Former star manager leaves group
Garrett-Cox steps down at Alliance Trust Investments
Following a controversial dispute with a key shareholder and the main board last year she was demoted from group CEO to become CEO of Alliance Trust Investments. Now the role is to be scrapped.
The restructuring of the management comes just weeks after Lord Smith took over as chairman of the Dundee-based trust. Ms Garrett-Cox will leave the company next month and her responsibilities will be shared among other key staff.
In a statement, the company said: “Following discussions between the board of Alliance Trust Investments Limited and its chief executive, Katherine Garrett-Cox, about the future requirement for the chief executive role within ATI, it has been mutually agreed that Katherine Garrett-Cox will stand down as chief executive. Katherine will leave ATI on 11 March 2016.
“The responsibilities of the chief executive will be reassigned. ATI’s experienced team of investment professionals will continue to manage the £5bn of funds. Investment responsibilities are led by Peter Michaelis and the team who joined ATI in 2012 and have been managing the trust’s equity portfolio since October 2014. Operational responsibilities will be passed to Ramsay Urquhart as managing director, ATI.”
Lord Smith of Kelvin, said: “Alliance Trust is undergoing significant change to improve both its operating performance and investment returns. It has always had investment expertise at its heart and Katherine has done much, over the past nine years, to refocus the investment portfolio on its traditional strengths in global equities.
“Alliance Trust is now moving swiftly to implement the changes announced last year which are designed to enhance shareholder returns. This process is well underway and it is clear to us all that the role of chief executive of Alliance Trust Investments has changed significantly. I and the rest of the Board wish Katherine every success in the future.”
Ms Garrett-Cox said: “I am very proud of the significant achievements that my team has delivered over the past nine years at Alliance Trust. It has been an honour to have had the opportunity to represent and protect the long-term interests of so many shareholders and to have been a guardian of the Trust’s historic purpose of investing for generations. I leave Alliance Trust Investments with a strong team who are already delivering improved investment returns and driving down costs.”
Susan Noble, chairman of Alliance Trust Investments said: “I would like to thank Katherine for her contribution since joining Alliance Trust. Katherine led the establishment of Alliance Trust Investments, which now manages some £5bn of assets, building a team of equity and fixed income specialists and overseeing the development of its market-leading Sustainable Future funds.
“She leaves with the business in its best position for many years, evidenced by improving investment performance, a healthy level of funds managed for both Alliance Trust and third parties and the increasing opportunities for Alliance Trust Savings.”