeandrecommendthatshareholdersvoteinfavourofResolution15.

Recommendation

TheBoardunanimouslyrecommendsyoutovoteinfavouroftheresolutionstobeproposedattheAnnualGeneralMeetingasitistheirviewthattheresolutionsareinthebestinterestofshareholdersasawhole.

Creditor Payment Policy

ItistheCompanyspaymentpolicyfortheforthcomingnancialyeartoobtainthebesttermsforallbusiness.Ingeneral,theCompany

agreeswithitssuppliersthetermsonwhichbusinesswilltakeplaceanditisitspolicytoabidebytheseterms.TheCompanyhadnotradecreditorsat31October2010or31October2009.

Disclosure of Information to Auditors

TheDirectorsconrmthatsofaraseachoftheDirectorsisawarethereisnorelevantauditinformationofwhichtheCompanysauditorsareunawareandtheDirectorshavetakenallthestepsthattheyoughttohavetakenasDirectorsinordertomakethemselvesawareofanyrelevantauditinformationandtoestablishthattheCompanysauditorsareawareofthatinformation.

Independent Auditors

Theauditors,KPMGAuditPlc,arewillingtocontinueinofceandinaccordancewithsection489andsection491(1)oftheCompaniesAct2006,resolutionsconcerningtheirreappointmentandremunerationwillbesubmittedtotheAnnualGeneralMeeting.

ByorderoftheBoardDAVIDHLREIDDirector13December2010


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IEcTos EmnEaTIon EpoT

D rectors Remunerat on Report

TheBoardhaspreparedthisreport,inaccordancewiththerequirementsoftheCompaniesAct2006.AnordinaryresolutionfortheapprovalofthisreportwillbeputtothemembersattheforthcomingAnnualGeneralMeeting.

ThelawrequirestheCompanysauditorstoauditcertainofthedisclosuresprovided.Wheredisclosureshavebeenaudited,theyareindicatedassuch.Theauditorsopinionisincludedintheirreportonpage25.

Remuneration Committee

FollowingtheappointmentofMrDAJCameronandMrsHJameson2December2010,theCompanyhassevenDirectors,allofwhomarenon-executive.ThereisnoseparateremunerationcommitteeandtheBoardasawholeconsiderschangestoDirectorsfeesfromtimetotime.BaillieGifford&Co,whohavebeenappointedbytheBoardasManagersandSecretaries,provideadviceandcomparativeinformationwhentheBoardconsidersthelevelofDirectorsfees.

Policy on Directors fees

TheBoardspolicyisthattheremunerationofDirectorsshouldbesetatareasonablelevelthatiscommensuratewiththeduties

andresponsibilitiesoftheroleandconsistentwiththerequirementtoattractandretainDirectorsoftheappropriatequalityandexperience.ItshouldalsoreecttheexperienceoftheBoardasawhole,befairandshouldtakeaccountoftheleveloffeespaidbycomparableinvestmenttrusts.Itisintendedthatthispolicywillcontinuefortheyearending31October2011andsubsequentyears.

Thefeesforthenon-executiveDirectorsaredeterminedwithinthelimitssetoutintheCompanysArticlesofAssociation.Article113oftheCompanysArticlesofAssociationstatesthatthefeespaidtotheDirectorsshallnotexceedinaggregate100,000perannumorsuchhigheramountastheCompanymaydeterminefromtimetotimebyordinaryresolution.Shareholdersapprovaltoincreasethelimits(pursuanttoArticle113oftheArticlesofAssociation)to150,000perannuminaggregatewillbesoughtatthe

forthcomingAnnualGeneralMeeting.Non-executiveDirectorsarenoteligibleforanyotherremunerationapartfromreimbursementofallowableexpenses.

TheBoardreviewedthelevelofDirectorsfeesduringtheyearandconcludedthattheChairmansfeebeincreasedfrom21,500to23,000andDirectorsfeesbeincreasedfrom14,500to15,500witheffectfrom1February2010.Directorsfeeswerelastincreasedon1February2008.

Directors Service Contracts

ItistheBoardspolicythatnoneoftheDirectorshasaservicecontract.AlloftheDirectorshavebeenprovidedwithappointmentlettersandthetermsoftheirappointmentprovidethatDirectorsshallretireandbesubjecttore-electionattherstAnnualGeneralMeetingaftertheirappointment.ThereafterDirectorsareobligedtoretire,andsubjecttoperformanceevaluation,iftheywish,offerthemselvesforre-election,nolongerthanevery3yearsafterthat.AnyDirectorswhohaveservedontheBoardformorethan9yearswillsubmitthemselvesforre-electionannually.Thereisnonoticeperiodandnoprovisionforcompensationuponearlyterminationofappointment.

Directors Remuneration for the Year (audited)2010 2009

DAColtman 22,625 21,500WJDucas 15,250 14,500TheHon.KimFraser 15,250 14,500

JLeslieMelville 15,250 14,500DHLReid 15,250 14,500

83,625 79,500

TheDirectorswhoservedintheyearreceivedtheaboveremunerationintheformoffees.


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Directors Service Details

Date of Due date for

appointment election/re-election

DAColtman 1May1998 AGMheldin2011DAJCameron 2December2010 AGMheldin2011WJDucas 22March2002 AGMheldin2012TheHon.KimFraser 11December1998 AGMheldin2011HJames 2December2010 AGMheldin2011

JLeslieMelville 1August2007 AGMheldin2011

DHLReid 1May1998 AGMheldin2011

IEcTos EmnEaTIon EpoT

Company Performance

Thefollowinggraphcomparesthetotalreturn(assumingalldividendsarereinvested)toordinaryshareholderscomparedtothetotalshareholderreturnonanotionalinvestmentmadeupofsharesinthecomponentpartsoftheFTSEAll-ShareIndex.Thisindexwaschosenforcomparisonpurposes,asitisawidelyusedmeasureofperformanceforUKlistedcompanies.(ComparativeIndexprovidedforinformationpurposesonly).


Edinburgh Worldwide share price

FTSE All-Share

MSCI All Countries World Index (in sterling terms)All figures are total return (assuming all dividends reinvested)

*MSCI All Countries World Index (in sterling terms)

CUMULATIVE TO 31 OCTOBER

20102005 2006 2007 2008 2009

60

160

140

120

100

80

Performance Graph

EdinburghWorldwidesSharePrice,FTSEAll-ShareIndexandComparativeIndex*

(gureshavebeenrebasedto100at31October2005)


Approval

TheDirectorsRemunerationReportonpages22and23wasapprovedbytheBoardofDirectorsandsignedonitsbehalfon13December2010.

DAVIDHLREIDDirector


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sTaTEmEnT of IEcTos EsponsIIITIEs

TheDirectorsareresponsibleforpreparingtheAnnualReport,theDirectorsRemunerationReportandthenancialstatementsinaccordancewithapplicablelawandregulations.

CompanylawrequirestheDirectorstopreparenancialstatementsforeachnancialyear.UnderthatlawtheyhaveelectedtopreparethenancialstatementsinaccordancewithapplicablelawandUKAccountingStandards(UKGenerallyAcceptedAccountingPractice).UndercompanylawtheDirectorsmustnotapprovethenancialstatementsunlesstheyaresatisedthattheygiveatrueandfairviewofthestateofaffairsoftheCompanyandoftheprotorlossoftheCompanyforthatperiod.Inpreparingthesenancialstatements,theDirectorsarerequiredto:

selectsuitableaccountingpoliciesandthenapplythemconsistently;

makejudgementsandaccountingestimatesthatarereasonableandprudent;

statewhetherapplicableUKAccountingStandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthenancialstatementsrespectively;and

preparethenancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethattheCompanywillcontinueinbusiness.

TheDirectorsareresponsibleforkeepingadequateaccountingrecordsthataresufcienttoshowandexplaintheCompanystransactionsanddisclosewithreasonableaccuracyatanytimethenancialpositionoftheCompanyandenablethemtoensurethatthenancialstatementsandtheDirectorsRemunerationReportcomplywiththeCompaniesAct2006.TheyarealsoresponsibleforsafeguardingtheassetsoftheCompanyandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

TheDirectorshavedelegatedresponsiblitytotheManagersforthemaintenanceandintegrityoftheCompanyspageoftheManagerswebsite.LegislationintheUnitedKingdomgoverningthepreparationanddisseminationofnancialstatementsmaydifferfromlegislationinotherjurisdictions.

EachoftheDirectors,whosenamesandfunctionsarelistedwithintheDirectorsandManagementsection,conrmthat,tothebestoftheirknowledge:

thenancialstatements,whichhavebeenpreparedinaccordancewithapplicablelawandUKAccountingStandards(UKGenerallyAcceptedAccountingPractice),giveatrueandfairviewoftheassets,liabilities,nancialpositionandnetreturnoftheCompany;and

theDirectorsReportincludesafairreviewofthedevelopmentand

performanceofthebusinessandthepositionoftheCompany,togetherwithadescriptionoftheprincipalrisksanduncertaintiesthatitfaces.

ByorderoftheBoardDAVIDHLREIDDirector13December2010

Statement of Directors Responsibilitiesin Respect of the Annual Report andthe Financial Statements


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InEpEnEnT aITos EpoT

Independent Auditors Reportto the members of Edinburgh Worldwide Investment Trust plc(the Company)

WehaveauditedthenancialstatementsofEdinburghWorldwideInvestmentTrustplcfortheyearended31October2010setoutonpages26to40.ThenancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandUKAccountingStandards(UKGenerallyAcceptedAccountingPractice).

ThisreportismadesolelytotheCompanysmembers,asabody,inaccordancewithchapter3ofPart16oftheCompaniesAct2006.OurauditworkhasbeenundertakensothatwemightstatetotheCompanysmembersthosematterswearerequiredtostatetotheminanauditorsreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompanysmembers,asabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

Respective responsibilities of Directors and the Auditor

AsexplainedmorefullyintheDirectorsResponsibilitiesStatementsetoutonpage24,theDirectorsareresponsibleforthepreparationofthenancialstatementsandforbeingsatisedthattheygiveatrueandfairview.OurresponsibilityistoauditthenancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoards(APBs)EthicalStandardsforAuditors.

Scope of the audit of the nancial statements

AdescriptionofthescopeofanauditofnancialstatementsisprovidedontheAPBswebsiteatwww.frc.org.uk/apb/scope/UKP.

Opinion on nancial statements

Inouropinionthenancialstatements:

giveatrueandfairviewofthestateoftheCompanysaffairsasat31October2010andofitsnetreturnfortheyearthenended;

havebeenproperlypreparedinaccordancewithUKGenerallyAcceptedAccountingPractice;and

havebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006.

Opinion on other matters prescribed by the CompaniesAct 2006

Inouropinion:

thepartoftheDirectorsRemunerationReporttobeauditedhasbeenproperlypreparedinaccordancewiththeCompaniesAct2006;and

theinformationgivenintheDirectorsReportforthenancialyearforwhichthenancialstatementsarepreparedisconsistentwiththenancialstatements.

Matters on which we are required to report by exceptionWehavenothingtoreportinrespectofthefollowing:

UndertheCompaniesAct2006wearerequiredtoreporttoyouif,inouropinion:

adequateaccountingrecordshavenotbeenkept,orreturnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisitedbyus;or

thenancialstatementsandthepartoftheDirectorsRemunerationReporttobeauditedarenotinagreementwiththeaccountingrecordsandreturns;or

certaindisclosuresofDirectorsremunerationspeciedbylawarenotmade;or

wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

UndertheListingRuleswearerequiredtoreview:

theDirectorsstatement,setoutonpage18,inrelationtogoingconcern;and

thepartoftheCorporateGovernanceStatementrelatingtothecompanyscompliancewiththenineprovisionsoftheJune2008CombinedCodespeciedforourreview.

SimonPashby(SeniorStatutoryAuditor)forandonbehalfofKPMGAuditPlc,CharteredAccountantsEdinburgh13December2010


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Income Statement

ThetotalcolumnofthisstatementistheprotandlossaccountoftheCompany.

Allrevenueandcapitalitemsinthisstatementderivefromcontinuingoperations.Nooperationswereacquiredordiscontinuedduringtheyear.AStatementofTotalRecognisedGainsandLossesisnotrequiredasallgainsandlossesoftheCompanyhavebeenreectedintheabovestatement.

For the year ended 31 October 2010 For the year ended 31 October 2009

Revenue Capital Total Revenue Capital Total

Notes 000 000 000 000 000 000

Gainsoninvestments 10 29,831 29,831 43,445 43,445Currencylosses 14 (1,122) (1,122) (1,825) (1,825)Income 2 1,931 1,931 3,088 3,088Investmentmanagementfee 3 (250) (784) (1,034) (179) (538) (717)VATrecovered 4 25 127 152 Otheradministrativeexpenses 5 (440) (440) (422) (422)

Net return before nance costsand taxation 1,266 28,052 29,318 2,487 41,082 43,569

Financecostsofborrowings 6 (130) (390) (520) (96) (286) (382)

Net return on ordinary activitiesbefore taxation 1,136 27,662 28,798 2,391 40,796 43,187

Taxonordinaryactivities 7 (226) (226) (575) 266 (309)

Net return on ordinary activitiesafter taxation 910 27,662 28,572 1,816 41,062 42,878

Net return per ordinary share 9 1.86p 56.45p 58.31p 3.71p 83.78p 87.49p

Analdividendfortheyearof1.50ppershare(20091.50pandspecialdividendof1.00p)isproposed,makingatotalof2.00pfor

theyear(20093.00p).Moreinformationondividenddistributionscanbefoundinnote8onpage33.

Theaccompanyingnotesonpages30to40areanintegralpartofthenancialstatements.


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Balance Sheet


At 31 October 2010 At 31 October 2009

Notes 000 000 000 000

Fixed assetsInvestmentsheldatfairvaluethroughprotorloss 10 173,763 143,655

Current assetsDebtors 11 314 2,988Cashandshorttermdeposits 19 4,053 5,042

4,367 8,030

CreditorsAmountsfallingduewithinoneyear 12 (25,217) (25,874)

Net current liabilities (20,850) (17,844)

Total net assets 152,913 125,811

Capital and reservesCalled-upsharecapital 13 2,450 2,450Sharepremium 14 82,180 82,180Specialreserve 14 35,220 35,220Capitalreserve 14 30,784 3,122Revenuereserve 14 2,279 2,839

Shareholders funds 152,913 125,811

Net asset value per ordinary share 15 312.04p 256.73p

TheFinancialStatementsofEdinburghWorldwideInvestmentTrustplc(CompanyregistrationnumberSC184775)wereapprovedandauthorisedforissuebytheBoardon13December2010.

DAVIDHLREIDDirector


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Reconciliation of Movements inShareholders Funds


For the year ended 31 October 2010

Called-up

share Share Special Capital Revenue Shareholderscapital premium reserve reserve reserve funds

Notes 000 000 000 000 000 000

Shareholdersfundsat1November2009 2,450 82,180 35,220 3,122 2,839 125,811Netreturnonordinaryactivitiesafter taxation 14 27,662 910 28,572Dividendspaidduringtheyear 8 (1,470) (1,470)

Shareholders funds at 31 October 2010 2,450 82,180 35,220 30,784 2,279 152,913

For the year ended 31 October 2009

Called-up

share Share Special Capital Revenue Shareholderscapital premium reserve reserve reserve funds

Notes 000 000 000 000 000 000

Shareholdersfundsat1November2008 2,450 82,180 35,220 (37,940) 2,346 84,256Netreturnonordinaryactivitiesafter taxation 41,062 1,816 42,878Dividendspaidduringtheyear 8 (1,323) (1,323)

Shareholders funds at 31 October 2009 2,450 82,180 35,220 3,122 2,839 125,811


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Cash Flow Statement


For the year ended For the year ended

31 October 2010 31 October 2009

Notes 000 000 000 000

Net cash inow from operating activities 16 716 1,957

Servicing of nanceInterestpaid (547) (364)

Net cash outow from servicing of nance (547) (364)

TaxationOverseastaxincurred (238) (288)

Total tax paid (238) (288)

Financial investmentAcquisitionsofinvestments (32,507) (14,517)Disposalsofinvestments 32,877 18,052Realisedcurrencygain 157 197

Net cash inow from nancial investment 527 3,732

Equity dividends paid 8 (1,470) (1,323)

FinancingBankloansrepaid (292,651) (285,455)Bankloansdrawndown 292,674 285,334

Net cash inow/(outow) from nancing 23 (121)

(Decrease)/increase in cash 17 (989) 3,593

Reconciliation of net cash ow tomovement in net debt 17(Decrease)/increaseincashintheperiod (989) 3,593Netcash(inow)/outowfrombankloans (23) 121Exchangemovementonbankloans (1,279) (2,022)

Movement in net debt in the year (2,291) 1,692

Net debt at 1 November (18,459) (20,151)

Net debt at 31 October (20,750) (18,459)


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Thenancialstatementsfortheyearto31October2010havebeenpreparedonthebasisoftheaccountingpoliciessetoutbelow,whichareunchangedfromtheprioryearandhavebeenappliedconsistently.

(a) Basis of AccountingThenancialstatementsarepreparedonagoingconcernbasisunderthehistoricalcostconvention,modiedtoincludetherevaluationofxedassetinvestmentsandderivatives,andontheassumptionthatapprovalasaninvestmenttrustundersection1158oftheCorporationTaxesAct2010willcontinuetobegranted.

ThenancialstatementshavebeenpreparedinaccordancewithTheCompaniesAct2006,applicableUKAccountingStandardsandwiththeStatementofRecommendedPracticeFinancialStatementsofInvestmentTrustCompaniesissuedinJanuary2009.

InordertoreectbettertheactivitiesoftheCompanyandinaccordancewithguidanceissuedbytheAIC,supplementaryinformationwhichanalysestheprotandlossaccountbetweenitemsofarevenueandcapitalnaturehasbeenpresentedintheIncomeStatement.

TheCompanyhasonlyonematerialsegmentbeingthatofaninvestmenttrustcompany,investinginlistedcompaniesthroughouttheworld.

FinancialassetsandnancialliabilitiesarerecognisedintheCompanysbalancesheetwhenitbecomesapartytothecontractualprovisionsoftheinstrument.

TheDirectorsconsidertheCompanysfunctionalcurrencytobesterlingastheCompanysshareholdersarepredominantlybasedintheUKandtheCompanyissubjecttotheUKsregulatoryenvironment.

(b) Investments

Purchasesandsalesofinvestmentsareaccountedforonatradedatebasis.

Investmentsinsecuritiesaredesignatedasvaluedatfairvaluethroughprotorlossoninitialrecognitionandaremeasuredatsubsequentreportingdatesatfairvalue.

Thefairvalueoflistedsecurityinvestmentsisbidvalue,orinthecaseofFTSE100constituents,atlasttradedpricesissuedbytheLondonStockExchange.

ChangesinthefairvalueofinvestmentsandgainsandlossesondisposalarerecognisedascapitalitemsintheIncomeStatement.

(c) Derivatives

TheCompanymayusederivativesforthepurposeofefcientportfoliomanagement(includingreducing,transferringoreliminatingriskinitsinvestmentsandprotectionagainstcurrencyrisk)andtoachievecapitalgrowth.

SuchinstrumentsarerecognisedonthedateofthecontractthatcreatestheCompanysobligationtopayorreceivecashowsandaremeasuredasnancialassetsorliabilitiesatfairvalueatsubsequent

reportingdates,whiletherelevantcontractsremainopen.Thefairvalueisdeterminedbyreferencetotheopenmarketvalueofthecontract.

WheretheinvestmentrationalefortheuseofderivativesistohedgespecicriskspertainingtotheCompanysportfoliocomposition,hedgeaccountingwillonlybeadoptedwherethederivativeinstrumentrelatesspecicallytoasingleitem,orgroupofitems,ofequalandoppositenancialexposure,andwherethederivativeinstrumenthasbeenexplicitlydesignatedasahedgeofsuchitem(s)atthedateofinitialrecognition.InallothercircumstanceschangesinthefairvalueofderivativeinstrumentsarerecognisedimmediatelyintheIncomeStatementascapitalorrevenueasappropriate.

(d) Cash

Cashincludescashinhandanddepositsrepayableondemand.Depositsarerepayableondemandiftheycanbewithdrawnatanytime

withoutnoticeandwithoutpenaltyoriftheyhaveamaturityorperiodofnoticeofnotmorethanoneworkingday.

(e) Income

(i) Incomefromequityinvestmentsisbroughtintoaccountonthedateonwhichtheinvestmentsarequotedex-dividendor,whereno

1 Principal Accounting Policies

ex-dividenddateisquoted,whentheCompanysrighttoreceivepaymentisestablished.

(ii)Interestfromxedinterestsecuritiesisrecognisedonaneffective

yieldbasis.(iii)Frankedincomeisstatednetoftaxcredits.

(iv)Unfrankedinvestmentincomeincludesthetaxesdeductedatsource.

(v)Interestreceivableondepositsisrecognisedonanaccrualsbasis.

(vi)Ifscripistakeninlieuofdividendsincash,thenetamountofthecashdividenddeclarediscreditedtotherevenueaccount.Anyexcessinthevalueofthesharesreceivedovertheamountof

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