Alliance Trust PLC (ATST) 2010年年度報告「LSE」.pdf

《Alliance Trust PLC (ATST) 2010年年度報告「LSE」.pdf》由會員分享，可在線閱讀，更多相關《Alliance Trust PLC (ATST) 2010年年度報告「LSE」.pdf（92頁珍藏版）》請在三個皮匠報告上搜索。

1、Alliance Trust PLC Report&Accounts 2010Printed by MLG,EdinburghContactAlliance Trust PLC,8 West Marketgait,Dundee DD1 1QNTel+44(0)1382 321000 Email investoralliancetrust.co.uk Web www.alliancetrust.co.ukReport and Accounts for the year ended 31 January2010Photo credits:Mackins Design Studio.Statemen

2、t of Investment Objective and PolicyAlliance Trust is a self-managed investment company with investment trust status.Our objective is to be a core investment for investors seeking increasing value over the long term.We have no fixed asset allocation benchmark and we invest in a wide range of asset c

3、lasses throughout the world to achieve our objective.Our focus is to generate a real return for shareholders over the medium to long term by a combination of capital growth and a rising dividend.We pursue our objective by:Investinginbothquotedandunquotedequitiesacrosstheglobeindifferentsectorsandind

4、ustries;Investinginternationallyinfixedincomesecurities;Investinginotherassetclassesandfinancialinstruments,eitherdirectlyorthroughinvestmentvehicles;and Investinginsubsidiariesandassociatedbusinesseswhichallowustoexpandintootherrelatedactivities.We are prepared to invest any proportion of the total

5、 corporate capital in any of the above asset classes,subject only to the restrictions imposed on us by the regulatory or fiscal regime within which we operate.However,we would expect equities to comprise at least 50%of our portfolio.Changes to the asset allocation will be dependent upon attractive i

6、nvestment opportunities being available.Where market conditions permit,we will use gearing of not more than 30%of our net assets at any given time.We can use derivative instruments to hedge,enhance and protect positions,including currency exposures.Alliance Trust PLC Report&Accounts 2010|89 Electron

7、icCommunicationsIf you hold your shares in your own name,we are able to send you annual reports and notices of meetings electronically instead of in paper format.If you wish to register for this service please log on to www.alliancetrust.co.uk/ec.htm which will provide you with a link to our registr

8、ars website.TaxationIf you are in any doubt about your liability to tax arising from a shareholding in the Company you should seek professional advice.IncomeTaxDividends paid by the Company carry a tax credit at 10%of the gross dividend.Dividends are paid net of the tax credit.If you hold your share

9、s in your own name,the tax voucher which you need for your tax records will be sent to the address we have for you on the register maintained by Computershare.The Registrar will send a consolidated tax voucher to members after the January quarterly dividend is paid.If your dividends are received by

10、a nominee,such as your stockbrokers nominee,you must contact that person for the tax voucher.Alliance Trust Savings will automatically supply you with a consolidated income tax voucher for income received for you in the Investment Dealing Account.CapitalGainsTaxFor investors who purchased shares pri

11、or to 31 March 1982,the cost of those shares for capital gains tax purposes is deemed to be the price of the share on that date.The market value of each Alliance Trust PLC ordinary 25p share on that date was 2.85 which,when adjusted for the split on a 10 for 1 basis on 21 June 2006,gives an equivale

12、nt value of 0.285 per share.The market value of each Second Alliance Trust PLC ordinary 25p share on 31 March 1982 was 2.35.Holders of Second Alliance Trust PLC shares received 8.7453 ordinary 2.5p shares for each 25p ordinary share they held on 20 June 2006 and are treated as though they acquired t

13、hese shares at the same time and at the same cost as the Second Alliance Trust shares they previously held.This gives an equivalent value of 0.269 per share.RisksIf you wish to acquire shares in the Company,you should take professional advice as to whether an investment in our shares is suitable for

14、 you.You should be aware that:Investmentshouldbemadeforthelongterm Thepriceofasharewillbeaffectedbythesupplyanddemand for it on the London Stock Exchange and may not fully represent the underlying value of the assets of the Company.The price generally stands below the net asset value of the Company(

15、at a discount)but it may also stand above it(at a premium).Your capital return will depend upon the movement of the discount/premium over the period you own the share,as well as the capital performance of the Companys own assets TheassetsownedbytheCompanymayhaveexposureto currencies other than Sterl

16、ing.Changes in market movements and in rates of exchange may cause the value of your investment to go up or down Pastperformanceisnotaguidetothefuture.Whatyouget back will depend on investment performance.You may not get back the amount you invest.ImportantdatesOur events give us the opportunity to

17、meet and hear from our shareholders and clients,and are an ideal occasion to get an update on what is happening at Alliance Trust.You can meet senior representatives from the Company including Katherine Garrett-Cox,our Chief Executive,and other key members of our team,and learn about our products an

18、d services.There will be many opportunities during the event to ask questions.AnnualGeneralMeetingThe 122nd Annual General Meeting of the Company will be held at 11.00am on Friday 21 May 2010 at the Apex City Quay Hotel,Dundee.The Notice of Meeting,detailing the business of the meeting,is sent to al

19、l shareholders.FinancialCalendarProposed dividend payment dates for the financial year to 31 January 2011 are on or around:2 August 20101 November 201031 January 20113 May 2011InvestorForumsWe are pleased to announce that we will be holding 3 investor presentations during 2010 around the UK.26 May Q

20、ueen Elizabeth II Conference Centre,London8 June Rougemont Hotel,Exeter23 November Hilton Hotel,GlasgowDetails of these and future events can be found at www.alliancetrust.co.uk/events.Registration for the Glasgow Investor Forum will commence in October 2010.ContentsOverviewChairmans Statement 2Chie

21、f Executives Statement 4Business ReviewBusiness Review 6Investment Review 8Investment Portfolio Information 10Portfolio Review 12Financial Services Subsidiaries 20Financial Performance 22Risk Factors 24Corporate Responsibility 26GovernanceDirectors 30Corporate Governance 32Directors Remuneration 40F

22、inancial StatementsIndependent Auditors Report 46Financial Statements 48Information for Shareholders 88Company HighlightsSource:Alliance TrustSource:Alliance TrustSource:Alliance TrustSource:FactSetDividendCompany ExpensesPerformance Relative to Peer Group*1 Year 2 Years 3 Years 5 YearsRanking*34/43

23、 11/37 23/37 20/33*The peer group consists of the companies in the AIC Global Growth and Global Growth and Income sectors and is listed in full on page 44.*Source:Funddata8.15p16.0m1.9%4.8%6.67.07.47.88.28.620102009200820072006PenceShare Price313.0p16.8%Net Asset Value per share377.7p22.2%Total Retu

24、rn015030045020102009200820072006Pence010020030040020102009200820072006Pence04812162020102009200820072006mSpecial dividend2|Alliance Trust PLC Report&Accounts 2010 Chairmans StatementLesley KnoxIn my statement 12 months ago,I reflected on the benefits of the Alliance Trusts long-term investment view

25、for our shareholders.This gave us the confidence to weight the portfolio towards defensive stocks and cash at a time when others,with greater exposure to financial and cyclical stocks,suffered through the worst of the downturn.While some of the stocks which fell so dramatically during that period ha

26、ve benefited from a recovery in the current year we continue to follow our philosophy of investing in those companies which generate long-term shareholder value through financial strength and experienced management teams.Investment performanceOver the financial year just ended,the Net Asset Value of

27、 the Trust rose by 19.2%while the share price rose by 16.8%ending the year at 313p.This placed us below the median of our investment trust peer group during a year of volatile markets.However,on a longer view,over the past two years during which the most dramatic market swings have played out,our pe

28、rformance ranks us above average against our investment trust peer group,both in terms of Net Asset Value and Total Shareholder Return.We report on the performance of the Trust in terms of Total Shareholder Return compared to our peer group.This allows investors to judge our performance against othe

29、r investments trusts,but,unlike many of our competitors,we do not have a fixed benchmark.We consider this to be an important distinction because it gives us the scope to invest decisively,taking advantage of the in-depth research of companies undertaken by our portfolio managers in stock selection a

30、nd the experience of our Economic Research Centre which guide our asset allocation among global markets.It also allows us to protect shareholder value by moving into cash in periods of severe market downturn.DividendWe recognise the importance of a progressive dividend to investors and this has cont

31、inued into its 43rd consecutive year.We have declared an increased fourth interim dividend of 2.075p per share,payable out of strong earnings,making a total dividend for the year of 8.15p per share(2009:8.0p,excluding the special dividend of 0.5p paid in July 2009).We took the decision to make this

32、payment earlier than our normal practice,a decision which we believe to be in our shareholders interests.Share price of the Trust rose by16.8%Peer Group ranking over two years11/37Total dividend for the year rose by1.9%Globally,a large number of companies cut their dividends in 2009.Looking forward,

33、the economic background remains fragile and company prospects in 2010 remain uncertain.We shall,however,continue to manage the portfolio with an aim of producing both long-term capital growth and a progressive dividend.We have one of the highest yields of the larger trusts which fall within our peer

34、 group,and our decision to increase our reserves during the year differentiates us from other investment trusts which have used their reserves to maintain their dividends.Share buybacksDuring the year we bought back our own shares for the first time.When we took the power from shareholders to undert

35、ake buybacks in 2006,we were clear that we would use this power where the Board judged it to be in the interests of all shareholders to do so.An opportunity to purchase a significant holding emerged in October.We concluded,following rigorous consideration of the merits of the transaction from an inv

36、estment perspective,and taking into account both market conditions and our own investment process,that the criteria which we had previously determined were met.We shall use the same criteria to decide whether to make buybacks from time to time in the future.This should not be confused with adoption

37、of a discount control mechanism which we do not support.We believe that our focus should be on improving the long-term performance of the Trust and that this is the priority for our shareholders.ShareholdersOne of the distinctive features of investment trusts is the preponderance of individual,rathe

38、r than institutional,shareholders.This reflects their suitability as an investment vehicle which offers access to a diversified equity portfolio at relatively low cost.In the case of Alliance Trust,over 26,000 clients of our financial services subsidiary Alliance Trust Savings hold shares in the Com

39、pany,representing 21%of our share capital,an increase from 20%at the start of the year.Through regular savings plans and reinvestment of dividends these clients stimulate demand for the Companys shares.Many more individual investors hold shares in the Company,either directly or through savings plans

40、 administered by other providers.AIFM DirectiveThe Alternative Investment Fund Managers(AIFM)directive emerged from the European Union in response to the perceived role of hedge funds in the financial crisis.Some elements of this directive threatened the future of the whole investment trust sector.W

41、e have been active in lobbying at both UK and EU levels for investment trusts to be excluded altogether or,as a minimum,for the directive to be amended to take account of the distinctive nature of investment trusts.This work continues,and I am grateful to those shareholders who have heeded our reque

42、st to make their concerns known directly to their MPs and MEPs.The final directive is not likely to be issued before summer 2010.Board changesSince the publication of our last Annual Report there have been two additions to the Board of the Trust.We appointed Robert Burgess to the Board as Chief Exec

43、utive of Alliance Trust Savings in September 2009,both to reflect the significant contribution he has made to the development of that subsidiary,and to take advantage of his skills and experience in the wider activities of the Trust.More recently,Alan Trotter joined the Board as Finance Director on

44、1 February 2010,bringing with him extensive experience in the financial services sector.I am delighted to welcome them both.George StoutThe Board was saddened to learn of the death of George Stout during the year.George Stout was joint Managing Director of Alliance Trust from 1976 to 1987 and led th

45、e Company during a period of significant progress.Annual General MeetingOur Annual General Meeting will be held in Dundee on Friday 21 May.I always look forward to this opportunity to hear the views and concerns of our shareholders and to provide an update on the progress of the Trust.I hope that as

46、 many of you as possible will spare the time to come and meet the Board and management team to whom you entrust your investments.4|Alliance Trust PLC Report&Accounts 2010 The volatility of global stock markets and continuing tough economic conditions have raised many challenges in my first full year

47、 as Chief Executive.Our primary focus continues to be investment in global equities and throughout the year we have remained consistent to our long-term investment philosophy.This is the foundation of our business and we have not compromised the integrity of our investment decision-making process.Th

48、e continuation of our progressive dividend policy,during a period when many companies cut their dividend,and ongoing building of our reserves have been major achievements for the year.Performance SummaryOver the year the Companys basic Net Asset Value(NAV)per share rose 19.2%and generated a total re

49、turn of 22.2%.By comparison the share price rose 16.8%and the Total Shareholder Return(TSR)by 20.3%.The discount to net asset value,while less volatile than in 2008,ended the year at 17.1%,compared to 15.4%at the start of the financial year,as discounts for many investment trusts widened in the fina

50、l months of the period.Our TSR ranked 34th out of 43 in our peer group of Global Growth and Global Growth and Income Trusts over the year.It is encouraging to note that over two years the TSR was ranked 11th out of our peer group of 37 Trusts.On a NAV basis,the Trust was ranked 32nd over one year an

51、d 13th over two years.Market RecoveryAt the start of the year,investor attention was focused on the policy measures of governments aimed at bringing stability to the global financial system,following the crisis of 2008,whilst preventing recession turning into depression.Coordinated responses of low

52、interest rates,quantitative easing and recapitalisation of bank balance sheets were implemented around the globe.In March,we saw a reversal of investor sentiment and a rapid rise in stock markets as belief in the likely success of these policy measures gained momentum.Many of the companies which per

53、formed most strongly at this time were among those most highly geared and economically-sensitive,and which had fallen furthest over Chief Executives StatementKatherine Garrett-CoxNet Asset Value Total Return rose by22.2%Total Shareholder Return rose by20.3%Company expenses fell by4.8%the previous 12

54、 months.We did not participate in the narrow-based rally in these stocks,as in many cases we considered their business models to be unattractive.Much of our relative underperformance over the full year is as a result of being underinvested in these types of stocks during their extreme rallies in Mar

55、ch and April.This is evidenced by the fact that over those two months alone,our quoted equity portfolio returned 5.9%less than the FTSE All-World Index.A number of these companies subsequently fell in value during the second half of the year losing much of their first half gains.Quoted equitiesWithi

56、n our quoted equity portfolio,each of our regional managers is tasked with outperforming a relevant,regional,Sterling denominated equity index.Last year we achieved above benchmark returns in Europe and a return broadly in line with the benchmark index in North America.These returns are noteworthy,f

57、ollowing the strong relative performance also recorded in these areas in the weak stock markets of 2008.On pages 12 to 17 we report in more detail on our managers performance.We reduced cash balances as a percentage of net assets ahead of the recovery in equity markets,by investing selectively in we

58、ll-managed companies with strong balance sheets and positive cash flow generation in which we have a high level of conviction.A total of 190 million was invested into global equities in the first half of the year.We committed a further 100 million to global equity markets in the second half of the y

59、ear,drawing down on our banking facilities to take net debt to 120m.Our ability to borrow at a time when banks were reluctant to lend to financial companies is testament to the strength of the Companys balance sheet and reputation.We invested funds into the strongest performing areas of Asia and Eur

60、ope,while keeping overall portfolio turnover levels low.Our confidence in longer-term global economic recovery has increased with some countries having already exited recession.We have adopted a more balanced approach in the portfolio and reduced the defensive growth bias of our holdings.The relativ

61、e performance of our equity portfolio improved markedly over the second half of the year as the recovery in markets broadened out from its initial narrow base.This has continued since the end of the period.Income GenerationCompany dividends and level of yield are key components in defining our inves

62、tment universe and strategy.In an extremely challenging environment for income generation,we have placed great emphasis on the sustainability of dividends in our investment selection process,both as an indicator of underlying strength and in order to support our commitment to a progressive dividend

63、policy.Our UK portfolio has a high income requirement:it produces over 50%of the income of the quoted equity portfolio.This had an adverse impact on its capital performance over the year,but the income returns from our UK portfolio have been key in maintaining the Companys progressive dividend polic

64、y in a very challenging year.We are aware of the importance attached by our shareholders to dividend income and we have increased our dividend by 1.9%while over half of the companies listed on the FTSE 350 Index have reduced,suspended or maintained dividends.Other asset classesWe also invest a small

65、 proportion of our total assets in other asset classes,the long-term returns of which complement those of our quoted equity portfolio.In private equity,the quoted portfolio experienced a strong year.We sold into the rally in share prices,choosing instead to increase diversification in our private eq

66、uity fund investments.We have previously outlined our intention to reduce our direct exposure in UK property.We benefited from a recovery in market valuations towards the end of the year and took the opportunity to sell two properties,both at prices significantly above last years valuations,one of w

67、hich completed shortly after the year end.Income from the property portfolio increased to 4.5 million from 4.2 million last year.Substantially lower US gas prices and a weakening of the US dollar against Sterling over the year resulted in a fall in revenues from our US mineral interests to their 200

68、8 levels of 1.6 million,against a peak of 2.2 million in 2009.6|Alliance Trust PLC Report&Accounts 2010 Last year we set the following priorities for the Company after the conclusion of the business review which followed my appointment as Chief Executive.These will continue to be our priorities for

69、the coming year.Key Priorities To focus on investment in equitiesQuoted equities were our preferred asset class throughout the year.We made steady increases to our holdings of global equities over the year with equities representing 95%of net assets at the year end compared to 77%at the start of the

70、 year.We reduced net cash balances as a proportion of net assets from an opening position of 11.6%to net debt of 4.7%as we redeployed capital into our global equity portfolios.Our total exposure to other asset classes was largely unchanged,although we actively reduced our commercial property holding

71、s towards the year end.To continue to improve investment performanceOur investment performance lagged over the first half of the year,largely due to not participating fully in the rally in highly cyclical companies in March and April.Performance improved over the second half of the year as the marke

72、t recovery broadened out.For the year,our equity portfolio returned 26%which compares to a return of 28.4%in the FTSE All-World Index,with a positive relative return of 1.9%in the last six months of the period.To manage our cost base in line with market conditionsWe have pro-actively managed our cos

73、t base throughout the year against a difficult economic backdrop.Some tough short-term decisions have been made,where deemed necessary for longer term gains.As a result,overall employee numbers reduced by 14%over the year.We have,however,increased expenditure in areas which we believe will enhance o

74、ur long-term investment performance such as the recruitment of our Fixed Income team.In total,our expenses reduced by 4.8%from 16.8 million last year to 16.0 million and our TER reduced in percentage terms to 0.69%(0.70%).To develop our subsidiary businessesAlliance Trust Savings,our subsidiary busi

75、ness which offers pension administration,share dealing services and a fund supermarket,completed an extensive business review over the course of the year.A highly experienced management team is now in place with a stronger focus on customer service and value.The enhanced procedures and processes imp

76、lemented during the year provide a solid foundation for the growth of the business.Alliance Trust Asset Management launched its first three funds during the year.These funds offer third party investors,many of whom are Alliance Trust Savings clients,direct exposure to individual areas of expertise w

77、ithin the Companys investment team.They follow the same long-term investment philosophy Business ReviewTSR performance against a peer group,the test to be met for above median performance.Although we failed the test this year,over a 2 year period we ranked 11th out of 37 in our peer group.NAV perfor

78、mance to beat the FTSE All-World Index in Sterling.The NAV rose by 19.2%in the year to January 2010,and the Index rose by 24.9%.Dividend growth to exceed the increase in RPI.In the year to 31 Jan 2010,the basic dividend was increased by 1.9%,which was below the 12 month RPI of 3.7%.While earnings we

79、re available to meet this test the Board took a decision to bolster reserves to support the ongoing commitment to a progressive dividend.Test 1Test 2Test 3Key Performance IndicatorsAlliance Trust PLC Report&Accounts 2010|7 as employed in managing the Companys assets.Further fund launches are expecte

80、d this year.We expect our financial services subsidiaries to deliver long-term value to our shareholders.To invest in the development of our peopleThe year just ended was a challenging one for our people.With fewer than 300 employees,each and every one of them has been expected to play their part in

81、 the progress of the Company,whether managing the investments of the Trust,meeting the needs of the clients of our subsidiary businesses,or behind the scenes supporting the business in areas such as information technology,human resources,communications,facilities and the control functions.I am proud

82、 of them for rising to this challenge.Business communication and efficiency have improved following the relocation to our new company headquarters in Dundee.We continue to invest in the future through our management trainee programme and have found that the calibre of the candidates is very high.A n

83、umber of employee development initiatives have been introduced during the year.These include the establishment of a mentoring framework,an annual employee opinion survey and our employee recognition policy.This policy includes the“Alliance Trust Employee Excellence”awards which recognise outstanding

84、 contributions over the year.Other DevelopmentsIn our interim report,we commented on our appointment of a new team of four highly experienced Fixed Income managers.The addition of fixed income expertise to our investment team will enhance the income generating potential of our portfolio and help to

85、reduce our reliance on equity investments,particularly in the UK,for income.This will not diminish our focus on global equities.We will have greater flexibility in asset allocation as a result of a reduced yield requirement from the constituents of our equity portfolio.Our stock selection process wi

86、ll also be enhanced by the teams experience in corporate credit analysis.During the course of the year we had cause to call on our Business Continuity Plan when a fire in our former head office at Meadow House caused damage to computer equipment located there.Our Plan operated successfully and we we

87、re able to conduct business with minimal disruption:an endorsement of a significant element of the risk management procedures of the Company.Since then we have taken steps to accelerate the migration of the remaining parts of our systems to our new offices.We are broadly supportive of the aims of th

88、e recently published Financial Services Authoritys Retail Distribution Review as changes to adviser charging will help to create a state of equality for investment trusts against other financial products.This should encourage more financial advisers to promote the attributes of investment trusts to

89、their customers and,over the longer term,help to grow the number of investment trust shareholders.OutlookThe International Monetary Fund is forecasting global economic growth of around 4%for 2010,although the background is still challenging.One of the main drivers of this will be in Asia where,for e

90、xample,China could experience growth of over 10%.Another key indicator,which we are monitoring closely,is the unemployment rate in the United States as the consumer remains the greatest influence on the US economy.The uncertain timing and pace of the withdrawal of quantitative easing are concerns fo

91、r the strength of the recovery of the UK economy.Public spending cuts,tax increases and high unemployment provide a difficult backdrop in the lead up to the general election.We retain a largely positive outlook for equity markets in 2010.The most important driver this year,we believe,will be earning

92、s growth,as we continue the recovery from recession.From a regional perspective,we expect Asia Pacific and Emerging Markets to maintain their long-term growth and we will continue to invest in global companies which are benefiting from the positive demographics and strong financial resources of Asia

93、.We are concerned about the impact of the fiscal deficits on the prospects for European and UK equities.Since the year end we have taken advantage of the recent strength in markets to reduce our exposure to the UK.Currently we have a balanced portfolio,combining industrial and energy related compani

94、es which we expect to benefit from economic recovery with a number of high-quality defensive growth companies with above average yields.We continue to refine and to enhance our investment decision-making so that we are positioned to take advantage of the current environment while remaining true to o

95、ur long-term investment philosophy.The diagram above illustrates how the Company and its subsidiaries work together for the benefit of our shareholders.TheShareholderAlliance TrustSavingsAlliance TrustAsset ManagementAllianceTrust PLCATS Clients hold21%of Trust shares100%ownedFinancial supportfor de

96、velopmentIntroducinginvestorsEstablished platformfor productsCosts shared,TER lowered100%ownedCareer developmentopportunities8|Alliance Trust PLC Report&Accounts 2010 Asset AllocationWe increased our exposure to several of our favoured global equity markets over the period by investing a total of 29

97、0 million in a risk-controlled manner.Our strategy was to take advantage of longer-term opportunities in companies we identified as being undervalued through our fundamental research and assessment of current stock valuations.Our largest additional allocation was 120 million to companies in Asia,bas

98、ed on our view that Asias future growth will not be hindered by the debt burdens faced by other economies.80 million was allocated to income generating holdings in the UK.We added 30 million to US equities as we considered valuations to be attractive and 40 million to European equities,in view of th

99、eir favourable valuations and dividend outlook.We also took the opportunity to initiate several investments in non-Asian emerging markets by investing a total of 20 million into Brazil,Mexico,Turkey and Russia.At the year end,UK listed companies accounted for 40%of our quoted equity portfolio.Much o

100、f our UK exposure is through multinational companies which generate a large proportion of their revenues overseas,often in the faster growing economies of Asia.The chart on the next page shows that on a“Revenue Profile”basis,only 9%of the revenues of the companies we hold in the portfolio are genera

101、ted in the UK.Contrastingly,whilst only 18%of our portfolio is directly invested in Asian and other emerging markets,37%of company revenues are derived from these higher growth areas.We believe that,by investing in this way,we gain a more balanced exposure to the higher growth opportunities availabl

102、e in emerging markets.At our final Asset Allocation Committee meeting of the year,we concluded that,while we may see short-term volatility in markets,the outlook over the medium term is positive and therefore the current risk profile,level of gearing and equity allocation remain appropriate.Investme

103、nt ReviewPerformance of Major Equity Indices(Sterling)31 Jan 05=100Source:FactSet%FTSE All-World Developed Europe Ex UK IndexFTSE All-World IndexFTSE All-Share IndexTOPIX 1000 IndexS&P 500 Index708090100110120130140150160170Jan 10Jan 09Jan 08Jan 07Jan 06Jan 05Alliance Trust PLC Report&Accounts 2010|

104、9 Investment ActivityOur investment process focuses on the identification of high quality companies which are expected to deliver superior long-term capital and income growth.At the beginning of the year,our portfolio emphasised defensive growth companies as we sought to maintain a low risk profile

105、in the uncertain economic and market environment.In March,the risk appetite of investors changed suddenly,and share prices of some of the companies which formerly had been regarded as among those most likely to fail,rose strongly.Whereas our performance benefited last year from not holding the weake

106、st of the UK banking stocks,our returns lagged over the following months through not participating in the dramatic share price rally in these same stocks.Throughout the market volatility of the year,we have remained consistent to our investment approach,seeking to hold only those companies which we

107、believe are strong and will provide sustainable long-term returns rather than short-term gains.Our portfolio reviews on the following pages provide examples of these stocks.We have enhanced our risk framework and are paying due attention to good corporate governance practice in our portfolio holding

108、s.We have gradually altered the bias of our regional portfolios towards a more balanced approach through the addition of some cyclical stocks.In terms of sector exposure,as the year progressed we have increased our holdings in more economically sensitive sectors,such as Technology,Industrials,Oil&Ga

109、s and Financials.We have reduced our holdings in more defensive areas such as Utilities and Telecommunications.This has been an ongoing theme over the period as our conviction in longer-term global economic recovery has grown.Income The global recession has resulted in the yield of the FTSE All-Worl

110、d Index falling by 40%over the course of the financial year,from 4.15%to 2.49%.Total dividend payments have been reduced by over 20%over the same period.In the UK,we have seen a swathe of dividend cuts by companies most exposed to the economic recession.Indeed,a recent report suggests that total cor

111、porate dividend payments suffered a reduction of 10 billion,or 15%,in 2009,compared to the previous year.Against this backdrop,we have placed great emphasis on the sustainability of dividends in our investment selection process.Many of the defensive growth holdings we have retained in our portfolio

112、have been able to increase their dividend payouts.Investment TeamTeamwork and communication are foundations of our investment function.The centralisation of our investment team in Scotland was completed during the year and the move to our new headquarters in Dundee has greatly improved the flow of i

113、nformation and ideas.Our Edinburgh office enables our investment managers to attend a greater number of company and analyst meetings.Our investment team benefits from the macro-economic input of our Economics Research Centre,an in-house team of economists.They provide proprietary analysis of global

114、and regional economic trends,which has been a positive influence on our asset allocation decision making during the extreme conditions of the last two years.We believe that the stability of our investment team and average length of service give us a competitive advantage.Each of our regional teams i

115、s headed by an individual with over 20 years investment experience.They have managed portfolios across political,economic and market cycles.We have continued to enhance our investment capabilities by recruiting specific expertise.Notably,we have appointed a team of Fixed Income specialists,who will

116、help us to maintain our progressive dividend policy.Their experience and expertise in corporate credit analysis will also strengthen our equity investment selection process.UK 9%North America 31%Europe 23%Pan Asia 23%Emerging Markets 14%Revenue GenerationSource:Alliance Trust*The regional weightings

117、 differ from those shown on pages 12 to 17 because in this analysis the global portfolio is allocated on the basis of where the holdings are listed.UK 40%North America 27%Europe 15%Pan Asia 17%Emerging Markets 1%Geographic Distribution*Source:Alliance Trust10|Alliance Trust PLC Report&Accounts 2010

118、Top 20 holdings as at 31 January 2010 Value%of quoted Stock Sector m equitiesHSBC Banks 78.0 3.3BP Oil&Gas Producers 74.1 3.1Royal Dutch Shell Oil&Gas Producers 55.2 2.3Rio Tinto Mining 51.4 2.2BHP Billiton Mining 50.9 2.1British American Tobacco Tobacco 41.0 1.7InterOil Oil&Gas Producers 39.6 1.7Pr

119、udential Life Insurance 36.4 1.5New York Community Bancorp Banks 35.0 1.5Scottish&Southern Energy Electricity 34.1 1.4Vodafone Mobile Telecommunications 32.8 1.4Philip Morris Tobacco 32.5 1.4GlaxoSmithKline Pharmaceuticals&Biotechnology 31.5 1.3Diageo Beverages 31.0 1.3Suncor Energy Oil&Gas Producer

120、s 30.7 1.3Diamond Offshore Drilling Oil Equipment,Services&Distribution 30.1 1.3Republic Services Support Services 28.1 1.2Tesco Food&Drug Retailers 27.2 1.1Reckitt Benckiser Household Goods&Home Construction 25.9 1.1Amdocs Software&Computer Services 25.8 1.1A full list of companies in which we inve

121、st can be found on our website www.alliancetrust.co.ukInvestment Portfolio InformationAlliance Trust PLC Report&Accounts 2010|11 Classification of Investments North Pan-Emerging Total Total UK America Europe Asia Global Markets 2010 2009*%Oil&Gas 7.3 3.3 0.6 0.4 1.4 0.1 13.1 11.7Basic Materials 4.5

122、0.6 0.8 1.7 1.0 0.1 8.7 5.1Industrials 5.1 3.9 1.6 3.7 1.9 0.1 16.3 11.3Consumer Goods 3.6 1.1 2.1 1.6 1.3 0.1 9.8 9.3Health Care 1.3 2.6 1.8 0.1 0.8-6.6 7.4Consumer Services 3.8 2.0-0.1 0.9 0.1 6.9 6.5Telecommunications 1.3 0.6 0.3-0.2-2.4 5.7Utilities 1.2 0.2 0.3-0.2-1.9 4.5Financials 8.1 2.5 3.3

123、2.9 2.7 0.2 19.7 10.9Technology-3.7 0.8 3.0 1.7 0.1 9.3 4.9Equity Portfolio 36.2 20.5 11.6 13.5 12.1 0.8 94.7 77.3Other Assets 0.7 0.5 0.1-0.8 2.1 3.8Private Equity 2.9-0.3-3.2 2.6Subsidiaries 0.6-0.6 1.7Property 2.4-2.4 3.2Fixed Income 1.6-1.6 0.8Total Investments 44.4 21.0 12.0 13.5 12.1 1.6 104.6

124、 89.4Net Cash/(Debt)(5.5)0.6-0.2-(4.7)11.6Other Net(Liabilities)/Assets 0.1-0.1(1.0)Net Assets 39.0 21.6 12.0 13.7 12.1 1.6 100.0 100.0Net Assets 2009 51.4 20.4 9.8 7.5 10.1 0.8 100.0*restated to allocate collective investment holdings by sector12|Alliance Trust PLC Report&Accounts 2010 The UK econo

125、mic background early in the year was dominated by the adoption of quantitative easing,seeking to rescue a financial system that was close to collapse.As it became evident that these policies were achieving their shorter-term aims,equity markets rallied sharply.Many of the UK companies which performe

126、d most strongly through the March/April recovery were among those whose share prices had experienced the greatest falls over the previous twelve months.We considered many of them still to have a challenging long-term outlook and little dividend payout prospects.We did not hold these types of compani

127、es,as they do not meet our long-term,quality investing criteria.As a result our returns lagged the markets rapid recovery in the spring.In the course of the year,we rationalised the number of our UK holdings by combining the former UK Large Cap and UK Mid Cap portfolios to create a single UK portfol

128、io.We reduced the defensive bias in the portfolio to focus on companies with international businesses which,in particular,are benefiting from Asian growth.We have also increased our oil and mineral holdings and our exposure to broader economic growth,while retaining a minimal exposure to UK discreti

129、onary consumer spending We added to our low weighting in banks by purchasing a large holding in HSBC.HSBC has a strong capital position,is exiting most of its North American activities and is well-positioned to benefit from Asian growth.Commodity-related companies have provided good returns over the

130、 year.We began the year with large holdings in the oil majors,BP and Shell,having conviction in their commitment to maintain dividend policy and in the strength of their underlying businesses.This was rewarded with good capital and income returns over the year.As our confidence in the broader market

131、 increased we also added to smaller oil companies such as Tullow and BG Group,and to oil service companies such as Petrofac and Wood Group.We increased our mining holdings over the year through the purchase of new holdings in Rio Tinto and Xstrata as additions to our existing holding in BHP Billiton

132、.Holdings of engineering companies serving mineral and oil markets were also purchased:we increased our investments in Weir Group and Rotork and added a new holding in IMI.The portfolios current key themes are centred around well positioned multinational companies where growth is not solely reliant

133、on the UK economy.Asian growth,oil and minerals and quality,well-financed companies are our main focus.We have holdings in several high quality multi national businesses based in,and managed from,the UK-companies such as Tesco,Reckitt Benckiser,British American Tobacco,and Diageo.The domestic UK eco

134、nomy is facing a number of challenges this year.Our stock selection process aims to identify companies with diverse market exposure,both geographically and industrially,whose prospects are driven more by global than domestic forces.*FTSE All Share IndexUKTop ten investments Value at%of Name Sector 3

135、1/1/10 m PortfolioHSBC Banks 78.0 8.6BP Oil&Gas Producers 74.1 8.1Royal Dutch Shell Oil&Gas Producers 55.2 6.1Rio Tinto Mining 45.9 5.0BHP Billiton Mining 42.0 4.6British American Tobacco Tobacco 41.0 4.5Vodafone Mobile Telecommunications 32.8 3.6GlaxoSmithKline Pharmaceuticals&Biotechnology 31.5 3.

136、5Scottish&Southern Energy Electricity 29.2 3.2Tesco Food&Drug Retailers 27.2 3.0 Portfolio performance(12 months to Jan 2010)Benchmark Index*+33.2%Relative Performance(4.4%)UK Portfolio+27.4%of Quoted Equities:Jan10 38%|Jan09 40%Investments are held either directly by the Company or through the Comp

137、anys investment in the Alliance Trust UK Equity Income Fund.Courtesy of TescoAlliance Trust PLC Report&Accounts 2010|13 Extraordinary policy measures implemented in early 2009 prevented the severe US economic recession turning into depression and breathed life back into stock markets.During an inves

138、tment research trip to the US in March,the overwhelming feeling was of how cheap stocks then appeared to be;and so it has proved.A combination of aggressive cost cutting,greatly reduced capital spending and strong cash flow generation from inventory reductions has helped to maintain US corporate pro

139、fitability at surprisingly healthy levels.Investor appetite for risk has returned and,encouraged by ample liquidity,stock markets have risen strongly.Investing during these extreme conditions has proved a challenging task.We started the year with a highly defensive portfolio,largely consisting of co

140、mpanies we believed to be of high quality,with strong businesses,brands,balance sheets and management.As the market began to recover,led by sectors and companies often among the worst performing over the previous twelve months,our portfolio performance lagged.More recently,the attractions of higher

141、quality companies and more defensive sectors have been sought by investors and our relative performance has improved.A holding that has performed particularly well throughout the year is InterOil.Highly successful test drilling results in Papua New Guinea revealed what may prove to be significant ga

142、s resources.This,along with agreement with the Papua New Guinea government to develop a liquefied natural gas facility,has helped InterOil become our largest holding at year end.We are looking for further positive developments at the company this year.Canada remains a significant investment area for

143、 us.Canada is regarded as one of the soundest economies of the G8 group.The housing market has picked up sharply and employment is rising again.In general,our Canadian holdings performed well over the year.An important development was the merger of Petro-Canada with Suncor to create the premier oil

144、sands company in North America.We sold Ultra Petroleum as there has been a large increase in potential gas supply with the development of shale gas.In its place,we purchased a holding in Enterprise Product Partners,a gas gathering pipeline and processing company.Overall we remain overweight in energ

145、y as we think global demand will continue to grow and supply growth is still constrained.We also introduced a new investment in Polycom,a leader in video conferencing,and increased our investment in FLIR,a thermal image camera company.We expect the coming year to be rather volatile as investors worr

146、y about regulatory reform and the removal of quantitative easing.In the main,we remain heartened by the number of quality companies with attractive prospects on reasonable valuations that are to be found in North America,exemplified by our additions during the year to long-term investments,Republic

147、Services,New York Community Bank and Amdocs.*FTSE All Cap North America IndexNorth AmericaPortfolio performance(12 months to Jan 2010)Benchmark Index*+23.0%Relative Performance(0.0%)North American Portfolio+22.9%of Quoted Equities:Jan10 22%|Jan09 26%Top ten investments Value at%of Name Sector 31/1/1

148、0 m PortfolioInterOil Oil&Gas Producers 35.7 6.9New York Community Bancorp Banks 28.2 5.4Philip Morris Tobacco 26.4 5.1Suncor Energy Oil&Gas Producers 24.9 4.8Abbott Laboratories Pharmaceuticals&Biotechnology 23.1 4.5Diamond Offshore Drilling Oil Equipment,Services&Distribution 22.7 4.4American Towe

149、r Technology Hardware&Equipment 21.4 4.1Republic Services Support Services 20.4 3.9Amdocs Software&Computer Services 19.1 3.7Canadian Pacific Railway Industrial Transportation 19.0 3.7 Investments are held either directly by the Company or through the Companys investment in the Alliance Trust North

150、American Equity Fund.Courtesy of Republic ServicesEuropeEuropean markets confounded many expectations with strong rises over the year.This positive outcome masks a roller coaster ride during the year,which left many investors wrong-footed.Our relative outperformance of the benchmark index is pleasin

151、g in such volatile markets.As we entered 2009,general expectations were that European growth would hold up better than in the US and UK and that European economies would be relatively immune from the travails of the global credit problems.These expectations were quickly proved to be wrong.For exampl

152、e,the powerhouse of Europe,Germany,collapsed into recession on the back of plummeting exports.Markets were rescued in March by the announcement of credible bank rescue plans in the UK and US and the rapid recovery in Asian economies arising from the huge Chinese fiscal spending plan.Other stimulus m

153、easures such as car subsidy schemes also proved effective.As the year progressed,company earnings reports were often better than analysts expectations,driven by aggressive cost cutting.This helped to sustain the market rally.Among the best performing companies were those whose share prices had suffe

154、red most in the downturn.These included highly-indebted companies,industrial cyclicals and financials.The speed with which these risky assets were re-priced was breathtaking.In this volatile environment,we remained true to our long-term philosophy of holding companies which we believe have a strong

155、business model,attractive valuations and solid balance sheets.A good example of this is our holding in the Swiss watch manufacturer,Swatch.In the early part of the year,when companies with consumer and emerging market exposure were sold down aggressively,we reappraised our holding in Swatch and conc

156、luded that the shares were trading on an attractive valuation,that the company had a high level of cash on the balance sheet and held a good long-term competitive position in its industry.We used the share price weakness to add to our existing holding and have been rewarded as the share price has ri

157、sen strongly during the year.We sold our holding in National Bank of Greece in the first quarter of the year,as we had serious concerns about the longer term stability of the Greek economy and used the proceeds to purchase a holding in Deutsche Bank.We increased our weighting in financials by adding

158、 to existing holdings and by buying the insurance group Zurich and the investment bank Credit Suisse.We reduced our telecommunications exposure with the sale of Deutsche Telekom and increased our healthcare holdings by adding the French pharmaceutical company Sanofi,as well as the French eyewear com

159、pany Essilor.Valuations in European markets remain attractive but,as the issue of sovereign debt in Europe returns to centre stage,another volatile year is in prospect.*FTSE All-World Developed Europe Ex UK IndexPortfolio performance(12 months to Jan 2010)Benchmark Index*+30.9%Relative Performance+1

160、.6%European Portfolio+32.9%of Quoted Equities:Jan10 12%|Jan09 12%Top ten investments Value at%of Name Sector 31/1/10 m PortfolioNestl Food Producers 16.3 5.7Total Oil&Gas Producers 14.9 5.2Deutsche Post Industrial Transportation 14.6 5.1Swatch Group Personal Goods 14.6 5.1Anheuser-Busch InBev Bevera

161、ges 13.3 4.7Holcim Construction&Materials 13.0 4.6BNP Paribas Banks 12.5 4.4Siemens General Industrials 12.5 4.4Banco Santander Banks 12.2 4.3Zurich Financial Services Nonlife Insurance 11.2 3.9 Investments are held either directly by the Company or through the Companys investment in the Alliance Tr

162、ust European Equity Fund.Courtesy of Essilor14|Alliance Trust PLC Report&Accounts 2010 In the second quarter of the year,we restructured the portfolio by combining our Japanese and Asia Pacific holdings to create a unified Pan Asia portfolio.While the portfolio underperformed during the period,since

163、 the portfolio was combined the team has generated a return of 21.0%against a benchmark return of 22.1%.This allows a concentration of ideas and resources within the Asian team,focusing on the region as a whole.The Asian region is highly interdependent and our investment approach,which covers sector

164、s and stocks across the whole region,provides a more balanced portfolio and enables a dynamic allocation across the region.The Asia Pacific holdings lagged the strong markets experienced early in the year due to a high weighting in defensive,high cash flow generating stocks,in areas such as telecomm

165、unications,utilities and tobacco.With the introduction of Japan to the Pan Asian portfolio,these overall weightings were reduced and the exposure to higher quality,economically sensitive stocks increased.We also increased the weighting in higher growth emerging markets.The recovery in economic growt

166、h in Asia,and particularly in China,has,over recent months,shown clear signs of broadening away from one driven by government stimulus to include more sustainable areas such as domestic consumption and exports.This has led to a strong rebound in corporate profits which has supported the rally in equ

167、ity markets through 2009.The one economy,and market,which has lagged this recovery has been Japan,largely due to weak domestic demand,the reappearance of deflation concerns and an appreciation of the Yen.Aggressive cost cutting and a pick up in external demand is now leading to a strong recovery in

168、profits for many Japanese companies in the manufacturing and exporting sectors.As a result of this recovery,corporate profits in Japan in 2010 are expected to grow faster than for the Asia Pacific region as a whole.In addition,valuations in Japan are now at very low levels and hence on a medium-term

169、 view,Japan is looking relatively attractive.We have,therefore,moved to reduce significantly our large underweight position in Japan.The additions to Japanese holdings have been in the industrial and technology sectors where earnings growth is highest.We have added to existing positions in Keyence(i

170、ndustrial),Rohm and Tokyo Electron(technology).We still retain overweight positions in China,India and Indonesia through the addition of CNOOC and Dongfang Electric(China),ICICI Bank and Hero Hondo(India)and Bank Rakyat and Semen Gresik(Indonesia).*From 1/2/09 to 30/4/09 weighted composite of FTSE A

171、ll Cap Japan Index and FTSE All Cap Asia Pacific excl Japan.From 1/5/09 to 31/1/10 the FTSE All-World Asia Pacific Index.Pan AsiaPortfolio performance(12 months to Jan 2010)Benchmark Index*+42.9%Relative Performance(6.6%)Pan Asia Portfolio+33.5%of Quoted Equities:Jan10 14%|Jan09 9%Top ten investment

172、s Value at%of Name Sector 31/1/10 m PortfolioToyota Motor Automobiles&Parts 14.8 4.4 Samsung Electronics Technology Hardware&Equipment 14.6 4.3BHP Billiton Mining 14.0 4.1Hon Hai Precision Industry Electronic&Electrical Equipment 12.9 3.8Infosys Technologies Software&Computer Services 12.0 3.5Mitsui

173、 Support Services 11.5 3.4Westpac Banking Banks 11.4 3.4Nidec Electronic&Electrical Equipment 11.3 3.3CNOOC Oil&Gas Producers 10.5 3.1China Life Insurance(China)Life Insurance 10.2 3.0 Investments listed are held either directly by the Company or through the Companys investments in the Premier Allia

174、nce Trust Asian Pacific Equity Fund and the Premier Alliance Trust Japan Equity Fund.Courtesy of BHP BillitonAlliance Trust PLC Report&Accounts 2010|15 16|Alliance Trust PLC Report&Accounts 2010 We established a Global Equity portfolio in late 2008 to emphasise our high conviction,favoured long-term

175、 investments.Most of the holdings are selected from the regional portfolios of the Trust.The portfolio focuses primarily on non-UK listed companies to increase the Trusts regional diversification.Twelve months ago,fear ruled global stock markets.We began the year managing a portfolio of higher-yield

176、ing companies with dependable cash flows which had performed well during the credit crisis.As global markets began to recover in March and April,the markets performance was dominated by extreme rebounds in riskier assets particularly in financials,resource companies and emerging markets,areas in whi

177、ch we were underweight.As with our regional portfolios,much of the relative underperformance of the portfolios capital returns occurred at that time.Operating transparency has improved across the globe,and it is now possible to value companies based on normalised,through-the-cycle earnings.Those ear

178、nings are likely to be lower than during the previous cycle,as Western economies have been seriously damaged by the past decades excesses.Earnings visibility has improved and our research is identifying many companies which we consider good value,despite significant rebounds in the past year.This is

179、 particularly true of financials,where banks such as Credit Suisse are very attractive on normalised earnings,which we expect to be achieved in 2011 or 2012.We have increased technology and industrial holdings.Cisco,Polycom and Canon reflect our expectation that,in developed markets,corporate demand

180、 will rebound this year after a devastating decline straddling parts of 2008 and 2009.We continue to focus on well-managed companies with strong cash flows,attractive returns on capital and competitive market positions.Energy and resources sectors are truly global in nature.No matter where an oil or

181、 mining company is based,prices are driven by global demand and supply.With a choice of quality names across all regions,among our favoured investments are Tullow(UK),CNOOC(China)and BHP(UK listed).We also continue to invest in global growth companies such as the Swiss company Syngenta.In emerging m

182、arkets,we believe that the case for long-term,structural growth in domestic consumption in Brazil is as attractive as that in Asia.Our global portfolio is able to invest in this theme both directly,through companies such as Po de Acar,one of Brazils largest operators of hypermarkets,and indirectly t

183、hrough global operators such as the Spanish companies Telefnica and Santander.*FTSE All-World IndexGlobalPortfolio performance(12 months to Jan 2010)Benchmark Index*+28.4%Relative Performance(8.1%)Global Portfolio+18.0%of Quoted Equities:Jan10 13%|Jan09 13%Top ten investments Value at%of Name Sector

184、 31/1/10 m PortfolioCisco Systems Technology Hardware&Equipment 9.4 3.1Prudential Life Insurance 9.4 3.1Johnson&Johnson Pharmaceuticals&Biotechnology 9.2 3.0BHP Billiton Mining 8.9 2.9Syngenta Chemicals 8.2 2.7Accenture Support Services 7.9 2.6Western Union Support Services 7.9 2.6Republic Services

185、Support Services 7.7 2.5Intel Technology Hardware&Equipment 7.7 2.5Diamond Offshore Drilling Oil Equipment,Services&Distribution 7.4 2.4Courtesy of SyngentaAlliance Trust PLC Report&Accounts 2010|17%of Net Assets:Jan10 1%|Jan09 nilCourtesy of RosneftEmergingMarketsA small Emerging Markets portfolio

186、was initiated in December which enables us to consolidate our exposure in existing holdings across the emerging Asian countries of India,Indonesia,China and Taiwan,while expanding into developing countries,such as Brazil,Mexico,Turkey and Russia.In these areas,we have invested in a range of sectors

187、such as Russian oil(Rosneft),Brazilian iron ore(Vale),Brazilian motorways(CCR)and telecommunications(Vivo in Brazil and MTS in Russia).Top ten investments Value at%of Country Name Sector 31/1/10 m Portfolio of ListingHon Hai Precision Industry Electronic&Electrical Equipment 1.0 5.3 TaiwanCNOOC Oil&

188、Gas Producers 1.0 5.0 Hong KongChina Life Insurance(China)Life Insurance 0.9 5.0 ChinaIndustrial&Commercial Bank of China Banks 0.9 4.9 ChinaTrkiye Garanti Bankasi Banks 0.9 4.6 TurkeyTaiwan Semiconductor Manufacturing Technology Hardware&Equipment 0.8 4.4 TaiwanICICI Bank Banks 0.8 4.2 IndiaRosneft

189、 Oil&Gas Producers 0.8 4.2 RussiaCompanhia Vale do Rio Doce Industrial Metals&Mining 0.8 4.1 BrazilFibria Celulose Forestry&Paper 0.7 3.7 Brazil18|Alliance Trust PLC Report&Accounts 2010 Our Private Equity business,Alliance Trust Equity Partners,had a good year with strong performance in the quoted

190、private equity portfolio and a continued build up of its focused fund commitment program during the year.The performance was driven by a narrowing of discounts to NAV in our holdings as private equity valuations stabilised.We have utilised the strong performance in the quoted private equity portfoli

191、o to fund partially the drawdowns from the private equity funds to which we have made long-term commitments.The quoted private equity portfolio was valued at 19.0 million at the year end,compared to 16.1 million twelve months ago,after 10.3 million of net realisations.The total committed to private

192、equity funds and co-investments as at 31 January 2010 was 227.7 million,of which only 62.4 million had been invested.Net drawdowns on private equity funds in 2009 were 24.5 million,while 1.1 million was added to direct investments.The undrawn element will allow our fund managers to take advantage of

193、 the upturn in market conditions over the medium term.These residual undrawn commitments will be drawn down over the next five to ten years,during which time realisations should occur,leaving the net exposure to private equity assets below the headline commitment level.Alliance Trust Equity Partners

194、 has built its reputation as a research led,proactive and thorough Private Equity fund investor across Europe with a focus on fund managers which:operateinlowertomidmarketfundsinWesternEurope haveastrongtrackrecordandastableteam provideaconsistentapproachwithagrowthandoperational biasDuring the year

195、,we added two new commitments to funds-a mid-market Pan European Fund and a lower to mid-market Germanic region fund.These commitments add to the diversification at a geographic,sector,stage and company level of the portfolio we are building.We have built strong relationships with our selected fund

196、managers,as evidenced by our positions on their funds advisory boards,with a view to future potential co-investments with these managers.As the fund managers make investments over time the portfolio will continue to become more representative of the current investment strategy.Portfolio performance(

197、12 months to Jan 2010)Private EquityPrivate Equity Portfolio+17.3%Top ten investments*Ending Market%of Name Value m PortfolioFleming Family Private Equity Vehicle 8.1 10.1Eurazeo 7.1 8.8Standard Life European Private Equity Trust 6.7 8.3The Alcuin 2007 Fund 6.1 7.6Climate Change Capital Private Equi

198、ty 5.9 7.3Electra Private Equity 5.3 6.5Impax New Energy Investors 5.1 6.3August Equity Partners II A 5.1 6.3Silverfleet Capital Partners 4.9 6.1The Alcuin 2008 Fund 4.4 5.4*Investments are held directly by the Company or through limited partnerships set up for the purpose of holding these investmen

199、ts.Courtesy of Lab901UK 45%Pan EU 36%Nordics 11%DACH(Germany/Austria/Switzerland)6%Other Europe 2%Current Fund Commitments by Geography%of Net Assets:Jan10 3%|Jan09 3%Alliance Trust PLC Report&Accounts 2010|19 Fixed Income and Other AssetsThe Fixed Income portfolio consists of preference shares and

200、bonds issued by companies in the UK banking and insurance sectors.The strong rebound in the share prices of UK financial companies in the year was reflected in the capital value of our preference share portfolio,which rose to 17.5 million from 13.7 million a year ago.Interest income from our prefere

201、nce share holdings totalled 1.5 million,producing an income return of over 8.9%at year end values.Income from our US mineral rights fell from 2.2 million last year to 1.6 million.US average gas prices fell by 56%over the year while Sterling strengthened against the US dollar.Gas prices have now reco

202、vered from their lows of 2009:a sustained recovery is dependent upon demand and a function of economic growth in the US.We also invest a small proportion of our assets in collective funds in areas which we believe will enhance the overall returns of the portfolio but in which we do not have direct e

203、xpertise.Within these holdings,Impax Environmental Markets PLC,which invests in technology-based systems,products and services in environmental markets,performed well,as did Ashmore Global Opportunities Limited,which benefited from the recovery in global emerging markets.Fixed Income and Other Asset

204、s+2.9%Fixed Income and Other AssetsOur direct property portfolio provided gross rental income of 4.1 million,a return of 6.3%net of costs.The direct property portfolio was valued at 51.6 million at the year end,having disposed of 125 George Street,Edinburgh in January for 9.6m.Shortly after the year

205、 end,we also sold our property at 11/12 Hanover Street,London for 13.7m,which reflects a net initial yield of 4.2%.We will continue to manage the remaining properties in the portfolio to maximise income returns,until such time as they are considered appropriate for disposal.Investments Value as at N

206、ame 31/1/10 m11/12 Hanover Street,London 13.7Edinburgh House,4 North St Andrew Street,Edinburgh 11.9Kings Court,12 King Street,Leeds 9.9Climate Change Property Fund 6.5Monteith House,11 George Square,Glasgow 6.16-10 Frederick Street,Edinburgh 6.0107 George Street,Edinburgh*4.0*Partly occupied by All

207、iance Trust PLC.Property%of Net Assets:Jan10 2%|Jan09 3%Property Portfolio+6.2%of Net Assets:Jan10 4%|Jan09 5%20|Alliance Trust PLC Report&Accounts 2010 Financial Services SubsidiariesAlliance Trust Asset ManagementAlliance Trust Asset Management has been established as a natural extension to the Co

208、mpanys business by offering third party investors the opportunity to access directly individual areas of expertise within our investment team.Our fund managers follow the same long-term investment philosophy in managing third party assets which they already employ in managing the Companys assets.Our

209、 initial aim is to offer a focused range of investment funds which will meet our clients needs.We established our first open-ended funds,Alliance Trust North American Equity Fund and Alliance Trust UK Equity Income Fund,in February 2009.Our North American Equity Fund has been awarded an“A”rating by

210、Old Broad Street Research,one of the UKs leading fund rating agencies.In December,we also established the Alliance Trust European Equity Fund.The focus of our distribution activity over the period has been to promote the establishment of this new business area to major fund buyers in the UK.We have

211、also received good support from clients of Alliance Trust Savings.Third party assets under management totalled 11.6 million at the year end.We anticipate adding further equity funds this year,based on the strengths upon which we can draw within the Companys investment team.By the end of 2010,we anti

212、cipate having established our core range of equity funds.Following the recruitment of our team of Fixed Income professionals,we will also actively pursue opportunities in fixed income markets.The strength of our long-term investment philosophy and targeted,consistent,above-average performance are ex

213、pected over time to lead to substantial growth in assets under management.This will enhance the Companys ability to attract key investment talent and will benefit shareholders by spreading operating costs over a larger pool of assets.Alliance Trust PLC Report&Accounts 2010|21 Alliance Trust SavingsO

214、ver the course of the year,an extensive review of Alliance Trust Savings business was undertaken,led by its Chief Executive Officer,Robert Burgess.As a result a number of new appointments of highly experienced market practitioners have been made to strengthen the senior management team.Administratio

215、n procedures and processes in both pension administration and share dealing services have been enhanced,with a firm focus on delivering quality service,value to customers and scalability.Alliance Trust Savings is one of the leading providers of Self Invested Personal Pensions(“SIPP”)in the UK,offeri

216、ng both an Investment Dealing SIPP and a Full SIPP.In November,we were awarded the title of“Low Cost SIPP Provider of the Year”by FT/Investor Chronicle.We were also awarded“Best Stocks&Shares ISA Provider”by What Investment?magazine,for the third consecutive year.Our share dealing services offer a w

217、ide investment choice and fully transparent flat rate charges.Unlike many other fund platforms,we do not keep commissions from fund management groups but rebate all commissions received direct to our customers.We believe that with our business model we are now ideally positioned for the fundamental

218、changes to adviser remuneration,which are expected to be implemented at the end of 2012,as a result of the FSAs Retail Distribution Review.Alliance Trust Savings generated total income for the year of 9.9m compared to 16.4m last year.The reduction in income was driven primarily by the unprecedented

219、reduction in UK Base Rate to 0.5%at the start of the year.Operating costs for the year were tightly controlled and remained relatively flat at 17.7m(17.9m),despite one-off costs relating to redundancy,the move to Marketgait and the investment in people and automated processes.Customer numbers have r

220、emained stable at 57,000,while the business focused on improving its operational effectiveness.Customers of Alliance Trust Savings play an important role in increasing demand for the Companys shares and also for Alliance Trust Asset Management Funds.Customers now hold in excess of 21%of the share ca

221、pital of Alliance Trust and we continue to offer significant benefits for customers who are shareholders through the discounted dealing schemes.The focus now for Alliance Trust Savings is to build on the achievements of 2009 to deliver long-term value to shareholders.22|Alliance Trust PLC Report&Acc

222、ounts 2010 Company Total ReturnThe Company generates returns through revenue earnings and capital growth.For the year ended 31 January 2010 the revenue earnings per share were 9.14p(10.37p)and the capital gain per share was 60.45p(loss 87.42p)representing a total gain per share of 69.59p(loss 77.05p

223、).Company Revenue PerformanceRevenue earned from the Companys assets declined by 14.8%to 81.2m(95.3m).The Companys decision to reduce cash balances in the year and invest that cash in the markets together with reductions in the base rate of interest meant a decline in bank interest earned to 0.7m(6m

224、).Income from securities declined to 73.9m(78.0m)due to cuts in dividend receipts and reduced special dividends.Reductions in gas prices during the year reduced mineral rights income to 1.6m(2.2m)and rental income on the Companys property portfolio rose slightly to 4.5m(4.2m).Company Capital Perform

225、anceLast year saw a recovery in the financial markets and our net asset value per share rose by 19.2%.Gains on our investment portfolio totalled 410.2m(Loss 583.9m).Company ExpensesOverall the Company decreased expenditure by 4.8%during the year to 16.0m(16.8m).The Company increased its expenditure

226、on its investment function during the period in line with our focus on strengthening our team.In other areas of the business the Company acted decisively to reduce its cost base.The Total Expense Ratio(TER)for the period was 0.69%(0.70%).DividendThe Company has a progressive dividend policy and,subj

227、ect to external factors such as changes in the economic environment and taxation,the Directors seek to manage the assets of the Company to generate a growing revenue stream which will allow them to continue to declare increasing dividends year on year.Having paid three interim dividends of 2.025p fo

228、r last year,the Directors have declared a fourth interim dividend of 2.075p per share payable on 1 April 2010.The total dividend for the year,of 8.15p,is an increase of 1.9%on the 8.0p(excluding the special dividend of 0.5p paid in July 2009)paid for the previous year.In the absence of any unforesee

229、n developments,we expect to be able to recommend quarterly interim dividends of 2.0625p,payable on or around 2 August 2010,1 November 2010,31 January 2011 and a fourth interim dividend of at least 2.0625p,payable on or around 3 May 2011.Financial PerformanceRevenue earnings per share9.14pCapital gai

230、n per shareTotal Expense Ratio60.45p0.69%Alliance Trust PLC Report&Accounts 2010|23 Consolidated resultsFor the year ended 31 January 2010 the consolidated gain per share was 69.76p(loss 78.06p)comprising revenue earnings per share of 7.57p(9.00p)and a capital gain per share of 62.19p(loss 87.06p).C

231、onsolidated administrative expenses charged against revenue profits were 36.8m(40.1m).Consolidated administrative expenses charged against capital profits were 1.3m(2.0m).SubsidiariesAlliance Trust Savings generated total income for the year of 9.9m compared to 16.4m last year.Its operating costs fo

232、r the year were 17.7m(17.9m)which included one off costs of 0.8m(0.9m)relating to redundancy costs.Alliance Trust Savings profitability has been impacted significantly in the year by falling interest rates which reduced its earnings from placing customer deposits in the money markets.Alliance Trust

233、Asset Management,the UK asset management business,incurred expenditure of 3.4m in the year(3.6m).Cash Flows,Liquidity Position and Borrowing FacilitiesThe Company started the year with net cash of 11.6%,having reduced our cash position toward the end of 2008 as our confidence grew in the recovery of

234、 global equity markets.We have continued to commit cash into equity markets and at 31 January 2010 we had net debt of 4.7%.The Company has committed funding lines of 200m in place at the year end and good covenant cover.The vast majority of the Companys assets are listed equities which are readily r

235、ealisable.Company record CAPITAL AND REVENUE ATTRIBUTABLE TO ORDINARY ShARES Total Assets Total Capital Capital less Current Appreciation Total Revenue Appreciation Net Asset Liabilities(Depreciation)Revenue Earnings(Depreciation)Dividend Value m m m p per share*p per share*p per share*per share*200

236、1 1,976 87 40.3 6.73 17.23 6.65 3.912002 1,674(305)45.0 7.48(60.47)6.85 3.312003 1,206(469)43.6 7.16(93.08)6.95 2.392004 1,476 268 46.1 7.54 53.15 7.05 2.922005*1,635 147 47.5 7.50 29.12 7.18 3.242006 2,037 395 54.5 8.70 78.47 7.35 4.042007 2,832 148 68.1 8.66 23.47 7.58 4.222008 2,699(139)82.6 9.17

237、(20.99)7.90 4.022009 2,125(584)95.3 10.37(87.42)8.50*3.172010 2,518 410 81.2 9.14 60.45 8.15 3.78*Restated to reflect 10:1 subdivision*Prior to 2005,shown in accordance with UK GAAP;from and including 2005,shown in accordance with IFRS*Includes special dividend of 0.5p,paid July 200924|Alliance Trus

238、t PLC Report&Accounts 2010 The following section sets out our approach to risk management and focuses on the key risks that we believe could impact on the performance of the business.Effective risk management is a key component of the businesss operating model and assists in ensuring that the differ

239、ent parts of the business operate within acceptable risk parameters.The Board has overall responsibility for setting the level of risk which it is prepared to accept.The level of risk appetite acceptable to each business is agreed at Board level and regularly reviewed.The risk framework is overseen

240、by the Risk Committee,which meets quarterly,is chaired by the Finance Director and is made up of representatives from Alliance Trust and each of its regulated subsidiaries.The Risk Committee has oversight of the risk and controls self-assessment exercise and the operation of the risk framework as a

241、whole.Each business unit maintains and reviews its risk register and the controls in place to mitigate,reduce or prevent loss arising from their key risks.A common risk categorisation is in place for all business units.The key risks,and mitigating actions are discussed below:Risk FactorsRiskStrategi

242、c a strategy that does not maximise value and/or fails to achieve the initiatives in the agreed strategic plan due to changing or flawed assumptions.MitigationThe Board allocates time at each board meeting to consider the implementation of its strategy,both for investment and the subsidiary business

243、es.Separately,the different Boards within the Group measure their performance against agreed business objectives.Market unfavourable market moves or volatility.The risk typically arises from equity,property and bond exposures,and the impact of interest rates and currency values.The Asset Allocation

244、Committee meets regularly,attended by senior investment managers and our economist,to consider and take action to realign investments.Credit the failure of a party with which we have contracted to meet its obligations both on and off the balance sheet.Management measure exposure to counterparties on

245、 a daily basis.Counterparty exposures are set by the Authorisation Committee and take into account credit as well as investment exposure.Liquidity the risk that the Company/subsidiary does not have sufficient financial resources to meet its commitments when they fall due,or can secure them only at e

246、xcessive cost.For Alliance Trust Savings and Alliance Trust Asset Management this is also a regulatory requirement.Cash is managed on a daily basis.The bulk of the Trusts investments are quoted equities which may be realised at short notice if required.Capital the risk that Alliance Trust or one of

247、its regulated subsidiaries has insufficient capital to meet its regulatory capital requirements;that the group has insufficient capital to provide a stable resource to absorb any losses up to the confidence level defined within the group;that the group loses reputational status as a result of having

248、 capital that is regarded as inappropriate either in quantity,type or distribution;or that the capital structure is inefficient.The Company,and all regulated subsidiary companies,comply with the requirements of the Internal Capital Adequacy Assessment Process(ICAAP)under Basel II which means that th

249、e Company considers the risks to which it is,or could be,exposed in order to ensure that there is sufficient capital adequacy on an ongoing basis.Reputational the risk that the value of the Company is diminished due to adverse publicity regarding the way in which it does business.The Company has a r

250、isk framework in place to reduce the likelihood of such a loss event taking place.In addition,the Company has in place arrangements to enable it to respond to and minimise the impact of any adverse incident.Financial and Prudential reporting the risk of adopting inappropriate accounting policies;ine

251、ffective controls over financial and regulatory reporting.The Board receives its internal accounts at each meeting.The Audit Committee reviews the internal controls of the Company and its subsidiaries.During the year it met on six occasions.At the interim stage the accounts are reviewed by the exter

252、nal Auditor and at the year end are subject to external audit.Alliance Trust PLC Report&Accounts 2010|25 Business continuity-loss arising from the interruption or disruption to critical processes and could include building unavailability;lack of IT services;environmental hazards;unavailability of hu

253、man resource or an inadequate response to disruption from flawed or insufficient planning.The Company has tested business continuity management processes and plans in place.RiskOperational Risk Is the risk of a reduction in earnings and/or value,through financial or reputational loss,from inadequate

254、 or failed internal processes and systems,or from people or external events.In order to more accurately manage operational risks,Alliance Trust places them into the following sub categories:Legal®ulatory disclosure loss arising from failure to comply with the laws,regulations and codes applicable

255、.Mitigation The Company has separate legal,compliance and internal audit functions to keep the business apprised of regulatory developments.Customer Treatment-loss arising from inappropriate or poor customer treatment.All employees are required to undertake training and are tested to ensure that the

256、y have a good understanding of the requirement to treat customers fairly.Our regulated subsidiary,Alliance Trust Savings,monitors this as a Key Performance Indicator.Process and Resources-loss resulting from inadequate or failed internal processes and systems,people related events and deficiencies i

257、n the performance of external suppliers and service providers.Staff members have individual objectives and their performance is assessed against these.Investment managers operate within parameters set by the Asset Allocation Committee and Equity Strategy Review Committee which in turn operate within

258、 limits set by the Board.Management Information from performance and risk measurement systems are reviewed by management committees and the Boards.Theft and other criminal acts-loss associated with financial crime or the failure to put into place effective systems and controls to comply with regulat

259、ory and legal responsibilities to detect and prevent financial crime.This can also include regulatory sanctions and costs.We take care to segregate duties between front and back office functions.We do not handle cash and have anti-money laundering requirements in place and enforced.People Risk-loss

260、arising from inappropriate behaviour,industrial action or health and safety issues.This includes the failure to retain and motivate staff and to recruit appropriately skilled staff to fulfil the business objectives.Policies are in place to ensure effective remuneration and that an appropriate workin

261、g environment is maintained throughout the Group.Employee Key Performance Indicators such as absence and turnover are monitored regularly by management.Management of change-loss arising from projects and business change failing to be introduced on time and within budget,and failure to realise the in

262、tended benefits.Major projects are considered and monitored by a Project Control Group or other senior committee.Management of third party suppliers-loss arising from the service failure from a third party arising due to inadequate contractual arrangements;failure to manage the third party,or a fail

263、ed or discontinued service.Significant contracts are reviewed by our internal legal team to ensure that the Companys interests are protected so far as can be commercially negotiated.Further information on financial instruments and risk as required by IFRS7 can be found on pages 77 to 83.26|Alliance

264、Trust PLC Report&Accounts 2010 Following the review of Alliance Trusts performance with regard to corporate responsibility issues which was undertaken in 2008,various initiatives were undertaken during the current year to strengthen the Companys links with its stakeholders.These are discussed under

265、the following headings:Marketplace the businesses in which we operate,both as an investment company and through our subsidiary companies.As an investment company we are committed to a long-term investment strategy,maintaining effective relationships with those companies to which we commit our shareh

266、olders capital.We do this through regular engagement with the management of these companies and considered use of our voting rights.In most cases we vote in line with the recommendations of management;however we do abstain or vote against recommendations when we consider that they are not in the int

267、erests of shareholders.For the year ending 31 January 2010 we voted as follows:In favour of management recommendations 161Against management recommendations 16Abstentions 0Votes against management were predominantly in the US where we voted for shareholder resolutions to split the role of Chairman a

268、nd Chief Executive,to have an advisory vote on executive remuneration and for majority voting of directors.Additionally,we voted against a proposed Board appointment,buying back employee options above fair value and a resolution allowing the board to adjourn the AGM if they lacked sufficient votes o

269、n other resolutions.In Europe,we voted against proposals to issue new capital without pre-emption rights,a proposal to issue shares in lieu of cash for a dividend payment and a nomination committee that would be dominated by a minority shareholder class.We have enhanced our investment process by ini

270、tiating a review of the profile of investee companies with regard to Environmental,Social and Governance(ESG)issues,using available information to assess the level of ESG risk.We believe that doing so will enable us to identify and take account of companies attitude to corporate responsibility issue

271、s in our investment decisions.Companies which pay little or no regard to these issues are more susceptible to reputational risks with resulting damage to shareholder value.With regard to our own shareholders,we continue to meet with both individual and institutional shareholders regularly throughout

272、 the year.There is a close link between our shareholders and our subsidiary business Alliance Trust Savings.For this reason we adopt a pricing model based on the level of activity,rather than the amount invested,to ensure that the costs of the business are shared fairly among its customers.Corporate

273、 ResponsibilityAlliance Trust PLC Report&Accounts 2010|27 We have adopted policies on gifts and hospitality and other potential conflicts of interest to ensure that decisions are made on their merits rather than for personal interests.Workplace providing an environment in which each of our employees

274、 has an equal chance to develop their full potential.We maintain a comprehensive suite of policies intended to protect employees from unlawful discrimination,offer a working environment where they have a right to be treated with consideration and respect,and support high standards of conduct and per

275、formance.We also offer employees the opportunity to enter into flexible working arrangements.These policies ensure that we meet our health and safety requirements and treat disabled employees in accordance with our statutory obligations.We also operate a grievance procedure and a whistleblowing poli

276、cy allowing employees to raise sensitive issues independently of line management.Employees are made aware of these arrangements when they join the Company and periodically thereafter.They are kept informed of the progress of the Company through regular team meetings and company-wide briefings.Last y

277、ear we undertook an employee opinion survey for the first time.Two-thirds of our employees participated in the survey,which was undertaken by an independent research organisation to maintain confidentiality.In response to the results of the survey a range of initiatives have been undertaken,includin

278、g:Awelcomeprogrammefornewemployeeswhichisintended not only to give formal induction relevant to their role but also to introduce them to key members of the management team Increasedfocusontraininganddevelopment Greaterfocusonrecognition,including“EmployeeExcellence”awards to acknowledge outstanding

279、individual contributions.Marketgait,Dundee28|Alliance Trust PLC Report&Accounts 2010 Community ensuring that our reputation is maintained and enhanced within the communities from which our investors,customers and employees are drawn.We operate a charitable foundation which is intended to encourage e

280、mployees to raise funds to support local voluntary organisations.The Company matches payments made by the foundation,using unclaimed dividends returned to the Company as a result of the shareholder concerned becoming untraceable.The choice of which charities to support is made by the employees thems

281、elves,through the foundation.However the foundation is supported by the Scottish Community Foundation,which offers guidance and support both in identification and screening of requests for assistance and in the administration of the foundation.During the year employees raised 2,308.This,together wit

282、h amounts raised by employees in previous periods,was matched by a contribution to the foundation by the Company of 6,636.The foundation approved one donation,of 3,432,to Boomerang,a Dundee-based project to encourage development of Information Technology skills by members of the local community.Duri

283、ng 2009 we introduced a volunteering policy,allowing employees to take up to two days additional leave to act as unpaid volunteers for local organisations.In order to promote this policy we have entered into a partnership with the Brae Dundee Riding Ability Centre,part of the National Riding for the

284、 Disabled Association.Teams of employees have visited the Brae to help with a range of activities and to find out more about the work of the Centre.We look forward to continuing to work with the Brae during the coming year.Environment acting responsibly in our consumption of natural resources and en

285、ergy.While our own environmental impact is limited,any reduction in the costs of energy and consumables is beneficial to the Company.This year we have benefited from the move into our new offices at West Marketgait,Dundee.This building was designed with environmental considerations in mind to maximi

286、se energy efficiency and recycling opportunities.The building management system allows us to monitor and control temperatures and motion-sensitive lighting has been installed throughout the building to ensure efficient use of electricity.Rainwater is collected and stored to reduce water usage.Cardbo

287、ard and paper is recycled.When computer equipment reaches the end of its useful life it is either refurbished or recycled taking into account the European Waste Electrical and Electronic Equipment(WEEE)guidelines.Office furniture which became surplus following the move to Marketgait was donated to T

288、ransform Community Development for re-use in the local area.The Company also uses paper from sustainable sources wherever practicable and cost effective.In relation to our investment property portfolio,we have appointed an external company as managing agent and have reviewed that companys own enviro

289、nmental policy to satisfy ourselves that it is consistent with our own values.We encourage shareholders and clients to use electronic communications.To date,3%of shareholders have opted to receive our annual report electronically.54%of clients of Alliance Trust Savings have signed up to use our onli

290、ne share dealing service and 32%of its clients receive their statements and valuations electronically.Alliance Trust PLC Report&Accounts 2010|29 Carbon footprint reportingLast year for the first time we reported on carbon dioxide(CO2)emissions based on the Greenhouse Gas Protocol Corporate Accountin

291、g and Reporting Standard and we do so again this year,using the same inventory of:Scope 1:gas,fuel oil,refrigerant lossScope 2:non-renewable electricity purchasedScope 3:business travel by personal car,air and railThis year there was a reduction of 41%in our CO2 emissions which amounted to 339 tonne

292、s,representing 1.17 tonnes per full time employee(674 tonnes,representing 2.11 tonnes per full time employee for the year ended 31 January 2009).This significant reduction is mainly attributable to a reduction in air travel following the closure of our Hong Kong office and greater use of our video-c

293、onferencing facility,and reduced energy consumption following the move to new more energy-efficient premises during the year.A breakdown is shown below.Alliance Trust Corporate Carbon Footprint 2009/10(Tonnes CO2)Electricity use 53%Air travel 26%Rail travel 4%Personal carbusiness travel 5%Fossil fue

294、l use 5%Company vehicle use 4%Air conditioningrefrigerant loss 3%Corporate Carbon Footprint30|Alliance Trust PLC Report&Accounts 2010 Chairman1.Lesley Knox MA u Joined the Board 2001;appointed Chairman 2004 Chairman of the Nomination Committee Lesley Knox(56)graduated with an MA in Law from Cambridg

295、e,qualified as a lawyer and worked in the UK and US.Subsequently,she worked as a corporate finance adviser,first with Kleinwort Benson,where in 1996 she became a group director.She was also Head of Institutional Asset Management at Kleinwort Benson Investment Management which provided investment ser

296、vices to clients worldwide.She is the Senior Non-Executive Director of Hays PLC.Non-Executive Directors 2.Christopher Masters CBE FRSE BSc PhD AKC nlu Senior Independent DirectorJoined the Board 2002Chairman of the Remuneration CommitteeChristopher Masters(62)took his doctorate in Chemistry at Leeds

297、 University and worked for Shell in both the UK and the Netherlands.He joined Christian Salvesen as business development manager in 1979,becoming Director of Planning for its US operation and Chief Executive from 1989 to 1997.He was then appointed Executive Chairman of Aggreko PLC,a post he held unt

298、il January 2002.He is Chairman of the Festival City Theatres Trust.Other directorships include The Crown Agents,John Wood Group PLC and Creative Scotland 2009 Ltd.3.Hugh Bolland BA(Hons)nluJoined the Board 2007 Hugh Bolland(63)graduated with a BA(Hons)in Economics and Statistics from Exeter Universi

299、ty.In 1968,he became an economist with the Bank of New South Wales in Australia.In 1970,he joined Schroder Investment Management in London.In 1982,he was appointed Investment Director and then Managing Director of Schroders in Hong Kong and later Chief Executive of Schroders Australia.After returnin

300、g to the UK he became Chairman of Schroder Unit Trusts,Chief Executive and latterly Vice Chairman of Schroder Investment Management.He retired from Schroders in 2000.He is a Non-Executive Director of JP Morgan Indian Investment Trust PLC,Fidelity Asian Values PLC and Dutch listed Eurocommercial Prop

301、erties N.V.4.John Hylands BSc nluJoined the Board 2008Chairman of the Audit CommitteeJohn Hylands(58)graduated with a BSc in Mathematics from Glasgow University.He joined Standard Life in 1979 and qualified as an actuary in 1982.His career at Standard Life spanned 28 years and included various actua

302、rial,finance and management positions including serving as Finance Director from 2001 to 2005.He is a member of the Aviva UK Life With Profits Committee and is a Non-Executive Director of the Board of Ecclesiastical Insurance Group PLC.He also chairs the trustees of the Standard Life and BOC pension

303、 schemes.5.Clare Sheikh MA luJoined the Board 2005Clare Sheikh(46)graduated with an MA in English from Cambridge.In 1987,she joined Boston Consulting Group as a management consultant,working in London and Madrid.She gained considerable experience in financial services and was Consumer Marketing Dire

304、ctor for the Prudential before joining Avis Europe as Group Marketing Director.After a brief spell at Transacsys PLC she joined Centrica PLC,becoming Managing Director of AA Financial Services before joining the commercial television network ITV as Marketing Director in 2005.She left ITV in January

305、2007 and is now Group Strategy,Marketing and Customer Director of Royal and Sun Alliance Insurance Group.She is a Non-Executive director of Codan Forsikring,a major Danish insurance company.12435DirectorsAlliance Trust PLC Report&Accounts 2010|31 Executive Directors6.Katherine Garrett-Cox BA(Hons)AS

306、IP u Chief ExecutiveJoined the Company as Chief Investment Officer in 2007;Appointed Chief Executive 2008.Katherine Garrett-Cox(42)graduated with a BA(Hons)in History from Durham University and is an Associate of the Society of Investment Professionals.Her early career was spent in US fund managemen

307、t,starting with Fidelity Investments and later with Hill Samuel Asset Management as Investment Director,Head of American Equities.In 2000 she joined Aberdeen Asset Management becoming an Executive Director in 2001 and Chief Executive of their operating subsidiary Aberdeen Asset Management Limited,wh

308、ilst serving as Chief Investment Officer.In 2004 she became Chief Investment Officer for Morley Fund Management(now Aviva Investors)and a Board Director of a number of their subsidiary companies with specific responsibility for fund management teams in London,Dublin,Boston and Warsaw.Katherine Garre

309、tt-Cox is a trustee of The Baring Foundation and was nominated a Young Global Leader of the World Economic Forum in October 2005.7.Robert Burgess BSc(Hons)ACIB Director and Chief Executive,Alliance Trust SavingsJoined the Board 2009Robert Burgess(44)is a graduate of Manchester Business School and is

310、 an Associate of the Chartered Institute of Bankers.He has extensive retail financial services experience.Previously he managed the retail and business banking sectors of Lloyds TSB Scotland as an Executive Director and was subsequently Regional Director for its retail banking business in London and

311、 the South East.Between these roles,he was Strategic Future Business Programme Director for Lloyds TSBs subsidiary,Scottish Widows.More recently,he was Executive Director,Sales and Distribution,for Thomas Cook UK and also spent time at the Bank of England.8.Alan Trotter BAcc(Hons)LLB CA CTA Finance

312、DirectorJoined the Board 2010Alan Trotter(41)graduated with a BAcc(Hons)in Accountancy from Glasgow University and with a LLB from the University of London.In 1990 he joined Ernst&Young,qualifying as a chartered accountant in 1993 and a chartered tax adviser in 1995.He gained considerable experience

313、 in financial services with them in both the UK and Hong Kong.In 1996 he joined Standard Life as Finance Manager responsible for Group statutory and regulatory reporting before moving to the newly established Standard Life Bank as Senior Finance Manager.He joined the Finance department of The Royal

314、Bank of Scotland in 2001 specialising in group corporate finance.He left to join Legal and General in 2007 as Group Corporate Development Director with responsibility for the UK Central Finance function and delivery of the Groups cost challenge.687n Member of the Audit Committee l Member of the Remu

315、neration Committee u Member of the Nomination Committee32|Alliance Trust PLC Report&Accounts 2010 The Board confirms that the principles of the Combined Code on Corporate Governance,issued in June 2008,have been complied with for the full year;this report describes how we have applied these in pract

316、ice.The Board has also considered the principles of the AIC Code of Corporate Governance(“AIC Code”).The AIC Code addresses all of the principles set out in Section 1 of the Combined Code,as well as setting out additional principles on issues that are of specific relevance to investment companies su

317、ch as Alliance Trust.The Company has complied with the principles of the AIC Code.The Company is an investment company and seeks annual approval from HM Revenue and Customs to maintain its status as an investment trust.The last such approval was granted in respect of the financial year ending 31 Jan

318、uary 2009.The BoardThe Board sets the Companys objectives,approves its business plans,and provides a framework of prudent controls to enable risk within the business to be managed.It provides leadership to management and reviews the performance of the business.The Board at the year end comprised the

319、 Chairman,four Non-Executive Directors and two Executive Directors.In the course of the year the Board composition changed with the resignation of David Deards on 30 April 2009 and the appointment on 21 September 2009 of Robert Burgess,Chief Executive of Alliance Trust Savings.On 1 February 2010 Ala

320、n Trotter joined the Company as Finance Director.A summary of the experience of the Directors can be found on pages 30 and 31.Board CompositionAll Directors are responsible for the decisions taken by the Board.The majority of the members of the Board are independent NonExecutive Directors who take n

321、o part in the day to day management of the business.They do,however,play an important part in constructively challenging management,helping to develop strategy and monitoring its delivery using the experience they have gained in other businesses.In addition to the Directors,various members of senior

322、 management attend board meetings and present to the Directors on activities in their area,or in respect of particular concerns or interests of the Directors.Presentations by investment managers are a regular feature of board meetings.The Board reserves certain decisions to itself and delegates othe

323、rs to committees or the Executive Directors and management as explained in more detail on pages 33 to 35.The areas the Board has reserved to itself include:approvalofinvestmentstrategyandpolicy decisionsonnewsubsidiarybusinesses,jointventuresand other arrangementsCorporate GovernanceAlliance Trust P

324、LC Report&Accounts 2010|33 approvaloftreasurypolicies,bankingcounterpartiesandcounterparty exposure limits approvalofGroupborrowinglimitsandthemaximumamounts and nature of new bank borrowing facilities majorcontracts approvaloftheassetclassesinwhichanyGroupcompany may invest approvalofthederivativei

325、nstrumentswhichanyGroupcompany may use approvalofmaterialchangestogearingandthepercentage mix of asset allocation by class and geography majorchangesinemploymentandremunerationstructures politicalandcharitabledonations anymateriallitigationThrough the matters reserved to the Board,the powers of indi

326、vidual Directors are restricted to the extent necessary to ensure good governance.Each year,the Board agrees an annual Board Meeting programme to ensure that all aspects of the performance of the Company and its management are reviewed.The following appear as regular Board items:InvestmentReport Ass

327、etAllocation EconomicOutlook PortfolioPerformance Tradingvolume,discountandsharebuybacks FinancialPerformance InvestorRelationsThe ChairmanThe Chairman is Lesley Knox and her role is clearly established and set out in writing to ensure that her responsibilities are differentiated from those of the C

328、hief Executive.Senior Independent DirectorThis position is held by Christopher Masters.The Senior Independent Director is available for shareholders in the event that it is inappropriate to raise matters with the Chief Executive or Chairman and to lead the review of the Chairmans performance with th

329、e other Non-Executive Directors.Non-Executive DirectorsThe Company is committed to maintaining a strong representation of independent non-executives on the Board and this is demonstrated by the construction of the Board.All of the Non-Executive Directors are considered to be independent,none of them

330、 having any previous relationship with the Company other than as shareholders.The Chairman and a Non-Executive Director also sit on the Board of Alliance Trust Savings and Alliance Trust Asset Management.In addition to attendance at Board and Committee meetings the Non-Executive Directors are availa

331、ble to management throughout the year.They also met as a group on two occasions during the year.These meetings offer the Non-Executive Directors the opportunity to discuss management succession and other business or concerns that they have in the absence of Executive Directors.In the course of the y

332、ear the Non-Executive Directors also met without the Chairman present in order to review her performanceChief ExecutiveKatherine Garrett-Cox served as Chief Executive throughout the year.She also serves on other subsidiary Boards as either an executive or non-executive director.Executive DirectorsRo

333、bert Burgess,Chief Executive of Alliance Trust Savings,was appointed to the Board on 21 September 2009 to bring his experience to the wider group.After the year end,on 1 February 2010,Alan Trotter was appointed as Finance Director to fill the vacancy which had arisen during the year.The Executive Directors also serve on the Boards of subsidiary companies in the Group in either an executive or non-