Investment trust Alliance Trust (LON:ATST) has reported a “disappointing” first half of the year, just months after defending its performance in a heated battle with activist Elliott Advisors.
The portfolio made a total return of 1.4%, putting it 29th of 36 among its peers, with the trust falling into the bottom third for total shareholder return (TSR).
It has been a turbulent six months for the 128 year-old trust, which saw ‘vulture fund’ Elliott wage war on the board
Elliott proposed to add three non-executive directors to Alliance’s board accusing the company of under-performing.
Alliance spent much of the year objecting and defending its performance with a number of key statistics, including net asset value (NAV) and TSR, but the trust had a change of heart days before shareholders were set to vote on the issue.
One of the most acrimonious boardroom battles of the year ended abruptly with two of Elliott’s choices, city heavyweights Anthony Brooke and Rory MacNamara, joining Alliance’s board as non-executive directors.
Chair Karin Forseke, who led the charge against Elliott, said: “The first half of 2015 was a particularly challenging period for Alliance Trust”
“In the run up to our AGM a significant proportion of our shareholder base indicated that they sought change.
“The board has listened to these concerns and is actively engaged in addressing them” she said, adding that more changes will be announced in the autumn.
Under-pressure boss Katherine Garrett-Cox said much of the under-performance was due to a sharp rise in bond yields in June.
The company raised its dividend by 3% to 10.13p.