Alliance : Update on Implementation of Changes at Alliance Trust

Performance to 11 December

20151

Net Asset Value Total Return

MSCI All

Country World Index

Out/under performance

6 Month

-4.6%

-6.6%

2.0%

YTD

0.8%

-1.1%

1.9%

1 Year

1.6%

0.3%

1.3%

Since Sept 2014

7.0%

3.3%

3.7%

3 Years

28.8%

33.2%

-4.4%

5 Years

38.0%

43.8%

-5.8%

Action:

Progress:

Introduction of MSCI All Country World Index as formal benchmark

• MSCI All Country World Index now used as the benchmark for the Trust, with an outperformance target of a minimum of 1% (net of fees) annually

Improve investment performance and narrow the discount

• Portfolio performance has outperformed the index since the investment team took over in September 2014 - Net Asset Value ahead by 3.7% and Total Shareholder Return ahead by 8.2%

Performance to 11 December

20151

Total Shareholder Return

MSCI All

Country World Index

Out performance

6 Month

-2.4%

-6.6%

4.2%

YTD

4.8%

-1.1%

5.9%

1 Year

6.5%

0.3%

6.2%

Since Sept 2014

11.5%

3.3%

8.2%

3 Years

38.9%

33.2%

5.7%

5 Years

50.6%

43.8%

6.8%

Focus on global equities and disposal of non-core investments

• Exiting Fixed Income, with exposure reduced by 48% to £74m to date through the realisation of holdings in ATI Fixed Income funds

• Sale of sole remaining commercial property for £5.6m, a profit on the holding value of 15.6%

• Initiated sale process for legacy mineral rights portfolio. Expected to complete during 2016

• Equity exposure increased to 102.1%, at the end of November, from 99.6% at the end of September

Investment mandate to be awarded to Alliance Trust Investments at a rate of 35bps on average NAV

Significant cost reduction programme delivering savings of £6m for 2016

• Mandate will be in place by early 2016

• Cost reduction plan under way. On track to deliver combined savings from the investment business of at least £6m for 2016

Target an Ongoing Charges Ratio of 45bps or less by the end of 2016 from 60bps in 2014

Use share buybacks, as required, to narrow the discount into single figures

• The discount has narrowed to an average of 10.5%, compared to 12.6% for the first nine months of 2015. 4.5% of the company's shares1 bought back and cancelled since 1 October

Continue to focus on delivery of progressive dividends

All net income earned to be paid out as ordinary dividends

• In November 2015, the Directors announced a special dividend of 1.46326 pence per share from the winding up of Alliance Trust Finance which will be paid on 31 December 2015

• The change in accounting treatment for costs will come into effect for the year ending 31 December 2016.

Board of Alliance Trust PLC to become fully independent, consisting solely of non- executive directors

Create independent boards for Alliance Trust Investments (ATI) and Alliance Trust Savings (ATS) to increase focus and accountability

• Announced on 27 November that Karin Forseke and Alastair Kerr will step down from the Board on 1 January 2016

• Recruitment process for new Chair under way, led by Karl Sternberg as Senior Independent Director

• Identified Non-Executive Directors for ATI and ATS and a Chair for ATS, subject to regulatory approval

• Revised board structures for Alliance Trust PLC, ATI and ATS expected to be in place by early 2016.