This move follows Witan CEO Andrew Bell’s retirement and a strategic review of its investment management by the board of Witan. The merged entity will have £5 billion in assets and be eligible for FTSE 100 inclusion.

The combination will build upon the distinctive multi-manager investment model already employed by Alliance Trust, which utilises the proven management skills and deep resources of Willis Towers Watson (WTW) to create an actively managed global equity portfolio chosen by best-in-class stock pickers. Alliance Witan will apply that methodology within an even more liquid, high-profile and cost-efficient “one stop shop” investment vehicle for global equities.

The combination will be undertaken through a scheme of reconstruction by Witan under s110 of the Insolvency Act 1986, which will see Witan roll into Alliance Trust in exchange for the issue of new Alliance Witan shares to the continuing Witan shareholders.

Alliance Trust’s investment manager, Willis Towers Watson (WTW), will have overall responsibility for managing the assets of the combined Alliance Witan. It will employ the same approach as has been utilised by Alliance Trust since WTW’s appointment in 2017 – selecting a diverse team of expert stock pickers, each of whom invests in a customised selection of 10-20 of their ‘best ideas’.

Dean Buckley

Dean Buckley, chairman of Alliance Trust, said: “The formation of Alliance Witan brings together the two leading open-architecture multi-manager investment company propositions in the UK to form a FTSE 100 equity investment vehicle with the quality, cost efficiency and profile to play a leading role in the UK investment market.

“Shareholders will benefit from access to the proven investment process implemented by our investment manager, Willis Towers Watson, and access to the world’s leading stock pickers.

“This is also a significant moment for our industry in broader terms – Alliance Witan represents a key milestone in the history of the investment trust structure which has demonstrated its capabilities very effectively over many decades.”

Mr Buckley added: “Witan was an early adopter of the multi-manager solution and, on behalf of my board, we congratulate Andrew Bell and his team on all that they have achieved during their tenures.

“Combining our two historic companies, established in 1888 and 1909 respectively, recognises the attractive opportunity to deploy the investment strategy, which has been proven to be robust through the investment cycle, at significantly greater scale.”

Andrew Ross, chairman of Witan, said: “Since Andrew Bell announced his intention to retire, we have been through an extensive process to identify the best candidate to take on the management of our shareholders’ assets.

“The board assessed a number of very strong proposals, including single-manager candidates with impressive track records. However, the board was unanimous in recommending the combination with Alliance Trust, which allows the continuation of our multi manager approach at lower fees and in a larger, more liquid vehicle.

“The companies share similar cultures and a mutual desire to provide a ‘one stop shop’ for retail investors in global equities.

“I am delighted to announce this transaction, the largest ever investment trust combination, in Witan’s 100th year as a quoted company on the London Stock Exchange. The deal will result in one of the leading investment companies listed in London and will stand our shareholders in good stead for many years to come.”