21 April 2008
- Net asset
value down 4.6% in harsh year for stock markets when FTSE All-Share fell 6.6%
- Equity
portfolio results mixed amid extreme volatility. UK Large Cap and
- Risk
profile held low by defensive stockpicking and continuing diversification across
asset classes
- Investment
in private equity strengthened while property income doubled to £4m
- Revenue
from financial services subsidiary, Alliance Trust Savings, up 19%
- Above-inflation
increase in annual dividend, up 4.3% to 7.9p per share
Alliance Trust PLC, announced today that its revenue rose to £82.6m in
the year to 31 January 2008, from £68.1m
in the previous financial year. However, the net asset value of the Company fell
to £2,699m in the 12 months to 31 January 2008 from £2,832m the year before. In
a volatile year, a sharp fall in stock markets in January 2008 alone when the
FTSE All-Share fell 8.7%, erased gains made to the end of the previous 11
months.
Alliance Trust Chief Executive Alan Harden said, “Our focus on pursuing real long-term returns substantially above the
rate of inflation prompted us to position ourselves in defensive stocks and
maintain a risk averse stance that is appropriate in extremely challenging
markets. Throughout the financial year, with increasing volatility in stock
markets, we re-entered the market selectively to invest in well-run companies that
were being unjustly marked down. By investing on what turned out to be some of
the worst days of the year for markets we believe we have added to the
potential for outperformance of our equity portfolio.”
“We were heartened that our revenue continued
to grow. We continue to develop our long-term strategy to create sustainable wealth
by investing in a broad range of assets and our subsidiaries which have great
potential to generate rising returns in both capital and income.”
Chief Investment Officer Katherine Garrett-Cox said, “We enhanced our investment process last
year, continuing to concentrate our quoted equities portfolio in a focused
selection of stocks while taking decisions that made a notable difference, such
as reducing exposure to Japan, and switching in favour of Asia and
“We increased investment in private equity
during a more difficult year for quoted equities. Quoted equities remain our
principal area of investment and we largely hold defensive stocks and companies
that will benefit from continuing emerging market growth. We were pleased to
see that income from our property portfolio doubled in the year and, with
commercial property prices falling to levels that are now more attractive, will
be seeking opportunities to increase investment in prime properties where we
are confident rental levels will hold up.”
“The coming year will continue to be challenging,
with the credit squeeze hampering global growth. However, we have positioned
ourselves in high-quality, well-managed companies which have the ability to
perform well through different economic cycles. This approach helped us
outperform in the notoriously difficult North American market where our
regional portfolio rose 5.9% compared to a 2.4% loss in the regional benchmark
index. We were also able to outperform in
Contacts
Jane Holligan, Media Relations Manager Henrietta
Guthrie/Anna Schirmer Tel +44
(0)1382 306064 Tel +44 (0)20 7294 3612/ 3605 Mobile 07745 783212 Email alliancetrust@lansons.com Email jane.holligan@alliancetrust.co.uk Web www.alliancetrust.co.uk For investor enquiries contact: Kelly
O’Donnell, Head of Investor Relations Alliance
Trust Tel +44 (0) 382 306036 Mobile +44 (0) 784 336 9522 Email kelly.odonnell@alliancetrust.co.uk
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Notes to editors
1.
A
FTSE-100 company, Alliance Trust PLC heads an investment and financial services
group. Based in Dundee, Alliance Trust has been investing since 1888 and is the
largest generalist
2.
In
the 12 months to 31 January 2008, the FTSE All-Share fell 6.6%. The UK Retail
Price Index was up 4.1% in the same period. At the end of January 2008, more
than 93% of the company’s capital was invested in quoted equities. Private
equity made up 5.4% of total assets at year-end, while direct property
accounted for 3.4%. At year-end the Company had net gearing of 4.8%.
3.
The
year to 31 January 2008 was the first full financial year that Alliance Trust PLC
has reported on since the merger of The Alliance Trust PLC with The Second
Alliance Trust PLC, which became effective on 21 June 2006.
4.
Consolidated
figures include those of the investment trust company along with those of its
subsidiaries. These include financial services company, Alliance Trust Savings,
private equity business Alliance Trust Equity Partners, and AT Asset Management
(Asia-Pacific) Limited.
5.
Photographs
of Alan Harden and Katherine Garrett-Cox are available.