Alliance Trust to appoint WTW to manage portfolio

Alliance Trust has announced that it is proposing to appoint Willis Towers Watson (WTW) to manage the overall equity portfolio, working with eight equity managers, each of whom is rated best-in-class.

The Company said this approach is subject to shareholder approval at a General Meeting on 28th 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.

A statement by the Company said:

“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 15th 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.”

At 2:58pm: (LON:ATST) Alliance Trust Plc share price was -0.25p at 676.75p

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