Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a639698
Garrett-Cox takes aim at Alliance Trust critics
by Rachael Revesz on Dec 04, 2012 at 13:14
‘One of the criticisms I’ve received is that they say: “I can buy all of these companies in the UK, so where are you adding value?”’ she said.
Garrett-Cox added: ‘When we announced the restructure and went on the raid in September, people got it. Where we’ve been successful, is that we [now] have a truly global offering.’
The investment trust shares are trading at a discount of just under 15%, something which Alliance Trust has been criticised for sine activist investor Laxey Partners launched an attack on the vehicle two years ago.
Garrett-Cox (pictured) said there was no target discount, but added she would like to ‘trade more in line with the peer group’.
Alliance Trust head of equities Ilario Di Bon has cut the investment trust’s holdings from 200 to 97 and has made sustainable transport its main theme.
One of the new holdings in Hynundai Mobis, a South Korean auto parts supplier. According to Di Bon, it commanded the lion share of the value created across the Hyundai Group.
Di Bon added he had ‘beefed up’ the theme of Asian automation, emerging luxury and introduced the new theme of ‘eating habits’.
One holding which illustrates eating habits is Novo Nordisk, a Danish global producer of insulin for the treatment of diabetics.
‘The flip side of Mcdonald’s success in China is that the rate of diabetes is going to explode over the next seven to ten years, so Novo Nordisk is well positioned in China,’ he said.
News sponsored by:
The Citywire guide to investment trusts
Investment trusts have proved to be a highly effective way to invest in the market. Citywire has interviewed the experts to find out more.
Today's top headlines
More about this:
Look up the shares
Look up the fund managers
More from us
- Curtis Banks buys £3bn Alliance Trust Sipp business
- Garrett-Cox: our new-found conviction at Alliance Trust
- Alliance Trust Savings appoints Patrick Mill as managing director
- Thurleigh's James von Simson joins us for a debate on the US economy with Alliance Trust
On the road
J.P. Morgan Elect on investment growth, income and cash. More information on J.P. Morgan investment trusts.