Find out more about Alliance Trust’s performance, with the help of market commentary from our Investment Manager.
Over November, the Trust’s total shareholder return, NAV total return and equity portfolio return were -0.1%, -0.1% and 0.1% respectively. The equity portfolio slightly outperformed the MSCI All Country World Index (ACWI) which was flat over the same period.
Encouraged by higher UK inflation figures, the Bank of England raised rates for the first time in a decade. This, combined with the news that there was more certainty of arriving at a Brexit deal, led to a sterling rally in November. This meant that despite accelerated Eurozone economic momentum and US tax reforms which were promising news for equity investors globally, for a sterling investor the return on global equities was flat in November.
Since 1 April 2017*, the Trust’s equity portfolio has outperformed the MSCI ACWI by 2.4%, with stock selection remaining the most significant driver of relative outperformance, as intended. We expect volatility and dispersion in the markets to increase and believe that our portfolio managers are in a position to benefit from this scenario through superior stock selection. We retain a high degree of confidence in our underlying equity managers and have made no changes to equity manager allocations over the month.
During the month, the Trust’s equity managers have reduced our portfolio’s exposure to Safran and Nielsen, both having previously been in the top 20 holdings. These stocks have now been replaced by Anthem and Tencent, through strong relative performance of both. Notable additions to the Trust in November were Fleetcor Technologies and Nvidia, both US domiciled technology companies.
* Date Willis Towers Watson assumed responsibility for management of the 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