LONDON (Alliance News) - Alliance Trust PLC on Monday revealed its line-up of eight portfolio managers expected to boost the Dundee-based investment firm's performance, following the sale of its in-house investment team.
The equity managers were selected by US advisory firm Willis Towers Watson, which has been appointed as Alliance Trust's new investment manager. The move to a multiple manager model was revealed in December, along with the sale of in-house manager Alliance Trust Investments Ltd to Liontrust Asset Management PLC.
Willis Towers Watson has opted for a cross-Atlantic approach, selecting five North American and three London-based managers.
In the US, the managers are Pierre Py and Greg Harr of Los Angeles-based First Pacific Advisors; Rajiv Jain of GQG Partners in Fort Lauderdale, Florida; Andrew Wellington of Lyrical Asset Management in New York; and George Fraise, Gordon Marchand and Rob Rohn, all of Sustainable Growth Advisers in Stamford, Connecticut.
Bill Kanko of Black Creek Investment Management, based in Toronto, also joins the North American contingent.
In London, the line-up consists of Ben Whitmore at Jupiter Asset Management Ltd, Hugh Sergeant of River & Mercantile Asset Management and Andy Headley of Veritas Asset Management.
Each of the equity managers will select a portfolio of around 20 stocks making up the combined portfolio of the trust. Willis Towers Watson will maintain "overall oversight" of the portfolio, including income, risk and concentration characteristics, said Alliance Trust.
The oversight team will be led by Craig Baker, chief investment officer of Willis Towers Watson, with David Shapiro and Mark Davis as co-portfolio managers and Stuart Gray as the lead researcher.
As part of the transition, Alliance Trust said its outperformance target for the equity portfolio will be revised to 2% above the MSCI All County World Index annually, net of costs over rolling three-year periods, doubled from its existing 1% outperformance target.
Alliance Trust also said it intends to continue with its progressive dividend policy and is targeting total annual costs below 0.6%.
The new approach will be voted on by shareholders at a general meeting on February 28.
"Under the new approach, Alliance Trust will offer access to best-in-class managers, which, together with a focus only on their best investment ideas, will help to increase the likelihood of consistently delivering improved performance over the long-term," said Robert Smith, chairman of Alliance Trust.
"We are confident that this new approach, and the managers selected, will meet our ambition and deliver for many more generations to come and we recommend shareholders vote in favour at the general meeting," added Smith.
Shares in Alliance Trust were up 0.6% at 662.62 pence Monday.
By Adam Clark; adamclark@alliancenews.com
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