Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Alliance Trust builds English base amid Scottish uncertainty

7 Comments
Alliance Trust builds English base amid Scottish uncertainty

Alliance Trust has started work on establishing an English corporate presence ahead of September's referendum on Scottish independence.

'We have always been and continue to remain focused on the service we provide to all our shareholders and customers across the UK and beyond. 2014 is an important year for Scotland. The referendum in September is creating uncertainty for our customers and our business, which we have a responsibility to address,’ Alliance Trust chief executive Katherine Garrett-Cox (pictured) told the market in a statement accompanying the 126th set of annual results from the Dundee-based trust.

‘Regardless of the outcome it is critical that we are able to provide continuity of service and protection for their investments and savings. To give them full confidence, we have started work to establish additional companies registered in England, in order to provide operational flexibility and to complement our existing business in Scotland.’

‘We know that we cannot afford to stand still, as change, be it regulatory, political or business-related, is a critical part of the world in which we operate.’

Performance

The trust delivered a net asset value return of 18.4% in 2013 and a total shareholder return of 22.7%. This followed double-digit returns in 2012 and represented the trust’s best absolute return and total return for three and eight years respectively.  

The difference in these returns is down the narrowing discount, which ended the year at 12.9%. The discount stood under 14% for most of 2013, the first time it has traded consistently at this level since 2006.

But Garrett-Cox said the Trust could do better: ‘While we recognise these numbers are improving, there is always work to be done and we maintain our focus on delivering improved investment performance and a narrow discount.’

The trust also kept its tradition of increasing its dividend in each of the last 47 years with a 3% rise in the ordinary dividend. This was accompanied by a special dividend of £1.282p to give an overall increase of 12.5% for the year.

Elsewhere across the business Alliance Trust Savings made its first full-year profit  for eight years as assets under administration jumped 33% to £5.4 billion.

Meanwhile Alliance Trust Investments, its funds business, produced a 16% rise in assets under management.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Play CEO Tapes: 'we're just a bunch of white dudes sitting here'

CEO Tapes: 'we're just a bunch of white dudes sitting here'

In our brand new series, eight CEOs discuss how the industry could do a better job for female fund managers.

Read More
Your Business: Cover Star Club

Profile: how career burnout led to a family office launch

Profile: how career burnout led to a family office launch

I was burnt-out from a career in finance and had no desire to come back, says the founder of Blu Family Office

Wealth Manager on Twitter