Results for year to 31 December 2012
|Financial Highlights||As at 31
|Total Return||AIC Global Growth
Sector Total Return
|NAV per share||444.9p||9.6%||12.1%||12.4%|
|Full year dividend||9.63p||7.0%||Including special dividend of 0.36p|
|Ongoing Charges Ratio||0.67%||+11bps|
Company highlights - Alliance Trust gains momentum
Alliance Trust gains momentum in the year to 31 December 2012, with its investment and savings businesses benefiting from significant transformation.
Strong investment performance delivered, with Net Asset Value Total Return of 12.1% and Total Shareholder Return of 12.4%, in line with the AIC Global Growth index and broad 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.
Total dividend payment for the year will be 9.63p, an increase of 7% on 2011. A fourth interim dividend of 2.3175p will be paid, making an ordinary dividend for the year of 9.27p and in addition, a special dividend of 0.36p will be paid. This marks the 46th consecutive year of dividend increases and will be paid out of current year earnings.
Alliance Trust Savings achieved monthly profitability in Q4 2012 and is well positioned to capitalise on the changes being brought in as part of the Retail Distribution Review.
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.
The discount has been narrowing consistently and has remained below 15% since the year end.
Alliance Trust has had the best start to a year for over 20 years, with the share price (+16%) and NAV (+13%) breaking new highs, which compares well to the FTSE All-Share which is up 10%.
Katherine Garrett-Cox, Chief Executive of Alliance Trust PLC, 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.
Our subsidiaries have made strong progress over the year. Alliance Trust Savings is now well positioned to perform profitably and pick up market share as a result of the changes that are being implemented as part of the Retail Distribution Review. At the same time, Alliance Trust Investments has significantly grown third party assets, becoming one of the leading players in the Sustainable and Responsible Investment sector, following its transaction to bring across the team and funds from Aviva Investors last year.
As we look towards the future, it's clear that the issues that have dogged the markets and the economic data over the last three to four years have not gone away; European governments have not fully resolved the Eurozone issue, nor has the US properly addressed the debt ceiling. However, we invest in companies, not markets, and valuations for many companies remain compelling. There are investment opportunities for those with longer time horizons and I believe that Alliance Trust is now better placed than ever to capitalise on these opportunities in 2013 and beyond. At a time when businesses have suffered an erosion in public trust, we will work to ensure we remain true to our name, our values and to the long-term view of our shareholders, continuing to deliver an improving performance for generations."