Alliance Trust focuses on Emerging Market

Alliance-TrustThe UK's largest investment trust, Alliance Trust, has decided to focus more on the emerging markets. The decision was driven by its under performance as compared to the company's peer group.

Though the return per share went up by 22 per cent since January 2, it performed well below its rivals. The net asset value of its peer group went up by 29 per cent during the same period.

Last year the company adopted wait and watch approach and relocated the cash to the market. The company started the year with 11.6 per cent of its assets in cash and by the year end the gearing was 4.7 per cent. Now it has 94.7 per cent in equity, highest in eight years, while remaining five per cent went into property and private equity. Out of £290m commitment by Alliance Trust £120m went into Asia.

Seeing the chances of a hung parliament, Katherine Garrett-Cox, the Chief Executive of the company, has been trying to reduce investments in the UK. Taking the step in the direction it has already offloaded large proportion of its UK equities.