What the Changes at Alliance Trust Mean for Shareholders

Invesment company Alliance Trust has announced significant changes, including booting chief executive Katherine Garrett-Cox off the board and cutting fund fees by 25%

Emma Wall 2 October, 2015 | 11:20AM
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Good news for shareholders: Dundee-based investment firm Alliance Trust has made significant changes to the way it runs money, the board and fund fees, bowing to pressures from its main shareholder, US-based Elliott Advisers.

The troubled firm runs Alliance Trust (ATST), the largest investment trust in the UK at £2.5 billion, which Morningstar fund analysts rate Neutral, reflecting the considerable changes at the Trust in recent years.

The most recent announcements are due to come into effect in March 2016, and aim to simplify the business and cut £6 million in costs by the end of 2016. The news, including that fees would be cut by 25%, has been received well by shareholders, causing the share price to bounce and the discount on the trust to narrow.

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About Author

Emma Wall  is former Senior International Editor for Morningstar