1
UK ALPHA
TRUST.
This is not a consumer advertisement. It is intended for professional financial advisers
and should not ...
2
LEGAL & GENERAL UK ALPHA TRUST
A LONG TRACK RECORD OF OUTPERFORMANCE VERSUS PEERS
Source: Lipper as at 19th August 2013....
3
“If you want to outperform other people,
you have got to hold something
different from other people.
If you want to outp...
4
INVESTMENT PHILOSOPHY
HOW WE ARE DIFFERENT
5
LEGAL & GENERAL UK ALPHA TRUST
Past performance is no guide to the future.
6
SEEKING INVESTMENTS THAT COULD
EXPONENTIALLY GROW OVER 3 YEARS
IN A WORLD CHARACTERISED BY LOW GROWTH
Deep Value Organic...
7
CURRENT PORTFOLIO
Source: LGIM internal data as at 31st July 2013. For illustrative purposes only.
8
SMART METERING SYSTEMS
SUPERCHARGED UTILITY
• Winner of IPO of the Year 2012 QCA awards*
• Defensive demand patterns
• C...
9
PRUDENTIAL
• Non-banks is our preferred way of
playing the Financials sector
• We believe the Prudential is a well
capit...
10
ESERVGLOBAL
Source: Thomson DataStream as at 19th August 2013. Please note this is for illustrative purposes only, char...
11
DRIVER OF PERFORMANCE
UK ALPHA SELECTED SUCCESS STORIES
*Initial IPO purchase. Price increases calculated as per averag...
12
SELECTED DRIVERS OF UNDER-PERFORMANCE
Price increases calculated as per average prices as at 30th June 2013. Source: LG...
13
2013 UPDATE AND OUTLOOK
Increasing risk appetite
• Current markets favour stock pickers, albeit for mid-caps to date
• ...
14
LEGAL & GENERAL UK ALPHA TRUST
Source: Lipper as at 19th August 2013. Basis: net of fees, income reinvested. Past perfo...
15
FUND MANAGER, RICHARD PENNY
Source: Lipper as at 19th August 2013. Basis: net of fees, income reinvested. Past performa...
16
This presentation, and any information it contains, has been produced for use by professional managers and advisors onl...
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23082013 uk alpha trust

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23082013 uk alpha trust

  1. 1. 1 UK ALPHA TRUST. This is not a consumer advertisement. It is intended for professional financial advisers and should not be relied upon by private investors or any other persons. Richard Penny – Senior Fund Manager
  2. 2. 2 LEGAL & GENERAL UK ALPHA TRUST A LONG TRACK RECORD OF OUTPERFORMANCE VERSUS PEERS Source: Lipper as at 19th August 2013. Basis: net of fees, income reinvested. Past performance is no guide to the future.
  3. 3. 3 “If you want to outperform other people, you have got to hold something different from other people. If you want to outperform the market… the one thing you mustn't hold is the market itself” Anthony Bolton
  4. 4. 4 INVESTMENT PHILOSOPHY HOW WE ARE DIFFERENT
  5. 5. 5 LEGAL & GENERAL UK ALPHA TRUST Past performance is no guide to the future.
  6. 6. 6 SEEKING INVESTMENTS THAT COULD EXPONENTIALLY GROW OVER 3 YEARS IN A WORLD CHARACTERISED BY LOW GROWTH Deep Value Organic sales growth Macro Trends Micro Trends Refinancings Asset Plays Double whammy This is how we define our investment universe
  7. 7. 7 CURRENT PORTFOLIO Source: LGIM internal data as at 31st July 2013. For illustrative purposes only.
  8. 8. 8 SMART METERING SYSTEMS SUPERCHARGED UTILITY • Winner of IPO of the Year 2012 QCA awards* • Defensive demand patterns • Contracted recurring revenues • Scope for earnings upgrades • Smart meters have a significant upside Source: Company projections. *Grant Thornton Quoted Company Awards. Bloomberg data as at 19th August 2013. Please note this is for illustrative purposes only, chart does not include all buy/sell points. Reference to a particular stock or stocks is on a historic basis and does not mean that the stock is currently held or will be held within the fund.
  9. 9. 9 PRUDENTIAL • Non-banks is our preferred way of playing the Financials sector • We believe the Prudential is a well capitalised company enjoying exponential growth within EM Insurance • The stock has performed consistently well in recent turbulent markets and we believe is well placed to continue on this positive trajectory • The sum of the parts valuation could be significantly ahead of the current share price Source: Thomson DataStream as at 19th August 2013. Please note this is for illustrative purposes only, chart does not include all buy/sell points. Reference to a particular stock or stocks is on a historic basis and does not mean that the stock is currently held or will be held within the Fund.
  10. 10. 10 ESERVGLOBAL Source: Thomson DataStream as at 19th August 2013. Please note this is for illustrative purposes only, chart does not include all buy/sell points. Reference to a particular stock or stocks is on a historic basis and does not mean that the stock is currently held or will be held within the Fund. • Specialises in mobile money solutions • Part of a suite of technology plays • Homesend Division: 50% JV with 4 of top 10 global operators • 35-50 countries connected • Imminent anticipated impact on profitability
  11. 11. 11 DRIVER OF PERFORMANCE UK ALPHA SELECTED SUCCESS STORIES *Initial IPO purchase. Price increases calculated as per average prices as at 31st July 2013. Source: LGIM. All figures represent absolute returns over holding period and may reflect realised or unrealised gains. Reference to a particular stock or stocks is on a historic basis and does not mean that the stock is currently held or will be held within the Fund. STOCK SELECTION IS CONSISTENTLY STRONG ACROSS TIME AND MARKET CAPS.
  12. 12. 12 SELECTED DRIVERS OF UNDER-PERFORMANCE Price increases calculated as per average prices as at 30th June 2013. Source: LGIM. All figures represent absolute returns over holding period and may reflect realised or unrealised gains. Reference to a particular stock or stocks is on a historic basis and does not mean that the stock is currently held or will be held within the Fund. HIT RATE IS APPROXIMATELY 55% BUT WIN / LOSS RATIO IS SUBSTANTIALLY HIGHER.
  13. 13. 13 2013 UPDATE AND OUTLOOK Increasing risk appetite • Current markets favour stock pickers, albeit for mid-caps to date • Greater dispersion at the stock level • Western economies set for prolonged period of below average growth • “The Great Rotation” is believed to be starting Portfolio themes • Technology • Considering oil stocks amidst commodity stocks sell-off • Value opportunities remain in very small companies • M&A pick-up • AIM enjoying new potential (could inclusion of AIM within ISAs be a catalyst?) Recent portfolio turnover • Added large cap beta • Some profits taken on AIM names • Technology is a strong theme, no exposure to Banks, limited value in domestic UK cyclicals POTENTIALLY MORE UPSIDE TO AIM.
  14. 14. 14 LEGAL & GENERAL UK ALPHA TRUST Source: Lipper as at 19th August 2013. Basis: net of fees, income reinvested. Past performance is no guide to the future. A LONG AND COMPELLING TRACK RECORD OF OUTPERFORMANCE
  15. 15. 15 FUND MANAGER, RICHARD PENNY Source: Lipper as at 19th August 2013. Basis: net of fees, income reinvested. Past performance is no guide to the future. Richard is a Senior Fund Manager within the High Alpha team and the manager of the L&G UK Alpha Trust. He has over 20 years of investment experience across 3 economic cycles. Richard joined LGIM in 2002 having previously worked for five years as a Fund Manager for M&G Investment Management and four years as a Fund Manager at Scottish Amicable Investment Management. Richard began his career in 1992 at Scottish Amicable Investment Managers. Richard has a Masters degree in Engineering and Economics, Oxford University.
  16. 16. 16 This presentation, and any information it contains, has been produced for use by professional managers and advisors only and should not be distributed without the permission of Legal & General Investment Management Limited or Legal & General (Unit Trust Managers) Limited. The UK Alpha Trust (“the Fund”) is authorised unit trust, established as UCITS fund, managed by Legal & General (Unit Trust Managers) Limited. Legal & General Investment Management Limited has been appointed as the Investment Advisor and Distributor of the Funds and its main function is to invest the assets of the Fund. Both companies are authorised and regulated by the Financial Conduct Authority. The Fund is designed to be held for the longer term. The risks associated with this Fund are set out in the Prospectus and these should be understood before making any investment decisions. Additional information in relation to the Risk Management process is available on request. A copy of the Prospectus can be obtained from: Legal & General Investment Management Limited - Telephone number 020 3124 3583 All rights in the FTSE All Share (the “Index”) vest in FTSE International Limited (“FTSE”).“FTSE®” is a trade mark of the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE under licence. The Legal & General UK Alpha Trust has been developed solely by Legal & General (Unit Trust Managers) Limited. The Index is calculated by FTSE or its agent. FTSE and its licensors do not sponsor, advise, recommend, endorse or promote this fund and are not in any way connected to it and do not accept any liability (including in negligence or otherwise) to any person for any loss arising out of use of the Index by any person or in relation to the fund’s issue, operation or trading or as a result of an investment in the fund. FTSE makes no claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the fund or as to the fitness or suitability of the Index for the particular purpose to which it is being put by Legal & General Investment Management The information in this document and the views expressed are provided by Legal & General Investment Management who act as investment adviser to the Legal & General UK Alpha Trust

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