Over the six-month period the global trust’s net asset value (NAV) rose 13.6%, compared with a 7.3% return from the FTSE World Index, in sterling terms. Over the same time period the trust’s share price gained 14.5%, leading it to end the period trading at a 0.2% premium to NAV, having started the financial year at a 0.6% discount.
Performance was boosted by holdings in cruise operator Royal Caribbean, Chinese online retail giant Alibaba, US tech company Nvidia, Samsung Electronics and Facebook, all of which saw earnings per share rise more than 50% year-on-year in the first half of 2017.
The management team of the fund, which is lead managed by Charles Plowden, took over the running of the portfolio in March 2015. Since then, the trust is ranked first quartile in the IT Global sector over one and three years, with Plowden assisted by Spencer Adair and Malcom MacColl.
According to the results, a notable feature of the trust since they took over has been an increase in the portfolio’s exposure to emerging markets from 13.7% to 21.4%. Overall however, turnover for the six-month period was low, coming in at 16% on an annualised basis with eight positions added and five sold.
Meanwhile, the level of gearing used by the fund fell from 6.6% to 5.9% at the end of October, although the board of the trust said the managers will look at any future weakness in markets as an opportunity to increase it.
“Some companies are now looking fully valued with prices having moved ahead of fundamental progress and the managers have responded by reducing exposure to them,” said a statement from the board.
“At the same time they remain confident that there are many exciting growth opportunities already in the portfolio and more that are still to be uncovered.”
