Alliance Witan: Access to the top ideas of best-in-class manager

Alliance Witan (ALW) aims to provide well-balanced core exposure to global equities through a sophisticated multi-manager strategy typically reserved for institutional investors. The trust has been managed by Willis Towers Watson (WTW) since 2017, with an investment committee comprising Craig Baker, Stuart Gray, and Mark Davis overseeing asset allocation and manager selection, and aiming to keep the portfolio as neutral as possible in terms of geography, sector, and factor.

That said, the Portfolio currently shows more notable divergences from the benchmark than in the past, including an underweight in the information technology sector. This reflects the fact that many stock pickers have trimmed or even entirely cut their exposure to US tech names since the start of the year, concerned about the elevated valuations these companies have reached. For example, GQG Partners has largely rotated out of the sector in favour of defensive growth names.

Craig, Stuart, and Mark added two new stock pickers to the portfolio — Brown Advisory and Artisan Partners — in September 2025. They have replaced Sustainable Growth Advisers (SGA) and ARGA, reflecting the investment committee’s stronger conviction in the new managers. Brown Advisory invests in high-quality stocks, with a particular focus on whether their investee companies deliver strong outcomes for customers, viewing this as a key indicator of sustainable long-term growth. Meanwhile, Artisan Partners focusses on undervalued businesses that have the ability to grow earnings — a combination they believe can deliver superior risk-adjusted returns over time.

The board estimates that the full-year Dividend should be at least 28.32p, representing a c. 6% year-on-year increase and implying a prospective yield of around c. 2.2%. As such, ALW is on course to extend its 58-year track record of annual dividend increases.

In our view, ALW is a compelling one-stop shop for global equities, offering a well-diversified portfolio. We like the trust’s neutral stylistic approach, which focusses on stock selection based solely on fundamentals and avoids the risks associated with bets on specific countries, sectors, or factors. The trust also provides a unique opportunity to access rigorously selected best-in-class managers, some of whom are not available to UK retail investors.

In addition, ALW has consistently demonstrated stronger fundamentals than its benchmark since WTW was appointed as investment manager. As a result, the investment committee is confident that the trust is well positioned for future returns, as they believe fundamentals are the key driver of long-term performance. By contrast, they note that the broader market has been driven more by multiple expansion over that period, which could limit future upside. Moreover, while Craig, Stuart, and Mark see a range of supportive signals for equities, they have also identified potential risks — including elevated valuations, high government debt levels, and heightened geopolitical tensions — and believe that their stock pickers could add value in this challenging environment.

Finally, the trust is in a strong position to continue its track record of annual dividend increases, supported by a significant distributable reserve. While not an income-focussed strategy, the compounding effect of reinvesting a growing dividend could contribute to an attractive total return over the long term, while also providing a cushion during periods of lacklustre capital growth.