Price and Performance

For the month of October, the Trust’s total shareholder return and NAV total return were -2.0% and -1.6% respectively, outperforming the benchmark MSCI All Country World Index (ACWI) which returned -2.2%.

In October, most global equity markets were up in local currency terms, as the US Federal Reserve cut interest rates for the third time this year and geopolitical tensions eased, with the US and China progressing towards a partial trade deal and significant developments in UK-EU Brexit negotiations.  As a result of a revised Withdrawal Agreement being agreed between the UK Government and EU leaders, albeit that it has yet to be passed by the House of Commons, the news led to a significant strengthening of sterling against other major market currencies. This strengthening meant that for sterling investors, like the Trust, non-UK equity market returns for the month were negative.

Within the Trust’s portfolio, a position was initiated in Altice USA, a US-based television cable provider delivering telecommunication services to 4.9 million customers across the US. Altice USA offer an opportunity, alongside current positions in Comcast and Charter Communications, in cable companies that also provide broadband sales and show good potential to benefit from the streaming revolution taking place across television services. Existing holdings in Yum! Brands, a US fast food company, and Carnival Corporation, a British-American cruise operator, were increased following recent price weakness reducing earnings multiples across both firms, making them even more attractive long term prospects for the portfolio.