Strong investment performance underpins NAV return at Alliance Trust

FTSE 250-listed investment company Alliance Trust delivered a Net Asset Value Total Return of 12.1% in the year ended December 31st, its latest financial results show.

The company gained momentum with its investment and savings businesses benefiting from "significant transformation", it said.

A strong investment performance was reported with total shareholder return of 12.4%, in line with the AIC Global Growth index and market indices such as the MSCI All-Country World Index.

The investment portfolio was restructured during the year, with the team consolidating four regional portfolios into one global portfolio, adopting a higher conviction investment approach and reducing the number of holdings to around 100 stocks.

The total dividend payment for the year will be 9.63p, representing an increase of 7.0% on 2011, and a fourth interim dividend of 2.3175p will be paid, making an ordinary dividend for the year of 9.27p. In addition, a special dividend of 0.36p will be paid.

The group reported that Alliance Trust Investments continued to grow third party assets over the year after it took on £1.2bn of Sustainable and Responsible Investment funds from Aviva Investors.

Total assets under advice and management reached £1.9bn by the end of 2012.

Katherine Garrett-Cox, Chief Executive Officer of Alliance Trust, commented: "Alliance Trust has undergone significant change over the last year and I am pleased that the actions which we have taken across the business have resulted in the good results that we are announcing today.

"Investment performance continues to improve and the equity portfolio generated double digit returns last year. This performance has enabled us to increase the ordinary dividend and also to pay a special dividend, making an overall increase of 7%, paid out of current year earnings."

MF