ASSET MANAGEMENT
ALLIANCE TRuST
UK EqUiTy incoME FUnD
WE BELIEvE AN EQuITY INCoME PoRTFoLIo MAkES
SENSE IN ALL MARkET CoNDITIoNS. HIgH-QuALITY,
ESTABLISHED CoMPANIES WITH RoBuST BuSINESS
MoDELS ARE WELL PoSITIoNED FoR STEADY
CAPITAL gRoWTH.
They also have the potential to provide rising dividend payments that can contribute significantly to a
portfolio’s long-term total return in good times and in bad. Alliance Trust Asset Management’s uk equity
income expertise is based upon three fundamental characteristics: a rigorous research process combining top
down and bottom up inputs; constant communication and exchange of ideas; and a long-term
investment strategy. Head of uk Equities, Neil Tong and his team are committed to their high-conviction,
long-term investment approach and the success of their strategy is borne out by their track record of
consistent, strong performance within Alliance Trust PLC.
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.
bespoke economic research for the fund
managers and analysts.
A balanced, pragmatic approach
Neil follows a broad approach that gives
A WEALTH oF ExPERIENCE the portfolio the opportunity to perform
well through the economic cycle. In
certain market conditions, the portfolio
might display a slight bias towards
Head of uk Equities, Neil Tong has over 22 years’ growth or value; however, this is likely
to be the result of stock selection rather
investment experience. He is supported by a stable than the result of any overt change in
and experienced team of four dedicated uk strategy or approach.
equity analysts. Stock selection is an important driver
of the portfolio’s structure; however,
Neil takes a balanced view on
The team has over seventy years of asset allocation, and the portfolio’s
Fund highlights combined investment experience, over shape is likely to be influenced by
thirty years of which have been spent at macroeconomic, market and sectoral
• Focused portfolio of 30 to
Alliance Trust. themes. Neil remains index-aware,
45 holdings
but the structure of the portfolio is not
• Not constrained by benchmark Neil’s team work closely with Alliance dictated by the benchmark index.
Trust’s global sector analysts to gain the
• Long term investment strategy:
fullest possible understanding of the
three year typical holding period
themes and trends being played out
• Investment team has over seventy around the world. In addition, the team
years’ combined experience makes full use of all available resources,
including Alliance Trust’s dedicated
and respected Research Centre, which
undertakes a wide range of general
macroeconomic analysis, as well as
ALLIANCE TRuST ASSET MANAgEMENT Alliance Trust uk Equity Income Fund
holding in the portfolio is driven by the
level of confidence held by Neil and his
team about its return prospects based on
the detailed research and analysis work
carried out. Stock positions tend to be
overweight by up to 4% relative to their
LookINg FoR THE BEST IDEAS benchmark position.
The team endeavours to meet each
company in the portfolio at least once
Ideas are generated within the team, or as a result of a year. Their expertise and years of
experience in the industry mean they
general or bespoke analysis from the Research Centre, gain access to senior management,
and are also triggered by external research and broker either face-to-face or via conference
call, whenever changing circumstances
contacts. The team has a universe of approximately warrant additional contact. They also
benefit from focused meetings that take
350 stocks and there is always a wealth of good ideas place after the announcement of annual
from which to choose. and interim results.
Recognising that the decision to sell is at
The portfolio is relatively concentrated, wide-ranging document that covers the least as important as the decision to buy,
containing between 30 and 45 holdings, investment thesis and financials for the Neil operates a dynamic sell discipline
but top-down and sectoral themes help company and determines price targets that focuses on the fundamentals of each
to ensure that the portfolio remains that, if reached, trigger a review of the individual company. The kIDC for each
diversified. Typically, Neil aims to retain investment case. The kIDC highlights company highlights the principal risks
a holding for at least three years, which possible risks and potential developments, that could lead to a reappraisal of the
helps to keep his turnover relatively low. and sets out proposed courses of investment story. If a stock hits its price
action for buying, selling and reviewing target, this will trigger a review of the
The uk equity team pursues a wide- companies. investment case, but will not necessarily
ranging and rigorous approach to stock lead to the sale of the holding; a sale is
selection. When researching a good idea, Following completion of this research, likely to be based on events or a change
each analyst carries out extensive analysis the investment team decide upon their in corporate fundamentals rather than
that results in the production of a key tactics and the scale of their potential purely on price or financials.
Investment Drivers and Catalysts (kIDC) investment. Conviction is a vital part of
document. A kIDC is a detailed and the process – the weighting of each new
CoMMuNICATIoN: A CoRNERSToNE oF THE
INvESTMENT PRoCESS
Neil encourages and employs a collaborative, team-based
approach to research and portfolio construction.
Nevertheless, as Head of uk Equities, The team gathers at formal weekly
Neil is the key decision-maker on the and monthly meetings to discuss
portfolio, and takes overall responsibility and review companies and industry
for stock selection and strategy sectors, and meets regularly to examine
and, ultimately, for the portfolio’s macroeconomic developments and
performance. determine portfolio strategy.
The team’s investment process Neil and his analysts also enjoy daily
operates within a clear framework that ongoing communication and debate,
also allows plenty of opportunity for and the team operates within a
flexible discussion and the exchange of supportive atmosphere that encourages
ideas. Communication plays a crucial open, frank discussion, and fosters and
part in the team’s day-to-day work. nurtures new talent.
CoNTACT uS
For more information on Alliance
Trust Asset Management and our
investment capabilities, please call us
or visit our website.
www.alliancetrust.co.uk/assetmanagement
Edward Troughton
Managing Director, Business Development
edward.troughton@alliancetrust.co.uk
01382 321000
Tom Pearson
Director, Head of UK Retail Sales
tom.pearson@alliancetrust.co.uk
020 7496 1400
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.
Whilst care has been taken in compiling the content of this document, no
representation or warranty, express or implied, is made by Alliance Trust
Asset Management Limited as to its accuracy or completeness. Alliance
Trust Asset Management does not give financial or investment advice. If
you wish to invest, you should read the Simplified Prospectus including
the Terms and Conditions document carefully, particularly the section on
Risk Factors. The Simplified Prospectus and Full Prospectus are available by
calling 0844 892 0349 or by writing to Alliance Trust Asset Management
Limited, Po Box 23910, 12 Blenheim Place, Edinburgh EH7 9AJ.
Alliance Trust Asset Management Limited is authorised and regulated by
the Financial Services Authority.
Alliance Trust Asset Management Ltd
8 West Marketgait, Dundee DD1 1QN.
09-352 (December 2009) W/T62380
Alliance Trust Asset Management Limited is a subsidiary of Alliance Trust PLC. Alliance Trust Asset Management Limited is registered in Scotland No. SC330862, registered office, 8 West
Marketgait, Dundee DD1 1QN; is authorised and regulated by the Financial Services Authority whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS firm reference
number 479764; gives no financial or investment advice.
Investing for Generations – At Alliance Trust Asset Management, we offer a focused range of investment solutions to meet clients’ needs. Managed by our experienced team of
investment professionals using proprietary research, our unique long-term, high conviction approach to global investing has been tested and developed over generations through
diverse market conditions. Furthermore, we benefit from the integrity, durability and strength of Alliance Trust PLC.