Big shake-up for Alliance Trust

There are major changes afoot at Dundee-based investment trust Alliance Trust. Sarah Moore explains.

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Katherine Garrett-Cox: under pressure to deliver

After eight months of "softly, softly" attention from activist hedge fund Elliott Advisors, there are major changes afoot at Dundee-based investment trust Alliance Trust. Elliott, which owns a 14% stake in the trust, succeeded in having two independent directors appointed to the board in April (despite the management team initially spending £3m resisting their proposals). But the activists have continued to pile on the pressure, pointing to the trust's underperformance: Alliance has lagged rivals Scottish Mortgage by 46% and Witan by 19% over the past five years, according to data from Reuters.

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Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.