Edison initiates coverage on Alliance Trust

RNS Number : 4477J

Alliance Trust PLC

17 December 2015

 

London, UK, 17 December 2015

Edison initiates coverage on Alliance Trust

Alliance Trust (ATST) is a global equity investment trust differentiated by its focus on sustainable businesses and long-term investment in subsidiaries. Significant changes announced in October 2015 give ATST a simpler organisational structure and clarify the investment proposition. Measures include focusing on the global equity portfolio, introducing the MSCI AC World index as a formal performance benchmark for the trust, appointing ATI as investment manager with a 0.35% fee and a target 0.45% ongoing charge, confirming the progressive dividend policy and committing to share buybacks to help maintain the discount below 10%.

Although ATST's share price discount to NAV including income has narrowed from 19.6% in March 2011 to its current level of 9.4%, it remains wider than the sector average, suggesting scope for further narrowing. While below average longer-term performance was raised as an issue by shareholders, ATST has outperformed its closest peers over one year and its 2.0% yield, based on its 2015 indicated ordinary dividend of at least 10.13p, is higher than the global sector average.  

Click here to view the full report

All reports published by Edison are available to download free of charge from its website. www.edisoninvestmentresearch.com

About Edison: We are an international equity advisory firm. We enable our client companies to achieve their capital market objectives. The team is made up of more than 80 analysts and investment professionals with many decades of experience. Our extensive company knowledge and industry expertise spans 10 business sectors and more than 700 listed companies globally. We give our corporate clients and investors privileged insight into global investment trends. Our distribution capability is key to ensuring that a global investor audience can access our investment knowledge. Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

Contact details: Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn	www.linkedin.com/company/edison-investment-research
Twitter	www.twitter.com/Edison_Inv_Res
YouTube	www.youtube.com/edisonitv
Google+	https://plus.google.com/105425025202328783163/posts

 

END

 

 

NRAUBSORVSAUAAA