Price and Performance

Over October, the Trust’s total shareholder return, NAV total return and equity portfolio returned -6.3%, -6.3% and -5.8% respectively. The benchmark MSCI All Country World Index (ACWI) returned -5.6% over the same period.

Global equity markets were exceptionally volatile during October, with markets erasing much of their gains since the start of the year. Indiscriminate selling presented opportunities for the underlying stock pickers to exploit suppressed valuations of companies with attractive earnings potential. October, therefore, saw a higher than usual level of rotation in the portfolio. A position in Astra Zeneca, the major global drug manufacturer, was initiated in the portfolio as the company entered a strong new product cycle. This is the result of its focus on R&D which accounts for as much as 25% of revenues, and a considerable number of collaborative projects funded by partners. Another large cap name that was added to the portfolio was Procter & Gamble, the multi-national consumer goods company with a number of well-known international household brand subsidiaries. In addition, DKSH Holding, a Swiss domiciled company that provides market expansion services was another notable addition to the portfolio.

New entrants to the top 20 holdings included Philip Morris International and Unilever as a result of additional security purchases, whilst security sales resulted in Amazon and Infosys moving out of the top 20. It is pleasing to see that the Company’s equity managers are finding new opportunities in times of market volatility. Our conviction in all of the managers remains high and we have made no changes to target allocations over the course of the last month.