Assets rise 16% for Alliance Trust Investments

Alliance Trust Investments, the specialist fund management business and subsidiary of Alliance Trust, has recorded a 16 per cent increase in its assets under management to £2.2bn at December 31 2013.

The annual results statement from its parent company stated the deal with Aviva Investors to engage a team of specialist sustainable and responsible investment (SRI) managers and roughly £1.2bn of third party assets had resulted in “an improved financial performance and increased assets under management. We are showing an operating loss of £4.2m compared to £6.6m the previous year”.

Alliance Trust Investments states the SRI managers are now a “core part of our business” and part of the future strategy will include “repositioning our SRI funds as a more mainstream product but still retain the ethical strengths of these funds”.

Article continues after advert

Meanwhile its investment trust parent recorded a net asset value total return of 18.4 per cent in 2013, while net assets reached approximately £2.9bn. The trust’s equity portfolio – which accounts for more than 94 per cent of net assets - generated gross returns of 21.6 per cent.

Katherine Garrett-Cox, chief executive of Alliance Trust, stated: “After five years of hard work and significant change at Alliance Trust, this year we have started to reap the rewards of that change. Alliance Trust Savings is now profitable on an ongoing basis and will continue to benefit from changes brought about by the RDR. Moreover, Alliance Trust Investments has established itself as a leader in the sustainable investment sector.”

In addition Ms Garrett-Cox also addressed the question of possible Scottish independence and its effect on the Dundee-based company, ahead of the referendum in September.

She stated: “The referendum in September is creating uncertainty for our customers and our business, which we have a responsibility to address. 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.”