Alliance Witan Explained

Alliance Witan plc
Former Name:The Alliance Trust Public Limited Company (18882006)
Alliance Trust plc (20062024)[1]
Type:Public
Traded As:
FTSE 250 Component
Key People:Gregor Stewart (Chairman)
Industry:Financial services
Products:Investment Trust
Revenue: £69.6 million (2023)[2]
Operating Income: £59.6 million (2023)
Net Income: £53.3 million (2023)
Assets: £3,576.6 million (2023)
Equity: £3,336.7 million (2023)
Location:Dundee, Scotland, UK

Alliance Witan plc, formerly Alliance Trust plc, is a publicly traded investment and financial services company, established in 1888 and headquartered in Dundee, Scotland. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. It is one of the largest investment trusts in the UK.[3]

History

The Alliance Trust plc was formed by the 1888 merger of three Dundee-based mortgage and land companies: the Dundee Investment Company, the Dundee Mortgage and Trust Investment Company and the Oregon and Washington Trust (which was set up to provide loans to immigrant farmers on the West Coast of the United States).[4] Many prominent figures in Dundee invested some of their money in the Alliance Trust and its predecessors, including merchants, ship owners, textile manufacturers and businessman such as Sir John Leng.[5] The company subsequently expanded into other asset classes. In 1918 the firm agreed to share premises and other costs with the Western & Hawaiian Investment Company,[6] a mortgage lender which initially focused its business on sugar planters in Hawaii before expanding. Five years later it was renamed The Second Alliance Trust, although no formal merger between the two took place until 2006.[7]

The Trusts later moved into fixed income investing in the 1920s and 30s, before adding significant quantities of shares to their portfolios in the late 1950s.[8] A savings division was established by Alliance Trust in 1986, offering pensions and other investment products.[9]

A formal merger with The Second Alliance Trust was finally conducted in 2006,[10] as the investment strategies of the two companies had come to closely resemble each other.[11] [12] Legally, the Second Alliance Trust became a private company, wholly owned by the Alliance Trust, and its shareholders became holders of new Alliance Trust shares. [13]

The company left its headquarters of over 90 years, Meadow House in Dundee's Reform Street on 1 June 2009 for a purpose-built facility on 8 West Marketgait in Dundee City Centre.[14] In 2011, it was reported that University of Dundee Archive Services had become custodians of the Alliance Trust's extensive archives.[5] [15]

Following criticism by Elliott Advisors,[16] an activist shareholder, Katherine Garrett-Cox stood down as Chief Executive and left the company in March 2016.[17]

In June 2024, it was announced that Alliance Trust would merge with Witan Investment Trust to create Alliance Witan. This would be achieved through the voluntary winding up of Witan Investment Trust.[18] The company formally rebranded itself Alliance Witan on 11 October 2024,[19] and four former directors of Witan were appointed as non-executive directors of Alliance Witan PLC.[20]

Investment strategy

In December 2016,[21] the board announced that the Trust would change its investment philosophy to a multi-manager model in a bid to improve performance.[22] In March 2017, the Trust's shareholders approved the change in approach.[23] The Trust then formally appointed Willis Towers Watson (WTW) as investment manager with effect from 1 April 2017.[24]

Former operations

Until October 2018, Alliance Trust was the parent company of Alliance Trust Savings Limited, an execution-only trading platform. The business was sold to Interactive Investor for £40m; the sale included the office building at West Marketgait, Dundee.[25]

External Links

Notes and References

  1. Web site: 1888-04-21 . Alliance Trust plc overview - Find and update company information - GOV.UK . 2024-02-13 . . en.
  2. Web site: Annual Results 2023. Alliance Trust. 7 March 2024.
  3. Web site: Analyse Investment Companies. The Association of Investment Companies. Retrieved 1 June 2017..
  4. Web site: About us: History 1873–1888 . Alliance Trust . 18 February 2008 . dead . https://web.archive.org/web/20080924020654/http://investor.alliancetrust.co.uk/ati/investorrelations/history.jsp . 24 September 2008.
  5. Baxter. Kenneth. The Alliance Trust: Dundee and the Wild West. Broadsheet- the SCA Newsletter. March–April 2011. 1. 6. 9 June 2011.
  6. Web site: About us: History 1918–1966 . Alliance Trust . 18 February 2008 . dead . https://web.archive.org/web/20080925140117/http://investor.alliancetrust.co.uk/ati/investorrelations/history2.jsp . 25 September 2008.
  7. Web site: Collection MS 335 - Alliance Trust Archive. Archive Services Catalogue. University of Dundee. 3 July 2024.
  8. News: Bolger . Andrew . On the way up in the oldest lift in the land . . 6 February 2005 . 18 February 2008 . https://web.archive.org/web/20090802024351/http://search.ft.com/nonFtArticle?id=050206002955 . 2 August 2009 . dead .
  9. Web site: About us: History 1969–1998 . Alliance Trust . 18 February 2008 . dead . https://web.archive.org/web/20080925140123/http://investor.alliancetrust.co.uk/ati/investorrelations/history3.jsp . 25 September 2008.
  10. Web site: Proposed merger SC1284 10/05/06 . UK Companies House (Filings) . 3 October 2024 . 20 Jun 2006.
  11. Web site: Hall . Algernon . Alliance Trust and Second Alliance announce mammoth merger plan . citywire.com . 27 September 2024 . 20 March 2006.
  12. News: Farrow . Paul . Alliance puts its trust in £2.8 billion merger . The Daily Telegraph. London . 29 March 2006 . 18 February 2008.
  13. Web site: Court Of Session, Scotland in petition of The Second Alliance Trust PLC . Filings at Companies House (UK) . 27 September 2024 . 21 June 2006 . The purpose of the Scheme is for the Company (Second Alliance Trust) to become a wholly-owned subsidiary of AT and the Scheme Shareholders (Second Alliance Trust Shareholders) to become holders of New AT Shares.
  14. News: Alliance Trust makes city hub of expansion. Robbins. Bruce. 9 January 2007. The Courier (Dundee). 18 February 2008. dead. https://web.archive.org/web/20090804053141/http://www.thecourier.co.uk/output/2007/01/09/newsstory9148137t0.asp. 4 August 2009.
  15. Web site: Business Archives. 27 January 2011 . Archives, Records and Artefacts at the University of Dundee. 13 October 2013.
  16. Web site: Investors take up positions as Elliott Advisors hits back at ‘out of touch’ Alliance Trust . Scottish Financial News . 18 October 2024.
  17. Web site: Katherine Garrett-Cox to leave Alliance Trust. 15 February 2016. BBC. 28 March 2016.
  18. Web site: Alliance Trust and Witan in £5 Billion Merger. Morning Star. 26 June 2024 . 25 September 2024.
  19. Web site: Alliance Trust formally rebrands to Alliance Witan and joins London Stock Exchange. Scottish Financial News. 11 October 2024. 11 October 2024.
  20. Web site: Alliance Witan PLC - Appointment of Directors (AMENDED) . London Stock Exchange . 18 October 2024.
  21. Web site: Patrick Hosking . Alliance splinters after reshuffle ends era of Katherine the Great . . 10 November 2021 . en . 16 December 2016.
  22. Web site: Dan Jones . Alliance Trust to switch to multi-manager model . . 10 November 2021 . 15 December 2016.
  23. Web site: Margaret Taylor . Alliance Trust investment chief remains upbeat despite recent performance . The Herald. Glasgow . 10 November 2021 . en . 27 April 2019.
  24. Web site: Alliance Trust names Willis Towers Watson investment manager . Brearley . Beth . 16 January 2017 . Fund Strategy . 7 June 2017.
  25. Web site: Alliance Trust Savings sold to Interactive Investor for £40m. Ellis. Tom. 22 October 2018. Investment Week. en. 1 February 2019.

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