WTR : Mixed results for World Trust Fund
World Trust Fund reports that over the six months ended 30 September 2014 its fully diluted net asset value in US dollar terms fell 0.2%, lagging the MSCI All Country World Index which rose 2.6%, though ahead of the MSCI All Country World ex-US Index which fell 0.5%. The Fund’s share price, as traded on the London Stock Exchange in pounds sterling, gained 3.8% over the period.
The report says that investments in China boosted returns, including holdings in China Everbright, China Merchants China Direct Investments and CITIC Securities, all of which rose considerably in response to continued governmental deregulation in the financial markets and the opening up of the A-Share market to investors outside mainland China. They say the Fund’s global emerging market investments performed relatively well amidst the market volatility.
On the downside they were underweight the US which was unhelpful. They say that many of their European investments, including Eurazeo and JPMorgan European Smaller Companies fell due to the markets’ general concern over growth on the continent and widening discounts. Japan did well but their investments lagged the market due to discount widening.