Alliance Trust North American Equity FundMatthew StrachanHead of North American EquitiesJustin Atkinson, CFAInvestment ManagerTom PearsonDirector, Head of UK Retail SalesFor investment professionals only
Investment Themes Energy Industrial 3 screens Independence Renaissance and the cloud Canada • Technological Innovation • Solid manufacturing base • Technological evolution • Sensible • Huge activity • Infrastructural demand • Social Networks • Reliable • Cheaper Energy • Growing competitiveness • World leaders • Dynamic • Overseas potential • Repatriation • Future growth • Open for business2
Top 10 holdings vs benchmarkWeightings (%)76543210 Apple American Lions Pfizer InterOil Yamana New York Ross Stores Philip Bank of Tower Gate Gold Community Morris Nova Scotia Bancorp Alliance Trust North American Equity Fund MSCI North America Index Total Return (£)Source: Financial ExpressAs at 28.09.20129
Benchmark top 10 constituents vs FundWeightings (%)7654321 0 Apple Exxon General Chevron International Microsoft AT&T Google Procter & Johnson & Mobil Electric Business Gamble Johnson Machines Alliance Trust North American Equity Fund MSCI North America Index Total Return (£)Source: Financial ExpressAs at 28.09.201210
Strong and consistent investment performancePerformance (%) to 28 September 2012 YTD 12months 2 Years 3 Years North American Equity Fund* 11.99 23.95 10.63 11.08 Sector Average 8.58 19.12 9.88 9.74 Benchmark** 11.37 24.35 12.31 12.54 Peer Group Ranking 12/107 13/103 47/100 33/93 Quartile 1 1 2 2Source: Financial Express* After annual asset management fee of 1.2% and any applicable performance fee** FTSE All-Cap North America £ until 31st December 2011 and MSCI North America £ thereafterPast performance is not a guide to future performance. Income can fall as well as rise as a result of market and currency fluctuations and youclients may get back less than they invested. Capital growth may be constrained or eroded with annual charges and any performance feechargeable being deducted from capital.11
Importance of managing volatilityAlliance Trust North American Equity Portfolio Risk Return ProfileSource: Financial Express12
Building performance from a solid foundationCumulative from April 2009 to September 201214
Outlook Concerns Opportunities • Fiscal Cliff • Re-shoring of manufacturing • Debt Ceiling • Wireless data growth • US drought • Canada and Mexico >30% of exports • US housing15
Important Information• This presentation is intended for investment professionals only. It must not be distributed to, or relied upon by, retail investors.• Past performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and is not guaranteed. You may not get back the amount invested.• Some of the funds have underlying holdings which are denominated in currencies other than Sterling and therefore may be affected by movements in exchange rates. Consequently, the value of these investments may rise or fall in line with exchange rates.• Where a fund invests in a concentrated number of securities, there is an increased risk of volatility which may result in frequent rises and falls in the fund’s share price.• Investments in emerging markets may involve a higher element of risk due to less well regulated markets and political and economic instability.• Where a fund invests in derivatives, this may lead to greater volatility in the price of a fund as the value of these instruments can fluctuate significantly.• Where annual management charges or performance fees are taken from capital, this may have the effect of constraining capital growth and may lead to capital erosion. Investors may be subject to tax on distributions.• Whilst care has been taken in compiling the content of this presentation, no representation or warranty, express or implied, is made by Alliance Trust Investments as to its accuracy or completeness. Some slides may been compiled from external sources. Whilst these sources are believed to be reliable, the information has not been independently verified and therefore no representation is made as to its accuracy or completeness.• Nothing said or covered by this presentation should be construed as being an invitation or inducement to engage in investment activity. No advice is given by Alliance Trust Investments.• Alliance Trust Investments is the trading name of Alliance Trust Asset Management Limited, which is registered in Scotland (no. 330862) with its registered office at 8 West Marketgait, Dundee and is authorised and regulated by the Financial Services Authority reference number 479764 (www.fsa.gov.uk).Alliance Trust Investments8 West Marketgait, Dundee DD1 1QNT 01382 321000www.alliancetrustinvestments.com16
North American Equity Team Company Industry Position Sector Coverage Experience Experience Head of North Matt Strachan American Equities Resources, Healthcare and Industrials 26 26 Tim Gibbens, AIMR Investment Manager Financials, Consumer Staples & Disc. 18 18 Justin Atkinson, CFA Investment Manager Technology, Telecoms and Utilities 2 10• Experienced• Focused• DisciplinedInternationally experienced team17
North American PortfolioFundamental, focussed and different.Holdings 30 - 45Investment horizon 2 – 5 YearsOutperformance target Benchmark + 2-4%Tracking error 4 – 8%Turnover 25 – 35%Benchmark MSCI North AmericaMax Overweight/Underweight +/- 5%Concentration Top 10 stocks, 40 – 50%18
Top 20 stocks Stock Weight (%) Stock Weight (%) 1. Apple 5.91 11. Visa 3.18 2. American Tower 5.14 12. Clean Harbors 3.16 3. Lions Gate Entertainment 5.02 13. Microsoft Corp 2.82 4. Pfizer 4.94 14. Enterprise Product Partners 2.80 5. InterOil 4.71 15. Caterpillar Inc 2.72 6. Yamana Gold 3.95 16. Express Scripts Holding Co 2.68 7. New York Community Bancorp 3.64 17. Suncor Energy 2.64 8. Ross Stores 3.55 18. DaVita Inc. 2.38 9. Philip Morris International 3.41 19. Plum Creek Timber Co 2.18 10. Bank of Nova Scotia 3.34 20. Apache 2.14As at 28.09.201219
Alliance Trust North American Equity PortfolioPerformance vs IMA North America Sector Calendar Rolling % 2005 2006 2007 2008 2009 2010 2011 2012 2 Years 3 Years 4 Years 5 Years North American Equity 17.85 -0.59 11.85 -6.81 21.73 12.69 -2.1 10.53 20.5 54.42 41.99 42.47 Portfolio* Sector Average 18.69 -1.02 4.78 -18.36 18.98 17.4 -1.55 4.24 20.81 49.97 32.38 16.56 Peer Group Ranking 36/59 34/63 12/68 2/73 30/82 78/90 53/95 4/106 31/98 38/93 17/83 2/72 Quartile Ranking 3 3 1 1 2 4 3 1 2 2 1 1Source: Financial Express, total return, bid to bid to 30.06.2012* The simulated figures above are based on the performance of the proprietary North American assets of Alliance Trust PLC with the estimated Total Expense Ratio (TER) of1.48% of the Alliance Trust North American Equity Fund deducted. The estimated TER is based on the information used for the Alliance Trust North American Equity Fund, anopen-ended sub-fund of Alliance Trust Investment Funds ICVC. North American 5 Years to 30.06.2012 Equity Portfolio Past performance is not a guide to future performance. The value of investments and Relative to Benchmark (p.a.)** 3.9% the income from them may go down as well Tracking Error 5.61% as up and is not guaranteed and you clients may get back less than they invested. Information Ratio 0.70 2011 Turnover 25%Source: Alliance Trust PLC total return to 30.06.2012. These performance figures relate to the proprietaryNorth American assets of Alliance Trust PLC.** Benchmark was FTSE North America Large Cap(£) until 31 July 2005, FTSE North America All-Cap (£)to 31 December 2011 and MSCI North America(£) thereafter.20
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