FTAdviser.com

Advertising

In its unaudited interim results, the trust added it had outperformed the benchmark by 4.4 per cent since taking on its current manager-of-managers structure in September 2004. Chairman Harry Henderson said the outperformance arose chiefly from share buysbacks.

On 1 October 2007, the trust changed its benchmark to a combination of four indices - 40 per cent FTSE All-Share, 20 per cent FTSE All-World North America, 20 per cent FTSE All-World Europe and 20 per cent FTSE All-World Asia Pacific.

The trust's UK managers delivered significant outperformance for the period. Henderson Global Investors, a long-term manager on the trust, lost 10.9 per cent against 11.1 per cent for the benchmark in its mainstream mandate. Its smaller companies mandate lost 7.4 per cent compared with 14.2 per cent for its index.

The trust's two new UK active mandates, run by Artemis Investment Management and Marathon Asset Management, finished 590 basis points and 200bps above their benchmarks, respectively.

But performance in Asia Pacific and global remits was more mixed. MFS International lost 9.2 per cent and Thomas White International lost 7.3 per cent against 10.7 per cent for their global benchmark, but Southeastern Asset Management declined 14.2 per cent.

In Asia Pacific, Japan manager Brandes Investment Partners and Asia Pacific manager Comgest outperformed, but Australasia manager Orbis Investment Management undershot its index.

Mr Henderson said SouthEastern and Orbis's deep value style was currently out of favour. He added European manager Varenne had undergone a difficult period.

"Varenne has also underperformed since appointment in May this year, but its concentrated portfolio of 10 European equities means volatile returns are to be expected over the short term."

Mr Henderson expressed concern over another of the trust's holdings, a UBS Mellon currency loan note that fell 1.5 per cent during the period.

"For the time being, the board decided to re-affirm the appointment, but will keep the situation under close scrutiny," he said.