Alliance Trust Investments is to seek regulatory approval to close three funds following a review of its fund range.
The Alliance Trust Investments UK equity income, Asia-Pacific equity and Japan equity funds will be closed, subject to FSA approvial. Alliance Trust claims it will allow it to “focus on those capabilities where it has truly differentiated skill sets”.
The news came as parent investment company Alliance Trust announced a restructure of the management of its equity portfolio, which will result in its four regional equity portfolios being merged into its existing global equity portfolio.
The restructure will see Ilario Di Bon take on a new role as head of equities and will be supported by a global equity team; he will report directly to chief executive Katherine Garrett-Cox.
The investment team structure will reduce the number of stocks held in the Alliance Trust portfolio, opting for a higher conviction approach.
According to Alliance Trust, a number of members of the investment team are to leave with immediate effect. A small number of investment roles have been made transitional, with individuals able to apply for those in the new structure.
Katherine Garrett-Cox (pictured) says: “We believe this will be better aligned with our investment objectives and will allow us to focus on our area of expertise: investing on a truly unconstrained basis with high conviction.”
She adds: “This new structure will allow us to maintain our commitment to our shareholders to deliver capital growth and a rising dividend from a diversified portfolio of global equities and fixed income investments.”
Hargreaves Lansdown senior analyst Meera Patel says: “Alliance Trust has really struggled to raise assets across the board. Our quantitative analysis of the firm has failed to raise eyebrows in comparison to some of the other funds in the market. They have launched funds in mainstream areas and to grab attention you need to have strong performance.”