Alliance Trust underperforms benchmark

Alliance Trust grew its net asset value (NAV) by 6.8% over the first six months of 2009, it announced today.

The investment trust’s basic NAV increased by 21.5p from 316.8p on January 31, 2009 to 338.3p on July 31, 2009.

This led to a 7% rise in the trust’s share price over the same six month period and a total shareholder return of 8.8%.

The trust said it had underperformed compared with the FTSE All-Share index, which returned 16.1%, and the FTSE All-World index, which returned 14.2%. This has led its peer group ranking to fall from 16 out of 44 over the year to 36 out of 44 over six months.

Over the past six months the trust has reduced its cash holdings and increased its core equities exposure to 89% of net assets.

The board said it had increased its exposure to Britain, America and Asia, investing in Britain for income and in Asia for capital growth.

Also today, Alliance Trust announced the appointment of Robert Burgess to its board, as chief executive of Alliance Trust Savings.

Burgess joined Alliance Trust in February 2009 as managing director of Alliance Trust Savings.

Prior to this, Burgess was executive director, sales and distribution for Thomas Cook, and before that held a number of senior banking roles within the Lloyds TSB Group.

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