The Alliance and Second Alliance investment trusts are to quit the AITC in
a move which will cost the trade body more than £200,000 in annual
The £1.78bn Alliance trust, the UK's third-biggest investment trust,
and the £600m Second Alliance trust are withdrawing from the trade
body over the extra 0.5 basis point of assets under management which was
added to the membership charge this summer. The fee hike was to cost the
two trusts around an extra £120,000 a year. The AITC asked members for
extra fees to continue the its marketing campaign earlier this year.
While more than 90 per cent of members agreed to the extra 0.5 basis point
to maintain IFA marketing and press relations, a bid to charge a further
basis point for consumer marketing was rejected. The Alliance trusts
rejected both proposals.
However, Jupiter head of investment trusts Andrew Watkins points out that
All-iance will still get many of the benefits of the AITC, even without
being a member.
He says: “An accusation of a free lunch could be levelled at Alliance. I
think they are being disloyal to the investment trust industry.”
AITC communications dir-ector Annabel Brodie-Smith says: “We are
disappointed to see them go. The majority have been happy to pay up for the