UK Individual Shareholders Society
Alliance Trust Shareholder Action Group welcomes changes announced by Alliance
The Alliance Trust Shareholder Action Group (ATSAG), supported by ShareSoc, welcomes the changes announced by the company today. Our comments are as follows:
1. The separation of investment management operations into a more independent management
organisation (Alliance Trust Investments -
2. The demotion of Alliance Trust CEO Katherine Garrett-
3. The emphasis on reducing costs is also wise. The ATSAG committee recently had
a meeting with Alliance Trust Chair Karin Forseke and we made it clear that this
was very important. Many long-
4. It is good to hear that Alliance Trust Savings (ATS) is expected to be profitable in 2016, and we welcome the establishment of a separate board to oversee this operation. However, we question whether it can achieve a good return on capital invested in future and doubt the strategic wisdom of keeping this as part of Alliance Trust, as we expressed to Ms Forseke. The announcement simply seems to defer proper consideration of the wisdom of retaining this business within Alliance Trust.
5. The comments regarding discount policy and the active use of share buy-
In summary, although the changes announced are positive and we welcome that the board has responded to the concerns of shareholders and our own representations on the issues at this company. We see this as step one in an evolutionary process. But it is not clear that these changes will quickly make the Trust more attractive to investors (which is a key to reducing the discount), or ensure that Elliott Advisors do not come back with more demands for changes in the future.
For further information, please contact:
Deputy Chairman, ShareSoc
There is a web page dedicated to the Alliance Trust Shareholder Action Group (ATSAG) that provides more information on the campaign by private investors in the company here: