Alliance Trust hails outcome of overhaul
Wealth manager Alliance Trust said its “transformational” overhaul was beginning to bear fruit as it revealed that returns had outperformed its benchmark during the first half of the year.
The venerable Dundee firm, which last year struck a deal to sell its in-house investments arm to Liontrust Asset Management, said it delivered a total shareholder return of 10.8 per cent for the six months to the end of June, compared with a 6.4 per cent rise for the MSCI All Country World Index (ACWI).
Yesterday’s results come after a tumultuous time for Alliance Trust, which was founded in 1888. Last year it saw a Rothschild-linked investment company walk away from talks over a potential £5 billion tie-up, having previously come under pressure from activist shareholder Elliott in a move that led to two of the rebel investor’s suggested non-executives appointed to its board.
Elliot’s demands for a shakeup of Alliance Trust’s operations and management also triggered the departure of chief executive Katherine Garrett-cox and chairwoman Karin Forseke. Having sold its investments arm, the trust has appointed eight external equity managers to oversee its investment strategy.
Alliance Trust chairman Lord Smith of Kelvin said: “This has been a transformational period for the trust. We are pleased that the equity portfolio outperformed its benchmark against an uncertain market backdrop, all while transitioning to our new alliance of best ideas investment approach.”