By Tom Aylott, Reporter, Trustnet, 03 July 2023:
These four trusts could be held as a core holding by any investor, regardless of risk appetite or time horizon, according to fund pickers.
Many funds cater to investors with specific goals, but some strategies appeal to those of all time horizons.
For example, low-risk trusts typically appeal to older investor nearing retirement, while high-growth portfolios can work better for those with a longer time horizon.
However, some trusts can be a core holding for all investors regardless of their individual needs. Here, Trustnet asked five expert fund pickers for the trusts that investors can buy and hold for a lifetime.
Alliance Trust
Two of the experts Trustnet spoke to said Alliance Trust would make a strong core position in any investor’s portfolio, regardless of their own risk tolerance or time horizon.
The £2.9bn investment trust has almost tripled investor’s capital over the past decade, with soaring 191.3% and beating its peers in the IT Global sector by 63 percentage points.
Thomas McMahon, investment trust research manager at Kepler, pointed out that its “sophisticated and professional” approach helped it outperform on the short term too, despite volatile market conditions negatively impacting most global equities.
Alliance Trust has returned five times more than other IT Global trusts in the past three years, which were characterised by challenging hurdles such as high inflation and rising interest rates…
The portfolio is divided up between nine different management groups who each have their own investment style, which has led to some truly diversified exposure, according to James Carthew, head of investment company research at QuotedData.
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