OREANDA-NEWS. December 21, 2015. Alliance Trust (ATST) is a global equity investment trust differentiated by its focus on sustainable businesses and long-term investment in subsidiaries.

Significant changes announced in October 2015 give ATST a simpler organisational structure and clarify the investment proposition. Measures include focusing on the global equity portfolio, introducing the MSCI AC World index as a formal performance benchmark for the trust, appointing ATI as investment manager with a 0.35% fee and a target 0.45% ongoing charge, confirming the progressive dividend policy and committing to share buybacks to help maintain the discount below 10%.

Although ATST's share price discount to NAV including income has narrowed from 19.6% in March 2011 to its current level of 9.4%, it remains wider than the sector average, suggesting scope for further narrowing. While below average longer-term performance was raised as an issue by shareholders, ATST has outperformed its closest peers over one year and its 2.0% yield, based on its 2015 indicated ordinary dividend of at least 10.13p, is higher than the global sector average.