Alliance Trust PLC Alliance Trust Plc : Update On Proposals

 
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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