Final Results

^† Member of the Nominations Committee

^†† Chairman of the Nominations Committee

• Unaudited semi-annual reports and audited annual reports are made available at the Registered Office of the Fund and are mailed to each registered Shareholder.
• 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.
• 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.
• 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 use gearing, the ability to borrow, at an amount not to exceed 25% of the Fund's Net Asset Value, in an effort to maximize its investment positions. The use of gearing increases the possibilities for profit and the risk of loss. In addition, the level of interest rates in effect at the times of such borrowings will affect the operating results of the Fund.
• A dividend has not been paid since the Fund’s inception.
• The Net Asset Value per Share is expressed in US Dollars (“USD”) and, since October 30th, 2009, the Fund’s shares are traded in Pounds Sterling (‘’GBP’’). For information purposes only, the Fund’s Net Asset Value per Share is, since October 30th, 2009, also reported in its GBP equivalent.
• 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.

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

• 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 as at March 31st, 2010 and for the financial year then ended; and
• 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.

By order of the Board
Jeremy W. Sillem
Chairman

July 2010

The year ended March 31st, 2010 was an eventful one for The World Trust Fund. NAV per share recovered to $3.03 at the end of the period from $1.766 (the post split equivalent of $17.66) at the same date last year, a 71.6% increase. The share price, expressed in terms of US dollars, did even better recording a 78.4% rise, which compares with an appreciation of 55.5% achieved by the Fund’s benchmark, the MSCI All Country World Index, over the same period.

The Manager’s Review, which follows, analyses this performance in some detail. Suffice it to say that, from the perspective of the Board, the performance was perceived to be very satisfactory and a welcome recovery from the poor performance of the previous year.

In my letter last year I outlined some structural changes we proposed to make and I am pleased to say that these changes were all effected. As a result, the shares were split and the currency in which they are quoted and traded changed from US$ to £Sterling. In addition, the benchmark against which the Fund’s performance is measured was changed from the MSCI World Index to the MSCI All Country World Index to reflect better the Fund’s emerging markets exposure. We also negotiated a reduction in the performance fee which may become payable to our manager in respect of performance over the two year period ending March 31st, 2011 to reflect the poor performance recorded in the year to March 31st, 2009.

Shareholders will be aware that, in May 2010, we sought support for a related party transaction designed to allow the exit from our shareholder register of RIT Capital Partners, a long standing and substantial shareholder. I am pleased to say that in the end, all the shares were successfully placed in the market by our broker, Arbuthnot Securities, so that none of the Fund’s resources were required for this purpose. The discount control mechanisms proposed to shareholders at the same time were approved and are now therefore in effect. We are encouraged by the positive response of investors, most of whom are new to The World Trust Fund, to the placing and hope that the various measures adopted over the last year will achieve their objective: to stimulate more liquidity and narrow the discount at which the shares trade.

At the time of writing the investment climate remains volatile. Our portfolio offers great diversification, particularly when considered on a ‘look through’ basis to the underlying holdings of our many fund investments. We remain significantly overweight in Asian and Emerging Markets investments when compared to our benchmark.

This is my last letter as Chairman as I shall not stand for re-election at the Fund’s AGM this year. It has been a pleasure and a privilege to have been involved with The World Trust Fund since its inception and I am grateful to my Board colleagues and to our manager for the support they have consistently given me. It is proposed that I be succeeded as Chairman by Philip McLoughlin, currently a Director and Chairman of our Audit Committee, who I know will serve shareholders very well.

Jeremy W. Sillem

Chairman

July 2010

• 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 similarly 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, as described on page 4, at an amount not to exceed 25% of the Fund’s Net Asset Value.

For the period April 1st, 2009 to March 31st, 2010

Market Overview

Global markets recovered from the extraordinary losses incurred in 2008. Governments around the world responded to the deep financial crisis with unprecedented amounts of economic stimulus, spending and fiscal measures aimed at helping national and global economies. In 2010, after a sharp sell-off in January, global equity markets rebounded in February and March amid an improving economic outlook. The gains were made despite many global developments during the period that impacted markets negatively, including intensifying sovereign default risk in Europe, tightening credit conditions in China, monetary policy tightening in Australia and India, and proposals to overhaul the financial sector, and landmark health care legislation, in the United States. For the twelve-month period ended March 31st, 2010, the MSCI World Index gained 52.4%, while the MSCI All Country World Index rose 55.5%. For the major regions, the MSCI All Country Asia Pacific Index rose 58.2%, while the MSCI Latin America Index rose 98.1% and the MSCI Europe Index rose 57.1%. In the U.S., the S&P 500 Index rose 49.8% while the MSCI Emerging Markets Index rose 81.1%.

Performance

For the twelve months ended March 31st, 2010, the Fund’s net asset value strongly outperformed both the Fund’s old benchmark, the MSCI World Index, and its new benchmark, the MSCI All Country World Index, gaining 71.6% in US dollar terms. The new benchmark, which was proposed by the Board and ratified by shareholders at the EGM in February 2010, has a more substantial allocation to the Emerging Market countries (12.6% as of March 31st, 2010, compared to 0% for the MSCI World Index), which may help more accurately reflect the performance of the Fund as it too typically has a significant allocation to the Emerging Markets (approximately 27% as of March 31st, 2010). The Fund’s share price, as traded on the London Stock Exchange, rose 78.4% and 68.4%, as measured in US Dollar and British Sterling terms, respectively.

Main contributing factors to the outperformance:

Security Selection

Our attribution shows that a key driver of the Fund’s outperformance over the period was broad-based security selection. Significant value was created by investments in Asia, though investments in Europe, North America and the performance of the underlying securities in the Fund’s diversified global investments, all made contributions.

Discount

The weighted average discount of the Fund’s portfolio holdings narrowed by nearly 800 basis points, to 20.4% from 28.2%, indicating outperformance of the Fund’s holdings’ share prices relative to their underlying assets.

Successful Restructuring

The restructuring of several key holdings, through detailed corporate action, helped create value for shareholders.

Emerging Markets

The Fund’s average allocation to Emerging Markets was approximately 27%, an overweight position when compared to the MSCI All Country World Index, which had an average Emerging Markets exposure of approximately 12%. This overweight position helped performance, as Emerging Market companies, as measured by the MSCI Emerging Markets Index, outperformed their Developed Market peers, as measured by the MSCI World Index.

Underweight the US Market

The Fund’s average allocation to the U.S. was approximately 21%, an underweight exposure relative to the 42% allocation in the benchmark index. 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 ACWI ex-U.S. Index. Security selection within the United States further added to performance.

Performance Chart (April 1st, 2009 through March 31st, 2010)

Please note the relevant graph has been omitted.

Performance (for each period ended March 31st, 2010)

^* Annualized.
^** Shown in U.S. Dollars and, since the conversion of UK Listing to £ on October 30th, 2009, converted using the Foreign Exchange rate used by the Administrator.
^***Split adjusted. Shares split on a 10 for 1 basis on February 3rd, 2010.

Portfolio Review

The portfolio focused on companies trading at very attractive discounts on exchanges around the world. This includes investment companies (investment trusts and closed-end funds), holding companies and special situations (companies trading at discounts to their intrinsic value, but with pending catalysts to unlock value). During the past 12 months, the portfolio was able to invest in securities trading at some of the largest discounts in 10 years, with the largest investments in Asia.

Top 10 holdings (as of March 31st, 2010)

Geographic Diversification

While the Fund’s largest geographic 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 portfolio companies in which the Fund was invested on March 31st, 2010.

Geographic Allocation of the long equity portfolio as percentage of net assets*

Please note the relevant graph has been omitted.

Source: Morningstar
*Long only on a look-through basis. Estimated based on publicly available information.

Top 5 Country Weightings
As shown below, the top 5 countries form about 50% of the portfolio.

As of March 31st, 2010 on a look-through basis. Estimated based on publicly available information.
Source :Morningstar

Portfolio Hedging

There was no portfolio hedging during the period. As of March 31st, 2010, the Fund did not have any short positions.

Corporate Action & Restructuring

The core strategy of the Fund is to invest in companies trading at double-digit discounts, and then actively work with the boards and managements of these companies to create value through corporate actions aimed at narrowing the discounts.

Below is a list of corporate actions that were announced during the period under review in which the Fund played key roles:

• Gabelli Global Multimedia Trust Inc. In March the Fund authorized the adoption of a 10% distribution policy for the Fund’s shareholders. The Board of Directors will determine the quarterly distribution amount and timing of the initial distribution at its next scheduled board meeting in May. A dissident shareholder filed a proxy to destagger the board and seek to have dissident directors elected.
• China Merchants China Direct Investments Ltd. The Board accepted two nominees recommended by Lazard Asset Management, revised the Investment Management Agreement, which had a high-watermark clause, and voluntarily cut the management fee. Additionally, they plan to reinstate the dividend.
• Advance UK Trust Plc. Shareholders voted to discontinue the company, and it was put into voluntary liquidation.
• Edinburgh Dragon Trust Plc. The Board announced a tender offer for 15% of the outstanding shares at a 3% discount to formula asset value.
• Eastern European Trust Plc. The Board proposed a tender offer for 7.5% of the outstanding shares at a 2% discount to formula asset value, with discretionary semi-annual tenders of similar size going forward. Additionally, a bonus issue of subscription shares on a 1 for 5 basis with a 1- year life was proposed.
• Taiwan Greater China Fund. The Board announced semi-annual repurchase offer of 5% of outstanding shares at 98% of NAV.
• ASA Ltd. The company accepted a nominee recommended by Lazard Asset Management. In addition, the company tendered for 10% of shares at 98% of NAV.
• Mexico Fund Inc. The Board accepted Lazard Asset Management’s proposal to conduct an in-kind tender offer of 15%, should discounts widen. The Board also announced a quarterly capital distribution equal to a 10% annual distribution.
• Dexion Equity Alternative Ltd. The company tendered for 20% of shares at 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.
• Emerging Markets Telecommunications Fund. The Board approved a new advisory agreement with Aberdeen Asset Management. In addition, the Board accepted a nominee recommended by Lazard Asset Management.
• Genesis Malaysia Maju. Shareholders approved the restructuring of the fund to an open-end structure, with a cash exit option.
• 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 11.4% over the twelve-month period ended March 31st, 2010. The discount at the end of the fiscal year was 12.3%. During the period, the discount ranged from a low of 17.4% to a high of 5.7%. In the three months following the Fund’s fiscal year end, the discount has narrowed further and, at June 30th, was 9.5%.

The weighted average discount of the Fund’s underlying investments was 20.4% at the end of March 2010, implying that every $1 invested in World Trust Fund is worth $1.45 in assets.

Discount of the Fund’s Shares (Symbol :WTR.LN) and weighted average discount of the Fund’s underlying investments
(April 30th, 2009 through March 31st, 2010)

Please note the relevant graph has been omitted.

As of March 31st, 2010.Source: Lazard, Morningstar; Value weighted average discount to NAV.

Discount of the Fund’s Shares (Symbol: WTR.LN) and weighted average discount of the Fund’s underlying investments
(January 31st, 2003 through March 31st, 2010)

Please note the relevant graph has been omitted.

As of March 31st, 2010. Source: Lazard, Morningstar; Value weighted average discount to NAV.

Outlook

The Fund’s holdings continue to trade at attractively wide discounts. Our long-term view allows us to take advantage of short-term dislocations in the discounted assets universe, and we continue to find compelling investment ideas. We will maintain our disciplined investment focus on value and seek to increase shareholder value through corporate actions and the improvement of corporate governance.

Since the Fund’s year-end at March 31st, 2010, global equity markets have been volatile, with most major markets in bear market territory. The European debt crisis, China’s policy tightening and its efforts to rein in speculation in real estate prices, investors’ fears about government debt levels, and inflationary concerns, all put negative pressures on the markets. While the Fund is down 5.5% through June 30th, it has defended well relative to its benchmark (-9.8%) during the past three challenging months. The widening discounts around the world, coupled with increasingly attractive global valuations, provide us with ample opportunities to create value.

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.

The Fund invests in equity securities. The value of the Fund will be affected by changes in the market price of those securities. The securities business is speculative, prices are volatile and market movements are difficult to predict. The price of a stock is affected by individual company developments or sector specific events, and by general economic and financial conditions in those countries where the issuer of the stock is located or where the stock is listed for trading.

Certain 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 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.

Corporate Governance Principles

As a société d'investissement à capital fixe registered in Luxembourg, the Fund was not, in the year under review, required to comply with the requirements of the UK Combined Code on Corporate Governance ("Combined Code") nor any other code of corporate governance. The Fund is, however, committed to high standards of corporate governance and it is the Fund’s policy to comply with best practice on good corporate governance.

The main elements of the Fund’s practices and procedures which reflect its special circumstances as an offshore investment company are set out below.

The Board

The Board comprises six non-executive directors all of whom are considered to be independent and offer a wide range of skills and experience to the Fund.

The Combined Code includes provisions relating to:

• the role of the chief executive
• executive directors’ remuneration
• the need for an internal audit function.

For the reasons set out in the preamble to the Combined Code, the Board considers these provisions are not relevant to the position of the Fund, being an externally managed investment company.

In the Board’s opinion, despite Mr Jeremy Sillem, Mr Alexander Zagoreos and Mr Philip McLoughlin each having served on the board of directors of the Fund for more than 9 years, they continue to qualify as independent directors despite their length of service, as they are each free from any business or other relationships that could materially interfere with the exercise of their respective judgment. In addition, the Directors believe that continuity and experience adds significantly to the strength of the Board. With the exception of Mr Alexander Zagoreos who is a Senior Adviser to Lazard Asset Management LLC (the "Manager"), the aforementioned directors are also independent of the Manager.

The Board is supplied in a timely manner with information in a form and of a quality appropriate to enable it to discharge its duties. Strategic issues and all operational matters of a material nature are determined by the Board.

At every Annual General Meeting (‘AGM’) each director stands for re-election, rather than retiring by rotation every three years as provided for by the Combined Code.

The Board aims to meet at least four times a year to consider the business and affairs of the Fund and at each meeting reviews investment performance. Between these meetings the Board meets on an ad hoc basis to consider specific matters of a transactional nature. The Directors are kept fully informed of investment and financial controls and other matters that are relevant to the business of the Fund and should be brought to the attention of the Directors. The Directors also have access, where necessary in the furtherance of their duties, to professional advice at the expense of the Fund.

The Board has responsibility for ensuring that the Fund keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Fund. The Board is also responsible for safeguarding the assets of the Fund and for taking reasonable steps for the prevention and detection of fraud and other irregularities. However, certain functions have been delegated by the Board to third parties, as further described below.

An appraisal system has been agreed by the Board for evaluation on a regular basis of the Board, the Committees, the Chairman and the individual Directors. This takes the form of a detailed questionnaire followed by discussions to identify how the effectiveness of the Board’s activities, including its committees, policies or processes might be improved.

The Fund has maintained appropriate directors’ liability insurance cover throughout the year.

Audit Committee

The Audit Committee, which is chaired by Mr Philip McLoughlin and also comprises Mr Duncan Budge, Mr James Cave and Mr John Hignett, examines the effectiveness of the Fund’s internal control systems, the annual and half-yearly financial reports, the interim management statements, the auditor’s remuneration and engagement, as well as the auditor’s independence and any non-audit services provided by them.

The Audit Committee meets at least twice annually, being before the Board meets to consider the Fund’s half-yearly and annual financial reports. The Audit Committee operates within clearly defined terms of reference and provides a forum through which the Fund’s external auditors report to the Board.

The Audit Committee has considered the independence and objectivity of the Auditors and has conducted a review of non-audit services which the Auditors have provided. It is satisfied in these respects that Deloitte S.A. has fulfilled its obligations to the Fund and its Shareholders.

The external auditor is invited to attend all Audit Committee meetings and has the opportunity to meet with the committee without representatives of the Manager being present.

The Fund does not have its own internal audit function, as all the administration is delegated to the Manager and Administrator. This matter is kept under annual review.

Nominations Committee

The Board has a Nominations Committee which is chaired by Mr James Cave and also comprises Mr Duncan Budge. The Board is of the view that length of service does not necessarily compromise the independence or contribution of Directors of an investment fund, where continuity and experience can add significantly to the strength of the Board.

Internal controls

The Board is responsible for the Fund’s system of internal control and for reviewing its effectiveness. The Board confirms that there is an ongoing process for identifying, evaluating and monitoring the significant risks faced by the Fund.

The Board and the Manager have agreed clearly-defined investment criteria, specified levels of authority and exposure limits. Reports on these issues, including performance statistics and investment valuations, are submitted to the Board at each meeting. The Manager’s evaluation procedure and financial analysis of the companies within the portfolio include detailed research and appraisal. The Board recognises that these control systems can only be designed to manage, rather than eliminate the risk of failure to achieve business objectives and to provide reasonable, but not absolute, assurance against material misstatement or loss. It relies on the operating controls established by the Manager.

Delegation of responsibilities

The Directors of the Fund clearly define the duties and responsibilities of their agents and advisors. The appointment of agents and advisers is conducted by the Board after consideration of the quality of the parties involved and the Board monitors their ongoing performance and contractual arrangements. The Board has also specified which matters are reserved for a decision by the Board and which matters may be delegated to its agents and advisers.

The Board has delegated a number of areas of responsibility, outlined below.

Management and administration

The management of the investment portfolio has been delegated to the Manager and although the Fund does not operate a management and engagement committee, the Board regularly reviews the performance of the Fund’s Manager and its terms of appointment. The Directors continue to believe that in light of the Fund’s performance, the appointment of the Manager on the terms set out below is in the interests of the Fund’s Shareholders as a whole.

The Manager was appointed on July 1st 1991 and under the terms of the agreement with the Fund either party may terminate the agreement by giving three months’ prior written notice. Pursuant to this agreement, the Manager is entitled to an annual management fee of 0.75 per cent. of the value of the net assets of the Fund, payable monthly in arrears. In addition there is an annual performance fee calculated over a two year period, details of which are disclosed in the Fund’s Annual Financial Statements. Under the terms of the agreement the Fund has also agreed to indemnify the Manager from and against any and all liabilities, losses, damages, court costs and reasonable expenses, arising from the act or omission of the Manager, except to the extent that such liability results from a breach of the Manager’s fiduciary obligation with respect to the Company or from fraud, wilful default or negligence in the performance or non performance by the Manager of its obligations or duties under the agreement.

Custody and settlement services are undertaken by the appointed Domiciliary Registrar, Transfer and Administrative Agent, State Street Bank Luxembourg SA. The Board has delegated the exercise of voting rights attaching to the securities held in the portfolio to the Manager. The Manager follows a proxy voting policy when voting, which provides for certain matters to be reviewed on a case by case basis.

The Board regularly reviews the delegated functions to ensure their continued competitiveness and effectiveness, including the Manager, although no formal management and engagement committee has been established.

Dialogue with Shareholders

All holders of Shares in the Fund have the right to receive notice of, and attend, all general meetings of the Fund. The Directors are always available to enter into dialogue with shareholders and make themselves available for such purpose whenever required. The Fund believes such communications to be important.

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

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.

*Lazard retains the voting rights to 11,271,830 shares, or 18.72% of the issued capital.
** The company has been in administration with Pricewaterhouse-Coopers since September 15th, 2008.

To the shareholders of The World Trust Fund (“the SICAF”)
49, avenue J.F. Kennedy
L-1855 Luxembourg

Following our appointment by the shareholders of the SICAF, we have audited the accompanying financial statements of The World Trust Fund, which comprise the statement of net assets and the statement of investments and other net assets as at March 31st, 2010 and the statement of operations and the statement of changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements.

Board of Directors’ of the SICAF responsibility for the financial statements

The Board of Directors of the SICAF is responsible for the preparation and fair presentation of these financial statements in accordance with the Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Responsibility of the réviseur d’entreprises agréé

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgement of the réviseur d’entreprises agréé, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the réviseur d’entreprises agréé considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the SICAF, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of The World Trust Fund as of March 31st, 2010 and of the results of its operations and changes in its net assets for the year then ended in accordance with the Luxembourg legal and regulatory requirements relating to the preparation of the financial statements.

Other matter

Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole.

Deloitte S.A.
Réviseur d’entreprises agréé

Phillipe Lenges
Partner

Luxembourg, July 21st, 2010

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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 amended 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 similarly traded companies whose shares are listed or traded on international exchanges and generally at a discount to net asset value.

The currency in which the Fund’s Shares are traded was changed from USD to GBP on October 30th, 2009.

The equivalent Net Asset Value (‘’NAV’’) per Share in GBP represents the NAV per Share in USD converted with the exchange rate at March 31st, 2010 (Note 6).

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 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 per Share, 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-end 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.

The following significant exchange rates have been applied for the conversion as of March 31st, 2010:

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 per Share during the relevant quarter and paid quarterly.

At each fiscal year end, the appreciation over the previous 2 year period of the Fund against the Benchmark 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 Benchmark so calculated (the “Reference Rate”), the Manager shall be entitled to a performance related fee at the rate of:

(i) 5% of the amount by which the NAV per Share has exceeded by 5% or more, but by less than 10%, and

(ii) 10% of the amount by which the NAV per Share has exceeded by 10% or more, but by less than 15%, and

(iii) 15% of the amount by which the NAV per Share has exceeded by 15% or more, but by less than 20%, and

(iv) 20% of the amount by which the NAV per Share has exceeded by 20% or more;

(in each case) per annum the compound growth rate of the Benchmark during the two preceding years, provided that the growth of the Benchmark during such period is positive.

As published in the January 2nd, 2010 circular to all shareholders, an adjustment has been made to the NAV per Share used for the purpose of calculating any performance fee payable in respect of the two-year period starting March 31st, 2008, in order to reflect the Fund’s underperformance of its Benchmark in the period March 31st, 2008 to March 31st, 2009. As such, for calculation of performance fee purposes only, the reference NAV for March 31st, 2009 has been adjusted, from USD 1.77 to USD 2.56.

At an extraordinary general meeting (the “EGM”) of the Fund held on February 2nd, 2010, the proposed change of the Fund’s Benchmark from MSCI World Index to the MSCI All Country World Index was approved. The new Benchmark has been adopted by the Fund from April 1st, 2009. For the year ended March 31st, 2010, there was no performance fee payable by the Fund.

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 amended 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. </p>

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 31st, 2010, the Fund did not make any repurchases of Shares. The number of Treasury Shares shown on the Financial Statements reflects the adjustment for subdivision of the Fund’s Share capital.

Note 6 - Capital

The Fund has authorised Share capital of USD 30,000,000 represented by 150,000,000 Shares of a par value of USD 0.2 each.

The initial subscribed capital amounted to USD 45,000 and was represented by 45,000 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 EGM of the Fund held on June 27th, 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 July 31st, 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.

At an EGM of the Fund held on February 2nd, 2010, the following resolutions were proposed and unanimously passed:

1. subdivision of the Share capital of the Fund so that shareholders receive 10 New Ordinary Shares of nominal value USD 0.2 each in exchange for each existing Share;

2. amending Article 20 of the Articles to reflect the amendments of the Luxembourg law of 10 August 1915 concerning commercial companies in relation to share buy backs;

3. granting the Board authority to repurchase up to 14.99% of the Fund’s issued Share capital, provided that certain conditions are met.

From February 3rd, 2010 following the subdivision, the Official List of the Fund’s Share capital amounts to 60,217,350 Ordinary Shares.

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 due to each Director for the year ended March 31st, 2010 were as follows:

*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 or currency options.

Note 10 - Securities Lending

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

Note 11 - 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:

Note 12 - 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 13 - 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 14 - 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 15 - Total Expense Ratio (TER)

For the year ended March 31st, 2010, the TER was calculated using the following formula:

Total operating expenses / Average net assets X 100 = 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 year

• transaction costs and any other costs incurred in connection with currency hedging are not included in the TER

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

Note 16 - 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 March 31st, 2010, the Fund had no borrowings under the Agreement.

Note 17 – Subsequent Event

Since March 31st, 2010, the Fund has made the following repurchases of its shares, to be held in Treasury :

• July 12th, 2010 - 270,000 shares at GBP 1.655 per Share
• July 19th, 2010 - 515,000 shares at GBP 1.64 per Share

Following these repurchases, the Fund’s issued share capital consists of 59,432,350 Ordinary Shares with voting rights.

The World Trust Fund
Société d'Investissement à capital Fixe
Registered office: 49, avenue J.F. Kennedy, L-1855 Luxembourg
Grand Duchy of Luxembourg
R.C.S. Luxembourg No. B 37. 154

__________________________________________________________________________________

NOTICE OF ANNUAL GENERAL MEETING

__________________________________________________________________________________

Dear Shareholder,

We have the pleasure of inviting you to attend the annual general meeting of shareholders (the “Meeting”) of The World Trust Fund (the “Company”), which will be held on August 17, 2010 at 3.00 p.m. at the registered office of the Company at 49, Avenue J.F. Kennedy, L-1855 Luxembourg, with the following agenda:

AGENDA

1. Approval of the continuation of the Company for an undetermined period of time.

2. Approval of the granting of authority to the board of directors of the Company to make market purchases of up to 14.99 per cent of the Company's subscribed capital at a price calculated in accordance with the articles of association of the Company provided that:

(i) the maximum number of shares hereby authorised to be so acquired is 8,986,107 ordinary shares;

(ii) the minimum price, exclusive of expenses, which may be paid for such ordinary shares is U.S. $0.20 each;

(iii) the maximum price, exclusive of expenses, which may be paid for an ordinary share contracted to be purchased on any day, is an amount not exceeding the net asset value as determined pursuant to article 22 of the articles of association of the Company, and in any case not more than the higher of:

(a) five per cent. above the average of the middle market quotations for the ordinary shares of the Company as taken from the London Stock Exchange Daily Official List for the five business days immediately preceding the day on which such share is contracted to be purchased; and

(b) the higher of (1) the price of the last independent trade in ordinary shares of the Company; and (2) the highest current independent bid relating thereto on the trading venue where the purchase is carried out;

(iv) the authority hereby conferred shall expire at the next annual general meeting of the Company to be held in 2011; and

(v) the Company may make a contract to purchase its own shares under the authority hereby conferred prior to the expiry of such authority and may make a purchase of its own shares in pursuance of any such contract.

3. Hearing of the Chairman’s Statement and of the report of the Independent Auditor of the Company for the fiscal year ended March 31, 2010.

4. Approval of the annual report incorporating the Chairman’s Statement, the Independent Auditor’s report and the audited financial statements of the Company for the fiscal year ended March 31, 2010.

5. Allocation of the results for the fiscal year ended March 31, 2010.

6. Discharge to be granted to the directors in relation to their activities as directors of the Company for the fiscal year ended of March 31, 2010.

7. Election of Mr Alexander E. Zagoreos for the ensuing fiscal year until the next annual general meeting to be held in 2011.

8. Election of Mr John M. Hignett for the ensuing fiscal year until the next annual general meeting to be held in 2011.

9. Election of Mr Philip R. Mc Loughlin for the ensuing fiscal year until the next annual general meeting to be held in 2011.

10. Election of Mr Duncan Budge for the ensuing fiscal year until the next annual general meeting to be held in 2011.

11. Election of Mr James A. Cave for the ensuing fiscal year until the next annual general meeting to be held in 2011.

12. Approval of the decision of the board of directors to limit the aggregate amount of directors fees payable by the Company in any fiscal year to USD 500,000.

13. Election of Deloitte S.A. as Independent Auditor until the next annual general meeting of shareholders to be held in 2011.

14. Miscellaneous.

The shareholders are advised that no quorum for the items of the agenda is required, and that the decisions will be taken if approved by a simple majority of the shares present or represented at the Meeting. Each whole share is entitled to one vote.

Shareholders who will not be able to attend the Meeting may vote by proxy by returning the duly completed and signed proxy form, as attached hereto or which is available at the registered office of the Company, to State Street Bank Luxembourg S.A. 49, avenue J.F. Kennedy, L-1855 Luxembourg and by fax at the number +352 46 40 10 413 before August 15, 2010.

Yours sincerely,

By order of the Board of Directors

The World Trust Fund
Société d'Investissement à Capital Fixe
Registered office: 49, avenue J.F. Kennedy, L-1855 Luxembourg
Grand Duchy of Luxembourg
R.C. S. Luxembourg No. B 37.154
PROXY

I/we ___________________________,

of (address) ___________________________,

herewith give proxy for all my/our shares of

The World Trust Fund

to_______________________________________________________________________________

failing whom to the Chairman of the meeting with full power of substitution, to represent me/us at the annual general meeting (the "Meeting") of the shareholders of

The World Trust Fund (the "Company")

to be held in Luxembourg on August 17, 2010 at 3:00 p.m. and at any meeting to be held thereafter for the same purpose, with the same agenda and in name and on my/our behalf to act and vote on the items set out in the following agenda:

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Note: Shareholders should place an ‘X’ in the box indicating which way their vote is to be cast. If no indication is given, it will be counted for as an abstention vote.
Shareholders may return the duly completed and signed proxy form by fax to State Street Bank Luxembourg S.A. 49, avenue J.F. Kennedy, L-1855 Luxembourg and at the number (352) 46 40 10 413 , before August 15, 2010.

I/We hereby give and grant full power and authorisation to do and perform all and every act or thing necessary or incidental to the exercise of the powers herein specified as might have been done or performed by me/us if I/we were personally present and I/we hereby ratify and confirm all that said proxy shall lawfully do or cause to be done by virtue hereof.

Signed: ________________________Date: _______________________2010

Listing Category: Premium - Equity Closed-ended Investment Fund

World Trust Fund

Source: World Trust Fund