World Trust Fund
The World Trust Fund
Interim Management Statement
for the quarter ended 31 December 2007
World Trust Fund (the "Fund"), is publishing this Interim Management Statement
in accordance with DTR 4.3 of the FSA Handbook.
This interim management statement has been produced solely to provide additional
information to shareholders as a body to meet the relevant requirements of the
UK Listing Authority's Disclosure and Transparency Rules. It should not be
relied upon by any other party or for any other purpose.
This interim management statement relates to the period from 1 October 2007 to
31 December 2007 and the subsequent period up to the date of publication of this
interim management statement.
The Fund aims to achieve long-term capital appreciation by investing in
companies whose shares trade at a discount to their underlying net asset value
and are listed on international exchanges. These include investment companies
(closed-end funds, investment trusts), holding companies and other similarly
traded companies. The Fund may also sell short stock indices, shares of
exchange-traded funds or closed-end funds, not exceeding 100% of the Fund's net
Over the 3 month period from 30 September 2007 to 31 December 2007:
-- The Fund's net asset value (NAV) fell by 9.67% compared to a fall of
2.42% in the MSCI World Index.
-- The Fund's share price fell 9.43%.
-- The discount to net asset value at which the Fund's shares trade
narrowed to 8.29%.
-- The average discount of the underlying funds in the Fund's portfolio
widened to 17.6%.
Global stock markets have fallen significantly since the beginning of 2008 as a
result of increased concerns over the prospects for global growth.
Long Term Performance:
1-Year 3-Year 5-Year 10-Year
Share Price +8.7% +21.4% +27.3% +12.3%
Net Asset Value +7.6% +18.5% +25.3% +11.2%
MSCI World Index +9.0% +12.8% +17.0% + 7.0%
Top Ten Holdings as Percentage of NAV:
Morgan Stanley China A Share Fund 6.85% 5.24%
Templeton Emerging Markets Inv Trust Plc 5.48% 4.69%
Investor AB 5.08% 5.16%
Advance Developing Markets Trust Plc 5.05% 4.43%
John Hancock Tax-Advantaged Div Inc Fund 4.88% 5.19%
Eurazeo 4.71% 4.87%
JPMorgan European Fledgeling Inv Trust Plc 4.43% 4.39%
Gabelli Dividend & Income Trust 3.63% 0%
The Throgmorton Trust Plc 3.46% 3.75%
ASA Limited 3.38% 0%
Top 5 Short Positions as Percentage of NAV:
SPDR S&P Homebuilders -5.28% - -4.07%
Financial Select Sector SPDR -4.96% 0%
IShares Dow Jones US Real Estate -4.86% -4.84%
IShares S&P Europe 350 Index -4.85% -10.08%
Templeton Russia -0.35% -1.71%
Breakdown of Net Assets:
Asia ex Japan 31.7% 24.4%
Europe (ex UK) 26.2% 21.3%
Japan 9.0% 7.8%
Latin America, Africa & Middle East 7.3% 3.0%
North America 6.9% -2.5%
United Kingdom 6.7% 5.6%
Other 2.5% 3.9%
Long Exposure 110.6% 114.8%
Short Exposure -20.3% -51.3%
Net Exposure 90.3% 63.5%
Bank borrowings at 31 December 2007 were approximately US $4.2 million, which
represented 12.5% of net assets, compared with approximately US $47.5 million at
30 September 2007, which represented 13.4% of net assets.
Material Transactions and Events:
There were no material transactions during the period under review.
During the quarter the short equity exposure to the market was significantly
reduced from 51.3% to 20.3% at the period end and had been virtually eliminated
by the date of this interim management statement. The net long exposure at the
date of this statement stood at 107.3%. The investment manager believes that
equities are priced cheaply and that the market is poised for a recovery.
The Board of Directors is not aware of any other significant events or
transactions that have occurred since 31 December 2007 that would have a
material impact on the financial position of the Company.
(1) This list represents those holdings in the top ten holdings as of 31/12/07
that were also held in the fund as of 30/09/07 and does not represent a list of
the top ten holdings as of 30/09/07, which may have been different.
(2) This list represents those holdings in the top five short positions as of
31/12/07 that were also held in the fund as of 30/09/07 and does not represent a
list of the top five short positions as of 30/09/07, which may have been