In fact, the board of Alliance Trust and WTW are so confident in the new approach that they have doubled the target that the equity portfolio needs to beat the MSCI All Country World Index benchmark by from 1% to 2% per annum, net of costs, over rolling three-year periods.
On top of that, the group added that total annual costs would be targeted to be below 60 basis points, which it considers “a highly competitive rate.”
Alliance Trust chairman Lord Smith of Kelvin said in a statement: “Alliance Trust has provided investors with attractive returns and income through many generations. Our ambition is to ensure that it continues to do so, thereby remaining a core holding.
“We are confident that this new approach, and the managers selected, will meet our ambition and deliver for many more generations to come and we recommend shareholders vote in favour at the General Meeting.”
