World Trust Fund

The World Trust Fund is an investment company that was formed to achieve growth by investing in closed end funds, holding companies, investment companies, and similar companies. It is classified as a global growth fund. The fund requires that the shares of the companies in which they invest must be listed in an international exchange at a discount to the net asset value, or NAV. This fund is based in London and is managed by Lazard Asset Management in New York, a third party asset management company. The World Trust Fund invests in closed-end funds, many of which are located in the United States. This means that they invest in undervalued assets that are already discounted. They meet with the boards and management teams of the companies in which they invested to narrow the discount. This procedure results in World Trust Fund in being able to secure shares at a double discount.

Most of the assets of the World Trust Fund are closed end funds and investment trusts, but it is diversified. Many of the investment trusts in which the fund invests are located in the United Kingdom. The closed end funds and investment trusts provide a more stable income for the fund, since no new shares are created. This fund holds shares in many markets, such as: retail, aerospace, media, REITs, food and beverage, utilities, banks, and health services. These markets are located globally, which a sizeable portion of them located in China, Japan, and Mexico. The diversification of the fund eases the volatility. If one or two markets fall and other markets climb, the loss in the failing markets would be compensated for by the climbing markets. The fund also hedges some investments by investing in emerging market securities. This makes the fund volatile since securities investments are speculative. The foreign markets in which the World Trust Fund invests affect the fund because of the varying economic climates amongst the countries. The fund may leverage its investment positions by borrowing funds from securities broker-dealers, banks or others, which increases both the possibilities for profit and the risk of loss.

At times, the World Trust Fund has conducted short sales of stock indices, stocks, and shares of exchange-traded funds or closed-end funds in order to increase earnings. The fund is a global player in the investment world, with holdings spanning the globe. This fund is listed on the London Stock Exchange and does not pay out dividends to its investors. An investor must be a permanent citizen of the United Kingdom in order to purchase shares in this fund.