Alliance Trust : Monthly Factsheet January 2023

MONTHLY FACTSHEET • 31 JANUARY 2023

Monthly Factsheet

HOW WE INVEST

Alliance Trust aims to be a core equity holding for investors that delivers a real return over the long term through a combination of capital growth and a rising dividend. The Company invests primarily in global equities across a wide range of industries and sectors to achieve its objective.

The Company's investment manager, WTW, has appointed a number of Stock Pickers with different styles, who each ignore the benchmark and only buy a small number of stocks in which they have strong conviction. Therefore, we believe investors get the benefit of both highly focused stock picking to increase potential outperformance versus the benchmark and manager diversification which should reduce risk and volatility. We believe that the Company's diversified but highly active multi-manager portfolio is competitively priced.

KEY STATISTICS

Share Price	1,000.0p
Net Asset Value	1,059.5p
(NAV) per Share
Premium	(5.6%)
(Discount)
OCR Year to 31	0.60%
Dec 20217

INVESTMENT PERFORMANCE

CUMULATIVE ABSOLUTE PERFORMANCE (TOTAL RETURN IN STERLING SINCE 01-APR-175)

	80	Share price	NAV/Share	MSCI ACWI4
	60
growth	40
20
%
	0
	-20
	Mar 2017	May 2018	Jul 2019	Sep 2020	Nov 2021	Jan 2023

CUMULATIVE PERFORMANCE (%)

To 31 January 2023	Since	5 Years	3 Years	1 Year	YTD	Month
	01-Apr-175
Total shareholder return	63.2	46.6	29.2	3.9	5.5	5.5
NAV total return	62.8	47.1	30.3	2.6	7.1	7.1
MSCI ACWI total return4	62.8	51.2	30.5	0.3	4.7	4.7

KEY FACTS

Total number of	194
stocks
Market	£2,921.3m
Capitalisation
Total Assets	£3,308.1m
Net Assets	£3,095.3m
Gross Gearing1	7.3%
Net Gearing2	3.7%
Yield3	2.4%
Year End	31 December
Incorporated	21 April 1888
Dividend Paid	Mar, Jun, Sep,
	Dec
Shares in Issue	292,134,600
Buybacks in	0.15% of shares
January	in issue
TIDM	ATST
ISIN	GB00B11V7W98
AIC Sector	Global
Next AGM	April 2023

DISCRETE PERFORMANCE (%)

From	31-Jan-22	31-Jan-21	31-Jan-20	31-Jan-19	31-Jan-18
To	31-Jan-23	31-Jan-22	31-Jan-2131-Jan-20	31-Jan-19
Total shareholder return	3.9	15.7	7.5	15.6	-1.8
NAV total return	2.6	17.4	8.2	14.8	-1.7
MSCI ACWI total return4	0.3	15.9	12.3	15.8	0.0

Note: All data is provided as at 31 January 2023 unless otherwise stated.

Past performance does not predict future returns and the value of shares and the income from them can rise and fall, so investors may not get back the amount originally invested.

Alliance Trust

has been awarded the AIC's Dividend Hero award6 and is proud to have over 50 years of consecutive dividend growth.

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TOP 20 HOLDINGS

INDIVIDUAL HOLDINGS:

Our portfolio looks very different to the benchmark.

79%

Name

Alphabet

Microsoft

Visa

Amazon

Exxon Mobil

Mastercard

UnitedHealth Group

HDFC Bank

Petroleo Brasileiro

SA

Vale

£m %

125.2 3.8

112.7 3.4

101.7 3.1

82.3 2.5

50.4 1.5

49.7 1.5

49.5 1.5

47.0 1.4

46.6 1.4

39.4 1.2

ACTIVE SHARE:

The measure of how different the portfolio is to the benchmark.

PORTFOLIO ALLOCATION

SIMILAR TO BENCHMARK BY DESIGN

BY GEOGRAPHY

%

63.1

53.0

ACTIVE SHARE

Portfolio weight Benchmark weight

Interpublic Group

MercadoLibre

Safran

Bureau Veritas

TotalEnergies

AstraZeneca

DBS

British American

Tobacco

Vinci

Canadian Pacific

38.8 1.2

38.1 1.2

36.5 1.1

33.5 1.0

33.0 1.0

32.2 1.0

31.8 1.0

31.2 0.9

30.3 0.9

30.2 0.9

		15.8	12.9	17.3	20.1
	10.8
				3.1
	3.9
North	UK	Europe	Asia &	Stock
America				Emerging	Picker
				Markets	Cash

BY SECTOR

Information Technology | 24.2%

Industrials | 13.5%

Financials | 12.1%

Healthcare | 10.4%

Communication Services | 10.2%

Consumer Discretionary | 9.2%

Energy | 5.9%

Consumer Staples | 4.9%

Top 10 holdings 21.3%

Top 20 holdings 31.5%

The 20 largest stock positions, given as a percentage of the total assets. Each Stock Picker selects up to

20 stocks.8 A full breakdown of the portfolio can be viewed at www.alliancetrust.co.uk

View all holdings

RESPONSIBLE

INVESTING

As long-term investors, we embed environmental, social and governance factors into every stage of our investment process.

Incorporating these factors has the dual benefit of reducing risk while increasing the sustainability of returns. Read more about this at www.alliancetrust.co.uk/ how-we-invest

Find out more

Materials | 4.4%

Utilities | 1.2%

Real Estate | 0.9%

Stock Picker Cash | 3.1%

INVESTMENT COMMENTARY

Global stock markets got off to a strong start in January, driven higher by new year optimism and growing anticipation that a recession may be avoided in the US, as inflation falls, and interest rates may be close to peaking. Although global economic growth is widely expected to slowdown in 2023 due to the lagged effect of last year's rapid tightening of monetary policy, market participants increasingly expect a soft-landing which could inflict limited damage on corporate profitability. This optimism might prove to be misplaced if interest rates remain stubbornly high, but avoiding a deep global recession remains a plausible scenario. Against this "risk-on" backdrop, the Company's NAV total return over the month was 7.1%, and the share price total return was 5.5%. These both compare very favourably with the benchmark's total return of 4.7%.

Our outperformance was due to strong stock selection by eight of our nine managers across a variety of countries and sectors. Only GQG's positions in aggregate detracted value, although Rajiv Jain was the best performing stock picker last year.

The breadth of returns from stock pickers with different styles is encouraging. Through most of the last few years, market returns have come from a small number of large-cap US growth stocks, mostly technology related. As such, our growth-style managers did very well. But such concentrated returns were generally a headwind for our diversified approach to investing. Although past market leaders, such as Apple and Tesla, neither of which we own, joined in January's strong market rally, it was spread across a much broader range of stocks.

Our investment manager, WTW, is responsible for manager selection, portfolio construction and risk management.

Its Investment Committee comprises: Craig Baker, Mark Davis and Stuart Gray.

STOCK PICKERS

% OF PORTFOLIO MANAGED

14%11%

This bodes well for our investment strategy, which focuses on individual stock selection, as opposed to style, sector or country calls. If corporate fundamentals start to drive share prices,

as opposed to style or sector trends, we expect to perform strongly.

Notable contributors to the Company's outperformance last month included Mercardo Libre, the Argentina-based online marketplace company, often described as Latin America's Amazon. Our stake in Amazon itself also added value. The cement giant HeidelbergCement and sportswear manufacturer Adidas, both headquartered in Germany, were key contributors, along with dozens of other positions, such as Visa (digital payments) and Skyworks (wireless networking company) in the US, Safran (aircraft and defence equipment) in France, Baidu (internet services) in China, and Dublin-based ICON (clinical research and services). All these stocks added incremental value which, when combined, meant our return's well ahead of the benchmark.

Bill Kanko, Heather Peirce

7%

Andrew Wellington

10%

Jonathan Mills, Simon Denison-Smith

8%

C.T Fitzpatrick

6%

Ben Whitmore

19%

Rajiv Jain, Brian

Kersmanc, Sudarshan

Murthy 8

14%

Andy Headley

11%

HK Gupta, Kishore Rao, Rob Rohn

The main detractors from relative performance included our lack of exposure to Tesla, NVIDIA (artificial intelligence) and Apple, which all benefitted from the rebound in growth stocks after last year's dramatic declines.

There was little trading activity in the portfolio last month, though Vulcan took profits in General Electric and Black Creek purchased Essity, the Swedish health and hygiene company whose products include baby and feminine care, toilet paper, facial tissue, and soap.

Despite January's strong gains, we remain cautious about the near-term economic outlook and have, therefore, kept the gross level of gearing just below the lower end of the typical 7.5-12.5% range to reduce any potential negative impact from volatility of share prices in the short term. We do, however, remain confident that the portfolio has exposure to a wide range of attractive companies and is well positioned for long-term gains.

CONTACT

Dave Levanson, Sunil

Thakor

Note: "JUPITER"and are the trade marks of Jupiter Investment Management Group Ltd and registered in the UK and as Community Trade Marks and elsewhere.

Alliance Trust PLC. River Court,	Tel [phone]
5 West Victoria Dock Road,	Email [e-mail]
Dundee DD1 3JT	Web alliancetrust.co.uk

Risk warnings - Past performance does not predict future returns. The value of shares and the income from them can rise and fall, so investors may not get back the amount originally invested. Net Asset Value ("NAV") performance is not the same as share price performance and investors may not realise returns in line with NAV performance. Exchange rate changes may cause the value of overseas investments to go down as well as up and can impact on both the level of income received and capital value of your investment. Investment trusts may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the NAV, meaning that a relatively small movement, down or up, in the value of an investment trust's assets will result in a magnified movement, in the same direction, of that NAV. This may mean that you could get back less than you invested or nothing at all. The mention of any specific shares should not be taken as a recommendation to deal.

Important Information

Alliance Trust is an investment company with investment trust status. Alliance Trust invests primarily in equities and aims to generate capital growth and a progressively rising dividend from its portfolio of investments. Alliance Trust currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers (IFAs) to ordinary retail investors in accordance with the Financial Conduct Authority (FCA) rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The shares are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an investment trust. The shares in the Company may also be suitable for institutional investors who seek a combination of capital and income return. Private investors should consider consulting an Independent Financial Adviser who specialises in advising on the acquisition of shares and other securities before acquiring shares. Investors should be capable of evaluating the risks and merits of such an investment and should have sufficient resources to bear any loss that may result. The views, information and data in this publication should not be deemed as a financial promotion or recommendation. Alliance Trust is not authorised to give financial advice.

For security and compliance monitoring purposes, telephone calls may be recorded.

The Alliance Trust Board has appointed Towers Watson Investment Management Limited (TWIM) as its Alternative Investment Fund Manager (AIFM). TWIM is part of WTW. Issued by Towers Watson Investment Management Limited. Towers Watson Investment Management Limited, registered office Watson House, London Road, Reigate, Surrey RH2 9PQ is authorised and regulated by the Financial Conduct Authority, firm reference number 446740.

Notes: All data is provided as at 31 January 2023 unless otherwise stated. All figures may be subject to rounding errors. Sources: Key Statistics, Key Facts, Top 20 Holdings and % of Portfolio Managed data is provided by The Bank of New York Mellon (International) Ltd; Equity Portfolio Allocation and Active Share is provided by The Bank of New York Mellon (International) Ltd and MSCI Inc. NAV and NAV total return is based on NAV including income with debt at fair value, after all manager fees (including WTW's fees) and allows for any tax reclaims when they are achieved. The NAV total return shown in factsheets up to May 2018 was based on NAV excluding income with debt valued at par. ISIN stands for International Securities Identification Number; TIDM stands for Tradable Instrument Display Mnemonics; and AIC stands for Association of Investment Companies.

1. Total borrowings at par value divided by net assets with debt at par.	5. 1 April 2017 was the date that WTW was appointed investment manager.
2. Total borrowings at par value minus total cash and equivalents, divided by net assets	6. https://www.theaic.co.uk/income-finder/dividend-heroes
with debt at par.	7. The OCR for year to 31 December 2021 was calculated in line with the industry
3. Annual dividend per share divided by share price.	standard using the average of net asset values at each NAV calculation date.
4. MSCI All Country World Index Net Dividends Reinvested.	8. GQG manages an emerging markets mandate of up to 60 stocks as well as a global
	equity mandate of up to 20 stocks.