Alliance Trust PLC Alliance Trust Plc : Update On Proposals
21 February 2017 - 1:32AM
UK Regulatory
TIDMATST
20(th) February 2017
Update on Proposals
As announced in May 2016, the Board of Alliance Trust undertook a
Strategic Review of the Trust to determine its future direction. The
Board worked alongside a number of advisers, principally Canaccord
Genuity Limited, as Corporate Broker and Financial Adviser, and Dickson
Minto, as legal adviser. It also consulted with a range of shareholders
throughout the process.
On 15(th) December 2016 the Board announced it had concluded this
Strategic Review and set out proposals for a new approach to managing
the Trust's equity portfolio. The aim of the new approach is to increase
the likelihood of consistently delivering the performance target and to
build on the Trust's 49 year track record of increasing dividends.
The Board is proposing that it will appoint Willis Towers Watson (WTW),
a leading investment group, to manage the overall equity portfolio,
working with eight(1) equity managers, each of whom is rated
best-in-class(2) . Each equity manager will typically select 20
stocks(3) , which will make up the combined portfolio of the Trust. This
"best of the best" approach is subject to shareholder approval at a
General Meeting on 28(th) February 2017.
In advance of that meeting, the Board of Alliance Trust has received
questions from the press and shareholders about the role undertaken by
WTW during the Company's Strategic Review. The Board has responded to
these questions and is happy to share its response more widely.
WTW's participation in the Review was limited to a clearly defined role
as an investment consultant. This was to assist the Board, alongside its
other advisers, in a review of the Company's investment arrangements,
the other options available to the Company and in the evaluation of
potential investment managers. Such potential investment managers
included all those who put forward proposals to the Trust together with
other managers, drawing from WTW's global research views. WTW's
involvement ceased once this phase was completed.
Thereafter, and following further shareholder consultation, the Board,
supported by Canaccord Genuity Limited, undertook its own analysis of
the various potential courses of action to select the investment
management structure and approach that would best serve shareholders.
Following the Board's decision to give more detailed consideration to
the management of its equity portfolio via a multi-manager model, the
Board ran a competitive process to identify a preferred manager of such
a model. WTW was subsequently selected to become the investment manager,
as announced on 15(th) December 2016.
The Board and its advisers believe that any potential conflict of
interest for WTW was appropriately managed and that there is no conflict
of interest in WTW's proposed appointment by the Board as investment
manager to the Company.
The Board considers the approval of each of the Resolutions set out in
the notice of the General Meeting, including the adoption of a
multi-manager approach to be in the best interests of the Company and
its shareholders as a whole. The Board recommends that shareholders vote
in favour of all resolutions at the General Meeting.
Notes
(1) Initial number of managers selected
(2) As rated by Willis Towers Watson
(3) One of the managers will also manage an emerging markets portfolio
of around 50 stocks
Enquiries
Alliance Trust PLC
Lord Smith of Kelvin (Chairman)
Gregor Stewart (Deputy Chairman) + 44 (0) 1382 321000
Canaccord Genuity (Financial Adviser)
Andrew 'Z' Zychowski
Robbie Robertson
David Yovichic + 44 (0) 20 7523 8000
Tulchan Communications
Stephen Malthouse
Martin Pengelley
Samantha Chiene + 44 (0) 20 7353 4200
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Alliance Trust PLC via Globenewswire
http://www.alliancetrusts.com
(END) Dow Jones Newswires
February 20, 2017 09:32 ET (14:32 GMT)
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