7th Mar 2014 08:18
LONDON (Alliance News) - Dundee-headquartered Alliance Trust PLC Friday warned that the looming Scottish independence referendum is creating uncertainty for the business and it has begun to take action to reduce it, as it reported a strong set of 2013 results, buoyed by good returns from its equity portfolio.
The FTSE 250 trust said it has begun work to establish additional companies registered in England.
In a telephone interview with Alliance News, Chief Executive Katherine Garrett-Cox said the decision is not about politics but about putting customers first, highlighting the importance of their savings in an economic environment in which savers can't rely on pensions or traditional saving areas because of the all-time low interest rates being set by central banks.
"This isn't in any way about relocating the business away from Scotland," Garrett-Cox said. "We recognise we're getting increasingly more questions about it and as a business we have a duty of care to our customers and shareholders."
"We're setting up additional companies registered in England, in order to provide operational flexibility and to complement our existing business in Scotland," the chief executive said.
The trust reported strong 2013 results, boasting an 18.4% net asset value return and a 22.7% total shareholder return, after its equity portfolio generated gross returns of 21.6%, outperforming the MSCI All Country World Index's 21.1%.
Its full-year dividend was 10.83 pence, up 12.5%, including a 1.282 pence special dividend.
"The equity portfolio is structured to be able to deliver a combination of capital growth and a consistently rising dividend. The 12.5% increase to the dividend this year has been driven by rising income from all parts of the investment portfolio, including increased exposure to equities, income from our holding in the Monthly Income Bond Fund and a doubling of the royalty income from our legacy mineral rights in North America," Garrett-Cox said in a statement.
Alliance Trust shares were Friday quoted at 462.50 pence, up 0.5%.
By Samuel Agini; [email protected]; @samuelagini
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