Kepler multi-manager performance

Many hands make light work

Kepler Trust Intelligence breaks down how multi-managers have performed over the past five years and their positioning for the inevitable uncertainty that lies ahead …

"Despite these difficulties, there has been some good performance from multi-manager trusts, which we believe highlights their attraction as a core holding. For example, Alliance Trust (ATST), which is managed by the global consultancy Willis Towers Watson (WTW), has performed well over the last three years with its stylistically neutral strategy demonstrating value through its outperformance of the MSCI ACWI Index benchmark. The trust saw a greater contribution to performance from value-focussed managers over the second half of the period offsetting the impact from the growth-focussed managers in the portfolio which were impacted by rising inflationary pressures and interest rates. This led to a higher level of volatility, however, the returns generated led to better risk versus reward characteristics as measured by the Sortino ratio (we have used this over Sharpe as it doesn’t punish upside volatility)."