Alliance trust investments presentation
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Transcript of Alliance trust investments presentation
North American Equity Fund
Matthew Strachan, Head of North American Equities
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Investment Themes
EnergyIndependence
Industrial Renaissance
3 screensand the cloud Canada
• Technological Innovation
• Huge activity
• Cheaper Energy
• Overseas potential
• Solid manufacturing base
• Infrastructural demand
• Growing competitiveness
• Repatriation
• Technological evolution
• Social Networks
• World leaders
• Future growth
• Sensible
• Reliable
• Dynamic
• Open for business
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‘Drill baby, drill!’
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The Fracking Process
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Energy independence?
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What has happened to gas supply?
US natural gas production
Source: US Dept of Energy
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Clean Harbors
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Enterprise Products Partners
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• Annual household income: $23,030
• Annual household spending: $36,000
• New debt on credit cards: $12,970
• Current balance on credit cards: $148,000
• Spending cuts offered: $984
US household budget – reality check
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North American Process
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Fishing in a big pool
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Stock Selection
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Source: Financial Express
As at 30.04.2012
Top 10 holdings Vs benchmark
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Benchmark top 10 constituents Vs Fund
Source: Financial Express
As at 30.04.2012
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Strong and consistent investment performance
Performance (%) to 30 April 2012
6months 12months 2 Years 3 Years
North American Equity Fund 10.99 7.90 10.90 48.20
Sector Average 8.26 4.38 8.68 46.73
Benchmark* 11.00 4.69 14.30 57.17
Peer Group Ranking 12/98 14/96 32/89 37/85
Quartile 1 1 2 2
Source: Financial Express* FTSE All-Cap North America £ until 31st December 2011 and MSCI North America £ thereafter,
Past performance is not a guide to future performance. Income can fall as well as rise as a result of market and currency fluctuations. Capital growth may be constrained or eroded with annual charges and any performance fee chargeable being deducted from capital.
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Importance of managing volatility
Source: Financial Express
Alliance Trust North American Equity Portfolio Risk Return Profile
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Important Information
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• 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.com
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North American Equity Team
• Experienced
• Focused
• Disciplined
Internationally experienced team
Position Sector CoverageCompany
ExperienceIndustry
Experience
Matt StrachanHead of NorthAmerican Equities Energy, Materials, Healthcare 26 26
Tim Gibbens Investment Manager Financials, Consumer, Energy Services 18 18
Iain Smith Investment Analyst Industrials, Utilities 23 17
Andy Murray Investment Analyst Information Technology, Telcos 9 12
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North American Portfolio
Fundamental, focussed and different.
Holdings 30 - 45
Investment horizon 2 – 5 Years
Outperformance target Benchmark + 2-4%
Tracking error 4 – 8%
Turnover 25 – 35%
Benchmark MSCI North America
Max Overweight/Underweight +/- 5%
Concentration Top 10 stocks, 40 – 50%
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Top 20 stocks
Stock Weight (%) Stock Weight (%)
1. Apple 5.66 11. Visa 3.18
2. American Tower 5.17 12. Yamana Gold 3.07
3. Pfizer 4.99 13. Caterpillar 2.98
4. Clean Harbors 4.83 14. Enterprise Product Partners 2.95
5. InterOil Corp 4.03 15. Suncor Energy 2.91
6. Lions Gate Entertainment 3.93 16. Tetra Tech Inc. 2.84
7. New York Community Bancorp 3.80 17. Express Scripts Holding Co 2.61
8. Philip Morris International 3.71 18. Apache 2.60
9. Ross Stores 3.71 19. United Technologies 2.34
10. Bank of Nova Scotia 3.43 20. DaVita Inc. 2.23
As at 30.04.2012
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Alliance Trust North American Equity Portfolio Performance 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 Portfolio*
17.85 -0.59 11.85 -6.81 21.73 12.69 -2.1 9.47 11.3 47.29 39.3 45.2
Sector Average 18.69 -1.02 4.78 -18.36 18.98 17.4 -1.55 6.8 8.68 46.73 26.37 20.65
Peer Group Ranking 36/59 34/63 12/68 2/73 30/82 78/90 53/95 12/101 30/90 42/86 9/79 3/68
Quartile Ranking 3 3 1 1 2 4 3 1 2 2 1 1
Source: Financial Express, total return, bid to bid to 30.4.2012
* 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) of 1.48% 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, an open-ended sub-fund of Alliance Trust Investment Funds ICVC.
5 Years to 30.4.2012North American Equity Portfolio
Relative to Benchmark (p.a.)** 4.03%
Tracking Error 5.60%
Information Ratio 0.72
2011 Turnover 25%
Source: Alliance Trust PLC total return to 30.4.2012. These performance figures relate to the proprietary North 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.
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 you invested.