Rothschild’s RIT will face challengers for Alliance merger
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The Rothschild family’s RIT fund is likely to face rival challenges in its merger bid with the Dundee-based Alliance Trust, city analysts have predicted.
Stephen Peters, investment trust expert at wealth manager Charles Stanley, told the Financial Times: “We should expect more proposals. Two billion pounds is a lot of money, and everyone from BlackRock through Baillie Gifford and the rest of the Scottish contingent will be interested.”
Aberdeen Asset Management, a vocal critic of the previous Alliance Trust chief executive Catherine Garret-Cox, is also seen as a likely contender.
Peters said: “The investment trust sector is bifurcating. On one side we have high-conviction alternative assets, on the other we have high-performance, high-octane aggressive unconstrained equity funds with conviction-driven managers. An index-plus, long-only fund is not where the market is.”
He added that Standard Life Investments might take the opportunity to expand its already huge Global Absolute Return Strategies fund while BlackRock might attempt to offer a merger with the BlackRock Income Strategies.
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