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Diversification wins the day

Investment trusts in aggregate massively outperformed UK equities in 2020 for reasons including tech exposure
Diversification wins the day
  • FTSE All-Share Equity Investment Instruments index massively outperformed FTSE All-Share index in 2020
  • This was in part because some of its constituents invest in areas that did well, such as tech
  • If you only focus on the UK you could miss out on investment opportunities and added return

In 2020 the FTSE All-Share Equity Investment Instruments index rose 17.8 per cent while FTSE All-Share index fell 9.8 per cent – the largest outperformance in 30 years, according to analysts at Winterflood

The FTSE All-Share Equity Investment Instruments index comprises 187 funds, which in aggregate offer exposure to equities across the world and a wide range of other assets. So after falling in early 2020, “the subsequent recovery and general health of [this index] reflects its tilt in the past 10 years towards non-equity specialist mandates and global equities, often with a technology and healthcare bent”, explain analysts at Winterflood.

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