4th Mar 2016 07:57
LONDON (Alliance News) - Alliance Trust PLC on Friday said its net asset value total return beat the benchmark index in 2015, as it raised its dividend and said its investment arm managed more third-party assets in what Chairman Lord Smith of Kelvin described as an "eventful" year.
The results come within weeks after Alliance Trust announced the departure of Katherine Garrett-Cox, the former group chief executive. She is stepping down also from the role of chief executive of the company's investment arm on March 11.
Garrett-Cox's departure came after after she was forced to step down from the board and relinquish her leadership of the group in October, following a bruising battle with activist shareholder Elliott Advisors. Lord Smith of Kelvin himself replaced former chair Karin Forseke, who departed at the end of 2015.
"I am acutely aware of the lack of gender diversity on the current board as a result of the recent changes. Alliance Trust has long been a leader in the area of board diversity, and this is an issue which I am determined to address at the earliest opportunity," Lord Smith of Kelvin said on Friday.
Elliott's campaign has seen Alliance Trust pledge to improve performance and governance, with the group slashing its exposure to fixed income, selling its last remaining commercial property, and disposing of its mineral rights portfolio.
The net asset value total return for the trust was 5.4% in 2015, compared to the MSCI ACWI benchmark return of 3.8%.
Alliance Trust raised its dividend for the 49th year running, up by 0.4% to 12.43 pence.
Alliance Trust said its investments arm generated net inflows of GBP81.0 million, ending the year with third party assets under management of GBP2.1 billion, up from GBP1.9 billion at the end of 2014.
"2015 was an eventful year for Alliance Trust and highlighted that shareholders expected change," Lord Smith of Kelvin said.
"We have already made good progress. In particular, the investment team is continuing to deliver improved investment returns, significantly outperforming the benchmark," the chairman said, adding that the discount at which the company's shares trade to net asset value has narrowed.
The year-end discount of share price to net asset value was 8.1%, compared to 12.4% a year earlier.
By Samuel Agini; [email protected]; @samuelagini
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