The market’s concentration around artificial intelligence (AI) stocks continues to challenge Alliance Witan (ALW). Extending a trend from the previous two years, the £4.9bn FTSE 100 constituent said its diversified multi-manager portfolio underperformed in the first half of the year, returning 7% against the 12.7% total return from the MSCI All Country World index.
Alliance Witan said that with its board’s support, investment adviser WTW was conducting a “structured review” of fund manager selection, stock picking, portfolio construction and risk management. “While no major change is expected to the company’s diversified, high-conviction approach, the review will guide any future enhancements to our investment process as we endeavour to improve shareholder outcomes,” it said.
Our view
Richard Williams, senior analyst at QuotedData, said: “ALW’s technology underweight and stock selection have proved costly to its relative performance, but it is encouraging that neither the board nor WTW appear to be dismissing the setback as simply an unfortunate consequence of AI-driven market concentration, and have initiated a review of manager selection, portfolio construction and risk management.”
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