Alliance fends off Laxey's second assault

Shareholders in Alliance Trust have voted down Laxey's calls for a change in the way the vehicle is managed.

Although Alliance, which is headed up by Katherine Garrett-Cox, earlier this year posted sector beating results, Colin Kingsnorth's Laxey said more needed to be done to turn the vehicle's long-term numbers around.

Kingsnorth said he would like to see £2.1 billion Alliance taken on by an external manager, and Aberdeen has been linked with the trust, even though Alliance has denied being approached.

In an interview with our sister publication Wealth Manager, new Alliance chair Karin Forseke also denied that Aberdeen is keen to take on the investment trust's mandate.

'I [or] we have not been approached,' Forseke said.

Aberdeen circles

Aberdeen Asset Management is understood to have written to the Alliance Trust board ahead of today's vote, sending it a letter formally expressing its interest should the mandate be put out to tender.

Laxey said that while its resolution to outsource the trust's management was not supported by the majority of investors, it was 'heartened' that some 20% backed its call, adding it would likely seek a detailed proposal from Aberdeen.

Laxey said: 'Today’s press reports Aberdeen Asset Management has written to the board is a very positive development and we expect our chairman to seek detailed proposals from Aberdeen concerning their approach and report back to shareholders as to the best possible outcome for all of Alliance’s shareholders.'