The beginning of the blurb:
Alliance Trust PLC : Outcome of Strategic Review
Alliance Trust to remain a global equity investment trust offering real returns over the medium to long term
Target to outperform MSCI All Country World Index to be doubled from 1% to 2% p.a., net of costs, over rolling three-year periods
Aiming to build on Alliance Trust's 49-year track record of year-on-year dividend growth
A new approach to investment management to be adopted to increase the likelihood of delivering consistently the performance target:
Move from a single manager to multiple equity managers, each rated best-in-class1
Each equity manager to create a focused portfolio of their top investment selections
Agreement reached to sell Alliance Trust Investments to Liontrust Asset Management Plc for up to £30 million; representing a premium of at least £5 million to book value
Alliance Trust Savings continues to make good progress and will remain as part of the Group; now profitable and well placed to develop further
A proactive programme of share buy-backs to be introduced with the aim of achieving a significantly narrower discount
Shareholders to be provided with the opportunity to vote on the new approach to investment management
Click here for the rest of the news release.
For me this is a positive step, you're getting rid of the always inconsequential yet empire building ATI and, I'm probably in a small minority here, think ATS has big upside potential. The multi-manager strategy has worked out rather well for Witan short-term, though, I'm sceptical of the long-term benefit.