plc_branded_template 2015 and beyond: Alliance Trust looks to the future With a focus on responsible investing, Alliance Trust has a new strategy for the year ahead, as its CEO, Katherine Garrett-Cox, explains By Rosie Murray-West

"Our key goal at Alliance Trust over the next few years is to become the UK's most trusted investment and savings business," says Katherine Garrett-Cox, the company's chief executive. Ms Garrett-Cox believes that engaging people's trust is good business practice - not just a nice addition - and that the company's goal
will ultimately lead to financial success for the business as well as providing social improvements.
"In the world of financial services today, there is a lot of talk about loss of trust and about what financial services companies are doing to make that better," she explains.
"In our case we've now embedded the sense of truly responsible investing right through the artery of our business. It's the way that we lead the business; it's the way that we manage our funds.
"That's important for our investors. We believe that this, in time, will make a difference to our business model, share price and the way that we engage with our customers."
Ms Garrett-Cox recently co-chaired the World Economic Forum in Davos, with a theme of "the new global context". She told The Daily Telegraph that this theme encompassed challenges such as economic growth, social inclusion, climate change and the future of the internet.
"I take it to mean that there's an increasing fear that the world is becoming more federal and fragmented while the macro backdrop is increasingly fragile. For me, within that context, leadership, particularly in 2015, needs to be extremely resilient," she said.
"Businesses need to be collaborating with non-government organisations and politicians to create change." She said that Alliance Trust's own focus was on responsible investing, and that businesses have a "huge responsibility" in that arena. "We work with companies in which we invest on the impact they are having on the world at large," she added.
Alliance Trust places its focus squarely on sustainable investment. However, Ms Garrett-Cox says that this is about far more than just so-called "green funds" that avoid stocks that invest in certain areas. "From our point of view, sustainable funds are all about finding those companies that have sustainable business models that will really stand the test of time regardless of changing economic circumstances," she says.
The company's approach to sustainability is already paying dividends in terms of increasing its customer base. "We see a significant new sense of generational demand, with more people coming to speak to us to help them manage their portfolios. They have a real level of interest in what we're investing in," she says. "I think that in financial services you just have to be different. If you perform like everyone else you will ultimately be consigned to history."
Alliance Trust believes that people will do business with the company for several reasons, one of which is its focus on sustainability. "We have a clear focus and aim to grow wealth in a sustainable manner, and our values are central to everything we do," Ms Garrett-Cox says.
The company has several examples of how its values have affected its actions. Following the collapse of the Rana Plaza factory in Bangladesh, Alliance Trust worked with other shareholders, representing about £1 trillion of assets under management, to champion the Bangladesh Accord on Fire and Building Safety. "Our argument is that if incidents like this persist, apart from the devastating human impact, it will damage the
brands of those companies, so there is a long-term shareholder benefit in making sure that companies respect human rights," Ms Garrett-Cox says.
Whenever practicable, the company votes when it comes to management decisions for companies it invests in - and aims to take a stance that is commensurate with its sustainability strategy. "As the quality of the management of a company in which we invest is a key consideration, in most cases we support management but we will engage with them and ultimately vote against their recommendations where we believe that their proposals are not in shareholders' interests," Ms Garrett-Cox says. The company's voting record shows that it voted against management proposals in ten cases, and with the management in 75 cases last year.
"Our very strong view is that by taking a lead around responsible investing, and caring about having a resilient and responsible organisation, that will ultimately lead to significant value added for all of our stakeholders and investors," she adds. "It is only through adherence to our values and by delivering a sustainable business for our shareholders that we can continue to rebuild trust in our sector."
"While we have been investing for more than 125 years, we realise that to continue for the next 125 years, we need to remain as relevant to our shareholders, clients, and customers as we have always been. For us, everything starts with trust. It is in our name and it is key to a winning long-term strategy. We aim to stand out as a business that builds customer and investor loyalty through being closer to their needs and serving them in a more engaging way."

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