Contrarian Wellcome Trust produces 18% return on investment

first_imgIn his report, Sir William Castell, chairman at the Wellcome Trust, said: “Danny Truell [the trust’s CIO] and his investment team continue to evolve our portfolio to ensure we have greater control of our destiny and that our long-term returns are driven more by the evolution of businesses than by short-term market fluctuations.”For example, over the past year, the trust – which does not invest in companies deriving a material turnover or profit from tobacco-related products –neither sold shares nor added any new holdings to its directly managed Mega Cap Basket of 31 holdings in large companies, valued at £3.4bn.Set up in late 2008, the basket has returned 55% on cost, the best performer being its £255m block of Marks & Spencer shares, which has returned 134%.A significant post-balance sheet development was the Twitter IPO, which resulted in a profit of $100m, from a stake of more than 1% in the company.A further $100m profit came from the sale of Wellcome’s stake in drug company Amplimmune to AstraZeneca.The report said market timing was an important tool for the fund.“Having significantly increased our exposure to public and private equity holdings in the period between 2008 and 2011, when many investors had become risk-averse, we have reaped the rewards in the last two years as they have again embraced risk assets,” it said.Equities in total account for 74.5% of the trust’s portfolio.The report added that, over the past decade, the trust had consistently managed to secure better returns than equity markets – 10% per annum versus 9% for global equities – while recording much lower levels of volatility.However, the largest contribution to equity performance came from the outperformance of strategies against their benchmarks.The report said: “The £612m internally managed Optionality Basket – which consists of companies whose operating performance and valuation appear to offer considerable upside potential given the underlying strength of their franchises – led the way, returning 47% and beating markets by 29%.”Turning to fixed income, the trust said: “Not owning bonds or commodities, which generally delivered negative or lacklustre returns, removed a potential drag on performance. Both nominal and real bond yields remain, in our opinion, too low as a consequence of financial repression, and we are unlikely to change our stance on bonds.”But it said investment opportunities might be more interesting in commodities.The real estate portfolio – 10.2% of assets – is made up 90% of residential property, which recorded another strong year.As for the immediate future, Wellcome expects asset returns to be weaker over the next five years – say in the high single digits – than they have been over the last five or 10 years.“Companies will continue to struggle to grow revenues, given the negative impact on the productivity of both labour and capital from continuing zero interest rate policies, which divert capital away from productive investment,” said the report, which also said equities now appear fairly valued.The report concluded: “Our response has been to concentrate our portfolio further to seek excess returns, which are driven by the success of individual assets, business models and partnerships over the long term rather than merely by market price movements.”More than 80% of the portfolio value is now concentrated in just under 100 directly held public or private assets or in external partnerships, each with a value exceeding $100m. The Wellcome Trust, the UK’s biggest charity, made a total return of 18% on its investment assets for the year to 30 September, thanks partly to counter-cyclical action in previous years, according to its annual report.Returns were £2.6bn (€3.1bn) on a portfolio worth £14.5bn at the start of the year, with investment assets now worth £16.4bn.The trust – whose main activity is funding medical research – said it had enjoyed positive returns from each major element of its portfolio – public equities, private equities, venture capital, hedge funds and property – over one, three, five and 10 years.All those asset classes recorded gains of between 15% and 20% over the past year.last_img read more

In the balance: Returning from latest setback, Carter has faith based on how he has reacted before

first_img Been there before. Delone, White and Delone’s mother, April Carter-White, have been there before. Many times. Together. But together is not where they were when Delone reacted to his lowest spiritual and emotional points of the past seven years. The binding force between Delone and his parents has been an obvious one: the telephone. And conversations over the course of the time since Hoban tell the stories of how and when Delone has been in unnatural situations before. How he has given a force back after being negatively exerted upon. Through that medium, Robert, April and Delone have maintained and strengthened the bond forged through Delone’s football career. A bond conceived all the way back in 1992, when Delone was a 5-year-old about to be hooked on a game he was meant to play. That game Delone was meant for was almost taken from him prior to his sophomore season at SU in 2007. Via phone, White informed Delone’s Akron football family that that game was perhaps ripped from his son forever due to the injury. The force had been exerted. ‘It’s not good. I just got the phone call I didn’t want to get,’ White said to Delone’s coach at Copley, Dan Boarman. It was the worst-case scenario. Looking back, it was a stark contrast to the cold call Boarman received when Delone was a high school sophomore in 2004. White’s number was unknown, but the outcome was undisputed success for Boarman. It was that natural physics answer to the strife Delone was facing as a backup running back at Hoban. For every action there is an equal and opposite reaction, and the reaction to Delone’s lack of playing time at Hoban was a transfer. It was an answer to the force Hoban inflicted on Delone. It was a 16-year-old, 5-foot-10 force Boarman received. Said Boarman: ‘(Delone) called me up and he said, ‘I would like to come to Copley.’ I said, ‘Do you live in the district?’ He said, ‘Yes.’ I said, ‘All I can offer you is a fair shake.” With that, Delone’s career attained security at Copley. It took off, as he became Ohio’s Mr. Football in 2005. A freshman All-American year at SU in 2006 followed. Then came the injury, and the continuation of the bond forged via phone communication. The kid who had now grown into a man — the kid Boarman himself proclaims he wishes was his own son — was hurt. Delone was down and out. But because of the unity between the Akron football family, Delone bounced back. He became SU’s starting running back once again in 2009, eliciting fear out of opposing Big East defenses. Louisville’s defense took a poll at the end of the year to choose the toughest opposing running back to face in the conference. They chose Carter. But on April 14, Carter hit his lowest point yet. Carter and teammate Ryan Gillum were questioned by the Syracuse Police Department about the alleged incident, and Carter was charged with misdemeanor assault. The suspension followed. Soon, he was back in Akron. Back home, searching for his reaction again. But what Carter found as the force which helped him recover this last time was actually the closest thing to himself. Facebook Twitter Google+ Caden turns 3 on Oct. 2, the same Saturday his father will be off on an SU bye week. The birthday celebration will come about a month after Carter’s homecoming Saturday, when Akron hosts Syracuse. Caden, Pap Pap and Mi Mi will get to see their father and son return from the suspension just a mile and a half down Akron’s East Exchange Street from Hoban. Carter will have come full circle, reacting subconsciously to the sudden actions of would-be tacklers on an Akron football field, just like he did seven years earlier as that 16-year-old at Hoban. ‘Akron is King,’ Carter said, pointing to a tattoo of Ohio on his arm. ‘That is where my heart is… somewhere I always feel safe going.’ But for Carter, now, he is able to grasp everything that has occurred within these last seven years better than he could have as a 16-year-old. Everything that has happened is a small part of it all. With his last go-around at SU starting, it will be more of the same for Carter. He has done it before. He does it every day in the weight room with Hicks and Luther. The ground is where it starts. And again, Carter has recovered from the initial blow of that ‘ground force contact,’ which divulges his story. But, come Saturday, Carter believes he is done letting chance creep back into his life. He knows dads have to take fewer chances as time goes on. And once it’s all over Saturday, the ground will be the place Carter will look toward to find his solution to it all. Anew. There, Caden Carter will assuredly be smiling up at Dad. It’s the one reaction Dad is looking forward to the most. ‘There will be no more butterflies. I’m too old for that,’ Carter said. ‘I am going to be so prepared that I can’t even be nervous. I’m not taking chances. I have to be all the way ready.’ [email protected] Pap Pap and Mi Mi were there for Carter when he returned to Akron in April. They were there with the person responsible for those nicknames for Robert White and April Carter-White, respectively — Caden. Caden, Delone, Pap Pap and Mi Mi were back together. No telephone needed. But a telephone was needed on Aug. 9, shortly after noon. That is when Delone called White to inform his father that he was officially reinstated. Delone was back, and White needed to inform one person. An inaugural member of the phone chain: Doug Marrone. ‘The reason that I felt to call Coach Marrone as quickly as I did was because Marrone was very, very supportive of my son,’ White said. With the phone call, Carter was on his way back to Syracuse, leaving Caden behind once again. But it came after an impromptu summer of balance, of father and son home in Akron. If you ask White, despite the uncertainty around the suspension, his son was at his most stable with his son. In any bout between an action and a reaction, balance is everything. The stability was a silver lining for Delone with Caden. ‘No one could take that bond from him,’ White said. ‘(Before the summer) it was a lot about Pap Pap and Mi Mi. Now, when Delone gets up to move, Caden is in his footsteps.’ Published on September 1, 2010 at 12:00 pmcenter_img Delone Carter wrestles with Isaac Newton’s third law of motion. Even if it is a simple enough idea, for Carter, simplicity is not a word to use when describing how physics pertain to his life journey and football career. For every action, there is an equal and opposite reaction. Reaction is the entity which has engulfed the life and football career of Delone Carter. Reaction is exactly the thing that became of Carter’s 2010 summer after he was suspended from the university and football team. Carter was independent. He remained in Akron, Ohio, reacting to what occurred last spring. Carter was suspended from the team for allegedly punching a fellow Syracuse student in a snowball-throwing incident on Feb. 27. Carter was reinstated to the university and football team on Aug. 9 and will not serve a suspension for any games this coming season. His trial in Syracuse City Court is pending.AdvertisementThis is placeholder text ‘It just shapes the man that you are going to be,’ Carter said of the suspension. ‘Whatever comes in front of me, I am going to be able to handle.’ Carter has handled before. Carter has reacted before. He’s not new to situations like this. The past seven long years have been chock-full of Carter reacting. He believes, whenever given the time to respond, he can mold it into opportunity. It became opportunity for him when he transferred across Akron from Archbishop Hoban High School to Copley High School as a 16-year-old. It became opportunity when coping with his dislocated hip while sitting out the entirety of the 2007 season. It became opportunity this past summer when months spent away from Syracuse, in Akron, marked the longest period of time Carter has spent with his 2-year-old son, Caden. Heading into his final season, Carter is Syracuse’s No. 1 weapon and starting running back. In 2009, Carter amassed 1,021 rushing yards and 11 touchdowns. And now, Carter is banking on reaction breathing life into liberty yet again. ‘He went through some things that he had control over and some that he didn’t,’ said Robert White, Carter’s stepfather. ‘(He has) learned a valuable lesson from all of the things that he has gone through.’ Truth be told, situations like these Carter knows better than almost every other Division-I football player. He has traversed the hurdles before. But coming off the suspension, he knows this is his biggest hurdle yet. Carter thinks he can succeed, as long as he can stay stable. For Carter, stability is the key. From the makeup and upkeep of his leviathan body, to his role as SU’s main threat, to fatherhood back in Akron. Maintaining a balance has always been Carter’s challenge. It’s an inherent challenge for an inimitable athlete and person. It’s a test which correlates with what is most important to him: home. Home yields family. Family leads to faith. And faith is where Carter’s mindset and struggle truly resides… Philippians 4:13, ‘I can do all things through Christ which strengtheneth me.’ That is the devoutly religious Carter’s favorite Bible passage. He lives by the scripture. For anyone who knows Carter, his faith is no secret. Syracuse strength and conditioning coach William Hicks — who has been with Carter longer than most of the Syracuse coaching staff — says Carter is thankful through his faith for the natural talent he was born with, the bullish body he had as that 16-year-old at Hoban. ‘The good Lord made Delone look the way he does the day we saw him,’ Hicks said. ‘Use his abilities for what would be the best, as opposed to what it would naturally be. ‘We put him in natural and unnatural positions.’ Natural and unnatural positions. Hicks simulates them where he and Carter can harness Carter’s God-given attributes in the football team’s weight room. The natural and unnatural positions Hicks and his partner, Hal Luther, put Carter in are planned. And they are all brewed with the goal of training Carter so that he doesn’t hurt himself. Because, naturally, he would hurt himself. He has before. His muscles are just too dense. He is too much for himself to remain secure. In the simulated unnatural situations, Carter becomes resolute. His body has been stable since devising these plans after the muscular balance around his hip was lost with the injury in 2007, Hicks said. The schemed situations start with the Delone-specific training equipment Hicks and Luther bought solely for Carter: rubber bands and Physioballs. The most paramount of the stability workouts consists of a drill where Carter jumps onto the blow-up Physioball, straddles and clamps onto it with the insides of his knees. Carter then attempts to remain upright, clenching the ball with his legs, almost surfing it while training the muscles around his hips. Luther compares strength coaching to teaching math: Two plus two will always equal four. But when strength coaching, two plus two doesn’t always equal four. When coaching Carter, the sum is ever-changing. ‘If you exert a force against it, it’s giving you a force back,’ Hicks said. ‘Part of speed training is what they call ‘ground-force contact’: The force given is the force received. Strike a surface, the more force you are going to get out of that surface.’ Metaphorically, the ‘ground-force contact’ in the weight room parlays with the physics and motion of Carter’s football career. If you exert a force against it, it’s giving you a force back. The force given is the force received. And Hicks’ words speak directly to the situations Carter has faced. His words speak directly to his suspension. ‘You kind of put yourself in an unnatural position in a controlled environment,’ Hicks said. ‘So that’s what happens in competition when you are in an uncontrolled environment: You’ve been there before.’ Commentslast_img read more