Alliance Witan PLC · LSE:ALW

Alliance Witan — Investor Presentation (October 2024)

53 slides from Alliance Witan's investor presentation, Oct 25, 2024

  1. Slide 1: Alliance Witan Investor Forum Autumn 2024

    Alliance Witan Investor Forum Autumn 2024

  2. Slide 2: What does the merger mean for shareholders?

    What does the merger mean for shareholders? FTSE 100? Continuity of Lower costs Greater liquidity approach ALW Increasing dividend No NAV dilution Higher profile A one-stop-shop at the heart of your ISA or Pension Portfolio 2 © 2024 WTW. All rights reserved. Proprietary and confidential.

  3. Slide 3: Portfolio update

    Portfolio update Craig Baker Stuart Gray 3 © 2024 WTW. All rights reserved. Proprietary and confidential.

  4. Slide 4: The Trust's objective is to be a core investment that delivers a real return

    The objective hasn’t changed! “ The Trust’s objective is to be a core investment that delivers a real return over the long term through a combination of“ capital growth and a rising dividend. 4 © 2024 WTW. All rights reserved. Proprietary and confidential.

  5. Slide 5: Alliance Witan investment committee

    Alliance Witan investment committee Research & Portfolio Management 176 Global Operations and Support Associates 292 Alliance Witan Portfolio Management Team Associates 7 $163 Assets under management Billion* Craig Baker Stuart Gray Mark Davis Global CIO Co-Portfolio Manager Co-Portfolio Manager Cha

  6. Slide 6: How have we done? Performance to end September 2024

    How have we done? Performance to end September 2024 Resilient performance through testing times Absolute returns (as of end September 2024) 1 Year​ 3 Years​ 5 Years​ Since Inception*​ Total Shareholder Return​ +17.5% +8.0% +10.6% +9.8% NAV Total Return**​ +17.4% +8.0% +10.5% +9.8% NAV ex. Non-Core**

  7. Slide 7: Alliance Witan vs AIC Peers

    Alliance Witan vs AIC Peers Total shareholder returns versus volatility Three years to 30 September 2024 Since WTW Inception to 30 September 2024 15 15 Total Shareholder Retrun per annum (%) Total Shareholder Retrun per annum (%) Alliance Witan 10 Alliance Witan 10 5 0 5 -5 -10 0 -15 -20 -5 0 5 10 1

  8. Slide 8: The global economy is an uncertain place

    The global economy is an uncertain place 500 450 Covid 400 Russia/ 350 Ukraine war EZ Crisis Trump 300 US debt ceiling Middle Global & trade China leadership East 250 Financial LTCM/ Crisis transition US election Afghan/ 200 Russian/ 9/11 Brexit Iraq war Asian crises 150 100 50 0 1997 1999 2001 2003

  9. Slide 9: Yet equities have done well, driven by technology

    Yet equities have done well, driven by technology Giant technology stocks dwarf some countries’ benchmark indices It took Warren Buffet 60 years to grow Berkshire Hathaway by $1trn; it took NVIDIA 6 weeks* Australia $1,240 Nvidia Canada $3,089 $1,936 $USD Billion Germany $1,431 Apple $3,090 France $

  10. Slide 10: High conviction stock picking drives outperformance

    High conviction stock picking drives outperformance Own less of this Own more of this 1.0 1.0 0.8 Increasing outperformance Average Annualised Alpha (%) 0.8 0.7 0.6 0.4 0.2 0.2 0.0 0.0 -0.2 -0.1 -0.1 -0.4 -0.3 -0.3 -0.6 -0.5 -0.8 1 (Lowest) 2 3 4 5 6 7 8 9 10 (Highest) Deciles of Active Risk More st

  11. Slide 11: The Power of a style-neutral multi-manager approach

    The Power of a style-neutral multi-manager approach Past performance is no guarantee of future returns!  Top performing single-manager funds rarely maintain 100% their relative strength over time  Blending managers with complementary approaches 80% irons out the peaks and troughs of performance, g

  12. Slide 12: Sector, geography and style exposures kept broadly neutral

    Sector, geography and style exposures kept broadly neutral Factor Exposures Characteristics 1.5 Large High High Growth Cheap Positive 1 Cap Quality Momentum Active risk (tracking error) 3.1% 0.5 0 Standard deviation 13.2% -0.5 -1 Beta 0.88 -1.5 Holdings 213 Invested Capital EPS growth Dividend/Price

  13. Slide 13: Future manager line-up: Diversified by style

    Future manager line-up: Diversified by style Giving investors access to the world’s best stock pickers1 Other assets Manager Style 2.5% ARGA Deep value relative to sustainable earnings Dalton Japan all cap value and engagement 7.0% 8.0% 5.5% EdgePoint Quality and value 13.5% 7.0% GQG Quality growth

  14. Slide 14: Introducing Jennison

    Introducing Jennison Innovation and disruption  Jennison is a global investment adviser with $210bn in assets under management, as of 30 June 2024  It has a significant investment resource with around 85 investment professionals stationed across the US and the UK Mark Baribeau Tom Davis Rebecca Ir

  15. Slide 15: Introducing EdgePoint

    Introducing EdgePoint  EdgePoint Wealth Management is an investment boutique based in Toronto, Canada. It has £20bn of assets under management, as of 30 June 2024.  A team of 15 portfolio managers and analysts is led by Tye and Geoff, who have 28 and 30 years of experience respectively. Approach T

  16. Slide 16: ARGA Investment Management, LP

    ARGA Investment Management, LP Alliance Trust Investor Forum ARGA Global Concentrated Equity Strategy 25 October 2024 Robert Mitchell, Ph.D. +1.203.614.0807 mitchell@argainvest.com Confidential/Not for distribution

  17. Slide 17: ARGA Overview

    ARGA Overview  Global value manager – Across environments and geographies – Global Concentrated launched in 2016; Alliance Trust partner in 2024  Experienced investment team – Business analysts  Global perspective – Developed and emerging market locations  Alignment of interests – Employee-owned

  18. Slide 18: Our Philosophy

    Our Philosophy  Overreaction creates market anomalies – Temporary stress disproportionately impacts valuations – As conditions normalize, valuations recover  This inefficiency is persistent and exploitable – Behavioral biases drive near-term focus – News adds fear and uncertainty – Exploitation re

  19. Slide 19: Sands: Macau's Recovery Continues

    Sands: Macau’s Recovery Continues Macau visitor % chg versus 2019 20% 0% -20% -40% -60% -80% -100% -120% Sep-20 Sep-21 Sep-22 Sep-23 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 May-20 May-21 May-22 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 May-23 May-24 Jan-23 Jul-23 Jan-24 Jul-24 Nov-20 Nov-21 Nov-22 Nov-23

  20. Slide 20: Sands: Londoner Renovation Adds To Profitability

    Sands: Londoner Renovation Adds To Profitability Londoner EBITDA $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 2024 Estimate Renovated Run Rate Source: Company Reports, ARGA Analysis. Any referenced companies are selected based on non-performance-based criteria

  21. Slide 21: Prudential: Premiums Above Pre-COVID Levels

    Prudential: Premiums Above Pre-COVID Levels Prudential Annualized Premium Equivalent & New Business Profit Trend 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Prudential APE Prudential NBP Source: Company Reports, Visible Alpha, ARGA Analysis. Any ref

  22. Slide 22: Prudential: Strong Fundamental Demand Drivers

    Prudential: Strong Fundamental Demand Drivers Life Insurance Penetration & Market Size 18% 400 16% 350 Annual Premiums as a % of GDP 14% 300 12% 250 10% USD bn 200 8% 150 6% 4% 100 2% 50 0% 0 HK China Advanced Asia World Life Insurance Penetration Life Premium Volume (RHS) Source: Company Reports, A

  23. Slide 23: Portfolio Characteristics

    Portfolio Characteristics As of 9/30/2024 Global MSCI Concentrated ACWI Index P/E IBES FY1 12.0x 19.0x Price/Book 2.0x 3.2x Return on Equity—5 Yr Average 12.5% 19.8% Dividend Yield 2.9% 1.8% Market Cap—Weighted Average $65.5B $648.7B Market Cap—Median $19.8B $14.2B Number of Holdings 20 2,687 Active

  24. Slide 24: Sector Exposure

    Sector Exposure As of 9/30/2024 Global MSCI Concentrated ACWI Index Communication Services 7% 8% Consumer Discretionary 30% 11% Consumer Staples 4% 6% Energy 4% 4% Financials 11% 16% Health Care 5% 11% Industrials 21% 11% Information Technology 4% 24% Materials 14% 4% Real Estate 0% 2% Utilities 0%

  25. Slide 25: Regional Exposure

    Regional Exposure As of 9/30/2024 Global Concentrated MSCI ACWI Index Africa/Middle East 0% 1% Asia ex-Japan 25% 9% Australia 0% 2% Europe-Euro 15% 8% Europe-Other 5% 4% Japan 4% 5% Latin America 5% 1% North America 42% 67% United Kingdom 4% 3% Emerging Markets (included above) 30% 11% Source: ARGA

  26. Slide 26: Global Spreads Currently Wide Relative to History

    Global Spreads Currently Wide Relative to History x 17 15 Wide Disparities 13 11 9 7 5 Narrow Disparities 3 MSCI ACWI Quintile 5/Quintile 1 P/B Spread MSCI ACWI P/B Avg. Spread +/- Standard Deviation As of 9/30/2024. Dataset starts 12/31/1975. Source: Bernstein Data, ARGA Analysis. For illustrative

  27. Slide 27: Several EM Countries Appear Undervalued

    Several EM Countries Appear Undervalued x 5.5 2024E P/B 5.0 United States 4.5 India 4.0 3.5 Switzerland ACWI Netherlands 3.0 Taiwan 2.5 Australia Sweden 2.0 Europe Mexico Thailand Canada EAFE France UK South Africa 1.5 Japan Germany ACWX EM Singapore Brazil EAFE SC Italy Spain 1.0 Hong Kong China Ko

  28. Slide 28: Alliance Witan PLC | Investor Forum

    Alliance Witan PLC | Investor Forum October 25, 2024

  29. Slide 29: Lyrical Asset Management: At a Glance

    Lyrical Asset Management: At a Glance • NYC-based, equity investing boutique • Founded in 2008 by Andrew Wellington and Jeff Keswin • Oversee $7.7 billion in assets (as of September 30, 2024) • Manage U.S. Value, International Value, and Global Value strategies • Founders and employees substantially

  30. Slide 30: U.S. Market Has Been Dominated by Mega-Cap Growth Stocks

    U.S. Market Has Been Dominated by Mega-Cap Growth Stocks S&P 500 Contributors: 12/31/22 – 6/30/24 NTM Average Total Relative Ticker Company Price to Weight Return Contribution Earnings NVDA NVIDIA Corporation 3.3% 745.8% 6.6% 43.6x MSFT Microsoft Corporation 6.7% 88.7% 2.5% 35.4x AAPL Apple Inc 6.8%

  31. Slide 31: U.S. Mega-Cap Growth Stocks Have Also Dominated the Global Index

    U.S. Mega-Cap Growth Stocks Have Also Dominated the Global Index MSCI Global Contributors: 12/31/22 – 6/30/24 NTM Average Total Relative Ticker Company Price to Weight Return Contribution Earnings NVDA NVIDIA Corporation 2.2% 745.8% 4.3% 43.6x MSFT Microsoft Corporation 4.2% 88.7% 1.6% 35.4x META Me

  32. Slide 32: Mega-Cap Growth Performance Reversed in 3Q24

    Mega-Cap Growth Performance Reversed in 3Q24 S&P 500 Contributors – 3Q 2024 NTM Start Total Relative Ticker Company Price to Weight Return Contribution Earnings AAPL Apple Inc. 6.9% 10.8% 0.3% 31.8x META Meta Platforms Inc 2.4% 13.6% 0.2% 23.1x TSLA Tesla, Inc. 1.3% 32.2% 0.3% 94.9x AMZN Amazon.com,

  33. Slide 33: Lyrical Portfolio by Sector and Industry

    Lyrical Portfolio by Sector and Industry Consumer 13.3% Utilities 6.9% Used Goods Marketplace 4.3% eBay Electric Utilities 6.9% NRG Energy Innerwear 4.9% Expedia Retail Auto 4.1% Lithia Motors Industrials 16.8% Auto Production 3.1% Lear Financials 25.5% Building Solutions 4.9% Johnson Controls Airpl

  34. Slide 34: Our Uncommon Combination of Deep Value and Growth

    Our Uncommon Combination of Deep Value and Growth Forward Price to Earnings Ratio Indexed Earnings Per Share Growth 21.7x 700 20x Lyrical: +11.3% 600 17.1x 500 15x 400 11.6x S&P 500: +7.2% 10x 300 S&P 500 Value: +4.8% 200 5x 100 0 2009 A 2015 A 2007 A 2011 A 2013 A 2018 A 2025 E 2012 A 2021 A 2023 A

  35. Slide 35: Lyrical Performance: Top Contributors & Detractors

    Lyrical Performance: Top Contributors & Detractors 1 Year Trailing (9/30/24) Net Net Ticker Performance Contribution Top 3 NRG Energy +143.1% +7.2% United Rentals +84.1% +5.6% Flex Ltd +67.0% +3.8% Bottom 3 Whirlpool -26.7% -1.5% Adient Plc -12.3% -0.9% Lear Corp -16.7% -0.7% Please refer to Importa

  36. Slide 36: United Rentals Inc (URI)

    United Rentals Inc (URI) United Rentals ll LYRICAL

  37. Slide 37: United Rentals Inc (URI)

    United Rentals Inc (URI) 800 URI Price S&P 500 600 400 200 0 50 URI - CAGR: 18.6% Earnings Per Share – Next Twelve Months S&P 500 - CAGR: 5.7% 40 30 20 10 0 25 URI - Last: 17.3x Price to Earnings – Next Twelve Months S&P 500 - Last: 21.5x 20 15 10 5 0 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13

  38. Slide 38: Lear Corp (LEA)

    Lear Corp (LEA) 38 ile LYRICAL

  39. Slide 39: Lear Corp (LEA)

    Lear Corp (LEA) 250 Price LEA S&P 500 200 150 100 50 0 25 LEA - CAGR: 23.9% Earnings Per Share – Next Twelve Months S&P 500 - CAGR: 8.5% 20 15 10 5 0 25 LEA - Last: 7.4x Price to Earnings – Next Twelve Months S&P 500 - Last: 21.5x 20 15 10 5 0 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16

  40. Slide 40: Our Uncommon Combination of Deep Value and Growth

    Our Uncommon Combination of Deep Value and Growth Forward Price to Earnings Ratio Indexed Earnings Per Share Growth 21.7x 700 20x Lyrical: +11.3% 600 17.1x 500 15x 400 11.6x S&P 500: +7.2% 10x 300 S&P 500 Value: +4.8% 200 5x 100 0 2009 A 2015 A 2007 A 2011 A 2013 A 2018 A 2025 E 2012 A 2021 A 2023 A

  41. Slide 41: Contact Info

    Contact Info 250 West 55th Street, 37th Floor New York, NY 10019 T: 212.415.6600 F: 212.415.6699 For more information, please reach out to ir@lyricalpartners.com or visit our website at www.lyricalam.com 41

  42. Slide 42: Q&A

    Q&A 42 © 2024 WTW. All rights reserved. Proprietary and confidential.

  43. Slide 43: Important information

    Important information  This financial promotion has been approved by Towers Watson Investment Management Limited (“TWIM"), authorised and regulated by the Financial Conduct Authority. This presentation includes certain information and materials prepared for Alliance Witan PLC (the “Company”) by TWI

  44. Slide 44: Important information

    Important information  The opinions expressed are those held by Alliance Witan at date of issue and are subject to change. Examples used are to demonstrate our investment philosophy and should not be interpreted as recommendations to buy or sell.  Alliance Witan PLC is listed on the London Stock E

  45. Slide 45: MSCI information

    MSCI information  The MSCI information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices.  None of the MSCI information is intended to constitute investm

  46. Slide 46: Risks and Limitations

    Risks and Limitations Opinions and Forecasts The material contained in this document is provided for information or illustrative purposes only and ARGA Investment Management, LP (“ARGA”) makes no representation or warranty with respect to its accuracy or completeness. The views, opinions, statements

  47. Slide 47: Risks and Limitations

    Risks and Limitations ARGA evaluates ESG factors that lead to potential risks or opportunities, in the same way as other financial factors. As a result, the integration of any such factor, including ESG, may lead portfolios to perform differently from those that do not integrate these factors. Refer

  48. Slide 48: Material Disclosures

    Material Disclosures No Offer or Solicitation This document does not constitute an offer of investment advisory services by ARGA Investment Management, LP (“ARGA”) or any of its subsidiaries, nor does it constitute an offer to sell, or a solicitation of an offer to buy, securities in any ARGA fund i

  49. Slide 49: Material Disclosures

    Material Disclosures Any performance information includes the effect of any investments made in certain public offerings, participation in which may be restricted with respect to certain investors. As a result, any performance for the specified periods with respect to any such restricted investors m

  50. Slide 50: Material Disclosures

    Material Disclosures The ARGA UCITS funds may be exposed to the creditworthiness and performance of one or more counterparties. Although the funds will strive to reduce counterparty credit risk, there is no assurance that the counterparty will not default or that the funds will not sustain losses as

  51. Slide 51: Material Disclosures

    Material Disclosures Investors in the UK This communication is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. The material is based on information that we consider correct and any estimates, opinions

  52. Slide 52: Material Disclosures

    Material Disclosures Investors in New Zealand This document is not a registered prospectus or investment statement under the Securities Act 1978. The only New Zealand-based investors who are eligible to invest in an ARGA UCITS Fund are those whose principal business is the investment of money; inves

  53. Slide 53: Material Disclosures

    Material Disclosures Investors in Singapore The ARGA UCITS Funds are not authorised or recognised by the Monetary Authority of Singapore (“MAS”) under section 286 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”) or under Section 287 of the SFA. The ARGA Global and Emerging Mar

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