Alliance Trust raises dividend 7% after 'significant' year

Alliance Trust has raised its dividend by 7% on a 12.1% rise in its net asset value (NAV) in 2012.

This return compared to a 12.4% increase in the AIC Global Growth sector. At the same time its share price rose 12.4% versus a 12.3% average increase in the peer group. While the trust does not have a specific benchmark this compares favourably to the 11.7% rise in the MSCI ALL Country World Index in sterling term.  

This performance came in a year when the portfolio underwent a major restructure, with team consolidating four regional portfolios into one global portfolio, adopting a higher conviction investment approach and reducing the number of holdings to around 100 stocks.    

This has carried into 2013 as the investment trust got off to its best start to the year in 20 years with the share price rising 16% and the NAV 13% to break new highs. This compares with a 10% rise in the FTSE 100.

Elsewhere across the business losses at Alliance Trust Savings narrowed from £2.3 million in the previous year to £0.4 million. The platform experienced a 10% increase in trades, while assets under administration jumped 21% to £4.1 billion.

Meanwhile Alliance Trust Investments saw assets under management jump by 248% to £1.9 billion thanks mainly to the acquisition of Aviva Investors’ £1.2 billion socially responsible investment arm.

Alliance Trust chief executive Katherine Garrett-Cox (pictured) told the stockmarket: ‘Alliance Trust has undergone significant change over the last year and I am pleased that the actions which we have taken across the business have resulted in the good results that we are announcing today. Investment performance continues to improve and the equity portfolio generated double digit returns last year.’  

She added: 'Our subsidiaries have made strong progress over the year. Alliance Trust Savings is now well positioned to perform profitably and pick up market share as a result of the changes that are being implemented as part of the retail distribution review.’