Page 9 - DIY Investor Magazine - Issue 26

from the bottom of the market in 2020 (23 March) the trust has delivered NAV total returns of 41.2%.
This compares to returns of 33.4% from the MSCI ACWI and 34.2% from the AIC peer group average (Source: Morningstar).
Exemplifying the benefits of investing in a team with extensive knowledge and resources, WTW swiftly repositioned some
of the funds after the COVID-19 correction to control risk, and money was reallocated away from value-orientated portfolios to more growth-oriented funds, which they generally deemed to be exposed to companies less vulnerable to a prolonged economic contraction.
During these periods of market change, making fast decisions can be paramount to adapt to changing circumstances in the managers’ opinion, and this requires the time and resources that most retail investors do not possess.
Within the underlying portfolio stock turnover also increased, and during March and April about 20% of the underlying funds’ companies changed, as stocks deemed most vulnerable to
Disclaimer
This report has been issued by Kepler Partners LLP. The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research. Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision. Kepler Partners is not authorised to market products or make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.
Covid-19 were generally sold by the underlying managers and replaced with companies the managers deemed better placed to withstand the uncertain environment.
Looking forward to a brighter 2021 we at Kepler Trust Intelligence believe that, even if the virus is in retreat, the uncertainty surrounding global markets is likely to continue.
There is an argument in favour of a rapid return to economic growth as restrictions are lifted, but the weight of evidence suggests the damage wrought by COVID is likely to mean further disarray across economies which have been hit badly by lockdowns in 2020.
ATST offers the potential to adapt and rapidly adjust their portfolio to either scenario, and its current discount of more than 5% could be an interesting entry point.
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9 DIY Investor Magazine | Dec 2020