View more on these topics

Defaqto on Alliance Trust’s global thematic opportunities fund

View of Defaqto insight analyst for funds Fraser Donaldson

r Donaldson says: “This fund aims to achieve long-term capital growth primarily from investment in a portfolio of equities quoted on world stock markets. It aims to meet this objective by investing in a concentrated portfolio of global equities. The portfolio will be unconstrained by reference to global stock market indices or by market cap.

“The fund managers employ a fundamental, long-term approach to stock selection with a thematic overlay which seeks to identify macro and micro trends within global markets.

“The thematic overlay includes four frameworks – demographics, innovation, environment and global realignment. It is within these frameworks that the team identify specific themes such as healthcare, transport and  re-engineering.

“Due to the funds wide ranging investment universe its benchmark is the MSCI All Countries World Index. It is this benchmark that is the target for the fund to outperform by 2 to 4 per cent in order to trigger a 20 per cent performance fee, capped at 1.25 per cent.

“Global thematic funds are nothing new, but a review of the IMA Global sector shows only four or five funds are actually marketed as such. What differentiates this fund from the others is the managers’ conviction that their longer-term view over stock selection and a concentrated portfolio of only around 50 companies will lead to each stock providing a positive return within the portfolio.

This may be viewed as a high risk strategy, but it should result in a significantly lower turnover of stocks, which will help to improve outperformance, where other funds that take a much shorter investment horizon may see the regular turnover of stocks in the portfolio as a drain on performance.

“This fund is certainly one to watch and could easily form part of an existing global portfolio with its wide ranging market cap mandate. The performance fee may put off some retail investors but those with a significant sum to invest could make use of an additional share class for institutional investors, which does not carry a performance fee or initial charge and only charges 0.75 per cent for its annual management fee.”


Chancellor to direct BoE in a crisis

The Chancellor will have a power of direction over the Bank of England during future financial crises, under new Government proposals. The draft financial services bill proposed the Chancellor be responsible for all decisions involving public money or liabilities. The Treasury would also have been able to veto any bank resolution plans put forward by […]

Clegg wants earlier rise in income tax threshold

Deputy prime minister Nick Clegg is to call for the coalition Government to go “further and faster” in increasing the income tax threshold to £10,000 a year. Clegg (pictured) will make the call to bring forward raising the income tax threshold at a speech to the Resolution Foundation in London later today, the BBC reports. […]


FSA board not culpable over RBS, says Walker

The FSA board was not culpable in failing to spot the mounting problems before the failure of the Royal Bank of Scotland, according to one of the people put in charge of preparing a report into the failure of the bank. Although Sir David Walker criticised the fact the bank’s and the FSA’s board did […]

JPMorgan: We considered quitting troubled eurozone

JPMorgan chief executive Jamie Dimon has admitted the bank considered  pulling out of the eurozone’s most troubled nations on economic grounds. Speaking to the FT, Dimon said the firm considered quitting Ireland, Italy, Portugal, Greece and Spain, but said it ultimately decided to stay based on social grounds. The firm has around £9.5bn across the […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm