LONDON (Alliance News) - Alliance Trust PLC on Thursday named Robert Smith, Lord Smith of Kelvin as its new chairman, marking the appointment of a successor to Karin Forseke, whose departure was revealed in November last year as part of big changes at the group.
Currently the chairman of UK Green Investment Bank PLC, Forth Ports Limited and IMI PLC, Smith is known for his time as chief executive and then vice chairman of Morgan Grenfell Asset Management, which was eventually renamed Deutsche Asset Management, between 1996 and 2002.
The new chairman's experience at what was then the largest pension fund manager in the UK and a top asset manager in Germany would have helped Alliance Trust in making its decision.
"Alliance Trust is an important business with a long and proud history in Scotland and around the world. I am looking forward to getting started and playing my part in delivering the changes that are necessary to return the trust to the levels of performance upon which it has earned its reputation and success," Smith said.
The group has been implementing big reforms after a bruising battle with activist investors Elliott Advisors, resulting in the departure of Forseke, which followed the removal of Katherine Garrett-Cox, its former chief executive, from the board. Garrett-Cox, a high-profile figure in the City, remains as the chief executive of the group's investment arm, Alliance Trust Investments.
Alliance Trust has been cutting exposure to fixed income on the way to a full exit, disposing of its remaining commercial property, cutting costs and implementing share buybacks to narrow the discount at which its shares trade to net asset value.
Shares in Alliance Trust were down 1.5% at 484.30 pence on Thursday early morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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IMI (IMI)
