Half-yearly Report

LONDON--(BUSINESS WIRE)--

The World Trust Fund

Société d’Investissement à Capital Fixe
Luxembourg
R.C. Nº B 37.154

UNAUDITED SEMI ANNUAL REPORT
SEPTEMBER 30 TH , 2009

The World Trust Fund
Organization of the Fund
Chairman
JEREMY W. SILLEM		Spencer House Partners LLP
		15 St. James’s Place
		U.K.-London, SW1A, 1NP
Directors
DUNCAN BUDGE *		RIT Capital Partners Plc
		27 St. James’s Place
		U.K.-London, SW1A, 1NR
JAMES A. CAVE *		Salisbury Partners LLP
		25 Hill Street
		U.K.-London, W1J, 5LW
JOHN M. HIGNETT *		Via Privata A, Bifani 3
		I-16038 Santa Margherita, Italy
PHILIP R. McLOUGHLIN **		200 Bridge Street
		U.S.A.-Chatham, MA 02633
ALEXANDER E. ZAGOREOS		Jermain Hill Lane
		U.S.A.-Eagle Bridge, NY 12057
Registered Office		STATE STREET BANK LUXEMBOURG S.A.
		49, avenue J-F. Kennedy
		L-1855 Luxembourg
Manager		Lazard Asset Management LLC
		30 Rockefeller Plaza
		U.S.A.-New York, NY 10112
Custodian, Listing and Paying Agent		STATE STREET BANK LUXEMBOURG S.A.
		49, avenue J-F. Kennedy
		L-1855 Luxembourg
Chairman Emeritus		WALTER A. EBERSTADT, OBE
		1035 Fifth Avenue, #16B
		U.S.A.-New York, NY 10020
Domiciliary, Registrar, Transfer		STATE STREET BANK LUXEMBOURG S.A.
and Administrative Agent		49, avenue J-F. Kennedy
		L-1855 Luxembourg

* Member of the Audit Committee

** Chairman of the Audit Committee

The World Trust Fund
Organization of the Fund (continued)
Independent Auditor		Deloitte S.A.
		560, rue de Neudorf
		L-2220 Luxembourg
Financial Adviser and Broker		Arbuthnot Securities Limited
		Arbuthnot House
		20 Ropemaker Street
		London EC2Y 9AR

General Information

1. Unaudited semi-annual reports and audited annual reports are made available at the Registered Office of the Fund and will be mailed to each registered Shareholder.
2. The Annual General Meeting of Shareholders will be held in Luxembourg each year at 3 p.m. on the third Tuesday in August or if any such day is not a business day for banks in Luxembourg, on the next following business day. Notices of General Meetings including their agenda, time and place and containing details of attendance, quorum and majority requirements under Luxembourg law will be sent to the registered address of Shareholders not less than 21 days before the date of the Meeting.
3. Annual reports (including audited accounts) will be posted to Shareholders not less than 21 days before the day fixed for the Annual General Meeting at which they are to be considered.
4. The Fund seeks to achieve long term capital appreciation by investing primarily in companies whose shares trade at a discount to the underlying net asset value and are listed on international exchanges. These include investment companies (closed-end funds, investment trusts), holding companies, and other similarly traded companies. The Fund may also sell short stock indices, stocks, shares of exchange-traded funds or closed-end funds, not exceeding 100% of the Fund’s net assets. The Fund may also utilize gearing.
5. A dividend has not been paid since the Fund’s inception.
6. The Net Asset Value is expressed in USD.
7. The Shares of the Fund are listed on the London Stock Exchange. The quotation is published daily in the London edition of the “Financial Times” under “Investment Companies” and also on Bloomberg.

Responsibility Statement

We, the Directors of The World Trust Fund, confirm to the best of our knowledge that:

a) the financial statements which have been prepared in accordance with the applicable set of accounting standards (being the legal and regulatory requirements in Luxembourg relating to investment funds) give a true and fair view of the assets, liabilities, financial position and profit or loss of the Fund;

b) the Manager’s Review includes a fair review of the development and performance of the business and the position of the Fund together with a description of the principal risks and uncertainties that it faces; and

c) the notes to the financial statements include a fair review of related party transactions which have taken place in the first six months of the financial year and any related changes.

By order of the Board
Jeremy W. Sillem
Chairman

November 2009

Investment Policy

Investment Strategy and Asset Allocation

• The Fund’s primary investment objective is to achieve long term capital appreciation primarily through investments in closed-end funds, investment trusts, holding companies, and other similar traded companies whose shares are listed or traded on international exchanges and generally at a discount to net asset value.
• It is expected that a significant portion of the Fund’s assets will be invested in shares of closed-end funds and investment trusts.
• The Fund continuously monitors potential and existing holdings, in addition to the overall macro-economic environment.

Risk Diversification:

• The Fund seeks to provide broad exposure to the markets through holding a diversified portfolio of investment companies, including closed-end funds, investment trusts, holding companies and similarly traded companies. The Fund seeks to take a constructive and active role to help to reduce the discount at which the shares of the underlying companies trade.

Gearing:

• The Fund may use gearing up to 25% of Net Asset Value.

Manager’s Review

For the period April 1st, 2009 to September 30th, 2009

Market Overview

Global markets rallied strongly, after sinking in March to their lowest levels in ten years, in response to globally synchronized government stimulus measures and accommodative monetary policy. For the six-month period ended September 30, 2009, the MSCI World Index rose 41.8%, and MSCI Emerging Markets Index rose almost 60%. For the major regions, MSCI Asia Index rose 43.9%, while MSCI Latin America Index rose 72.9% and the MSCI Europe Index rose 54.8%. The U.S. S&P 500 Index rose 33.9%.

Performance

For the six months ended September 30, 2009, the Fund’s net asset value rose 60.0% to $28.25 per share and the Fund’s shares gained 65.0%.

Main contributing factors to the outperformance:

Security Selection
Our analysis shows that a key driver of the fund’s out-performance over the period was security selection. Key holdings experienced narrowing discounts and successful restructuring.

Discount
The weighted average discount of the Fund’s portfolio holdings narrowed to 20.9% from 28.2% indicating out-performance of the Fund’s holdings’ share prices relative to their underlying assets.

Successful Restructuring in Some Of Our Major Holdings
Some of the Fund’s major holdings went through restructurings that created significant value for shareholders.

Emerging Markets
The Fund’s average allocation to emerging markets was approximately 30%, a substantial overweight position when compared to the benchmark, which has no emerging markets exposure. This overweight position helped performance, as emerging market companies, as measured by the MSCI Emerging Markets Index, outperformed their developed market counterparts, as measured by the MSCI World Index.

Underweight the US Market
The Fund’s average allocation to the U.S. averaged less than 20%, a significant underweight position when compared to the benchmark, which averaged approximately 40%. This underweight position helped performance, as U.S. equities, as measured by the S&P 500 Index, underperformed their non-U.S. counterparts, as measured by the MSCI EAFE Index.

Performance Chart (April 1, 2009 through September 30, 2009) not included

Performance (Annualized*) to September 30, 2009(in U.S. Dollars)
		6 Months		1-Year		3-Year*		5-Year*		10-Year*
World Trust Fund Price		65.0%		-14.9%		-15.1%		2.2%		2.7%
World Trust Fund NAV		60.0%		-7.0%		-12.9%		1.2%		2.4%
MSCI AC World Index***		44.1%		-0.1%		-3.2%		4.6%		1.6%
MSCI World Index***		41.8%		-0.3%		-4.4%		3.5%		0.9%
MSCI Emerging Index***		59.8%		15.7%		4.6%		15.1%		9.5%
S&P 500 Index***		33.6%		-7.7%		-6.1%		0.0%		-0.7%

		30/09/09		31/03/09		30/09/08		29/09/06		30/09/04
Share Price**		$ 24.63		$ 14.93		$ 28.93		$ 40.30		$ 22.05
NAV**		$ 28.25		$ 17.66		$ 30.26		$ 42.72		$ 26.13
Discount to NAV**		-12.8%		-15.5%		-4.4%		-5.7%		-15.6%

** All figures shown in U.S. Dollars

*** Indices performance based on Net Dividends Reinvested

Portfolio

The portfolio positioning remained relatively unchanged for the six-month period ended September 30, 2009, and continues to have large allocations to Asia and Europe. The investments remain focused on companies trading at attractive discounts, where the team can work to narrow those discounts through corporate action.

Top 10 holdings (as of September 30th, 2009)
			% Portfolio
China Everbright Ltd			7.1%
JPMorgan European Fledgeling Investment Trust			4.9%
Eurazeo			4.7%
New Germany Fund			4.2%
China Merchants China Direct Investments Ltd			4.1%
Swiss Helvetia Fund			4.0%
Gabelli Global Deal Fund			3.9%
John Hancock Tax-Advantaged Dividend Income Fund			3.8%
Clough Global Opportunities			3.4%
Emerging Markets Telecommunications Ltd			3.4%
Total			43.5%

Some of the largest holdings contributed significantly to performance for the period. The list below shows the top five contributors to performance (based on the Fund’s NAV) over the period:

Contribution to NAV Returns – Top 5 (as of September 30, 2009)
China Everbright Ltd		+5.3%
Eurazeo		+4.5%
China Merchants China Direct Investments		+3.0%
JPMorgan European Fledgeling Investment Trust		+2.9%
New Germany Fund		+2.9%

Diversification

While the Fund’s largest allocation remains Asia, it is nevertheless broadly diversified across the major geographic regions and countries. The following chart shows the geographic allocation of the underlying holdings of the funds in which the Fund was invested on September 30, 2009.

Geographic Allocation of the long equity portfolio as percentage of net assets (graphic not included)

Top 5 Country Weightings

United States		14.4%
China		11.4%
Japan		8.8%
Hong Kong		7.2%
France		4.7%

As of September 30, 2009. Long only on a look-through basis. Estimated based on publicly available.

Portfolio Hedging

There was no portfolio hedging during the period. As of September 30, 2009, the Fund did not have any short positions.

Corporate Action & Restructuring

The core strategy of the Fund is to invest in companies, including significantly in closed-end investment companies, trading at discounts and then actively work with boards and managements to create value. Some of the most successful corporate restructuring of our underlying investments occurred during the six-month period.

Below is a list of corporate actions that were announced during the period under review

• ASA Ltd.– The fund tendered for 10% of shares at 98% of NAV.
• Mexico Fund, Inc. – Shareholders approved the elimination of the fund’s existing tender proposals. The old proposals were replaced with a quarterly capital distribution equal to a 10% annual distribution. In addition, the Board of Directors of the Mexico Fund will monitor the fund’s 12-week rolling discount, and should it increase significantly the Board of the Mexico Fund can trigger a 15% in-kind tender offer at 98% of fund NAV.
• Dexion Equity Alternative Ltd. The fund tendered for 20% of shares at fund NAV, less the administrative costs of the offer.
• Invesco Perpetual European Absolute Return Investment Trust plc – The trust proposed restructuring plans, including a full cash exit, after a continuation vote failed.
• The Emerging Markets Telecommunications Fund, Inc. – The Board of Directors approved a new advisory agreement with Aberdeen Asset Management.
• Genesis Malaysia Maju – Shareholders approved the restructuring of the fund to an open-end structure, which included a cash exit for those shareholders that choose not to remain invested.
• Neuberger Berman Dividend Advantage Fund, Inc. – The fund announced an initial tender offer for 10% of shares at 98% of fund NAV.
• Throgmorton Trust plc– The trust approved a tender offer for 10% of outstanding shares and the subsequent issuance of subscription shares to shareholders.

Discounts

The Fund is listed on the London Stock Exchange, and traded at an average discount of 10.7% over the period, ending the period at a discount of 12.8%. During the six-month period, the discount ranged from a high of 16.5% to a low of 5.4%.

The weighted average discount of the Fund’s underlying investments was 20.9% at the end of September.

Chart not inlcuded: Discount of the Fund and weighted average discount of the Fund’s underlying investments (April 1, 2009 through September 30, 2009)

Outlook

The Fund continues to find compelling global investment opportunities, highlighted by the attractive discounts of the Fund’s underlying holdings. If global equity markets continue to stabilize, we believe that many of the companies in which the Fund is invested will seek to enhance shareholder value by taking actions to help narrow discounts.

Principal Risks and Uncertainties

General economic and market conditions, such as widening discounts, interest rate changes, availability of credit, inflation rates, economic uncertainty, changes in laws, and national and international political circumstances may affect the success of the Fund.

Underlying funds invest in Emerging Market securities. The securities markets of emerging market countries can be extremely volatile. The Fund’s performance will be influenced by political, social and economic factors affecting companies in emerging market countries. Emerging market countries can generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries.

The Fund primarily invests in closed-end funds and investment trusts. The shares of such funds may trade at prices at, below, or above their net asset value. There is no guarantee that a fund’s discount will ever be narrowed or eliminated. An investment in either type of fund is indirectly subject to all the risks associated with the investments made by the funds themselves.

The Fund may leverage its investment positions by borrowing funds from securities broker-dealers, banks or others. Such leverage increases both the possibilities for profit and the risk of loss.

The Fund may take short sale positions. Short selling can, in some circumstances, substantially increase the impact of adverse price movements on the Fund's portfolio. A short sale creates the risk of a theoretically unlimited loss, in that the price of the underlying security could theoretically increase without limit, thus increasing the cost to the Fund of buying securities to cover the short position.

The World Trust Fund Statement of Net Assets (in USD)
		September 30th, 2009		March 31st, 2009
ASSETS
Securities portfolio at market value (Cost: USD 170,683,744)		169,705,749		103,805,367
Cash		480,442		797,503
Receivable from broker (see Note 11)		—		103,544
Receivable on sales of securities		23,335		4,677,190
Income receivable on portfolio		430,294		91,863
Total assets		170,639,820		109,475,467
LIABILITIES
Bank liabilities		—		2,800,000
Payable on purchases of securities		48,503		64,760
Interest payable on bank liabilities		16,925		26,544
Expenses payable		444,138		270,011
Total liabilities		509,566		3,161,315
Net Assets at the End of the Period/Year		170,130,254		106,314,152
Number of Shares outstanding		6,021,735		6,021,735
Net Asset Value per Share		28.25		17.66
Shareholders’ Equity Represented by
(in USD)
		September 30th, 2009		March 31st, 2009
Original Capital: 9,331,738 Shares at USD 2		18,663,476		18,663,476
Share Premium		70,220,782		70,220,782
Legal Reserve		1,866,348		1,866,348
Profit brought forward		142,896,568		178,723,095
Cost of 140,000 Shares held in Treasury (see Note 5)		(5,041,042)		(5,041,042)
Cost of 3,170,003 Shares cancelled (see Note 6)		(48,963,066)		(48,963,066)
Total Capital and Reserves		179,643,066		215,469,593
Repurchase of 1,334,756 Warrants		(8,631,613)		(8,631,613)
Net realized profit/loss for the Period/Year		96,191		(35,826,527)
Unrealized depreciation on securities		(977,995)		(64,678,731)
Unrealized appreciation/depreciation on foreign exchange		605		(18,570)
Total Shareholders’ Equity		170,130,254		106,314,152
The accompanying notes are an integral part of these financial statements.

The World Trust Fund Statement of Operations (in USD)
	Period Ended		Period Ended
	September 30th, 2009		September 30th, 2008
INCOME
Dividends, net	1,832,755		6,155,971
Interest on bank accounts	803		16,139
Total income	1,833,558		6,172,110
EXPENSES
Management fees (see Note 3)	541,444		1,023,082
Interest paid	141,779		596,230
Directors’ fees (see Note 8)	127,937		154,172
Custodian fees	68,687		166,217
Audit and supervisory fees	65,194		58,155
Taxe d’abonnement (see Note 4)	40,592		58,439
Central administration costs	13,104		16,109
Other expenses	148,467		82,070
Total expenses	1,147,204		2,154,474
Net Investment Income	686,354		4,017,636
NET REALIZED GAIN/LOSS
- on securities	(521,715)		4,615,768
- on forward foreign exchange contracts	(12,353)		(3,273,603)
- on foreign exchange	(56,095)		477,688
Total Net Realized Gain/Loss	(590,163)		1,819,853
CHANGE IN UNREALIZED GAIN/LOSS
- on securities	63,700,736		(97,806,366)
- on foreign exchange	19,175		(2,114,007)
Total Change in Unrealized Gain/Loss	63,719,911		(99,920,373)
Result of Operations	63,816,102		(94,082,884)
The accompanying notes are an integral part of these financial statements.

The World Trust Fund Statement of Changes in Net Assets (in USD)
		Period Ended		Year Ended
		September 30th, 2009		March 31st, 2009
Net Assets at the Beginning of the Period/Year		106,314,152		281,347,810
Net investment income		686,354		7,007,404
Net realized loss on securities		(521,715)		(36,364,965)
Net realized loss on forward foreign exchange contracts		(12,353)		(4,845,178)
Net realized loss on foreign exchange		(56,095)		(1,623,788)
Total net realized loss		(590,163)		(42,833,931)
Change in unrealized gain/loss on securities		63,700,736		(134,150,725)
Change in unrealized gain/loss on foreign exchange		19,175		(15,364)
Total change in unrealized gain/loss		63,719,911		(134,166,089)
Repurchase of Shares		—		(5,041,042)
Net Assets at the End of the Period/Year		170,130,254		106,314,152

Statistical Information about the Fund
(in USD)
		September 30th, 2009		March 31st, 2009		March 31st, 2008
Total Net Assets		170,130,254		106,314,152		281,347,810
Net Asset Value per Share		28.25		17.66		45.66
Statement of Changes in Shares Outstanding
For the Period Ended September 30th, 2009
Number of Shares Outstanding at the Beginning of the Period						6,021,735
Number of Shares Repurchased						—
Number of Shares Outstanding at the End of the Period						6,021,735
The accompanying notes are an integral part of these financial statements.

The World Trust Fund Statement of Investments and Other Net Assets September 30th, 2009 (in USD)
										% of
								Market		total net
Currency		Shares		Description		Cost		Value		assets
INVESTMENTS IN SECURITIES
TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
Common Stocks
HKD		5,358,000		China Everbright Ltd		5,822,526		12,140,113		7.14
HKD		3,310,000		China Merchants China Direct Investments Ltd		7,660,390		7,004,342		4.12
HKD		18,020,250		Sinolink Worldwide Holdings Ltd		2,836,682		4,534,098		2.66
HKD		6,083,000		First Pacific Co		4,533,333		4,065,772		2.39
HKD		583,000		Fosun International		695,382		409,978		0.24
						21,548,313		28,154,303		16.55
EUR		123,131		Eurazeo		4,564,423		8,047,001		4.73
PHP		15,160,000		Metro Pacific Investments Corp		965,978		1,055,889		0.62
GBP		475,000		Dolphin Capital Investors Ltd		832,280		282,773		0.17
GBP		61,400		Equest Investments Balkans Ltd		1,098,872		263,960		0.16
GBP		465,165		Clean Energy Brazil Plc		884,858		92,925		0.05
						2,816,010		639,658		0.38
USD		997,500		Tau Capital Plc		997,500		314,212		0.18
Total Common Stocks						30,892,224		38,211,063		22.46
Closed-End Funds
USD		593,137		New Germany Fund Inc		8,056,229		7,105,781		4.18
USD		564,000		Swiss Helvetia Fund Inc		7,851,647		6,762,360		3.98
USD		451,106		Gabelli Global Deal Fund		5,636,681		6,694,413		3.93
USD		538,010		John Hancock Tax-Advantaged Dividend Income Fund		9,906,927		6,509,921		3.83
USD		461,441		Clough Global Opportunities Fund		4,677,460		5,851,072		3.44
USD		325,396		Emerging Markets Telecommunications Fund		4,393,812		5,739,985		3.37
USD		377,655		MS Asia Pacific Fund Inc		4,736,521		5,513,763		3.24
USD		430,363		Gabelli Dividend & Income Trust		8,092,595		5,332,198		3.13
USD		66,977		ASA Bermuda Ltd		4,310,479		5,076,857		2.98
USD		349,240		Eaton Vance Tax Managed Global Buy Write Opportunities Fund		3,286,221		4,802,050		2.82
USD		239,088		SunAmerica Focused Alpha Growth Fund		2,107,129		2,885,792		1.70
USD		442,800		Gabelli Global Multimedia Trust Inc		4,037,750		2,776,356		1.63
USD		81,175		Central Europe and Russia Fund Inc		3,448,694		2,638,187		1.55
USD		120,188		Mexico Fund Inc		4,068,121		2,587,648		1.52
USD		177,300		SunAmerica Focused Alpha Large-Cap Fund Inc		1,693,127		2,152,422		1.27
USD		71,378		China Fund Inc		2,161,528		1,723,779		1.01
USD		95,446		MS Emerging Markets Fund Inc		969,215		1,257,978		0.74
USD		124,113		LMP Capital and Income Fund Inc		2,149,873		1,191,485		0.70
The accompanying notes are an integral part of these financial statements

The World Trust Fund Statement of Investment and Other Net Assets (continued) September 30th, 2009 (in USD)										% of
								Market		total net
Currency		Shares		Description		Cost		Value		assets
INVESTMENTS IN SECURITIES
TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
Closed-End Funds (continued)
USD		104,909		Cohen & Steers REIT and Utility Income Fund Inc		2,105,815		997,685		0.59
USD		1,050,000		Prospect Japan Fund Ltd		2,203,391		627,375		0.37
USD		44,795		H&Q Life Sciences Investors		523,834		413,458		0.24
						86,417,049		78,640,565		46.22
GBP		750,000		JPM Fleming European Fledgeling Investment Trust Plc		6,733,080		8,270,433		4.86
GBP		880,523		Advance Developing Markets Trust Plc		1,712,137		5,178,529		3.04
GBP		693,500		JPM Fleming Emerging Markets Investment Trust Plc		2,241,732		5,043,955		2.97
GBP		983,009		Finsbury Technology Trust Plc		2,311,448		3,801,813		2.23
GBP		1,385,000		JPM Fleming Japanese Investment Trust Plc		4,806,250		3,475,100		2.04
GBP		1,400,000		JPM Fleming Japanese Smaller Companies Investment Trust Plc		9,113,388		3,412,053		2.01
GBP		888,408		Polar Capital Technology Trust Plc		2,770,130		3,269,823		1.92
GBP		2,300,000		Fidelity Japanese Values Plc		2,541,655		1,883,821		1.11
GBP		779,900		International Biotechnology Trust Plc		1,463,895		1,645,246		0.97
GBP		200,000		Merrill Lynch World Mining Trust Plc		961,336		1,582,170		0.93
GBP		1,200,000		Schroder Japan Growth Fund Plc		1,640,920		1,510,253		0.89
GBP		797,700		F&C Private Equity Trust Plc		2,809,915		1,478,820		0.87
GBP		500,000		Oryx International Growth Fund Ltd		1,828,471		1,418,359		0.83
GBP		425,000		INVESCO Perpetual European Absolute Return Trust Plc		1,166,685		1,017,123		0.60
GBP		275,518		Advance UK Trust Plc		397,168		640,665		0.38
GBP		1,075,239		RAB Special Situations Co Ltd		3,164,659		545,590		0.32
GBP		356,104		Advance Developing Markets Trust Plc		32,147		523,579		0.31
GBP		100,000		Herald Investment Trust Plc		795,497		498,623		0.29
GBP		228,033		Throgmorton Trust Plc		379,598		442,784		0.26
GBP		280,000		JPM Fleming Japanese Smaller Companies Investment Trust Plc a)		0		192,417		0.11
GBP		265,000		RCM Technology Trust Plc		157,863		122,818		0.07
GBP		138,700		JPMorgan Emerging Markets Investment Trust Plc a)		0		120,252		0.07
						47,027,974		46,074,226		27.08
AUD		7,435,950		Biotech Capital Ltd		2,304,861		1,574,399		0.93
Total Closed-End Funds						135,749,884		126,289,190		74.23
The accompanying notes are an integral part of these financial statements

												% of
										Market		total net
Currency		Shares				Description		Cost		Value		assets
Undertakings for Collective Investment
USD		84,851				Martin Currie Absolute Return Funds Ltd China		999,998		2,176,774		1.28
USD		100,000				Advance Umbrella Fund Plc Emerging Markets A		1,003,750		1,415,000		0.83
USD		1,317,000				Advance Frontier Markets Fund Ltd		1,317,000		824,837		0.49
								3,320,748		4,416,611		2.60
GBP		471,016				Dexion Equity Alternative Ltd		702,463		773,456		0.45
Total Undertakings for Collective Investment								4,023,211		5,190,067		3.05
Warrants and Rights
USD		263,400				Advance Frontier Markets Fund Ltd		0		9,219		0.01
GBP		126,250				Clean Energy Brazil Plc		0		1,513		0.00
Total Warrants and Rights								0		10,732		0.01
OTHER TRANSFERABLE SECURITIES
Closed-End Funds
GBP		31,213				3I European Technology Trust Plc b)		9,909		0		0.00
USD		195,906				Italy Fund Inc c)		0		0		0.00
Total Closed-End Funds								9,909		0		0.00
Undertakings for Collective Investment
GBP		20,800				F&C Event Driven Ltd		8,516		4,697		0.00
Total Undertakings for Collective Investment								8,516		4,697		0.00
TOTAL INVESTMENTS IN SECURITIES								170,683,744		169,705,749		99.75
CASH AT BANKS										480,442		0.28
OTHER NET ASSETS/LIABILITIES										(55,937)		(0.03)
TOTAL NET ASSETS										170,130,254		100.00
a) Subscription shares
b) This security was in liquidation as of May 10th, 2005; may receive liquidation payment in the future.
c) This security was in liquidation as of February 13th, 2003; may receive liquidation payment in the future.
The accompanying notes are an integral part of these financial statements

The World Trust Fund

Notes to the Financial Statements
September 30th, 2009

Note 1 - General

The World Trust Fund (the “Fund”) is an investment company with limited liability organized as a « société anonyme » under the laws of the Grand Duchy of Luxembourg and Article 72-3 of the law of August 10th, 1915 regarding commercial companies. The Fund is governed by section II of the Luxembourg amended law of December 20th, 2002 (the Luxembourg amended law of March 30th, 1988 until February 13th, 2004) for Collective Investment Undertakings.

The Fund has been incorporated in Luxembourg on June 20th, 1991 for an unlimited duration. The Fund’s Articles of Incorporation (the “Articles”) have been published in the “Mémorial, Recueil des Sociétés et Associations” and they have been filed with the Registrar of the Luxembourg District Court, where copies thereof may be obtained. In addition, a legal notice concerning the issue of the Shares is on file with the Registrar of the Luxembourg District Court.

The Fund’s primary investment objective is to achieve long term capital appreciation primarily through investments in closed-end funds, investment trusts, holding companies, and other similar traded companies whose shares are listed or traded on international exchanges and generally at a discount to net asset value.

Note 2 - Significant Accounting Policies

a) Presentation of Accounts

The financial statements are presented in conformity with the legal and regulatory requirements in Luxembourg relating to investments funds. The Fund keeps its books and records in USD.

b) Valuation

1. The Net Asset Value (the “NAV”) per Share is calculated in accordance with Article 22 of the Articles on each Valuation Date (as defined in the Articles).
   
   The NAV per Share is determined by dividing the Net Assets of the Fund, being the value of its assets less liabilities, by the number of Shares then in issue.
2. In calculating the NAV, income and expenditure are treated as accruing from day to day and the Articles provide, inter alia, that:
   
   (i) securities which are quoted or dealt in on any stock exchange or other regulated market are valued at the settlement or closing price on the last full business day on which such exchange or market is open for trading preceding the applicable Valuation Date;
   
   (ii) if securities are quoted, listed, traded or dealt in on more than one stock exchange or regulated market, the Board of Directors (the “Board”) may select for the purposes of valuation the stock exchange or regulated market which they consider provides the fairest criterion of value for the relevant securities;
   
   (iii) if securities, including closed-ended funds, are not quoted or dealt in on any stock exchange or regulated market or if, with respect to securities quoted or dealt in on any stock exchange or dealt in on any regulated market, the price as determined pursuant to paragraph (i) above is in the opinion of the Board, not representative of the fair market value of the relevant securities, the value of such securities will be determined by reference to their reasonably foreseeable sales price determined prudently and in good faith by and under the direction of the Board;
   
   (iv) securities issued by any underlying open-end undertaking for collective investment are valued at their last available price or net asset value, as reported or provided by such undertaking or their agents.
3. Purchases of securities are recorded at cost. Realized gains or losses on securities sold are computed on an average cost basis.
4. The value of cash in hand or on deposit, bills and notes payable on presentation, accounts due, prepaid expenses and dividends and interest declared and fallen due but not yet received generally consists of the nominal value of such assets. However, in the event that it seems improbable that such value can be realized, the value is determined by deducting a sum which the Board considers appropriate to reflect the realisable value of such assets.
5. Foreign currencies: Monetary assets and liabilities denominated in foreign currencies in the Statement of Net Assets are translated into USD at the rates of exchange ruling at the date of the report. Transactions in foreign currencies are recorded in USD based on the exchange rates applicable at the date of the transactions.

Note 2 - Significant Accounting Policies (continued)

The following significant exchange rates have been applied for the conversion as of the date of the report:

						USD
1		AUD		Australian Dollar		0.882199854
1		EUR		Euro		1.463348962
1		GBP		Pound Sterling		1.598151259
1		HKD		Hong Kong Dollar		0.129031426

c) Income Recognition

Interest and dividend income is recorded on an accrual basis, net of any withholding taxes in the relevant country.

Note 3 - Management and Performance Related Fees

The Manager is entitled to receive a fee at the rate of 0.75% per annum calculated each quarter on the basis of the daily NAV during the relevant quarter and paid quarterly.

At each fiscal year end, the appreciation over the previous 2 year period of the Fund and the MSCI World Index with net reinvested dividends shall be calculated and converted into a per annum rate. If the rate of appreciation of the Fund so calculated (the “Actual Rate”) exceeds by more than 5% the rate of appreciation of the MSCI World Index so calculated (the “Reference Rate”), the Manager shall be entitled to a performance fee calculated by multiplying the NAV at the beginning of the 2 year period by:

(i) 5% of the excess over 5% and up to 10% of the Actual Rate over the Reference Rate, and

(ii) 10% of the excess, if any, over 10% and up to 15% of the Actual Rate over the Reference Rate, and

(iii) 15% of the excess, if any, over 15% and up to 20% of the Actual Rate over the Reference Rate, and

(iv) 20% of the excess, if any, over 20% of the Actual Rate over the Reference Rate and adding together the result, subject to the Reference Rate over the period being positive.

Out of its fees, the Manager will pay its own expenses and those of any investment advisers retained by it.

Note 4 - Taxes

As a Luxembourg investment company, under present laws the Fund is not subject to income taxes in Luxembourg. Irrecoverable taxes may be withheld at the source on dividends and interest received on investment securities.

According to the law of December 20th, 2002, the Fund is subject to Luxembourg subscription duty (“taxe d’abonnement”) at the rate of 0.05% per annum of its Net Assets, such tax being payable quarterly on the basis of the Total Net Assets of the Fund at the end of the relevant quarter.

However the value of investments in other investment companies already subject to Luxembourg subscription duty is no longer subject to this tax.

Note 5 - Repurchases of Shares

During the year ended March 31, 2009, the Fund made the following repurchases of Shares:

1. 16 July 2008 – 90,000 shares at US$36.5 per share; and

2. 22 August 2008 – 50,000 shares at US$35 per share.

The Shares bought back by the Fund are held in Treasury.

Note 6 - Capital

The Fund was incorporated with an authorised Share capital of USD 30,000,000 represented by 15,000,000 Shares of a par value of USD 2 each.

The initial subscribed capital amounted to USD 45,000 and was represented by 4,500 Units (each Unit consists of five Shares and one Warrant).

All Units have been fully paid in cash of USD 45,000 together with total issue premiums of USD 180,000.

On September 27th, 1991, the Board decided to increase the capital to USD 17,777,490 by the issue of 8,888,745 additional Shares and 1,773,249 additional Warrants attached thereto, against payment in cash of a total of USD 17,732,490 and a total Share premium of USD 66,496,838. This increase was approved by notarial deed dated October 18th, 1991.

The Warrant holders could exercise their subscription rights in any of the years 1996 to 2001 inclusive. Each Warrant gave the right to subscribe to one Share at a price of USD 10.

By a resolution of the meeting of the Board dated June 6th, 2002, the Board decided to increase the capital by creation of 442,993 new Shares of USD 2 each, with a Share premium of USD 3,543,944. All the 442,993 Shares had been entirely subscribed and fully paid in cash, so that the amount of USD 4,429,930 is available to the Fund.

The balance of the Warrants had been converted into Shares in accordance with the prospectus.

The Fund is required by Luxembourg law to transfer 5% of its yearly net profits to a non distributable legal reserve until such reserve amounts to 10% of the Fund’s nominal Share capital, this reserve is not available for dividend distribution.

At an extraordinary general meeting (the “EGM”) of the Fund held on 27 June 2008, the Fund was granted the authority to make market purchases of up to 10% of its issued share capital. Three further resolutions were proposed at this EGM, but since the requisite quorum was not obtained, a second EGM was held on 31 July 2008, at which the following resolutions were proposed and duly passed:

1. reducing the Fund’s share capital by cancelling the 3,170,003 ordinary shares held in Treasury and amending the articles of association (“Articles”) accordingly;
2. amending Article 20 of the Articles in order to comply with the Listing Rules and the price at which ordinary shares may be bought back by the Fund; and
3. amending the Articles in order to reflect a number of updates to the Luxembourg law of 10 August 1915 concerning commercial companies.

Note 7 - Custodian Fees

The Custodian receives, under the terms of the Custodian Agreement, fees for its services at rates to be agreed from time to time between the Fund and the Custodian in accordance with Luxembourg practice.

Note 8 - Directors’ Fees and Expenses

Each of the Directors is paid a fee for his services at such a rate as the Board had determined provided that the aggregate of such fees shall not exceed USD 500,000 per annum (in respect of the resolution of the Annual General Meeting held on August 18th, 2009) or such higher amount as may from time to time be determined by the Shareholders in General Meeting.

The Directors may also be paid all reasonable travelling, hotel and other expenses properly incurred by them in the course of their duties relating to the Fund.

The fees accrued by each Director for the period ended September 30th, 2009 were as follows:

Duncan Budge		£		12,500
James A. Cave		£		12,500
John M. Hignett		£		12,500
Philip R. McLoughlin		£		15,000
Jeremy W. Sillem		£		17,500
Alexander E. Zagoreos		£		12,500
Walter A. Eberstadt, OBE		$		7,500	*

*Consultancy fees to Chairman Emeritus.

Note 9 - Commitments

Occasionally, the Fund will hedge its currency exposure against the USD. This will be done in expectation of the USD strengthening against other currencies, and only for hedging purposes.

As of the date of the report, the Fund was not engaged in any forward exchange contracts and currency options.

Note 10 - Securities Lending

As of the date of the report, the Fund had no securities lending facility in place.

Note 11 – Collateral

The Fund had provided cash collateral to UBS as the prime broker, in respect of short positions for year ended March 31, 2009. The value of the collateral amounted to USD 103,544. The Fund has the facility to deposit investments with UBS to be used as collateral for short positions.

As of September 30th, 2009, the Fund had not provided cash collateral to UBS.

Note 12 - Beneficial and Non-Beneficial Interest of the Directors and Related Parties in the Share Capital

As of the date of the report, the beneficial and non-beneficial interests of the Directors and related parties in the Share capital are the following:

		Beneficial Shares		Non-Beneficial Shares
Directors
Jeremy W. Sillem (Chairman)		12,300		1,040
Duncan Budge		0		0
James A. Cave		0		0
John M. Hignett		43,984		0
Philip R. McLoughlin		0		0
Alexander E. Zagoreos		57,775		0
Chairman Emeritus
Walter A. Eberstadt, OBE		24,500		24,500
Investment Manager
Kun Deng, CFA		20,270		0

Note 13 - Directors’ Interest in Significant Contracts

Alexander E. Zagoreos is a Senior Advisor to Lazard Asset Management LLC. Walter A. Eberstadt was a limited Managing Director of Lazard Frères & Co. LLC through December 31st, 2005. Mr. Eberstadt is the Chairman Emeritus of the Fund and provides consultancy services to the Fund.

Note 14 - Substantial Shareholding

As of the date of the report, the Board was aware of the following interests in the Shares of the Fund:

		Shares		Percentage of Issued Capital
Clients of Lazard Frères &
Lazard Asset Management		1,555,825		25.84%
RIT Capital Partners Plc*		1,169,880		19.43%
City of London Investment
Management Co. Ltd.		1,105,431		18.36%
Lehman Brothers
International (Europe)**		444,323		7.38%

All issued Shares of the Fund are on deposit with a registered clearing house and, accordingly, with the exception of those Shareholdings of which the Board has been notified, the Board is not in a position to state the exact size of any Shareholdings in the Fund.

* Duncan Budge is a Director of RIT Capital Partners Plc.

** The company has been in administration with Pricewaterhouse- Coopers since September 15th, 2008.

Note 15 - Changes of the Investment Portfolio

The changes of the investment portfolio referring to the period of the report are available at the registered office of the Fund without any fee.

Note 16 - Taxation of Interest Income (Savings Directive)

In accordance with the circular resolution of June 30th, 2005, the Board confirms the fiscal status of the Fund as out of the scope of the European Directive 2003/48/EC on taxation of savings income in the form of interest payments.

Note 17 - Total Expense Ratio (TER)

For the period ended September 30th, 2009, the TER was calculated using the following formula:

Total operation expenses / Average net assets X 100 X 2= TER%

where:

• the operating expenses represent expenses recorded on the Statement of Operations
• the average net assets represent the arithmetic mean of the total net assets over the period from April 1, 2009 until September 30, 2009
• transaction costs and any other costs incurred in connection with currency hedging are not included in the TER

TER without Performance Fees		TER with Performance Fees*
1.44%		1.44%

*As of the date of the report, the Fund had not accrued any Performance Fees.

Note 18 - Line of Credit Advanced

The Fund has an unsecured USD 25 million Line of Credit Agreement (the “Agreement”) with Citibank, N.A. Interest on borrowings is payable at the Federal Funds rate plus 2.25%, on an annualized basis. Under the Agreement, the Fund has also agreed to pay a 0.25% per annum fee on the amount of the commitment. As of September 30th, 2009, the Fund had no borrowings under the Agreement.

Note 19 – Subsequent Event

On 23 October 2009 the Fund announced proposals to implement:

(i) a change of currency in which the Fund’s shares are traded;

(ii) a subdivision of the Fund’s share capital so that shareholders will receive 10 new ordinary shares of $0.20 each in exchange for each existing share;

(iii) a change in the Fund’s Benchmark from the MSCI World Index to the MSCI All Countries World Index; and

(iv) an increase to the NAV on which the performance fee calculation is based to reflect the Fund’s underperformance of its Benchmark in the period 31 March 2008 to 31 March 2009.

On 30 October 2009 the currency in which the Fund's shares are traded changed from US dollars to Sterling.

The proposed sub-division and change of Benchmark are conditional upon the approval of shareholders and it is anticipated that a circular containing details of those proposals and a notice of extraordinary general meeting will be sent to shareholders following approval of the Circular by the Commission de Surveillance du Secteur Financier. This approval is required as a consequence of the Fund being incorporated in Luxembourg.

Lazard Asset Management LLC