View more on these topics

Morningstar slams Alliance Trust over investment trust transparency

Morningstar has criticised the £2.8bn Alliance Trust investment trust over a lack of holdings disclosure.

In its report, Investment Trusts: Why Transparency Matters, published today, Morningstar says while the full list of portfolio holdings is available on the Alliance Trust website, no detail is given in regard to the size of positions or how much the trust is invested across seven funds within Alliance Trust Investments’ fund range.

It highlights that Alliance Trust’s annual report and monthly factsheets do not separate Japan from Asia in its geographic split.

Morningstar concludes: “This lack of detail makes it impossible for investors in the trust to understand exactly how their money is being invested and therefore the risks to which they are exposed, as the company does not disclose full details of its holdings, with weightings, even once a year.

“Shareholders may also not be comfortable with such hefty ownership of the firm’s open-end fund range.”

The report reveals that around 80 funds are still not releasing a full portfolio listing at least once a year, accounting for £16bn in assets.

The ratings agency says full holdings are necessary for advisers to carry out fund comparisons between open-ended funds and investment trusts.

It says: “For investment trusts to truly compete alongside open-end peers, they need to be much more transparent.”

It says ideally full portfolio holdings should be published monthly, however quarterly would be sufficient.

The report says: “If a portfolio contains an investment trust that discloses its full holdings just once a year, they could be looking at stale data and find it hard to get an accurate account of where a client’s current exposure lies.”

Alliance Trust was unavailable for comment at the time of writing.


Fidelity names Clougherty as head of UK retail

Fidelity Worldwide Investment has announced former Aviva Investors UK Funds chief executive John Clougherty will join as head of UK retail in June. Clougherty’s departure from Aviva Investors, as revealed by Money Marketing in March, followed the firm announcing in January that it would cut 160 jobs, with its London-based European, emerging markets, global and […]


MM Leader: Adviser charging is still a major concern

With around seven months to go until the implementation of the retail distribution review it is worrying to find respected industry commentators raising significant concerns about charging models. The fact these individuals have been passionate advocates of the FSA’s drive to increase professionalism and charging transparency should make the regulator sit up and listen. As […]

Prudential to appoint Paul Manduca as new chairman

Prudential is set to appoint Paul Manduca as its new chairman replacing Harvey McGrath, according to reports. The FT says Manduca, a senior independent director at the UK insurer, has emerged as the favourite, despite being the man tasked with leading the hunt for external candidates to fill the role. Prudential has been looking to […]

Abbey and Halifax cut fixed rates by up to 0.2 per cent

Abbey for Intermediaries is to reduce its two-year fixed rate products at 60 per cent 75 per cent loan-to-value by up to 0.2 per cent. The changes, which AFI will reveal in full tomorrow, take effect from tomorrow and include mortgages in the lender’s loyalty range. The lender is also withdrawing its two-year tracker homebuyer […]


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