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BNY Mellon outsouring deal follows Alliance Trust's 'volte-face'
by Sarah Miloudi on Mar 13, 2013 at 07:30
Alliance Trust has entered into an investment administration outsourcing deal with BNY Mellon, part of a push by the company to focus on its core skills.
Although Katherine Garrett-Cox (pictured) could say little about the agreement, the chief executive confirmed it was 'just signed' and it hopes for it to be fully operational in around 18 months time.
Alliance touched upon the deal in its final results to investors, which reviewed a busy 12 months for the firm.
Investors were told: 'The agreement extends the scope of services provided by BNY Mellon to include middle and back office activities for both Alliance Trust Plc and Alliance Trust Investments.
'This decision was taken, following an extensive supplier selection exercise, in order to allow us to focus on our core competencies and outsource some of the portfolio administration functions.'
'It will allow us to shorten the time to market for new products and services, and enable management to focus greater effort and investment on those critical value adding activities of investment management and business development.'
Under the stewardship of Garrett-Cox, Alliance Trust has worked hard to improve its performance, increase its dividend and ensure progress with its Alliance Trust Investments business.
On Tuesday it announced a 7% dividend to shareholders after a 'significant' year. Over the 12 months to the end of December, its investment trust delivered a net asset value (NAV) total return of 12.1% and total shareholder return of 12.4%, in line with the AIC Global Growth index and broad market indices such as the MSCI All-Country World index.
Over the stretch Alliance Trust has narrowed its holdings to around 100, creating a more focused portfolio.
Garrett-Cox told Wealth Manager that after a 'complete volte-face', in the year ahead Alliance would continue to establish itself as a specialised global equity, fixed income and SRI manager.
'When you are in investment management you have to be known for something. If you follow the herd you will not stand out,' the chief executive said.
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on May 24, 2013 at 11:32