View more on these topics

Alliance Trust Savings sold to Interactive Investor

Platform costsAlliance Trust Savings has been sold to fellow flat-fee platform Interactive Investor for £40m.

II will also take control of parent company Alliance Trust’s office building in Dundee that houses ATS as part of the deal.

ATS confirmed it was in discussions with potential new owners in July, but market watchers had tipped a deal for many months before.

The platform has suffered mixed fortunes in recent years. While it did return to profitability after reporting a £5.2m loss in 2016, a number of key staff including chief executive Patrick Mill left at the end of last year.

The deal will take the combined platform to £35bn in assets under administration split among 400,000 customers.

ATS suffered service issues during an upgrade with technology provider GBST, which also powers platforms like AJ Bell and Aegon.

GBST also sits behind the the II Sipp administered by Barnett Waddingham.

The sale marks further consolidation amongst the few platforms operating the flat-fee structure, after II picked up TD Direct last year and agreed to keep its own charging model after the acquisition.

II also acquired the white label share-dealing businesses from Trustnet Direct, Telegraph Investor, The Motley Fool and Share Price in October.

Alliance Trust Savings unpicked: The winners and losers from platform charge changesAlliance Trust chairman Robert Smith says: “[ATS and II] are highly complementary and ATS customers, many of whom are Alliance Trust shareholders, will benefit from Interactive Investor’s similar low flat-fee structure, as well as its increased scale and focus.”

Alliance Trust says that ATS makes up just 1.3 per cent of its portfolio, and the sale would allow it to build its global equity portfolio, where the proceeds of the sale will be invested.

This will be a key area of focus for Alliance Trust, the firm says, after selling in-house investment management arm Alliance Trust Investments to Liontrust, and, more recently, the sale of the trust’s private equity assets.

Recommended

Delivering advice and guidance in the workplace

Three advisers share their ideas and experiences of helping employees with their financial decisions The workplace is instrumental in engaging people to save for retirement. How are advisers helping employers provide advice or guidance to their employees? Telephone guidance Financial education provider and advice firm Wealth at Work recently launched a telephone guidance service to […]

Court ruling opens door for higher IHT bills

Pension savers in ill-health are at a greater risk of being hit with a 40 per cent inheritance tax bill after a Court of Appeal ruling in favour of HM Revenue & Customs, experts have argued. Currently anyone who is in ill-health, transfers their pension and then subsequently dies within two years could see their […]

Fundsmith backed investment trust begins trading

Fundsmith has successfully launched its new investment trust, Smithson, to the main market of the London Stock Exchange this morning. The asset manager led by star manager Terry Smith has confirmed that 82,250,958 shares were issued at 8am. The firm also noted that Smith and the other founder partners and key employees of Fundsmith currently […]

Can advisers really beat the market downturn?

This summer saw the S&P 500 rule headlines for enjoying the longest-running bull market in history. Yet, as per the old adage, what goes up inevitably comes down, and it is the job of advisers to manage clients’ portfolios accordingly – either directly or via the third-party investment services they use. A crude assumption might […]

The Merchants Trust PLC – April 2017

Welcome to the latest update for The Merchants Trust PLC from the Trust’s portfolio manager, Simon Gergel. Portfolio Review The Merchants Trust reported results this month and the directors were pleased to announce a 35th consecutive year of dividend growth (subject to shareholder approval at the AGM). The Company is proud to be highlighted as […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com