View the article online at http://citywire.co.uk/money/article/a602393
Alliance to get a global investment team after shake-up
Kathryn Garrett-Cox, boss of the poorly performing Alliance investment trust, has decided the global fund needs a global investment team.
Kathryn Garrett-Cox, boss of the poorly performing Alliance investment trust, has reorganised the global fund to give it a global investment team.
Four teams investing in shares in different regions of the world will be combined in one global team led by Ilario Di Bon, who takes on a new role as head of equities. He will report to Garrett-Cox, who is chief investment officer as well as chief executive.
Garrett-Cox said the move would give the £2 billion trust 'a more focused and efficient investment structure'. Alliance's long-term performance has been poor, with the share price returning 70% over 10 years compared to the 99% average from global growth investment trusts.
Alliance also announced it would close three out of seven funds in its Alliance Trust Investments (ATI) range. The unit trusts being shed are UK Equity Income , Asia-Pacific Equity and Japan Equity . Subsidiaries such as ATI and its Savings investment platform business have come under fire from some shareholders who argue Alliance should stick to its core business.
Earlier this year Alliance's board fended off a second attempt by activist investor Laxey Partners to do more to improve shareholder returns. The trust's shares currently trade at a 16% discount to the net asset value of its investments.
Alliance declined to comment on how many jobs would be lost from the changes.
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In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
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