Strategy

OUR STRATEGY

Established to challenge the traditional high fee management fund, World Trust Fund is focus on maximizing investor returns.

The uniqueness of our structure and investor alignment is the foundation of our existence, and drives every step we take. It directly affects how we choose our investments and how we choose the team that will manage and run with our culture. It fortifies our shared philosophy and inspires every single decision we make.

We draw from the strong reputation of our clients and shareholders, creating alliances with strategic financial institutions and partners to ensure access to attractive market opportunities. Our specialization in commodity trading make us exclusive, allowing a global presence combined with strong investment teams and meaningful relationships in major world markets. These alliances provides us with reachable access to opportunities that delivers the best value to our investors through quality and scale.

A strong focus on investor returns, and genuine commitment to enhance the commodity production capacity of clients which results in increased sales to buyers, allows continuity and recurrence in profits, providing long-term gains to our investors.

INVESTMENT PROCESS

World Trade Fund applies a rigorous investment process that has been developed and refined over the course of a century.

By focusing our investments in commodity trading, between the actual commodity producer and buyer, we pig-back on a proven concept, bringing innovation to the industry.

Our process is supported by a sophisticated and proprietary procedure methodology, adding minor steps to this proven concept among commodity traders.

World Trade Fund study the commodity trends and markets to determine supply and demand for specific commodity products. Our global reach allows our investment teams to draw upon a network of strategic commodity producers and buyers, strategic financial institutions and existing portfolios to produce investment opportunities within the scope of the commodity product currently presenting high demand.

To effectively screen potential opportunities, team members undertake a high level, fundamental review of the opportunity. This initial review considers the merits and risks of the opportunity, the expected range of returns and the likely impact that the investment would have on the portfolio. Investment proposals that display attractive risk adjusted returns and would complement the portfolio are presented to an investments sub-committee for consideration.

World Trade Fund’s rigorous due diligence processes covers all commercial aspects of a potential investment, including the industry and competitive landscape, regulatory regimes, the asset’s management team, operating characteristics and forecast cash flows. Our investment team’s experience enables us to identify and accurately assess potential risks associated with an specific commodity trading transaction, proposed financing requirements, expected returns and legal and tax considerations.

The Investments Committee (as required) review investment recommendations for approval. Investment proposals, accompanied by an evaluation of the deal’s merits and its impact on the infrastructure portfolio, are typically presented to the committees at multiple stages of the due diligence process so that early feedback can be incorporated.

Active commodity transaction management is fundamental to World Trade Fund’s approach. Every investment recommendation includes a comprehensive business plan that details the strategic, financial, operational and considerations that must be managed after the close of a transaction. Through this process, we ensure that investment directors and board representatives are well prepared to oversee the ongoing transaction among commodity producers and buyers from the day the deal is closed.

At the conclusion of each transaction, the team provides an analysis of the investment process, due diligence and investment outcome to the Investments Committee to capture learning opportunities for continuous improvement.

"We aim to promote and employ responsible investments practices that meet a standard that is equal to or exceeds current market best practice."

ceo - WORLD TRADE FUND

RESPONSIBLE INVESTMENT

World Trade Fund is committed to incorporating government, environment and social (GES) factors into investment decision making.

By encouraging responsible commodity producing behavior, and by incorporating our GES investment principles into decision making, we seek to protect and enhance the value of our investments in a manner that is consistent with our long-term investment objectives and fiduciary duties. We have developed a proprietary GES due diligence framework which is integrated into our investment process. In the due diligence phase, each GES factor must be considered and analyzed to determine its risks and exposure.

GOVERNMENT

We make sure that commodity producers are in compliance with Government import and export regulations. We make sure that government sanctions are being respected. Compliance with all tax and duties obligations are to be met.

ENVIRONMENT

We review environmental risks in terms of potential costs (carbon taxes, costs related to reducing pollution), legal and compliance issues and repetitional impacts. The risk management protocols of commodity producers and buyers are reviewed, including their historical environmental performance.

social

In order to avoid the risk of action and litigation, we review labour relations, enterprise agreements and workplace safety to identify and mitigate areas of concern. We require compliance with international human rights accords that is over and above the usual requirement to meet local and national laws.