As it is now 3 years since my previous post on this one, I think an update on progress is overdue.
The objective for this investment trust is to achieve long term capital growth in real terms and steadily increasing income. The aim is to achieve a higher rate of total return than the FTSE All-Share Index through investing in a portfolio diversified both geographically and by industry.
Although this is categorised as a global trust, 70% of the portfolio are UK listed equities. The rationale for this is that most of these companies derive a significant proportion of their profits from overseas operations. The remainder of the portfolio are comprised of Europe (8%), N. America (12%) and Asia/Japan - mainly via funds (7%).
The trust has today issued results for the full year to 31st December 2016 (link via Investegate). Net Assets total return for the year was 16.9% compared to 16.8% for its benchmark FTSE All Share Index.
This is a good return for just one year, however, compared against other trusts in the same global sector, it is near the bottom of the table. Trusts such as Bankers, Alliance Trust and Monks have returned over 40% in 2016.
|3 Yr Chart LWDB -v- Bankers IT|
Likewise over the past 5 years Law Debenture is propping up the bottom of the league table with a return of 72% compared to well over 100% for the likes of Witan, Bankers and Foreign & Colonial for example.