Katherine Garrett-Cox, chief executive of Alliance Trust, says that raising the cash position early in 2008 has improved the performance of the FTSE 100 listed vehicle.
In preliminary results for the year to January 31, 2009, released this morning, the trust’s peer group ranking climbed from 25th out of 38 funds in the Global Growth and Income Investment Trusts sector a year ago to 11th out of 42 funds.
Cash was raised early in 2008 and reached a peak of 21% at the end of November. Garrett-Cox adds the trust has only invested in “resilient, well-run companies with good prospects of sustainable growth”.
The announcement says the dividend was increased for 42nd consecutive year to 8p per share, and a special dividend of 0.5p per share has been announced because of the high income earned.
The cash position is now being reduced to invest in global equities in anticipation of a recovery from the financial crisis, Garrett-Cox adds.
Uncharted territory proves perilous