Winterflood welcomes global repositioning
Winterflood Investment Trusts has welcomed moves by Alliance Trust to reposition its portfolio to a global investment approach, which will bring it into line with the majority of its closed-end peers.
Alliance Trust recently announced plans for the investment trust to merge four regional equity portfolios into its existing global equity portfolio, with Ilario Di Bon taking on a new role as head equities reporting to chief executive Katherine Garrett-Cox.
In its latest report, Winterflood Investment Trusts head of research Simon Elliott, says: “This should allow a clearer investment style to come through and provide the fund with a greater potential to outperform.
“The greater level of conviction should see the number of holdings approximately halve from 200 at present. Ilario Di Bon is a respected growth investor although the performance of his Global Thematic Opportunities open-ended fund in his brief time at Alliance Trust has been behind its benchmark.”
Elliott says the closed-end portfolio will have a different yield requirement to the open-ended fund.
He adds: “The fund’s yield remains an important part of Alliance Trust’s premise, given its retail shareholder base and we would not be surprised if there was a greater allocation to the fixed-interest team. This should allow a pick-up in the fund’s dividend and would allow it to compete with the yields on some of its closer peers such as Foreign & Colonial investment trust.”
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