Alliance Trust has agreed to sell its investment management arm to fund manager Liontrust Asset Management for £30 million (€35.7 million).
According to Liontrust, the Alliance Trust Investment (ATI) team comprising of around 200 members and 11 funds are included in the deal.
Liontrust’s assets under management will increase by £2.3 billion to £8 billion once the deal completes next year and the firm will also gain an investment team from ATI focused on sustainable investment.
This deal was included as part of Alliance Trust’s strategic review that will also see the Dundee-based financial services group outsource management of its £3.6 billion equity investments to other investment firms.
“We are proposing a new approach to the investment management of the equity portfolio. Our proposal is that we will move from a single manager to multiple equity managers,” said Lord Smith of Kelvin, chairman of Alliance Trust.
John Ions, chief executive of Liontrust, said: “The investment managers will be an excellent addition to our seven teams as they are very experienced, have a clear and robust investment process and have shown that sustainable investment can provide strong investment returns as well as meeting investors’ values.”
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