The highlights for the year are:
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NAV Total Return of 18.4% and Total Shareholder Return of 22.7% delivered on top of double digit returns in 2012, representing the best absolute returns for three and eight years respectively. Equity portfolio generated gross returns of 21.6%, outperforming the MSCI All Country World Index
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Total dividend for the year of 10.83p, an increase of 12.5% on 2012. Fourth interim dividend of 2.387p and special dividend of 1.282p to be paid on 30 June 2014. It will be paid out of current year earnings and marks the 47th consecutive year of dividend increases. The Trust has revenue reserves equivalent to 1.86 times the total dividend payment in 2013
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Business well positioned with stronger team, processes and structure to deliver consistent returns for shareholders over the long term following establishment of new global portfolio structure in 2012
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Alliance Trust Savings made its first full year profit for eight years and grew Assets under Administration by 33% to £5.4bn
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Alliance Trust Investments increased Assets under Management by 16% in a period which saw the closing of two non-core funds and completion of the rebranding of the Sustainable and Responsible Investment Funds as the Alliance Trust Sustainable Future Funds
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Alliance Trust, Alliance Trust Savings and Alliance Trust Investments won respected industry awards for performance, products, customer service and transparency in reporting
Katherine Garrett-Cox, Chief Executive of Alliance Trust PLC, said:
"After five years of hard work and significant change at Alliance Trust, this year we have started to reap the rewards of that change. The equity portfolio generated a gross return of over 21% and Alliance Trust Savings is now profitable on an ongoing basis and will continue to benefit from changes brought about by the Retail Distribution Review. Moreover, Alliance Trust Investments has established itself as a leader in the sustainable investment sector. As a whole, the business has delivered capital growth and a significantly increased level of income and I am confident that all parts of the business are now better placed to be able to compete effectively in their respective markets and add long-term value to the Group.
The equity portfolio is structured to be able to deliver a combination of capital growth and a consistently rising dividend. The 12.5% increase to the dividend this year has been driven by rising income from all parts of the investment portfolio, including increased exposure to equities, income from our holding in the Monthly Income Bond Fund and a doubling of the royalty income from our legacy mineral rights in North America.
We have always been and continue to remain focused on the service we provide to all our shareholders and customers across the UK and beyond. 2014 is an important year for Scotland. The referendum in September is creating uncertainty for our customers and our business, which we have a responsibility to address. Regardless of the outcome it is critical that we are able to provide continuity of service and protection for their investments and savings. To give them full confidence, we have started work to establish additional companies registered in England, in order to provide operational flexibility and to complement our existing business in Scotland.
