Alliance Trust, the UK??s largest listed investment trust, said it had sold off £140m from its UK equity investment portfolio during the past six months, shifting £166m in cash in its pan-Asian fund and £124m to a general emerging market fund.
This saw Alliance Trust??s holdings of UK equities fall from 36 per cent to 31 per cent, with its holdings of emerging market shares moving up to represent almost 6 per cent of net assets, from less than 1 per cent six months ago.
Developed markets, such as the UK and Europe, were hamstrung by their debt burdens, said Katherine Garrett-Cox, chief executive. Better potential for growth exists in developing economies.
??The debt indigestion limiting the growth of the US and western Europe is a concern,? said Ms Garrett-Cox.
