Alliance Trust blames US equities for tough Q3

Alliance Trust has suffered a slowdown in returns in the third quarter which it said was due to its high allocation to US equities.

Over the three months to 30 September, the £3bn trust has only made 0.2% in total returns, with overall returns over the year to date at 15.4%. As a result, it has underperformed the Global Growth trust sector over the year to 11 October, returning 17.7% versus the average of 20.9%, according to Morningstar. "The equity portfolio has been affected by the relative underperformance of the US market - in which we are more heavily invested than at any time in over 20 years - over the summer, when compared to other major markets," Alliance Trust said. However, the managers have not made...