Price and Performance

For the month of December, the Trust’s Total Shareholder Return and NAV Total Return were 3.0% and 1.5% respectively, outperforming the benchmark MSCI All Country World Index (ACWI) which returned 1.1%. This brought the Trust’s Total Shareholder Return for 2019 to 24.3%, and NAV Total Return to 23.1%. The benchmark MSCI ACWI returned 21.7% for the year.

In December, despite uncertainty in the US equity market resulting from impeachment proceedings against the President, markets responded positively to progress in US-China trade negotiations, and global equities continue their run of strong performance. In the UK, the result of the 12 December General Election, with the Conservatives winning a comfortable majority, led to a rally in UK equities and an appreciation of sterling relative to other major market currencies.

Within the Trust’s portfolio, Japanese air conditioning manufacturer Daikin was sold from the Trust’s portfolio in December following a period of strong performance, in favour of opportunities elsewhere with greater future return potential. A significant contributor to performance was the Trust’s holding in Italian luxury fashion brand Prada, following a number of strategic corporate transactions. The Trust’s position in UK consumer good conglomerate Unilever detracted from performance, as the company cut its expectations for full year sales growth due to the economic slowdown in South Asia, one of its largest markets.