View more on these topics

Alliance Trust Savings returns to profit


Alliance Trust Savings has returned to profit with a £1.2m profit last year compared with a £5.2m loss for 2015.

Assets under administration for the firm rose by 60 per cent to £13.6bn in 2016, with a 31 per cent increase in the number of accounts.

The firm said the main driver for growth came from the completion of the Stocktrade acquisition as well as the re-platforming, which are seen “as important in growing the profitability of the business”.

Alliance Trust Savings chief executive Patrick Mill says: “We have a number of strengths in the platform market including one of the broadest investment ranges, a banking licence, the backing of a strong parent, independent of banks and life company product providers and a diversity of distribution channels incorporating direct, intermediary and partnerships. And, with our simple flat fee structure we are the truly fair option for customers.

“Over the last year, the completion of the acquisition of Stocktrade and the investment in technology have been a key focus. In 2017, our new platform will open to new intermediary business, followed by the migration of existing intermediary clients. This technology will then be implemented in the direct channel along with a new and enhanced proposition, leaving us well-positioned to accelerate growth across all three distribution channels.”

Overall, Alliance Trust has improved returns for its shareholders but reported underperformance versus the benchmark in 2016 as it reveals a new investment strategy.

In its full year results, the firm says total shareholder return for the period was 26.4 per cent mostly helped by a narrowing discount, compared to returns of 10.7 per cent in 2015.

The discount to NAV narrowed to 4.4 per cent, down from with 8.1 per cent at the end of 2015 thanks to an “active programme” of share buybacks from the firm.

However, the firm reported net asset value return of 21.5 per cent for 2016, compared to 29.4 per cent return from its benchmark MSCI All Country World Index.

Ordinary dividend for 2016 is 12.774p, which is an increase of 16.4 per cent compared with 2015 when dividend was 10.97p, the firm says.

As part of a new investment strategy, the firm has appointed Willis Towers Watson following the sale of its in house investment management arm to Liontrust Asset Management last year, which is expected to bring over £5m to the firm.

WTW, which will receive the company’s equity portfolio by the end of April, will adopt a multi-manager approach, with five North American and three London-based managers to run the portfolio.



Can a professional body alliance build public trust?

Professional standards in financial advice have come a long way in recent years, but consumers do not necessarily know that. How can the industry earn their trust? Earlier this month the Chartered Insurance Institute, the Chartered Institute for Securities & Investment and the Chartered Banker Institute joined forces to promote professionalism and build trust in […]

US markets fall on Trump tax plan uncertainty

Key Wall Street markets saw their worst falls since Donald Trump’s election victory yesterday. As investors sounded a note of caution over whether the President’s tax cut plan would materialise, the record highs the US markets have seen recently tailed off. The Dow Jones closed 1.14 per cent down, the Nasdaq dropped 1.83 per cent, […]


Ex-Bank boss calls on Govt to put pensions before Brexit

Former Bank of England governor Lord Mervyn King says politicians are obsessed with Brexit to the detriment of more fundamental issues such as pension saving and long-term care. Speaking on BBC’s Newsnight programme last night, Lord King said there was a risk “big questions” will not be addressed if the sole focus is the UK’s […]

Leading Edge – April 2017

There is little doubt 2017 will be a year of political uncertainty. Leading Edge is Royal London Asset Management’s regular review of investment markets. This edition explores some of the impacts that this uncertainty is having on investors, from the pitfalls of prediction within UK equity investing to the dangers of opting for convenience over […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm