For a decade, backing Big Tech has been the easiest way to propel returns. Such has been the sector’s dominance, funds such as Alliance Trust that do not go all-in on racy growth stocks have struggled to beat their target indices. Now, though, the end of ultra-loose monetary policy and rapid rises in interest rates have called time on the technology boom and could provide the best impetus in years for Alliance Trust to outperform its passive counterparts.
Willis Towers Watson, investment manager for the FTSE 250 fund, picks between six and a dozen finance houses — nine at present — that pursue a variety of investment styles worldwide but concentrate on ten to twenty stocks each. Allocations range from the value bias of
