Find out more about Alliance Trust’s performance, with the help of market commentary from our Investment Manager.
Over October, the Trust’s total shareholder return, NAV total return and equity portfolio return were 2.6%, 2.2% and 2.3% respectively, underperforming the MSCI All Country World Index (ACWI) which returned 3.2% over the same period. Equities in Europe and UK returned 1.5% and 1.7% respectively, underperforming the MSCI ACWI index (3.2%). The performance of the Trust’s equity portfolio lagged as a consequence of being overweight these markets. Some of the equity managers' stock selections have also detracted from performance, in particular companies within the Information Technology and Consumer Discretionary sectors.
However, this follows a number of positive months with the equity portfolio outperforming the MSCI ACWI by 2.4% since 1 April 2017 when WTW took on responsibility for the portfolio, mainly driven by stock selection. Since that date, the equity portfolio has outperformed in all sectors against the MSCI ACWI index except for Information Technology, where a few stocks generated most of the returns.
We continue to maintain high conviction in the equity managers in the portfolio and have made no changes to equity manager allocations over the month. In this environment of low volatility, we expect increased dispersion between stocks going forward, providing opportunities for talented stock pickers like those managing the Trust’s equity portfolio.
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Alliance Trust has been awarded the AIC’s Dividend Hero award and is proud to have increased its dividend every year for 50 years. This award is made by the Association of Investment Companies to the small number of investment companies who have increased their dividends each year for 20 years or more. For more information and a full list of qualifying companies, you can visit the AIC website.More information