The near 20% share price discount to NAV and the looming presence of activists on the Alliance Trust PLC share register have caused Brewin Dolphin some concerns on behalf of its clients in Alliance.
However, the recent response from the Board of Alliance has been encouraging and the company has now embarked on a series of share buy backs; indeed Alliance Trust’s CEO Katherine Garrett-Cox has gone on record saying that “Share buy backs are now part of Alliance’s DNA.”
Following this recent action, the discount has already narrowed by more than 3% representing over £70 million of shareholder value. For Alliance to have taken this initiative themselves, albeit after a nudge, shows that such action should be in the best interests of shareholders, rather than for the Trust to be backed into a corner. We hope that Alliance will continue with this new policy, as they have pledged.
The Alliance Trust AGM takes place on 20th May and the Brewin Dolphin client voting service is now open, for Alliance Trust shareholders in our nominee to vote their own shares as they think best, via our service at https://apps.brewin.co.uk/vys/ . As from 9th May any of our investment managers with Alliance Trust in their clients’ portfolios will have the opportunity to vote the shares not already voted by their clients. Finally, if any shares, over which we have discretion, have not been voted by 12th May – Brewin Dolphin will vote the remainder based on the recommendation of the Investment Trust Research Department. At the time of writing, our Investment Trust analysts expect to recommend that any remaining shares will be used to support the Alliance Board. The results of all these votes will be posted on our website on the day of the Alliance AGM.
This shareholder voting service with our policy described above, was launched by Brewin Dolphin in 1998 and is always available for our clients holding any UK fully quoted shares in our nominee services, to vote at their companies’ AGMs. Shareholder democracy in action!
The value of investments can fall and you may get back less than you invested.
No investment is suitable in all cases and if you have any doubts as to an investment's suitability then you should contact us.
The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.
For further information from Brewin Dolphin please call:
Charlotte Black - Head of Corporate Affairs on 0845 213 3331
John Newlands - Head of Investment Trust Research on 0845 213 2101