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World Trust Fund (WTR)

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Wednesday 11 February, 2009

World Trust Fund

Interim Management Statement

Interim Management Statement

World Trust Fund

The World Trust Fund
Interim Management StatementInterim Management Statement
for the quarter ended 31st December 2008 for the quarter ended 31st December 2008

The 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 2008 to 31 December 2008 and contains information that covers this period and the 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. For hedging purposes the Fund may also sell short stock indices, stocks, and shares of exchange-traded funds or closed-end funds, not exceeding 100% of the Fund’s net assets.

Highlights:

Over the 3 month period from 1 October 2008 to 31 December 2008:

  • The Fund’s net asset value (NAV) fell by 34.66% compared with a fall of 21.77% in the MSCI World Index.
  • The Fund’s share price fell by 40.71%.
  • The discount to NAV, at which the Fund's shares trade, widened to 13.25%.
  • The weighted average discount of the underlying funds in the Fund’s portfolio was 26.95%.

Global stock markets experienced one of their worst quarters in recent history amid signs of deepening global recession. The performance of the closed end fund sector mirrored and amplified this, with discounts widening to create a greater level of under performance. During the period leverage was completely eliminated, and at the end of the year the Fund had 6.3% in cash.

Long Term Performance:

  1-Year   3-Year   5-Year   10-Year
 
Share Price -63.9% -22.6% - 2.7% +1.4%
Net Asset Value -61.9% -21.0% - 4.5% +0.5%
MSCI World Index -40.7% - 8.1% - 0.5% - 0.6%
MSCI AC World Net -42.2% - 7.9% - 0.6% - 0.2%

Top Five Holdings (% of net assets):

 

31/12/08

 

30/09/08

John Hancock Tax Advantaged 6.4% 5.2%
Swiss Helvetica Fund 5.9% 3.8%
Alliance Trust 5.0% 3.9%
Eurazeo 4.8% 5.5%
JPMorgan Fleming European Fledgeling 4.7% 3.6%

Breakdown of Net Assets:

 

31/12/08

 

30/09/08

North America 26.2% 32.0%
Europe (ex UK) 24.7% 33.1%
Asia ex Japan 19.8% 27.4%
Japan 9.6% 8.5%
Latin America, Africa & Middle East 6.1% 6.7%
United Kingdom 4.5% 11.0%
Other 2.8% 2.7%
 
Long Exposure 93.7% 121.4%
Short Exposure 0.0% 0.0%
Net Exposure 93.7% 121.4%

Top 5 Country Weightings (% of net assets)

 

31/12/08

United States 20.5%
Japan 9.1%
China 6.8%
Switzerland 6.2%
France 5.9%

Leverage:

As at 31 December 2008 the Fund had no leverage.

Material Transactions and Events:

The Board of Directors is not aware of any material events or transactions that have occurred between 1 January 2009 and the date of this Interim Management Statement and would have a material impact on the financial position or performance of the Fund.