Alliance Trust Investment Funds ICVC Report & Accounts

Transcription

1 Alliance Trust Investment Funds ICVC Report & Accounts For the period 1 January 2013 to 31 December

2 Contents Alliance Trust Investment Funds ICVC Management and Administration 1 Statement of the Authorised Corporate Director s ( ACD ) Responsibilities 2 Report of the ACD to the Shareholders 3 Statement of the Depositary s Responsibilities and Report of the Depositary 3 Independent Auditor s Report to the Shareholders 4 Aggregated Financial Statements for Alliance Trust Investment Funds ICVC 5 Alliance Trust North American Equity Fund 12 Alliance Trust European Equity Fund 25 Alliance Trust Monthly Income Bond Fund 37 Alliance Trust Global Thematic Opportunities Fund 66 Alliance Trust Dynamic Bond Fund 83

3 Report & Accounts December 2013 Management and Administration 1 Management and Administration The Authorised Corporate Director ( ACD ) of Alliance Trust Investment Funds ICVC ( the Company ) is: Alliance Trust Investments Limited The registered office of the ACD and the company is 8 West Marketgait, Dundee, DD1 1QN Alliance Trust Investments Limited is authorised and regulated by the Financial Conduct Authority ( FCA )* and is a member of the Investment Management Association ( IMA ). The ultimate holding company of Alliance Trust Investments Limited is Alliance Trust PLC which is incorporated in Scotland. * With effect from 1 April 2013, the FCA became the successor regulator to the Financial Services Authority (the FSA ) and Alliance Trust Investments Limited became regulated by the FCA in both conduct and prudential matters. Further details on the FCA can be found on their website at Alliance Trust Investments was regulated by the FSA during the period. Directors of the ACD Katherine Garrett-Cox Leigh Grubb (resigned 31 January 2013) Alan Trotter Edward Troughton (resigned 7 November 2013) Lynne Dalgarno (appointed 30 January 2014) Patrick Mill (appointed 30 January 2014) Ramsay Urquhart (appointed 30 January 2014) Depositary National Westminster Bank plc Trustee and Depositary Services Younger Building First Floor, 3 Redheughs Avenue Edinburgh EH12 9RH Auditor Deloitte LLP Lomond House 9 George Square Glasgow G2 1QQ United Kingdom Administrator The Bank of New York Mellon (International) Limited 1 Piccadilly Gardens, Manchester, M1 1RN Registrar The Bank of New York Mellon (International) Limited 12 Blenheim Place, Edinburgh, EH7 5ZR Company Information The Company is an investment company with variable capital under regulation 12 of the Open-Ended Investment Company Regulations 2001, incorporated in Scotland, under registered number IC000716, and authorised by the FSA on 28 November At the period end the Company offered three sub-funds, the Alliance Trust Global Thematic Opportunities Fund, the Alliance Trust Monthly Income Bond Fund and the Alliance Trust Dynamic Bond Fund. The termination of the Alliance Trust Asia- Pacific Equity Fund, the Alliance Trust Japan Equity Fund and the Alliance Trust UK Equity Fund was completed during the period. The Alliance Trust European Equity Fund and the Alliance Trust North American Equity Fund commenced termination during Q and it is anticipated that the termination of these sub-funds will be completed during Q The Company is a UCITS scheme which complies with the FCA s Collective Investment Schemes Sourcebook and is structured as an umbrella company so that different sub-funds may be established from time to time by the ACD with the approval of the FCA and the agreement of the Depositary. Changes to the Prospectus during the period During the period to 31 December 2013, changes were made to the Company and therefore the following changes were reflected in the Prospectus and/or Instrument of Incorporation of the Company. Classification of Changes As agreed with the Depositary and, where relevant approved by the FCA, the changes made were not deemed to be significant in the context of the FCA Rules and, as such, are being notified, post event, in this Report & Accounts. Details of the Changes From 1 April 2013 the Company and the ACD are authorised and regulated by the FCA. As the end of the accounting period was after this date all references to the predecessor of the FCA, the FSA have been replaced; Changes have been made to the Prospectus of the Company to reflect the coming into effect of guidelines on ETFs and other UCITS issues published by the European Securities and Markets Authority (ESMA) on 17 December 2012 (ref: ESMA/2012/832) which came into effect on 18 February These guidelines introduced increased disclosure requirements for investors in UCITS schemes in relation to exposure obtained through financial derivative instruments and efficient portfolio management techniques and in the case of funds which are deemed for the purposes of the ESMA guidelines to be Index Tracking UCITS, further disclosure regarding the index being tracked by the fund and the fund s strategy along with measurement of tracking the particular index. Following FCA approval, with effect from 20 December 2013, the Company took on Protected Cell status and the Company s Prospectus and Instrument of Incorporation were amended accordingly. From this date the new segregated liability regime took effect and the sub-funds are regarded as a segregated

4 Alliance Trust Investment Funds ICVC 2 portfolio of assets, with the assets of a sub-fund belonging exclusively to that sub-fund. The assets of a sub-fund shall not be used or made available to discharge (directly or indirectly) the liabilities of, or claims against, any other person or body, including the Company and any other sub-fund, and shall not be available for any such purpose. The conversion to Protected Cell status also means that sub-funds within the Company may invest in other sub-funds within the Company, subject to certain qualifications. Changes to the investment objective of the Alliance Trust Dynamic Bond Fund Recent changes to the FCA s Handbook require funds that indicate in their name, investment objectives or fund literature, through use of descriptions such as absolute return, total return or similar, an intention to deliver positive returns in all market conditions (and where there is no actual guarantee of such returns), to make additional statements in the fund s investment objectives specifying: (i) that capital is in fact at risk; (ii) the investment period over which the authorised fund aims to achieve a positive return; and (iii) there is no guarantee that this will be achieved over that specific, or any, time period; Accordingly, in accordance with of rule 4.2.5(3)(ca) of the FCA s Collective Investment Schemes Sourcebook ( COLL ), amendments have been made to the investment objective of the Alliance Trust Dynamic Bond Fund to reflect these changes. The original investment objective was as follows: Original Objective The Fund aims to provide a positive absolute return over 12 month rolling periods whilst seeking to provide an annualised total return (a combination of growth and income) of 6% over three year rolling periods. For the avoidance of doubt, the Fund does not offer any form of guarantee with respect to investment performance and no form of capital protection will apply. The amended investment objective is as follows: Amended Objective The Fund aims to provide a positive absolute return over 12 month rolling periods whilst seeking to provide an annualised total return (a combination of growth and income) of 6% over three year rolling periods. For the avoidance of doubt, the Fund does not offer any form of guarantee with respect to investment performance over any time period. No form of capital protection will apply and capital is therefore at risk. There has been no change to the investment strategy of the sub-fund. The change is considered to be a clarification of the existing strategy. Class P shares Performance Fee At the request of the Depositary, the description of the performance fee calculation in Appendix B of the Prospectus was amended to clarify that, in calculating the performance fee, the distributable income which is to be added back to the NAV includes any tax which may have been withheld on that distributable income. This is a change in wording only and not a change in the method of calculation of the performance fee. Updates to performance, dilution adjustment and SDRT details Performance figures, dilution adjustment and SDRT details have been updated for each of the sub-funds. A copy of the Prospectus is available on request from the ACD. Statement of the Authorised Corporate Director s Responsibilities The Authorised Corporate Director ( ACD ) of Alliance Trust Investment Funds ICVC ( Company ) is responsible for preparing the Annual Report and the financial statements in accordance with the Open-Ended Investment Companies Regulations 2001 ( the OEIC Regulations ), the Financial Conduct Authority s Collective Investment Schemes Sourcebook ( COLL ) and the Company s Instrument of Incorporation. The OEIC Regulations and COLL require the ACD to prepare financial statements for each annual accounting period which: are in accordance with United Kingdom Generally Accepted Accounting Practice ( United Kingdom Accounting Standards and applicable law ) and the Statement of Recommended Practice: Financial Statements of Authorised Funds issued by the Investment Management Association ( IMA SORP ) in October 2010; and give a true and fair view of the financial position of the Company and each of its sub-funds as at the end of that period and the net revenue and the net capital gains on the property of the Company and each of its sub-funds for that period. In preparing the financial statements, the ACD is required to: select suitable accounting policies and then apply them consistently; make judgments and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards, applicable law and the IMA SORP have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in operation.

5 Report & Accounts December The ACD is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable it to ensure that the financial statements comply with the applicable IMA SORP and United Kingdom Accounting Standards and applicable law. The ACD is also responsible for the system of internal controls, for safeguarding the assets of the Company and for taking reasonable steps for the prevention and detection of fraud and other irregularities. In accordance with COLL 4.5.8BR, the Annual Report and the audited financial statements were approved by the board of directors of the ACD of the Company and authorised for issue on 29 April Report of the ACD to the Shareholders of the Company The ACD, as sole director, presents its report and the audited financial statements of the Company for the period from 1 January 2013 to 31 December The Company is a UCITS scheme which complies with the FCA s Collective Investment Schemes sourcebook. The shareholders are not liable for the debts of the Company. The investment objectives and policies of each sub-fund of the Company are covered in the section for each sub-fund. The names and addresses of the ACD, the Depositary and the Auditor are detailed on page 1. The Protected Cell Regime ( PCR ) for OEICs in the UK is now in place following the approval of the Open-Ended Investment Companies (Amendment) Regulations 2011 by Parliament on 21 December Under the PCR, the assets of a sub-fund of an umbrella OEIC belong exclusively to that sub-fund and are not available to discharge the liabilities of any other sub-fund or any claim against the umbrella OEIC. The company completed its conversion in December In the future there may be other sub-funds of the Company. The ACD is of the opinion that it is appropriate to continue to adopt the going concern basis in the preparation of the financial statements as the assets of the sub-funds consist predominantly of securities that are readily realisable and, accordingly, the sub-funds have adequate financial resources to continue in operational existence for the foreseeable future. Statement of the Depositary s responsibilities and report of the Depositary to the shareholders of Alliance Trust Investment Funds ICVC ( the Company ) for the period ended 31 December The Depositary is responsible for the safekeeping of all of the property of the Company (other than tangible moveable property) which is entrusted to it and for the collection of revenue that arises from that property. It is the duty of the Depositary to take reasonable care to ensure that the Company is managed in accordance with the Financial Conduct Authority s Collective Investment Schemes Sourcebook ( COLL ), as amended, the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228), as amended ( the OEIC Regulations ), the Company s Instrument of Incorporation and Prospectus, in relation to the pricing of, and dealings in, shares in the Company; the application of the revenue of the Company; and the investment and borrowing powers applicable to the Company. Report of the depositary to the shareholders of the company Having carried out such procedures as we considered necessary to discharge our responsibilities as depositary of the company, it is our opinion, based on the information available to us and the explanations provided, that in all material respects the Company, acting through the Authorised Corporate Director: i) has carried out the issue, sale, redemption, cancellation and calculation of the price of the Company s shares and the application of the Company s revenue, in accordance with COLL and, where applicable, the OEIC Regulations, the Instrument of Incorporation and the Prospectus of the Company; and ii) has observed the investment and borrowing powers and restrictions applicable to the Company. For and on behalf of National Westminster Bank plc 29 April Directors Statement In accordance with the Regulations, we hereby certify the report on behalf of the directors of Alliance Trust Investments Limited. Katherine Garrett-Cox Director 29 April 2014 Alan Trotter Director 29 April 2014

6 Alliance Trust Investment Funds ICVC 4 Independent auditor s report to the shareholders of Alliance Trust Investment Funds ICVC We have audited the financial statements of Alliance Trust Investment Funds ICVC ( the company ) for the year ended 31 December 2013 which comprise Aggregated Statement of Total Return, the Aggregated Statement of Change in Net Assets Attributable to Shareholders, the Aggregated Balance Sheet, the related notes 1 to 11 and for each sub-fund: the Statement of Total Return, the Statement of Change in Net Assets Attributable to Shareholders, the Balance Sheet, the related notes, and the distribution tables. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), the Statement of Recommended Practice: Financial Statements of Authorised Funds issued by the Investment Management Association in October 2010, the Collective Investment Schemes Sourcebook and the Instrument of Incorporation. This report is made solely to the company s shareholders, as a body, in accordance with Paragraph R of the Collective Investment Schemes Sourcebook of the Financial Conduct Authority. Our audit work has been undertaken so that we might state to the company s shareholders those matters we are required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company s shareholders as a body, for our audit work, for this report, or for the opinions we have formed. Respective Responsibilities of the Depositary, the Authorised Corporate Director (ACD) and the Auditor As explained more fully in the Depositary s Responsibilities Statement and the ACD s Responsibilities Statement, the Depositary is responsible for safeguarding the property of the company and the ACD is responsible for the preparation of the financial statements. Our responsibility is to audit and express an opinion on the financial statements in accordance with the requirements of the Collective Investment Schemes Sourcebook, applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. Scope of the audit of the financial statements from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the ACD; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: give a true and fair view of the financial position of the company and the sub funds as at 31 December 2013 and of the net revenue and the net capital gains on the property of the company and the sub funds for the year ended 31 December 2013; and have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, the Statement of Recommended Practice Financial Statements of Authorised Funds, the rules in the Collective Investment Schemes Sourcebook and the Instrument of Incorporation. Opinion on other matters prescribed by the Collective Investment Schemes Sourcebook In our opinion: proper accounting records for the company and the sub funds have been kept and the financial statements are in agreement with those records; we have received all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit; and the information disclosed in the Annual Report for the year ended 31 December 2013 for the purpose of complying with Paragraph 4.5.9R of the Collective Investment Schemes Sourcebook is consistent with the financial statements. Deloitte LLP Chartered Accountants and Statutory Auditor Edinburgh, United Kingdom 29 April 2014 An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free

7 Report & Accounts December Aggregated statement of total return for the period 1 January 2013 to 31 December 2013 Note Income Net capital gains 2 46,246,337 61,523,174 Revenue 3 24,920,534 22,873,407 Expenses 4 (2,020,578) (3,102,680) Finance costs: Interest 6 (30,362) (77,252) Net revenue before taxation 22,869,594 19,693,475 Taxation 5 (755,359) (656,367) Net revenue after taxation 22,114,235 19,037,108 Total return before distributions 68,360,572 80,560,282 Finance costs: Distributions 6 (24,820,730) (21,393,851) Change in net assets attributable to shareholders from investment activities 43,539,842 59,166,431 Aggregated statement of change in net assets attributable to shareholders for the period 1 January 2013 to 31 December 2013 Opening net assets attributable to shareholders 649,766, ,652,939 Movement due to issue and cancellation of shares: Amounts received on creation of shares 61,216, ,672,716 Amounts payable on the cancellation of shares (158,203,851) (144,574,216) Amounts due to Alliance Trust PLC* (18,836) - (97,006,413) 38,098,500 Dilution levy 4,692 36,132 Unclaimed distributions - (2) Stamp duty reserve tax (89) (1,321) Change in net assets attributable to shareholders from investment activities 43,539,842 59,166,431 Retained distribution on accumulation shares 4,872,224 5,813,980 Closing net assets attributable to shareholders 601,176, ,766,659 *On commencement of termination of the European Equity Fund and the North American Equity Fund amounts were retained to cover contingent liabilities arising in the period between commencement and the subsequent completion of termination of the funds. Any residual balance remaining from these retained amounts is due to Alliance Trust PLC as it was the last remaining shareholder in these funds at the commencement of termination. Aggregated balance sheet as at 31 December 2013 Note ( ) ( ) ( ) ( ) Assets Investment assets 593,880, ,464,408 Debtors 7 8,507,571 10,012,661 Cash and bank balances 8 10,524,357 27,195,778 Total other assets 19,031,928 37,208,439 Total assets 612,912, ,672,847 Liabilities Investment liabilities (8,885,622) (4,744,438) Amount held at futures clearing houses and brokers - (220,104) Creditors 9 (914,484) (3,233,715) Distribution payable on income shares (1,934,907) (1,592,046) Bank Overdraft (282) (115,885) Total other liabilities (2,849,673) (5,161,750) Total liabilities (11,735,295) (9,906,188) Net assets attributable to shareholders 601,176, ,766,659 Notes to the Financial Statements are on page 6 to 11.

8 Alliance Trust Investment Funds ICVC 6 Notes to the aggregated financial statements for the period from 1 January 2013 to 31 December Accounting policies a) Basis of accounting The Financial Statements have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the Statement of Recommended Practice of Financial Statements of Authorised Funds ( IMA SORP ) issued by the Investment Management Assocation (IMA) in October As described in the Statement of Authorised Corporate Director s (ACD) Responsibilities on page 2, the ACD continues to adopt the going concern basis in preparation of the Financial statements. The ACD has considered the impact of the closure of the Alliance Trust European Equity and Alliance Trust North American Equity Funds and has determined that these closures do not have an impact on the going concern assessment of the company s financial statements. b) Aggregated accounts The aggregated accounts represent the sum of the individual Funds within the umbrella company. Further analysis of the distributions per share and the net asset positions can be found within the financial statements of the individual Funds. c) Valuation of investments The valuation of the Funds listed investments is based on the bid-market prices, excluding any accrued interest in the case of debt securities, at the close of business on the last day of the accounting period on 31 December 2013, in accordance with the provisions of the Prospectus. Unquoted securities are valued by the Authorised Corporate Director ( ACD ) on a net realisable value basis taking into account, where appropriate, latest dealing prices, valuations from reliable sources, financial performance and other relevant factors. For Collective Investment Schemes managed by other management groups, investments are valued at the bid price for dual priced Funds and at the single price for single priced Funds. Valuations should take into account any agreed rate of redemption charge. d) Revenue Dividends on quoted ordinary shares and preference shares are recognised when the securities are first quoted ex-dividend. Revenue from unquoted equity investments is recognised when the entitlement to the dividend is established. In compliance with FRS 16 Current Tax, dividend revenue is shown net of any tax credits. Any entitlement to a repayment of tax credits is shown as a deduction from the tax charge rather than as dividend revenue. Dividends and witholding tax recoverable from overseas authorities are treated as receivable on the date on which the security is quoted ex-dividend where the amounts can be reasonably determined. Foreign dividends are grossed up at the appropriate rate of tax. Revenue from fixed rate securities and bank deposits is recognised on an effective interest rate basis. Accrued interest purchased and sold on interest bearing securities is excluded from the capital cost of these securities and dealt with as part of the revenue of the Fund. Revenue within the financial statements for the Monthly Income Bond Fund has been calculated on an effective yield basis but distributions are based on a coupon basis. Interest included in the value of purchases and sales of debt securities is treated as revenue and forms part of the distribution. Revenue from stock lending activities is accounted for net of management fees and is recognised on an accruals basis. Underwriting commission is generally treated as income. However, where a Fund is required to take up all or a proportion of the shares underwritten, the commission received is treated as a reduction in the cost of the shares received. Furthermore, where a Fund is required to take a proportion of the shares underwritten, the same proportion of the commission received is treated as a reduction in the cost of shares received and the balance is taken to revenue. Distributions from collective investment schemes are recognised as revenue on the date the securities are quoted ex-dividend. Equalisation on distribution from collective investment scheme is deducted from cost of investment and does not form part of the sub-funds distribution. e) Rebates of ACD fees Rebates of ACD fees are recognised on an accrual basis. These rebates are treated as revenue or capital based on the underlying fund s treatment of the ACD fees. f) Stock dividends The ordinary element of a stock dividend is recognised as revenue to the extent that its market value is equivalent to the market value of the underlying shares on the date the shares are quoted ex-dividend. Where an enhancement is offered, the amount by which the market value of the shares (on the date they are quoted ex-dividend) exceeds the cash value of the dividend will be taken to the capital of a Fund. The ordinary element of the stock dividend is treated as revenue and forms part of the distribution. g) Special dividends and share buy backs Special dividends and share buy backs are treated as repayments of capital except where there is sufficient evidence to indicate that they should be treated, in whole or in

9 Report & Accounts December part, as revenue. Amounts recognised as revenue will form part of the distribution. The tax treatment will follow the accounting treatment of the receipt. h) Expenses Expenses are recognised on an accruals basis and are charged against revenue except for Stamp Duty Reserve Tax ( SDRT ) and costs associated with the purchase and sale of investments, which are allocated to the capital of the Fund. For the purposes of determining the distribution, all or part of the ACD s periodic charge may be borne by the capital account of the Fund. Currently only the Monthly Income Bond Fund charges the ACD s periodic charge against capital. In addition to the Annual Management Charge, for certain share classes, the ACD is entitled to a performance related fee of 20% of outperformance of the relevant index by each share class of each sub-fund and is calculated to the end of the accounting period in December each year. The relevant indices can be found in the performance section of the Investment Review for each sub-fund. The full amount of any performance fee is calculated on an accruals basis and is chargeable against capital in determining distribution. Further details of the calculation can be found in the Prospectus. i) Allocation of revenue and expenses to multiple share classes The allocation of revenue and expenses to each share class is based on the proportion of the Fund s assets attributable to each share class on the day the revenue is earned or the expense is incurred. The ACD s periodic charge and registration fees are allocated on a share class specific basis. j) Taxation Corporation tax is charged at 20% of the income liable to corporation tax, less expenses. Deferred tax is provided for at the rate at which taxation is likely to become payable in respect of all timing differences between the accounting and taxation treatment of items. k) Distributions The net revenue available for distribution at the end of each distribution period will be paid as a dividend or interest distribution. Should the expenses of a Fund (including taxation) exceed the revenue of a Fund, there will be no distribution and the shortfall will be set against the capital of a Fund. Any revenue attributable to accumulation shareholders is retained within a Fund at the end of the distribution period and represents a reinvestment of income on behalf of the accumulation shareholders. For the Monthly Income Bond Fund all the interim distributions are based on a fixed rate for each share class and any income available for distribution at the end of the accounting period will be distributed or accumulated. The financial statements have been prepared on an effective yield basis but the Fund distributes on a coupon basis. Where the coupon basis is higher, the additional amount, above that recorded in revenue, is transferred from capital in order to make the distribution. A reconciliation of the net distribution to the net revenue of the fund as reported in the Statement of Total Return is shown in note 6 on page 48. l) Exchange rates Transactions in foreign currencies are translated into Sterling at the rate of exchange ruling on the date of the transaction. Investments and other assets and liabilities denominated in foreign currencies are translated into Sterling at the exchange rates applicable at the end of the accounting period. m) Financial instruments Where appropriate, certain permitted financial instruments such as derivative contracts or forward exchange contracts are used for the purpose of efficient portfolio management. Where such financial instruments are used to protect or enhance revenue, the revenue and expenses derived therefrom are included in Revenue or Expenses in the Statement of Total Return. Where such financial instruments are used to protect or enhance capital, the returns derived there from are included in Net capital gains/(losses) on investments in the Statement of Total Return. Any positions in respect of such instruments open at the year end are reflected in the portfolio statement at their market value. Where positions generate total returns, such returns are apportioned between capital and revenue to properly reflect the nature of the transaction. The amounts held at futures clearing houses in respect of these financial instruments are included in the cash and bank balances and detailed in the Notes to the Financial Statements. Transaction costs associated with derivatives are charged to revenue when incurred. All forward contracts outstanding at financial reporting dates are marked to market. Some of the subfunds may enter into permitted transactions such a derivative contracts or forward currency transactions as outlined in the relevant Investment Objective and Policy of the Fund. Derivative financial instruments are initially recorded at transaction value on the date on which the derivative contract is entered into. All contracts outstanding at the financial reporting date are carried at a value provided by independent pricing providers.

10 Alliance Trust Investment Funds ICVC 8 Notes to the aggregated financial statements for the period from 1 January 2013 to 31 December 2013 (continued) 2. Net capital gains/(losses) Gains on non-derivative securities 46,344,847 62,339,347 (Losses) on derivative securities (1,433,216) (1,053,997) Gains on forward currency contracts 1,465, ,552 (Losses) on currencies (118,167) (239,361) Transaction charges (13,054) (77,367) Net capital gains 46,246,337 61,523, Revenue Bank interest 12,714 1,654 Interest from overseas debt securities 8,955,598 5,332,071 Interest from debt securities 9,336,503 9,231,679 Interest from interest rate swaps 8,283 3,192 Non-taxable overseas dividends 5,885,735 5,736,927 Taxable overseas dividends 247, ,517 UK dividends 410,671 2,121,475 US REIT dividend 63,112 88,384 Total revenue 24,920,534 22,873, Expenses Payable to the Manager, associates of the Manager, and agents of either of them: ACD s periodic charge 926,833 1,242,171 Registration fees 130, ,428 Performance fee 106,177 82,117 1,163,607 2,201,716 Payable to the Depositary, associates of the Depositary, and agents of either of them: Depositary fees 237, ,892 Safe custody fees 31,714 48, , ,130 Other expenses Administration fee 504, ,846 Auditors fees 37,070 57,600 Dividend ADR charges 231 4,702 FCA fee (2,207) 223 Legal fee 8,210 7,191 Management Accounts fees 15,869 25,020 Printing fees (3,182) 1,228 Reconciliation fees 2,898 5,371 Retained amount for closure 10,000 - Sundry expense 14,249 - Retained amount for terminating funds - 20,000 Professional Service fees - 5,286 RIY Calculation fees - 4,408 Indian SEB fee - 3,276 Distribution fee provision - (317) 587, ,834 Total expenses 2,020,578 3,102,680

11 Report & Accounts December Notes to the aggregated financial statements for the period from 1 January 2013 to 31 December 2013 (continued) 5. Taxation a) Analysis of charge in period Corporation tax Direct Charge - 29,979 Overseas tax 758, ,408 Prior year adjustment (853) - Tax Credit (2,546) (172) Total current tax charge for the period (see note 5(b)) 755, ,367 b) Factors affecting current tax charge for the period The taxation assessed for the period is lower than the standard rate of corporation tax in the UK for an OEIC (20%). The differences are explained below: Net revenue before taxation 22,869,594 19,693,475 Return on ordinary activities multiplied by the standard rate of Corporation Tax of 20% 4,573,919 3,938,695 Capitalised fees 136, ,503 Corporation tax effect expenses disallowed Excess expense for which no relief taken 75, ,956 Expensed overseas tax (2,624) (5,486) Expenses not deductible for tax purposes 3,190 2,286 Franked investment revenue at 20% (82,134) (424,296) Non-taxable overseas dividends (1,058,147) (1,144,286) Non-taxable stock dividend (15,835) (3,094) Overseas tax 758, ,418 Precompte (2,396) (162) Prior year adjustment (682) - Tax deductible interest distributions (3,630,822) (2,830,319) Current tax charge for the period (see note 5(a)) 755, ,367 As OEICs are exempt from tax on capital gains, capital returns are not included in the above reconciliation.

12 Alliance Trust Investment Funds ICVC 10 Notes to the aggregated financial statements for the period from 1 January 2013 to 31 December 2013 (continued) 6. Finance costs Distributions Interims 19,609,214 17,404,696 Final 3,932,810 3,449,675 23,542,024 20,854,371 Add: revenue deducted on cancellation of shares 1,428, ,349 Less: revenue received on creation of shares (150,079) (312,869) Net distribution 24,820,730 21,393,851 Interest 30,362 77,252 Total finance costs 24,851,092 21,471,103 Reconciliation of distributions: Net revenue after taxation 22,114,235 19,037,108 Add: capitalised expenses 684,795 1,458,484 Adjustment for effective yield 2,042, ,089 Revenue (surplus) at the period end - (83,830) Surplus transferred to capital* (20,685) - Net distribution 24,820,730 21,393,851 * The surplus transferred to capital is the amounts left on the balance sheet at , which relate to the remaing cash balance net of expenses. 7. Debtors Accrued revenue 8,005,579 7,545,277 Amounts receivable on creation of shares 428,008 1,244,217 Overseas tax recoverable 73, ,736 Amounts due from the ACD - 68,305 Sales awaiting settlement - 1,034,126 Total debtors 8,507,571 10,012, Cash and bank balances Amount held at futures clearing houses and brokers 1,731, ,559 Cash and bank balances 8,792,842 26,386,219 Total cash and bank balances 10,524,357 27,195, Creditors Accrued expenses 513,699 1,345,345 Amount payable on termination 18,836 - Amounts payable on cancellation of shares 75, ,465 Corporation tax payable Income tax payable 301, ,921 Purchases awaiting settlement 4,930 1,479,832 Total creditors 914,484 3,233,715

13 Report & Accounts December Notes to the aggregated financial statements for the period from 1 January 2013 to 31 December 2013 (continued) 10. Contingent liabilities There were no contingent liabilities or outstanding commitments at the balance sheet date. 11. Related party transactions Alliance Trust PLC is regarded as a controlling party by virtue of being the ultimate parent company of the ACD, Alliance Trust Investments Limited, giving the ability to act in concert in respect of the operations of the Company. The ACD s Periodic charge, performance fees and registration fees paid to Alliance Trust Investments Limited and its associates are shown in note 4 of each sub-fund and details of shares issued and cancelled by Alliance Trust Investments Limited are shown in the Statement of Change in Net Assets Attributable to Shareholders. The balance due to Alliance Trust Investments Limited and its associates at the period end was 186,113 (prior period: 963,985). The balance due to the Company at the period end from the ACD is nil (prior period: 68,306). The total expense due to Alliance Trust Investments Limited and its associates for the period was 1,057,430 (prior period: 1,725,445). Any material holdings or dealings in sub-fund shares are disclosed in the respective sub-fund financial statements. For the terminating sub-funds, amounts due to Alliance Trust PLC are disclosed in note 9 of the sub-fund accounts

14 Alliance Trust Investment Funds ICVC 12 Alliance Trust North American Equity Fund Alliance Trust North American Equity Fund Report for the period from 1 January 2013 to 31 December 2013 Investment objective and policy The Fund aims to produce long-term total return from investment in a portfolio of companies in any economic sector in the United States and Canada. Holdings are listed on a regulated stock exchange or market in either the United States or Canada. The Fund aims to meet its objective by investing in a concentrated portfolio of North American companies. The portfolio is diversified and unconstrained by reference to North American indices, or by market cap. The manager employs a fundamental, long-term approach to stock selection with a focus on Value/ Growth at a Reasonable Price. Currently, it is intended that the Fund will enter into derivative and forward transactions only for the purposes of efficient portfolio management (including hedging) ( EPM ). The specific aims of EPM are the reduction of risk, the reduction of cost or the generation of additional capital or income with a risk level which is consistent with the risk profile of the Fund and the risk diversification rules laid down in COLL. Investment review As the Fund was closed in the period the following commentary covers the period 1 January 2013 to 30 June There was insufficient investment activity from July onwards to require an update to this commentary. Market review The fund s benchmark index, the MSCI North American index, rose over 15% to the middle of May before the gains were pared to nearly 11% at the end of June Investors enthusiasm for equities seemed to peter out amid concerns that quantitative easing could be withdrawn by the US Federal Reserve earlier than anticipated. The US dollar strengthened against Sterling further boosting investment returns. Portfolio Outlook Following a full review of our fund range after a decision to restructure the Alliance Trust PLC equity portfolio, the Alliance Trust North American Equity Fund commenced termination on 28 June Material Portfolio Changes The fund commenced termination on the 28th of June 2013 and as such sold all holdings in underlying securities. Risk and Reward Profile The Risk and Reward Indicator table demonstrates where the Fund ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund. The shaded area in the table below shows the Fund s ranking on the Risk and Reward Indicator. Typically lower rewards, lower risk Typically higher rewards, higher risk This Fund is ranked at 6 because funds of this type have experienced high rises and falls in value in the past. Please note that even the lowest risk class can lose you money and that extreme market circumstances can mean you suffer severe losses in all cases. The indicator does not take into account the following risks of investing in this fund: By focusing its investments in North America, the fund will have greater exposure to the market, political and economic risks of that region than if it was more diversified across a number of countries. Investing globally can bring additional returns and diversify risk. However, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment. This fund holds a limited number of investments. If one of these investments falls in value this can have a greater impact on the Fund s value than if it held a larger number of investments.

15 Report & Accounts December 2013 Alliance Trust North American Equity Fund 13 Performance record as at 31 December 2013 Launch date 6 February 2009 Share price history Calendar year Highest price Lowest price 2013 A Accumulation* 182.3p 148.5p A Income* 179.2p 145.9p B Accumulation* 115.2p 99.63p B Income* 115.2p 99.63p P Accumulation* 188.2p 152.8p P Income* 179.9p 146.0p 2012 A Accumulation 155.3p 134.7p A Income 152.9p 132.8p B Accumulation 159.4p 137.6p B Income 153.2p 132.8p 2011 A Accumulation 142.4p 116.6p A Income 140.7p 114.8p B Accumulation 144.9p 118.4p B Income 141.1p 114.8p 2010 A Accumulation 139.2p 115.0p A Income 137.7p 114.6p B Accumulation 141.1p 115.8p B Income 138.1p 115.0p 2009 A Accumulation** 124.3p 82.59p A Income*** 123.4p 98.78p B Accumulation** 125.1p 82.63p B Income*** 123.9p 99.09p * To 28 June 2013 ** From 9 February 2009 *** From 4 August 2009 The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched at 100p on 31 January General price information Fund period end price price A Accumulation p A Income p B Accumulation - - B Income - - P Accumulation p P Income p The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched at 100p on 31 January 2013.

16 Alliance Trust Investment Funds ICVC 14 Alliance Trust North American Equity Fund Performance record as at 31 December 2013 (continued) Income record The record of net distributions per share and per 1,000 invested is shown below. Calendar year per share per 1, * A Accumulation** p 2.21 A Income** p 2.64 B Accumulation** - - B Income** - - P Accumulation** p 8.06 P Income** p A Accumulation p 1.61 A Income p 2.42 B Accumulation p B Income p A Accumulation p 3.16 A Income p 2.99 B Accumulation p B Income p A Accumulation p 7.46 A Income p 8.57 B Accumulation p B Income p A Accumulation p 5.69 A Income - - B Accumulation p 8.45 B Income - - * To 28 June 2013 ** From 9 February 2009 *** From 4 August 2009 The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched at 100p on 31 January Net Asset Value Fund period end Shares in issue Net Asset Value Net Asset Value per share 31 December 2013* A Accumulation A Income B Accumulation B Income P Accumulation P Income December 2012 A Accumulation 3,433,802 5,099, p A Income 203, , p B Accumulation 30,512,439 46,612, p B Income 4,785,172 6,985, p 31 December 2011 A Accumulation 3,073,199 4,150, p A Income 145, , p B Accumulation 30,851,684 42,567, p B Income 4,096,246 5,456, p * The fund closed June 2013 The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched at 100p on 31 January 2013.

17 Report & Accounts December 2013 Alliance Trust North American Equity Fund 15 Performance record as at 31 December 2013 (continued) Ongoing Charges Figure* (previously Total Expense Ratio) Total Including performance fee 31 December 2013 A Accumulation 1.35% 1.35% A Income 1.34% 1.34% B Accumulation 0.55% 0.55% B Income 0.52% 0.52% P Accumulation 0.63% 0.63% P Income 0.52% 0.52% *The Ongoing Charges Figure (OCF) represents the annual operating expenses of the Fund expressed as a percentage of the average net assets for the period - it does not include initial charges or performance fees. The OCF includes the annual management charge and all charges which are deducted directly from the Fund. The OCF is expressed as an annual percentage rate. In addition to the above, the sub-fund is charged a performance fee. A performance fee of 20% is payable to the ACD on any outperformance of the subfund s benchmark. There was no performance fee charged for the period. The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched on 31 January As this fund closed in June 2013 it is no longer available for investment. Statement of total return for the period ended 31 December 2013 Note Income Net capital gains 2 8,231,594 5,074,206 Revenue 3 651,430 1,048,802 Expenses 4 (229,512) (464,229) Finance costs: Interest 6 (40) (99) Net revenue before taxation 421, ,474 Taxation 5 (81,169) (133,021) Net revenue after taxation 340, ,453 Total return before distributions 8,572,303 5,525,659 Finance costs: Distributions 6 (337,892) (518,140) Change in net assets attributable to shareholders from investment activities 8,234,411 5,007,519 Statement of change in net assets attributable to shareholders for the period ended 31 December 2013 Opening net assets attributable to shareholders 58,994,182 52,368,920 Movement due to issue and cancellation of shares: Amounts received on creation of shares 10,343,909 3,569,353 Amounts paid on cancellation of shares (77,574,637) (2,409,120) Amounts due to Alliance Trust PLC on completion of the termination of the fund* (1,698) - (67,232,426) 1,160,233 Dilution levy 3,833 2,631 Change in net assets attributable to shareholders from investment activities 8,234,411 5,007,519 Retained distribution on accumulation shares - 454,879 Closing net assets attributable to shareholders - 58,994,182 Notes to the Financial Statements are on pages 17 to 23. * See note 11. Related party transactions

18 Alliance Trust Investment Funds ICVC 16 Alliance Trust North American Equity Fund Balance Sheet as at 31 December 2013 Note Income Investment assets - 57,937,170 Debtors 7-71,692 Cash and bank balances 8 17,585 1,151,501 Total other assets 17,585 1,223,193 Total assets 17,585 59,160,363 Liabilities Creditors 9 (17,585) (128,432) Distribution payable on income shares - (37,749) Total other liabilities (17,585) (166,181) Total liabilities (17,585) (166,181) Net assets attributable to shareholders - 58,994,182 The notes on pages 17 to 23 form an integral part of these financial statements.

19 Report & Accounts December 2013 Alliance Trust North American Equity Fund 17 Notes to the financial statements for the period ended 31 December Accounting policies The accounting policies for the sub-fund are set out in note 1 of the aggregate accounts on pages 6 and Net capital gains Gains on non-derivative contracts 7,845,159 5,142,900 Currency gains/(losses) 387,418 (62,091) Transaction charges (983) (6,603) Net capital gains 8,231,594 5,074, Revenue Interest from overseas debt securities 33,132 39,159 Non-taxable overseas dividends 515, ,010 Taxable overseas dividends 39,443 53,249 US REIT dividends 63,112 88,384 Total revenue 651,430 1,048, Expenses Payable to the ACD, associates of the ACD, and agents of either of them: ACD s periodic charge 172, ,668 Performance Fee - 66,687 Registration fees 2,824 6, , ,823 Payable to the Depositary, associates of the Depositary, and agents of either of them: Depositary fees 16,882 28,797 Safe custody fees 625 1,732 17,507 30,529 Other expenses Administration fees 27,608 47,500 Audit fee 5,979 8,100 FCA fees* (1,875) 483 Management accounts fees 1,940 4,011 Printing fees (3,861) 1,545 Reconciliation fees Retained amount for closure 5,000 - RIY Calculation fees Sundry expenses 1,636-37,027 62,877 Total expenses 229, ,229 Irrecoverable VAT is included in the above expenses where relevant. * With effect from 1 April 2013, the Financial Services Authority (FSA) ceased to exist and was replaced by the Financial Conduct Authority (FCA). The current period figures are negative as they are reversals of the previous period s accrual. The actual FCA and printing fee charge for period was nil.

20 Alliance Trust Investment Funds ICVC 18 Alliance Trust North American Equity Fund Notes to the financial statements for the period ended 31 December 2013 (continued) 5. Taxation a) Analysis of charge in period Irrecoverable overseas tax suffered 81, ,021 Total current tax charge for the period (see note 5(b)) 81, ,021 b) Factors affecting current tax charge for the period The taxation assessed for the period is lower (2012:higher) than the standard rate of corporation tax in the UK for a OEIC (20%). The differences are explained below: Net revenue before taxation 421, ,474 Return on ordinary activities multiplied by the standard rate of Corporation Tax of 20% 84, ,895 Effects of: Excess expense for which no relief taken 19,665 59,359 Expensed overseas tax (1,892) (2,652) Expenses not deductible for tax purposes 1,000 - Non-taxable overseas dividends (103,149) (173,602) Overseas tax 81, ,021 Total current tax charge for period (see note 5(a)) 81, ,021 At 31 December 2013 the fund had surplus management expenses of 1,010,104 (prior period: 911,780). It is unlikely that the fund will generate sufficient taxable profits in the future to utilise these expenses and, therefore, a deferred tax asset of 202,021 (prior period: 182,356) has not been recognised. Each sub-fund of an authorised OEIC is exempt from tax on capital gains made within the sub-fund. 6. Finance costs The distributions take account of revenue received on the issue of shares and revenue paid on the cancellation of shares, and comprise: Interim - 227,008 Final - 291, ,180 Add: revenue deducted on cancellation of shares 340,121 3,060 Less: revenue received on creation of shares (2,229) (3,100) Net distribution 337, ,140 Interest Total finance costs 337, ,239 Reconciliation of distributions: Net revenue after taxation 340, ,453 Expenses charged to capital - 66,687 Surplus transferred to capital* (2,817) - Net distribution 337, ,140 The Distribution per share is set out in the table on page 24. Refer to note k) Distributions, on page 7. *The surplus transferred to capital is the amounts left on the balance sheet as , which relate to the remaining cash balance net of expenses. This balance is included in the creditors on the balance sheet as it is payable to Alliance Trust PLC. Please refer to note Debtors Accrued revenue - 71,562 Amounts receivable for creation of shares Total debtors - 71, Cash and bank balances Cash and bank balances 17,585 1,151,501 Total cash and bank balances 17,585 1,151,501

21 Report & Accounts December 2013 Alliance Trust North American Equity Fund 19 Notes to the financial statements for the period ended 31 December 2013 (continued) 9. Creditors Accrued expenses 15, ,432 Amount payable on termination 1,698 - Total creditors 17, , Contingent liabilities and outstanding commitments There were no contingent liabilities or outstanding commitments at the balance sheet date. 11. Related party transactions The balance due to Alliance Trust Investments Limited and its associates at the period end was Nil (31 December ,148). The total expense due to Alliance Trust Investments Limited and its associates for the period was 172,154 (prior period: 364,355). On commencement of termination of the fund amounts were retained to cover contingent liabilities arising in the period between commencement and the subsequent completion of termination of the funds. Any residual balance remaining from these retained amounts is due to Alliance Trust PLC as it was the last remaining shareholder in the fund at the commencement of termination. At the period end the amount due was 1,698, as detailed on the Statement of change in net assets attributable to shareholders for the period ended 31 December Share classes The Fund had six share classes; Class A (Retail) Net Income and Net Accumulation, Class B (Institutional) Net Income and Net Accumulation and Class P (Institutional) Net Income and Net Accumulation. The ACD s periodic charge on each share class was as follows: Class A: 1.20% (prior period 1.20%) Class B : 0.45% Class P : 0.45% (prior period 0.45%) The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched at 100p on 31 January 2013.

22 Alliance Trust Investment Funds ICVC 20 Alliance Trust North American Equity Fund Notes to the financial statements for the period ended 31 December 2013 (continued) 13. Derivatives and other financial instruments The risks inherent in the Fund s investment portfolio are as follows: In pursuing its investment objective and investment policy, the Fund holds a number of financial instruments. These may comprise: Equity shares, equity related shares, non-equity shares and debt securities. These are held in accordance with the Fund s investment policies; Cash, liquid resources and short-term debtors and creditors that arise directly from its operation; Shareholders funds, which represent investors monies that are invested on their behalf; Derivative transactions which the Fund may enter into, the purpose of which is to manage certain aspects of the risks arising from the Fund s investment activities and generate additional capital and revenue; Short-term borrowings used to finance operational cash flows. Derivatives are also used for investment purposes not just to manage risk/exposures. The main risks arising from the financial instruments are market price (including emerging markets price risk ), foreign currency, interest rate, liquidity and counterparty credit risk. The ACD reviews the policies for managing each of these risks and they are summarised below. These policies have remained unchanged since the beginning of the period to which these financial statements relate. It should be noted that the ACD has a detailed Risk Management Policy which is reviewed and updated, if necessary, periodically. An independent Risk Function is also present who monitor all relevant risks appropriately. Market price risk Market price risk is the risk that the Fund might suffer potential loss through holding market positions in the face of price movements. It arises mainly due to uncertainty about future prices of financial instruments held. The Fund s investment portfolio is monitored by the ACD in pursuance of its investment objective and policy as set out in the Prospectus. Futures contracts may be used to hedge against market price risk where deemed appropriate for efficient portfolio management purposes. Currency risk Currency risk is the risk that the revenue and net asset value of the Fund may be adversely affected by movements in foreign exchange rates. The revenue and capital value of the Fund s investments can be significantly affected by currency risk movements as some of the assets and income are denominated in currencies other than Sterling, which is the Company s functional and reporting currency. The ACD has identified three principal areas where foreign currency risk could impact the Fund: movements in exchange rates affecting the value of investments; movements in exchange rates affecting short-term timing differences; and movements in exchange rates affecting the income received. Currency exposure is monitored closely and is considered to be part of the overall investment process. Currency hedges via forward exchange contracts will only be used in the event of a specific currency risk being identified. The Fund may be subject to short-term exposure to exchange rate movements, for instance, where there is a difference between the date an investment purchase or sale is entered into and the date when settlement of the proceeds occurs. The ACD believes that the impact of such movements is not significant enough to warrant the cost incurred of eliminating them via hedging. The Fund may receive income in currencies other than Sterling, and the Sterling values of this income can be affected by movements in exchange rates. Interest rate risk Interest rate risk is the risk that the revenue cashflow or the fair value of investments may be adversely affected by movements in market interest rates. As the Fund invests in equity instruments its exposure to interest rate risk is limited to interest receivable and payable on cash and overdraft balances, which will be affected by fluctuations in interest rates. Liquidity risk Liquidity risk is the risk that the Fund will not be able to meet its obligations as they fall due. The Fund s assets comprise wholly of readily realisable securities which can be sold to meet liquidity requirements. The main liquidity risk of the Fund is the redemption of any shares that investors wish to sell, which are redeemable on demand under the Prospectus. Counterparty credit risk Counterparty credit risk is the risk of suffering loss due to another party not meeting its financial obligation. Investments may be adversely affected if any of the institutions with which money is deposited or invested suffers insolvency or other financial difficulties or the credit rating of the bearers of the bonds held by the Funds are downgraded.

23 Report & Accounts December 2013 Alliance Trust North American Equity Fund 21 Notes to the financial statements for the period ended 31 December 2013 (continued) 13. Derivatives and other financial instruments (continued) The Fund may enter into transactions in financial instruments (including derivatives) which exposes it to the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Fund will only buy and sell financial instruments through parties that have been approved as acceptable by the ACD. The Fund may enter into stock lending activities which exposes it to the risk that the counterparty will not deliver the stock or cash after the Fund has fulfilled its obligations. The Fund will only enter into stock lending activities with parties that have been approved as acceptable by the ACD and obtaining collateral from counterparties which has a fair value in excess of the related stock on loan. There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair value. The numerical disclosures in respect of financial instruments and the management of interest rate and currency risks are included below where applicable. a) Currency exposures The net assets of the sub-fund are denominated mainly in Sterling with the effect that the Balance Sheet and Statement of Total Return are unlikely to be directly affected by currency movements. As at 31 December 2013 the Fund had the following net currency exposure: Net foreign currency assets/(liabilities) Monetary exposure Non-monetary exposure Total Currency Sterling 17,585 (17,585) - Total 17,585 (17,585) - As at 31 December 2012 the Fund had the following net currency exposure: Net foreign currency assets Monetary exposure Non-monetary exposure Total Currency Canadian dollar - 6,444,190 6,444,190 Sterling 192,425 (166,051) 26,374 US dollar 959,076 51,564,542 52,523,618 Total 1,151,501 57,842,681 58,994,182

24 Alliance Trust Investment Funds ICVC 22 Alliance Trust North American Equity Fund Notes to the financial statements for the period ended 31 December 2013 (continued) b) Interest rate risk The interest rate risk profile of the sub-fund s financial assets and liabilities at 31 December 2013 was as follows: Floating rate financial assets* ( ) Fixed rate financial assets ( ) Financial assets not carrying interest ( ) Total ( ) Currency Sterling 17, ,585 Total 17, ,585 Floating rate financial liabilities* ( ) Financial liabilities not carrying interest ( ) Total ( ) Currency Sterling - (17,585) (17,585) Total - (17,585) (17,585) The interest rate risk profile of the sub-fund s financial assets and liabilities at 31 December 2012 was as follows: Floating rate financial assets* ( ) Fixed rate financial assets ( ) Financial assets not carrying interest ( ) Total ( ) Currency Canadian dollar - - 6,444,190 6,444,190 Sterling 192, ,555 US dollar 959, ,436 51,067,106 52,523,618 Total 1,151, ,436 57,511,426 59,160,363 Floating rate financial liabilities* ( ) Financial liabilities not carrying interest ( ) Total ( ) Currency Sterling - (166,181) (166,181) Total - (166,181) (166,181) The following table represents the weighted average interest rate on the market value of the fixed interest securities held by the sub-fund at 31 December 2012: Total equivalent ( ) Weighted average fixed interest rate (%) Weighted average period for which rate is fixed Currency US dollar fixed rate convertible notes 497, years * Changes in the base rate will cause movements in the interest rate applied to cash balances and overdrafts. The sub-fund holds cash on a deposit account with the National Westminster Bank plc which has an interest rate of the Bank of England base rate less 50 basis points. Other bank accounts of the sub-fund held with the Bank of New York Mellon have a contractual right of set off. Interest receivable in the net position is currently at a rate of 0.25% and interest payable at 2%. There are no material amounts of non-interest bearing financial assets, other than equities, which do not have a maturity date.

25 Report & Accounts December 2013 Alliance Trust North American Equity Fund 23 Notes to the financial statements for the period ended 31 December 2013 (continued) 14. Portfolio transaction costs Analysis of total purchase costs Purchases in the period before transaction costs 7,473,340 11,703,503 Commissions 16,334 29,259 Total purchase costs 16,334 29,259 Gross purchase total 7,489,674 11,732,762 Analysis of total sale costs Gross sales in the period before transaction costs 73,276,815 10,158,865 Commissions (21,509) (24,981) Other costs (724) (169) Total sales costs (22,233) (25,150) Total sales net of transaction costs 73,254,582 10,133, Post balance sheet events The Alliance Trust North American Equity Fund commenced termination during Q and it is anticipated that the termination of these funds will be completed during Q

26 Alliance Trust Investment Funds ICVC 24 Alliance Trust North American Equity Fund Distribution Table for the period ended 31 December 2013 Final distribution Accumulation shares Group 1 - Shares purchased prior to 1 July 2013 Group 2 - Shares purchased 1 July 2013 to 31 December 2013 Distribution payable pence per share Distribution paid pence per share Accumulation shares Net revenue pence per share Equalisation pence per share* Class A - Group Class A - Group Class B - Group Class B - Group Class P - Group Class P - Group Income shares Group 1 - Shares purchased prior to 1 July 2013 Group 2 - Shares purchased 1 July 2013 to 31 December 2013 Distribution payable pence per share Distribution paid pence per share Income shares Net revenue pence per share Equalisation pence per share* Class A - Group Class A - Group Class B - Group Class B - Group Class P - Group Class P - Group Interim distribution Accumulation shares Group 1 - Shares purchased prior to 1 January 2013 Group 2 - Shares purchased 1 January 2013 to 30 June 2013 Distribution paid pence per share Distribution paid pence per share Accumulation shares Net revenue pence per share Equalisation pence per share* Class A - Group Class A - Group Class B - Group Class B - Group Class P - Group Class P - Group Income shares Group 1 - Shares purchased prior to 1 January 2013 Group 2 - Shares purchased 1 January 2013 to 30 June 2013 Income shares Net revenue pence per share Equalisation pence per share* Distribution paid pence per share Distribution paid pence per share Class A - Group Class A - Group Class B - Group Class B - Group Class P - Group Class P - Group * Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes. The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched on 31 January 2013.

27 Report & Accounts December 2013 Alliance Trust European Equity Fund 25 Alliance Trust European Equity Fund Report for the period from 1 January 2013 to 31 December 2013 Investment objective and policy The Fund aims to produce long-term total return from investment in a portfolio of companies in any economic sector in Europe, excluding the United Kingdom. The Fund aims to meet its objective by investing in a concentrated portfolio of European (ex UK) companies. The portfolio is diversified and unconstrained by reference to European indices or by market cap. The Manager employs a fundamental, long-term approach to stock selection. Currently, it is intended that the Fund will enter into derivative and forward transactions only for the purposes of efficient portfolio management (including hedging) ( EPM ). The specific aims of EPM are the reduction of risk, the reduction of cost or the generation of additional capital or income with a risk level which is consistent with the risk profile of the Fund and the risk diversification rules laid down in COLL. Investment review As the Fund was closed in the period the following commentary covers the period 1 January 2013 to 30 June There was insufficient investment activity from July onwards to require an update to this commentary. Market Review The first half of 2013 continued to be a volatile period for European markets. This time, however, it was not just the macro backdrop of continuing difficult economic conditions in the Eurozone which drove markets. Events elsewhere also had a significant bearing. Markets were increasingly focused on the implications of a continuing slowdown in Chinese economic activity and the growing realisation that the new government there was serious in trying to rebalance the economy. The implications of this affected commodity and related industrial companies. Our portfolio was relatively unaffected as we had been cautious on the outlook for China and related themes for some considerable time. Towards the end of the period under review the markets focus moved from China towards the situation in Japan and the direct attempt by the new government to weaken the Yen. Worries about how this would impact on the competitive situation of some European companies surfaced. Then, finally, the US Fed raised the prospect of slowing the pace of quantitative easing which caused dislocation in both bond and equity markets. The fact that European markets ended this period relatively strongly shows remarkable resistance and highlights the underlying valuation support. Portfolio Outlook Following a full review of our fund range after a decision to restructure the Alliance Trust PLC equity portfolio, the Alliance Trust European Equity Fund commenced termination on 28 June Risk and Reward Profile The Risk and Reward Indicator table demonstrates where the Fund ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund. The shaded area in the table below shows the Fund s ranking on the Risk and Reward Indicator. Typically lower rewards, lower risk Typically higher rewards, higher risk This Fund is ranked at 7 because funds of this type have experienced very high rises and falls in value in the past. Please note that even the lowest risk class can lose you money and that extreme market circumstances can mean you suffer severe losses in all cases. The indicator does not take into account the following risks of investing in this fund: Investing globally can bring additional returns and diversify risk. However, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment. This fund holds a limited number of investments. If one of these investments falls in value this can have a greater impact on the Fund s value than if it held a larger number of investments.

28 Alliance Trust Investment Funds ICVC 26 Alliance Trust European Equity Fund Performance record as at 31 December 2013 Launch date 14 December 2009 Share price history Calendar year Highest price Lowest price 2013 A Accumulation* 136.1p 114.5p A Income* 129.7p 109.1p B Accumulation* 110.3p 97.49p B Income* 110.3p 97.49p P Net Accumulation* 139.1p 116.7p P Net Income* 130.6p 109.6p 2012 A Accumulation 114.5p 90.57p A Income 109.2p 87.73p B Accumulation 116.8p 91.93p B Income 109.6p 88.03p 2011 A Accumulation 117.6p 83.46p A Income 115.5p 80.87p B Accumulation 118.6p 84.36p B Income 115.5p 80.77p 2010 A Accumulation 108.4p 89.76p A Income 107.4p 89.70p B Accumulation 109.0p 90.00p B Income 107.5p 90.00p 2009 A Accumulation** 104.0p 99.27p A Income** 104.0p 99.27p B Accumulation** 104.0p 99.27p B Income** 104.0p 99.27p * To 28 June 2013 ** From 14 December 2009 The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched at 100p on 31 January 2013 General price information Fund period end price price A Accumulation p A Income p B Accumulation - - B Income - - P Accumulation p P Income p The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched at 100p on 31 January 2013.

29 Report & Accounts December 2013 Alliance Trust European Equity Fund 27 Performance record as at 31 December 2013 (continued) Income record The record of net distributions per share and per 1,000 invested is shown below. Calendar year per share per 1, * A Accumulation** - - A Income** - - B Accumulation** - - B Income** - - P Net Accumulation** p 0.88 P Net Income** p A Accumulation p A Income p B Accumulation p B Income p A Accumulation p A Income p B Accumulation p B Income p A Accumulation p A Income p B Accumulation p B Income p * The fund closed June 2013 ** To 31 August 2013 The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched at 100p on 31 January Net Asset Value Fund period end Shares in issue Net Asset Value Net Asset Value per share 31 December 2013* A Accumulation A Income B Accumulation B Income P Net Accumulation P Net Income December 2012 A Accumulation 1,169,844 1,315, p A Income 178, , p B Accumulation 42,073,861 48,227, p B Income 2,452,971 2,639, p 31 December 2011 A Accumulation 906, , p A Income 179, , p B Accumulation 10,081,173 9,413, p B Income 2,451,214 2,191, p * The fund closed June 2013 The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched at 100p on 31 January 2013.

30 Alliance Trust Investment Funds ICVC 28 Alliance Trust European Equity Fund Performance record as at 31 December 2013 (continued) Ongoing Charges Figure* (previously Total Expense Ratio) Total Including performance fee 31 December 2013 A Accumulation 1.35% 1.35% A Income 1.34% 1.34% B Accumulation 0.87% 0.87% B Income 0.82% 0.82% P Net Accumulation 0.63% 0.63% P Net Income 0.60% 0.60% *The Ongoing Charges Figure (OCF) represents the annual operating expenses of the Fund expressed as a percentage of the average net assets for the period - it does not include initial charges or performance fees. The OCF includes the annual management charge and all charges which are deducted directly from the Fund. The OCF is expressed as an annual percentage rate. In addition to the above, the sub-fund is charged a performance fee. A performance fee of 20% is payable to the ACD on any outperformance of the subfund s benchmark. There was no performance fee charged for the period. The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched on 31 January As this fund closed in June 2013 it is no longer available for investment. Statement of total return for the period ended 31 December 2013 Note Income Net capital gains 2 5,124,303 4,520,540 Revenue 3 1,454, ,299 Expenses 4 (183,291) (445,262) Finance costs: Interest 6 (3) (260) Net revenue before taxation 1,271,142 82,777 Taxation 5 (240,840) (54,492) Net revenue after taxation 1,030,302 28,285 Total return before distributions 6,154,605 4,548,825 Finance costs: Distributions 6 (1,012,434) (302,564) Change in net assets attributable to shareholders from investment activities 5,142,171 4,246,261 Statement of change in net assets attributable to shareholders for the period ended 31 December 2013 Opening net assets attributable to shareholders 52,373,386 12,602,342 Movement due to issue and cancellation of shares: Amounts received on creation of shares 529,554 35,433,737 Amounts paid on cancellation of shares (58,028,832) (194,262) Amounts due to Alliance Trust PLC on completion of the termination of the fund* (17,138) - (57,516,416) 35,239,475 Dilution adjustment ,999 Stamp duty reserve tax - (2) Change in net assets attributable to shareholders from investment activities 5,142,171 4,246,261 Retained distribution on accumulation shares - 253,311 Closing net assets attributable to shareholders - 52,373,386 Notes to the Financial Statements are on pages 30 to 35. * See note 11. Related party transactions

31 Report & Accounts December 2013 Alliance Trust European Equity Fund 29 Balance Sheet as at 31 December 2013 Note Assets Investment assets - 51,476,940 Debtors 7-50,967 Cash and bank balances 8 33,376 1,167,504 Total other assets 33,376 1,218,471 Total assets 33,376 52,695,411 Liabilities Creditors 9 (33,376) (321,850) Distribution payable on income shares - (175) Total other liabilities (33,376) (322,025) Total liabilities (33,376) (322,025) Net assets attributable to shareholders - 52,373,386 The notes on pages 30 to 35 form an integral part of these financial statements.

32 Alliance Trust Investment Funds ICVC 30 Alliance Trust European Equity Fund Notes to the financial statements for the period ended 31 December Accounting policies The accounting policies for the sub-fund are set out in note 1 of the aggregate accounts on pages 6 and Net capital gains Gains on non-derivative contracts 5,372,721 4,525,883 Currency losses (248,290) (83) Transaction charges (128) (5,260) Net capital gains 5,124,303 4,520, Revenue Bank interest - 2 Non-taxable overseas dividends 1,454, ,297 Total revenue 1,454, , Expenses Payable to the ACD, associates of the ACD, and agents of either of them: ACD s periodic charge 134, ,442 Performance Fee - 269,360 Registration fees 1,397 2, , ,832 Payable to the Depositary, associates of the Depositary, and agents of either of them: Depositary fees 13,758 11,264 Safe custody fees 2,094 2,159 15,852 13,423 Other expenses Administration fees 23,432 32,208 Audit fee 5,979 8,100 FCA fees* (1,469) 483 Management accounts fees 1,940 4,011 Printing fees (3,861) 1,545 Reconciliation fees RIY Calculation fees Retained amount for closure 5,000 - Sundry expenses ,013 48,007 Total expenses 183, ,262 Irrecoverable VAT is included in the above expenses where relevant. * With effect from 1 April 2013, the Financial Services Authority (FSA) ceased to exist and was replaced by the Financial Conduct Authority (FCA). The current period figures are negative as they are reversals of the previous period s accrual. The actual FCA and printing fee charge for period was nil.

33 Report & Accounts December 2013 Alliance Trust European Equity Fund 31 Notes to the financial statements for the period ended 31 December 2013 (continued) 5. Taxation a) Analysis of charge in period Overseas tax on non-taxable dividends 243,386 54,664 Tax credit (2,546) (172) Total current tax charge for the period (see note 5(b)) 240,840 54,492 b) Factors affecting current tax charge for the period The taxation assessed for the period is lower (prior period:higher) than the standard rate of corporation tax in the UK for a OEIC (20%). The differences are explained below: Net revenue before taxation 1,271,142 82,777 Return on ordinary activities multiplied by the standard rate of Corporation Tax of 20% 254,228 16,555 Effects of: Excess expense for which no relief taken 35,060 89,063 Expenses not deductible for tax purposes 1,000 - Non-taxable overseas dividends (290,887) (105,659) Overseas tax 243,835 54,695 Precompte (2,396) (162) Total current tax charge for period (see note 5(a)) 240,840 54,492 At 31 December 2013 the fund had surplus management expenses of 1,000,421 (prior period: 825,122). It is unlikely that the Fund will generate sufficient taxable profits in the future to utilise these expenses and, therefore, a deferred tax asset of 200,084 (prior period: 165,024) has not been recognised. Each sub-fund of an authorised OEIC is exempt from tax on capital gains made within the sub-fund. 6. Finance costs Distributions and interest The distributions take account of revenue received on the issue of shares and revenue paid on the cancellation of shares, and comprise: Interim - 265,406 Final - 37, ,406 Add: revenue deducted on cancellation of shares 1,012, Less: revenue received on creation of shares (470) (93) Net distribution 1,012, ,564 Interest Total finance costs 1,012, ,824 Reconciliation of distributions: Net revenue after taxation 1,030,302 28,285 Expenses charged to capital - 269,360 Deficit carried by capital - 4,919 Surplus transferred to capital* (17,868) - Net distribution 1,012, ,564 The Distribution per share is set out in the table on page 36. Refer to note k) Distributions, on page 7. *The surplus transferred to capital is the amount left on the balance sheet as , which relates to the remaining cash balance net of expenses. This balance is included in the creditors on the balance sheet as it is payable to Alliance Trust PLC. Please refer to note Debtors Amounts receivable for creation of shares Overseas tax recoverable - 50,374 Total debtors - 50, Cash and bank balances Cash and bank balances 33,376 1,167,504 Total cash and bank balances 33,376 1,167,504

34 Alliance Trust Investment Funds ICVC 32 Alliance Trust European Equity Fund Notes to the financial statements for the period ended 31 December 2013 (continued) 9. Creditors Accrued expenses 16, ,850 Amount payable on termination 17,138 - Total creditors 33, , Contingent liabilities and outstanding commitments There were no contingent liabilities or outstanding commitments at the balance sheet date. 11. Related party transactions The balance due to Alliance Trust Investments Limited and its associates at the period end was Nil (31 December 2012: 290,880). The total expense due to Alliance Trust Investments Limited and its associates for the period was 134,029 (prior period: 381,802). On commencement of termination of the fund amounts were retained to cover contingent liabilities arising in the period between commencement and the subsequent completion of termination of the fund. Any residual balance remaining from these retained amounts is due to Alliance Trust PLC as it was the last remaining shareholder in the fund at the commencement of termination. At the period end the amount due was 17,138, as detailed on the Statement of change in net assets attributable to shareholders for the period ended 31 December Share classes The Fund currently has six share classes; Class A (Retail) Net Income and Net Accumulation, Class B (Institutional) Net Income and Net Accumulation and Class P (Institutional) Net Income and Net Accumulation. The ACD s periodic charge on each share class is as follows: Class A: 1.20% (prior period 1.20%) Class B : 0.75% Class P : 0.45% (prior period 0.45%) The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched on 31 January 2013.

35 Report & Accounts December 2013 Alliance Trust European Equity Fund 33 Notes to the financial statements for the period ended 31 December 2013 (continued) 13. Derivatives and other financial instruments The risks inherent in the Fund s investment portfolio are as follows: In pursuing its investment objective and investment policy, the Fund holds a number of financial instruments. These may comprise: Equity shares, equity related shares, non-equity shares and debt securities. These are held in accordance with the Fund s investment policies; Cash, liquid resources and short-term debtors and creditors that arise directly from its operation; Shareholders funds, which represent investors monies that are invested on their behalf; Derivative transactions which the Fund may enter into, the purpose of which is to manage certain aspects of the risks arising from the Fund s investment activities and generate additional capital and revenue; Short-term borrowings used to finance operational cash flows. Derivatives are also used for investment purposes not just to manage risk/exposures. The main risks arising from the financial instruments are market price (including emerging markets price risk ), foreign currency, interest rate, liquidity and counterparty credit risk. The ACD reviews the policies for managing each of these risks and they are summarised below. These policies have remained unchanged since the beginning of the period to which these financial statements relate. It should be noted that the ACD has a detailed Risk Management Policy which is reviewed and updated, if necessary, periodically. An independent Risk Function is also present who monitor all relevant risks appropriately. Market price risk Market price risk is the risk that the Fund might suffer potential loss through holding market positions in the face of price movements. It arises mainly due to uncertainty about future prices of financial instruments held. The Fund s investment portfolio is monitored by the ACD in pursuance of its investment objective and policy as set out in the Prospectus. Futures contracts may be used to hedge against market price risk where deemed appropriate for efficient portfolio management purposes. Currency risk Currency risk is the risk that the revenue and net asset value of the Fund may be adversely affected by movements in foreign exchange rates. The revenue and capital value of the Fund s investments can be significantly affected by currency risk movements as some of the assets and income are denominated in currencies other than Sterling, which is the Company s functional and reporting currency. The ACD has identified three principal areas where foreign currency risk could impact the Fund: movements in exchange rates affecting the value of investments; movements in exchange rates affecting short-term timing differences; and movements in exchange rates affecting the income received. Currency exposure is monitored closely and is considered to be part of the overall investment process. Currency hedges via forward exchange contracts will only be used in the event of a specific currency risk being identified. The Fund may be subject to short-term exposure to exchange rate movements, for instance, where there is a difference between the date an investment purchase or sale is entered into and the date when settlement of the proceeds occurs. The ACD believes that the impact of such movements is not significant enough to warrant the cost incurred of eliminating them via hedging. The Fund may receive income in currencies other than Sterling, and the Sterling values of this income can be affected by movements in exchange rates. Interest rate risk Interest rate risk is the risk that the revenue cashflow or the fair value of investments may be adversely affected by movements in market interest rates. As the Fund invests in equity instruments its exposure to interest rate risk is limited to interest receivable and payable on cash and overdraft balances, which will be affected by fluctuations in interest rates. Liquidity risk Liquidity risk is the risk that the Fund will not be able to meet its obligations as they fall due. The Fund s assets comprise wholly of readily realisable securities which can be sold to meet liquidity requirements. The main liquidity risk of the Fund is the redemption of any shares that investors wish to sell, which are redeemable on demand under the Prospectus. Counterparty credit risk Counterparty credit risk is the risk of suffering loss due to another party not meeting its financial obligation. Investments may be adversely affected if any of the institutions with which money is deposited or invested suffers insolvency or other financial difficulties or the credit rating of the bearers of the bonds held by the Funds are downgraded.

36 Alliance Trust Investment Funds ICVC 34 Alliance Trust European Equity Fund Notes to the financial statements for the period ended 31 December 2013 (continued) 13. Derivatives and other financial instruments (continued) The Fund may enter into transactions in financial instruments (including derivatives) which exposes it to the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Fund will only buy and sell financial instruments through parties that have been approved by the ACD as acceptable. The Fund may enter into stock lending activities which exposes it to the risk that the counterparty will not deliver the stock or cash after the Fund has fulfilled its obligations. The Fund will only enter into stock lending activities with parties that have been approved as acceptable by the ACD and obtaining collateral from counterparties which has a fair value in excess of the related stock on loan. There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair value. The numerical disclosures in respect of financial instruments and the management of interest rate and currency risks are included below where applicable. a) Currency exposures The net assets of the sub-fund are denominated mainly in Sterling with the effect that the Balance Sheet and Statement of Total Return are unlikely to be directly affected by currency movements. As at 31 December 2013 the Fund had the following net currency exposure: Net foreign currency assets/(liabilities) Monetary exposure Non-monetary exposure Total Currency Sterling 33,376 (33,376) - Total 33,376 (33,376) - As at 31 December 2012 the Fund had the following net currency exposure: Net foreign currency assets/(liabilities) Monetary exposure Non-monetary exposure Total Currency Danish krone - 1,236,647 1,236,647 Euro 851,580 42,017,664 42,869,244 Sterling - 8,273,003 8,273,003 Swiss franc 315,924 (321,432) (5,508) Total 1,167,504 51,205,882 52,373,386

37 Report & Accounts December 2013 Alliance Trust European Equity Fund 35 Notes to the financial statements for the period ended 31 December 2013 (continued) b) Interest rate risk The interest rate risk profile of the sub-fund s financial assets and liabilities at 31 December 2013 was as follows: Floating rate financial assets* ( ) Fixed rate financial assets ( ) Financial assets not carrying interest ( ) Total ( ) Currency Sterling 33,376-33,376 Total 33,376-33,376 Floating rate financial liabilities* ( ) Financial liabilities not carrying interest ( ) Total ( ) Currency Sterling - (33,376) (33,376) Total - (33,376) (33,376) The interest rate risk profile of the sub-fund s financial assets and liabilities at 31 December 2012 was as follows: Floating rate financial assets* ( ) Fixed rate financial assets ( ) Financial assets not carrying interest ( ) Total ( ) Currency Danish krone - 1,236,647 1,236,647 Euro 851,580 42,017,664 42,869,244 Sterling - 8,273,003 8,273,003 Swiss franc 315, ,517 Total 1,167,504 51,527,907 52,695,411 Floating rate financial liabilities* ( ) Financial liabilities not carrying interest ( ) Total ( ) Currency Sterling - (322,025) (322,025) Total - (322,025) (322,025) * Changes in the base rate will cause movements in the interest rate applied to cash balances and overdrafts. The sub-fund holds cash on a deposit account with the National Westminster Bank plc which has an interest rate of the Bank of England base rate less 50 basis points. Other bank accounts of the sub-fund held with the Bank of New York Mellon have a contractual right of set off. Interest receivable in the net position is currently at a rate of 0.25% and interest payable at 2%. There are no material amounts of non-interest bearing financial assets, other than equities, which do not have a maturity date. 14. Portfolio transaction costs Analysis of total purchase costs Purchases in the period before transaction costs 2,883,313 37,090,358 Commissions 6,365 19,522 Other costs 3,416 20,329 Total purchase costs 9,781 39,851 Gross purchase total 2,893,094 37,130,209 Analysis of total sale costs Gross sales in the period before transaction costs 59,746,141 2,749,442 Commissions (22,331) (7,988) Total sales costs (22,331) (7,988) Total sales net of transaction costs 59,723,810 2,741, Post balance sheet events The Alliance Trust European Equity Fund commenced termination during Q and it is anticipated that the termination of this fund will be completed during Q

38 Alliance Trust Investment Funds ICVC 36 Alliance Trust European Equity Fund Distribution Table for the period ended 31 December 2013 Final distribution Accumulation shares Group 1 - Shares purchased prior to 1 July 2013 Group 2 - Shares purchased 1 July 2013 to 31 December 2013 Distribution payable pence per share Distribution paid pence per share Accumulation shares Net revenue pence per share Equalisation pence per share* Class A - Group Class A - Group Class B - Group Class B - Group Class P - Group Class P - Group Income shares Group 1 - Shares purchased prior to 1 July 2013 Group 2 - Shares purchased 1 July 2013 to 31 December 2013 Distribution payable pence per share Distribution paid pence per share Income shares Net revenue pence per share Equalisation pence per share* Class A - Group Class A - Group Class B - Group Class B - Group Class P - Group Class P - Group Interim distribution Accumulation shares Group 1 - Shares purchased prior to 1 January 2013 Group 2 - Shares purchased 1 January 2013 to 30 June 2013 Distribution paid pence per share Distribution paid pence per share Accumulation shares Net revenue pence per share Equalisation pence per share* Class A - Group Class A - Group Class B - Group Class B - Group Class P - Group Class P - Group Income shares Group 1 - Shares purchased prior to 1 January 2013 Group 2 - Shares purchased 1 January 2013 to 30 June 2013 Income shares Net revenue pence per share Equalisation pence per share* Distribution paid pence per share Distribution paid pence per share Class A - Group Class A - Group Class B - Group Class B - Group Class P - Group Class P - Group * Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes. The existing B Accumulation and B Income shares were re-named P Accumulation and P Income respectively on 31 January New B Accumulation and B Income shares were launched on 31 January 2013.

39 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 37 Alliance Trust Monthly Income Bond Fund Report for the period from 1 January 2013 to 31 December 2013 Investment objective and policy The Fund aims to produce a monthly income yield and the prospect of capital growth by investing in a portfolio of assets which comprises predominantly corporate bonds, and also includes government bonds, whilst at the same time actively managing the interest rate exposure of the Fund. The Fund pays interest distributions monthly. The Fund holds investment-grade Sterling corporate bonds, government bonds, non-sterling investmentgrade corporate bonds and relevant derivative instruments. In addition, the Fund may also invest from time to time in sub-investment grade bonds, covered bonds and preference shares. The Fund may also invest in collective investment schemes, other transferable securities and other debt instruments, cash and near cash deposits, warrants and money market instruments. The Fund may enter into derivative and forward transactions for the purposes of efficient portfolio management (including hedging) ( EPM ) and for investment purposes. The Fund may also use interest rate swaps to manage the Fund s exposure to fluctuations in interest rates and credit default swaps to manage credit volatility. Currency exposure in the Fund will be hedged back predominantly into Sterling through forward currency transactions. The specific aims of EPM are the reduction of risk, the reduction of cost or the generation of additional capital or income with a risk level which is consistent with the risk profile of the Fund and the risk diversification rules laid down in COLL. Investment review appetite continued to improve as developed market growth generally surprised to the upside. In addition to confirmation that the US and UK economies demonstrated that their respective recoveries remain on track, there was also increasing evidence that Europe was showing signs of stabilising. Against the improving fundamental backdrop, corporate bonds also benefited from a reduction in the risk that the European Union was about to fragment. Portfolio activity In accordance with the long term strategy of the Fund, interest rate positioning remained lower than the benchmark throughout the year, with the size of the duration short actively throughout the year. This strategy helped to mitigate the impact of rising yields in part, as 10 year gilt yields rose by 1.4% to end the year at 3.02%. Throughout the year, the Fund remained overweight financials, reflecting the belief that the sector generally offered better value than non-financial sectors. Added to this the financial sector continues to follow a strategy of credit repair. In the final quarter, financial positions were rotated to increase credit beta and to focus on names and individual bonds that should benefit from changes in bank regulation. Portfolio outlook Given the improving economic backdrop and the significant re-pricing of government bonds, total returns are expected to be higher than that produced in Thus whilst government yields are expected to rise over the year, the central bank commitment to keep policy rates unchanged and moderating inflation should serve to limit the extent that 10 year yields can rise. Moreover, corporate bond spreads should continue to benefit from the continued economic recovery. The distribution is to be expected to be maintained at the existing level throughout 2014, delivering an estimated distribution yield of over 5.5%. Market review Following strong returns in 2012, corporate bonds produced more modest returns in Over the calendar year the iboxx GBP Corporate Bond Allstock Index recorded a total return of 1.93%, significantly outperforming the equivalent gilt index that produced a negative total return of -4.19% over the same period. Whilst returns were clearly undermined by rising government yield, corporate bond returns benefited from a year where corporate bond spread premiums tightened significantly, as risk

40 Alliance Trust Investment Funds ICVC 38 Alliance Trust Monthly Income Bond Fund Material Portfolio Changes Purchases UK TREASURY 8% 07/06/2021 EUROPEAN INVT BK 6% 07/12/2028 UK UK TSY I/L GILT 0.125% 22/03/2024 EIB EUROPEAN INVT BK 5.5% 15/04/2025 UK TREASURY 8% 07/06/2021 AVIVA PLC 6.125% 05/07/2043 VERIZON COMM INC 7.75% 01/12/2030 UK UK TSY I/L GILT 0.125% 22/03/2044 FRANCE TELECOM 8.125% 20/11/20 ING BANK NV 6.875% 29/05/2023 Sales UK TREASURY 8% 07/06/2021 SOCIETE GENERALE 6.625% 11/12/2049 UK TSY I/L GILT 0.125% 22/03/2024 UK TREASURY 8% 07/06/2021 AVIVA PLC 6.125% 29/09/2049 UK TSY I/L GILT 0.125% 22/03/2044 BNP PARIBAS 5.954% 29/07/2049 UK TREASURY 8% 07/06/2021 ELEC DE FRANCE 6% 29/12/2049 NGG FINANCE 5.625% 18/06/2073 The fund can invest in derivatives. Derivatives are used to protect against currencies, credit and interests rates move or for investment purposes. There is therefore a risk that losses could be made on derivative positions. The level of targeted income is not guaranteed. Risk and Reward Profile The Risk and Reward Indicator table demonstrates where the Fund ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund. The shaded area in the table below shows the Fund s ranking on the Risk and Reward Indicator. Typically lower rewards, lower risk Typically higher rewards, higher risk This Fund is ranked at 4 because funds of this type have experienced average rises and falls in value in the past. Please note that even the lowest risk class can lose you money and that extreme market circumstances can mean you suffer severe losses in all cases. The indicator does not take into account the following risks of investing in this fund: Bonds are affected by changes in interest rates and their value and the income they generate can rise or fall as a result. The creditworthiness of a bond issuer may also affect that bond s value. Bonds that produce a higher level of income usually also carry greater risk as such bond issuers may have difficulty in paying their debts. The value of a bond would be significantly affected if the issuer either refused to pay or was unable to pay.

41 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 39 Portfolio statement as at 31 December 2013 Holding Stock Description Market value ( ) Percentage of total net assets (%) UNITED KINGDOM GOVERNMENT BONDS 5.50%; (31 DECEMBER %) 13,250,000 Treasury 8% Gilt 7/6/ ,128, STERLING DENOMINATED DEBT SECURITIES 70.97%; (31 DECEMBER %) 3,000,000 Affinity 3.625% Guaranteed Senior Bonds 30/9/2022 2,960, ,250,000 Anglian Water 4.5% Senior European Medium Term Bonds 5/10/2027 1,256, ,776,000 Anglian Water 5.837% Senior European Medium Term Bonds 30/7/2022 4,341, ,990,000 ASIF II 6.375% Guaranteed European Medium Term Bonds 5/10/2020 3,505, ,500,000 Atlantia 6.25% Guaranteed Senior Medium Term Notes 9/6/2022 2,757, ,500,000 AXA 6.772% Guaranteed Perpetual Subordinated Floating Rate European Medium Term 2,647, Notes 8,200,000 Barclays 10% Guaranteed Subordinated European Medium Term Notes 21/5/ ,578, ,367,000 British Telecom 5.75% Guaranteed Senior Bonds 7/12/2028 2,618, ,000,000 Bupa Finance 5% Subordinated Floating Rate Notes 25/4/2023 4,930, ,000,000 Co-Operative Bank 4.75% Guaranteed Bonds 11/11/2021 2,076, ,000,000 Co-Operative Bank 5.625% Guaranteed Notes 8/7/2020 2,050, ,500,000 Credit Agricole 7.375% Guaranteed Subordinated European Medium Term Bonds 8,703, /12/2023 2,250,000 Credit Agricole 8.125% Subordinated Perpetual Floating Rate Notes 2,459, ,975,000 Dignity Finance 8.151% Asset Backed Bonds 31/12/2031 3,948, ,000,000 Electricite de France 6.875% Guaranteed Senior European Medium Term Bonds 4,918, /12/2022 1,780,000 Enel 7.75% Floating Rate 10/9/2075 1,876, ,000,000 Enel Finance International 5.625% Guaranteed European Medium Term Bonds 14/8/2024 2,050, ,000,000 European Investment Bank 5.5% Guaranteed Senior Bonds 15/4/2025 7,002, ,850,000 European Investment Bank 6% Guaranteed Senior Bonds 7/12/ ,705, ,000,000 France Telecom 8.125% Guaranteed Senior European Medium Term Bonds 20/11/2028 6,687, ,200,000 Friends Provident 12% Guaranteed Subordinated European Medium Term Bonds 4,119, /5/2021 7,000,000 GE Capital 5.125% Guaranteed European Medium Term Bonds 24/5/2023 7,613, ,500,000 GE Capital 6.5% Guaranteed Subordinated Floating Rate Bonds 15/9/2067 1,608, ,250,000 Heathrow Funding 5.225% Guaranteed Senior Floating Rate European Medium Term 4,590, Notes 15/2/2025 4,850,000 Heathrow Funding 7.125% Guaranteed European Medium Term Bonds 14/2/2024 5,696, ,500,000 HSBC 6.5% Subordinated Medium Term Notes 7/7/2023 6,251, ,500,000 Iberdrola Finanzas 7.375% Guaranteed European Medium Term Bonds 29/1/2024 6,487, ,000,000 ING Bank 6.875% Guaranteed Floating Rate European Medium Term Bonds 29/5/2023 5,472, ,000,000 LBG Capital 15% Bonds 21/12/2019 1,443, ,800,000 LBG Capital No % Bonds 12/5/2020 5,088, ,500,000 LBG Capital No % Bonds 14/9/2023 1,717, ,500,000 Legal & General 10% Guaranteed Subordinated Floating Rate European Medium Term 3,327, Notes 23/7/2041 6,000,000 Lloyds TSB 7.5% Senior European Medium Term Notes 15/4/2024 7,569, ,000,000 National Express 6.625% Guaranteed European Medium Term Bonds 17/6/2020 3,420, ,500,000 National Grid 5.625% Floating Rate Notes 18/6/2073 4,533, ,559,000 NEXT 4.375% Guaranteed Senior Bonds 2/10/2026 1,541, ,800,000 Porterbrook Rail Finance 6.5% Guaranteed European Medium Term Bonds 20/10/2020 5,583, ,800,000 Prudential % Guaranteed Subordinated Floating Rate European Medium Term 5,132, Bonds 29/5/2039 3,750,000 Royal Bank of Scotland 7.5% European Medium Term Notes 29/4/2024 4,714, ,400,000 RSA Insurance 9.375% Guaranteed Floating Rate Bonds 20/5/2039 3,996, ,000,000 RWE Finance 5.625% Guaranteed European Medium Term Bonds 6/12/2023 4,388, ,000,000 RWE Finance 7% Perpetual Subordinated Floating Rate Bonds 4,229, ,000,000 Santander 9.625% Subordinated Medium Term Notes 30/10/2023 2,353,

42 Alliance Trust Investment Funds ICVC 40 Alliance Trust Monthly Income Bond Fund Portfolio statement as at 31 December 2013 (continued) Holding Stock Description Market value ( ) Percentage of total net assets (%) 5,750,000 Segro 6.75% Notes 23/2/2024 6,827, ,000 Standard Chartered Bank 7.75% Perpetual Subordinated Floating Rate European Medium 589, Term Bonds 6,600,000 Standard Life 5.5% Subordinated Medium Term Notes 4/12/2042 7,240, ,000,000 Standard Life 6.75% Guaranteed Perpetual Floating Rate Bonds 2,157, ,900,000 Telecom Italia 6.375% Guaranteed Senior European Medium Term Notes 24/6/2019 4,054, ,700,000 Telefonica Emisiones 5.289% Guaranteed European Medium Term Notes 9/12/2022 6,919, ,400,000 Telefonica Europe BV 6.75% Floating Rate 29/11/2049 1,429, ,952,000 Telereal Securitisation % Guaranteed Asset Backed Bonds 10/12/2033 2,229, ,000,000 Zurich Finance (UK) 6.625% Guaranteed Perpetual Floating Rate European Medium Term 3,318, Notes 233,726, STERLING DENOMINATED FORWARD EXCHANGE CONTRACTS 0.44%; (31 DECEMBER (0.06)%) 1,866,457 UK sterling v Australian dollar 139, ,992,396 UK sterling v Euro 292, ,463,843 UK sterling v Japanese yen 143, ,748,931 UK sterling v US dollar 885, ,461, STERLING DENOMINATED INTEREST RATE SWAPS (0.03)%; (31 DECEMBER %) 22,000,000 RECV DEUT IRS GBP 3.7 (112,986) (0.03) STERLING DENOMINATED OPEN FUTURES CONTRACTS (0.09)%; (31 DECEMBER %) 235 Long Gilt Future March 2014 (312,550) (0.09) AUSTRALIAN DOLLAR DENOMINATED DEBT SECURITIES 0.00%; (31 DECEMBER %) AUSTRALIAN DOLLAR DENOMINATED FORWARD EXCHANGE CONTRACTS (0.01)%; (31 DECEMBER %) 3,335,000 Australian dollar v UK sterling (37,478) (0.01) EURO DENOMINATED DEBT SECURITIES 12.37%; (31 DECEMBER %) 4,000,000 ABN AMRO Bank 7.125% European Medium Term Notes 6/7/2022 3,992, ,769,000 Achmea 2.5% European Medium Term Notes 19/11/2020 2,283, ,500,000 Achmea 6% Subordinated Floating Rate Notes 4/4/2043 4,036, ,500,000 Aviva 6.125% Subordinated Floating Rate European Medium Term Notes 5/7/2043 6,906, ,000,000 Co-operative Centrale Raiffeisen-Boerenleenbank 6.875% Senior European Medium Term 4,703, Bonds 19/3/2020 8,067,000 Nationwide Building Society 6.75% Subordinated European Medium Term Notes 7,891, /7/2020 1,750,000 Origin Energy 7.875% Variable Guaranteed Bonds 16/6/2071 1,572, ,000,000 Royal Bank Of Scotland 10.5% Subordinated Floating Rate European Medium Term Notes 6,062, /3/2022 3,500,000 Santos Finance 8.25% Guaranteed Floating Rate European Medium Term Bonds 3,276, /9/ ,725, EURO DENOMINATED CREDIT DEFAULT SWAPS (1.81)%; (31 DECEMBER (0.95)%) 45,000,000 CDS BARC EUR 5.0 ITRAXX 20/6/2018 (6,250,228) (1.90) (45,000,000) CDS ITRAXX 1 1% 20/12/18 241, (6,008,542) (1.83) EURO DENOMINATED FORWARD EXCHANGE CONTRACTS 0.00%; (31 DECEMBER %) 3,600,000 Euro vs UK sterling (13,186) 0.00

43 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 41 Portfolio statement as at 31 December 2013 (continued) Holding Stock Description Market value ( ) Percentage of total net assets (%) EURO DENOMINATED OPEN FUTURES CONTRACTS 0.18%; (31 DECEMBER (0.05)%) (310) Euro-Bund Future March , JAPANESE YEN DENOMINATED FORWARD EXCHANGE CONTRACTS (0.09)%; (31 DECEMBER (0.00)%) 1,100,000,000 Japanese yen v UK sterling (281,263) (0.09) UNITED STATES DOLLAR DENOMINATED DEBT SECURITIES 10.18%; (31 DECEMBER %) 5,000,000 Barclays Bank 7.75% Subordinated Floating Rate Notes 10/4/2023 3,275, ,636,000 British Telecom 9.625% Senior Bonds 15/12/2030 1,473, ,000 Credit Suisse 7.5% Perpetual Subordinated Floating Rate Bonds 510, ,500,000 Electricite De France 5.25% Perpetual Subordinated Notes 5,103, ,500,000 Societe Generale 7.875% Perpetual Subordinated Floating Rate Bonds 3,345, ,600,000 SSE 5.625% Floating Rate Perpetual Bonds 3,563, ,064,000 UBS 4.75% Subordinated Floating Rate Notes 22/5/2023 9,666, ,500,000 Verizon Communications 7.75% Senior Bonds 1/12/2030 6,554, ,494, UNITED STATES DOLLAR DENOMINATED CREDIT DEFAULT SWAPS (0.09)%; (31 DECEMBER %) 26,000,000 Buy Protection US IG CDX (Dec 18) (285,102) (0.09) UNITED STATES DOLLAR DENOMINATED FORWARD EXCHANGE CONTRACTS 0.00%; (31 DECEMBER (0.02)%) UNITED STATES DOLLAR DENOMINATED OPEN FUTURES CONTRACTS 0.04%; (31 DECEMBER %) (215) US 10 Year Note Future March , Portfolio of investments 321,229, Net Other Assets 8,095, Total net assets 329,325,

44 Alliance Trust Investment Funds ICVC 42 Alliance Trust Monthly Income Bond Fund Performance record as at 31 December 2013 Launch date 14 June 2010 Share price history Calendar year Highest price Lowest price 2013 A Net Accumulation 124.3p 115.9p A Net Income 108.3p 100.6p A Gross Accumulation 121.0p 113.1p A Gross Income 108.8p 101.2p B Net Accumulation 126.0p 117.6p B Net Income 109.8p 102.1p B Gross Accumulation 123.6p 115.6p B Gross Income 109.0p 101.4p P Net Accumulation 126.3p 118.0p P Net Income 110.1p 102.4p P Gross Accumulation 129.5p 121.1p P Gross Income 110.1p 102.5p Z Gross Income 111.4p 103.8p 2012 A Net Accumulation 119.6p 99.03p A Net Income 106.3p 92.00p A Gross Accumulation 116.1p 95.08p A Gross Income 106.8p 92.44p B Net Accumulation 121.1p 99.77p B Net Income 107.6p 92.63p B Gross Accumulation 118.3p 96.40p B Gross Income 106.7p 91.97p P Net Accumulation 121.3p 100.2p P Net Income 107.7p 93.00p P Gross Accumulation 123.8p 101.7p P Gross Income 107.8p 93.26p Z Gross Income 109.0p 93.35p 2011 A Net Accumulation 107.1p 95.30p A Net Income 102.8p 89.70p A Gross Accumulation 100.8p 91.30p A Gross Income 100.8p 90.10p B Net Accumulation 107.6p 95.90p B Net Income 103.2p 90.20p B Gross Accumulation 103.1p 92.40p B Gross Income 102.5p 89.50p P Net Accumulation 107.8p 96.30p P Net Income 103.4p 90.50p P Gross Accumulation 108.4p 94.30p P Gross Income 103.8p 90.80p Z Gross Income 103.7p 90.80p 2010 A Net Accumulation** 106.3p 99.73p A Net Income** 105.0p 98.64p B Net Accumulation** 106.5p 99.73p B Net Income** 105.1p 98.83p B Gross Accumulation****** 101.3p 96.15p B Gross Income***** 104.3p 98.09p P Net Accumulation** 106.6p 99.72p P Net Income** 105.2p 98.97p P Gross Accumulation**** 106.3p 100.1p P Gross Income*** 105.5p 99.25p Z Gross Income** 105.3p 99.10p ** From 14 June 2010 *** From 21 June 2010 **** From 5 July 2010 ***** From 12 July 2010 ****** From 6 October 2010 from 15 July 2011

45 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 43 Performance record as at 31 December 2013 (continued) General price information Fund period end 31 December 2013 price 31 December 2012 price A Net Accumulation 119.8p 119.6p A Net Income 101.6p 106.3p A Gross Accumulation 117.5p 116.1p A Gross Income 102.1p 106.5p B Net Accumulation 121.8p 121.1p B Net Income 103.4p 107.6p B Gross Accumulation 120.4p 118.3p B Gross Income 102.6p 106.8p P Net Accumulation 122.4p 121.3p P Net Income 103.8p 107.8p P Gross Accumulation 126.1p 123.8p P Gross Income 103.7p 107.8p Z Gross Income 105.3p 109.0p Income record The record of net distributions per share and per 1,000 invested is shown below. Calendar year per share per 1, * A Net Accumulation* p A Net Income* p 4.08 A Gross Accumulation* p A Gross Income* p 5.41 B Net Accumulation* p B Net Income* p 4.79 B Gross Accumulation* p B Gross Income* p 5.54 P Net Accumulation* p P Net Income* p 4.92 P Gross Accumulation* p P Gross Income* p 6.18 Z Gross Income* p A Net Accumulation p A Net Income p A Gross Accumulation p A Gross Income p B Net Accumulation p B Net Income p B Gross Accumulation p B Gross Income p P Net Accumulation p P Net Income p P Gross Accumulation p P Gross Income p Z Gross Income p A Net Accumulation p A Net Income p A Gross Accumulation p A Gross Income p B Net Accumulation p B Net Income p B Gross Accumulation p B Gross Income p P Net Accumulation p P Net Income p P Gross Accumulation p P Gross Income p Z Gross Income p * To 31 January 2014

46 Alliance Trust Investment Funds ICVC 44 Alliance Trust Monthly Income Bond Fund Performance record as at 31 December 2013 (continued) Net Asset Value Fund period end Shares in issue Net Asset Value Net Asset Value per share 31 December 2013* A Net Accumulation 831, , p A Net Income 4,114,378 4,162, p A Gross Accumulation 1,000 1, p A Gross Income 23,955 24, p B Net Accumulation 2,020,449 2,461, p B Net Income 33,199,599 34,159, p B Gross Accumulation 696, , p B Gross Income 27,923,029 28,500, p P Net Accumulation 1,967,605 2,408, p P Net Income 25,965,015 26,831, p P Gross Accumulation 233, , p P Gross Income 63,184,184 65,167, p Z Gross Income 156,198, ,478, p 31 December 2012 A Net Accumulation 1,587,827 1,882, p A Net Income 4,176,934 4,381, p A Gross Accumulation 1,000 1, p A Gross Income 80,628 84, p B Net Accumulation 1,885,720 2,262, p B Net Income 29,710,797 31,536, p B Gross Accumulation 616, , p B Gross Income 19,210,486 20,227, p P Net Accumulation 1,525,153 1,833, p P Net Income 25,785,267 27,411, p P Gross Accumulation 186, , p P Gross Income 57,245,981 60,835, p Z Gross Income 156,198, ,803, p 31 December 2011 A Net Accumulation 471, , p A Net Income 2,591,508 2,362, p A Gross Accumulation 1, p A Gross Income 11,151 10, p B Net Accumulation 2,431,827 2,404, p B Net Income 26,240,322 24,085, p B Gross Accumulation 553, , p B Gross Income 15,992,390 14,572, p P Net Accumulation 1,263,837 1,254, p P Net Income 19,645,404 18,104, p P Gross Accumulation 197, , p P Gross Income 43,338,989 40,046, p Z Gross Income 109,103, ,911, p

47 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 45 Performance record as at 31 December 2013 (continued) Ongoing Charges Figure* (previously Total Expense Ratio) Total Including performance fee 31 December 2013 A Net Accumulation 1.15% 1.15% A Net Income 1.15% 1.15% A Gross Accumulation 1.18% 1.18% A Gross Income 1.16% 1.16% B Net Accumulation 0.65% 0.65% B Net Income 0.65% 0.65% B Gross Accumulation 0.65% 0.65% B Gross Income 0.65% 0.65% P Net Accumulation 0.35% 0.35% P Net Income 0.35% 0.35% P Gross Accumulation 0.35% 0.50% P Gross Income 0.35% 0.50% Z Gross Income 0.15% 0.15% *The Ongoing Charges Figure (OCF) represents the annual operating expenses of the Fund expressed as a percentage of the average net assets for the year - it does not include initial charges or performance fees. The OCF includes the annual management charge and all charges which are deducted directly from the Fund. The OCF is expressed as an annual percentage rate. In addition to the above, the sub-fund is charged a performance fee. A performance fee of 20% is payable to the ACD on any outperformance of the subfund s benchmark on class P shares. The performance fee charged for the period was 124,668 on class P shares.

48 Alliance Trust Investment Funds ICVC 46 Alliance Trust Monthly Income Bond Fund Statement of total return for the period ended 31 December 2013 Note Income Net capital (losses)/gains 2 (6,794,988) 36,545,626 Revenue 3 17,440,046 14,334,495 Expenses 4 (1,175,851) (1,346,998) Finance costs: Interest 6 (12,356) (65,897) Net revenue before taxation 16,251,839 12,921,600 Taxation Net revenue after taxation 16,251,839 12,921,600 Total return before distributions 9,456,851 49,467,226 Finance costs: Distributions 6 (18,976,302) (14,866,205) Change in net assets attributable to shareholders from investment activities (9,519,451) 34,601,021 Statement of change in net assets attributable to shareholders for the period ended 31 December 2013 Opening net assets attributable to shareholders 319,211, ,945,192 Movement due to issue and cancellation of shares: Amounts received on creation of shares 41,339,769 89,534,070 Amounts paid on cancellation of shares (22,060,132) (10,141,420) 19,279,637 79,392,650 Change in net assets attributable to shareholders from investment activities (9,519,451) 34,601,021 Retained distribution on accumulation shares 353, ,120 Closing net assets attributable to shareholders 329,325, ,211,983 Notes to the Financial Statements are on pages 47 to 53. Balance Sheet as at 31 December 2013 Note Assets Investment assets 328,522, ,064,884 Debtors 7 7,566,388 8,148,421 Cash and bank balances 8 3,182,223 2,011,126 Total other assets 10,748,611 10,159,547 Total assets 339,271, ,224,431 Liabilities Investment liabilities (7,292,793) (4,114,101) Amount held at futures clearing houses and brokers - (187,772) Creditors 9 (717,608) (1,098,888) Distribution payable on income shares (1,934,907) (1,554,122) Bank Overdrafts (282) (57,565) Total other liabilities (2,652,797) (2,898,347) Total liabilities (9,945,590) (7,012,448) Net assets attributable to shareholders 329,325, ,211,983 The notes on pages 47 to 53 form an integral part of these financial statements. The distribution per share is set out in the table on page 54.

49 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 47 Notes to the financial statements for the period ended 31 December Accounting policies The accounting policies for the sub-fund are set out in note 1 of the aggregate accounts on pages 6 and Net capital (losses)/gains (Losses)/gains on non-derivative contracts (5,901,775) 36,864,138 Losses on derivative contracts (1,569,731) (1,354,410) Gains on forward currency contracts 439, ,857 Currency gains 251, ,947 Transaction charges (14,348) (45,906) Net capital (losses)/gains (6,794,988) 36,545, Revenue Bank interest 7, Interest from overseas debt securities 8,056,010 5,176,566 Interest from UK debt securities 9,336,503 9,089,477 Interest on credit default swaps - 64,436 Interest on interest rate swaps 40,256 3,192 Total revenue 17,440,046 14,334, Expenses Payable to the ACD, associates of the ACD, and agents of either of them: ACD s periodic charge 557, ,260 Performance Fee 124, ,256 Registration fees 95,811 56, ,889 1,019,378 Payable to the Depositary, associates of the Depositary, and agents of either of them: Depositary fees 105,587 90,627 Safe custody fees 19,776 21, , ,897 Other expenses Administration fees 250, ,315 Audit fees 8,356 8,100 FCA fees* Management Accounts fees 4,000 4,011 Printing fees 1,000 1,003 Professional Services fee - 3,023 Reconciliation fees 599 1,026 RIY Calculation fees Sundry expenses 7, , ,723 Total expenses 1,175,851 1,346,998 Irrecoverable VAT is included in the above expenses where relevant. * With effect from 1 April 2013, the Financial Services Authority (FSA) ceased to exist and was replaced by the Financial Conduct Authority (FCA).

50 Alliance Trust Investment Funds ICVC 48 Alliance Trust Monthly Income Bond Fund Notes to the financial statements for the period ended 31 December 2013 (continued) 5. Taxation a) Analysis of charge in period Total current tax charge for the period (see note 5(b)) - - b) Factors affecting current tax charge for the period The taxation assessed for the period is lower than the standard rate of corporation tax in the UK for an OEIC (20%). The differences are explained below: Net revenue before taxation 16,251,839 12,921,600 Return on ordinary activities multiplied by the standard rate of Corporation Tax of 20% 3,250,368 2,584,320 Effects of: Capitalised fees 136,415 - Tax deductible interest distributions (3,386,783) (2,584,320) Total current tax charge for period (see note 5(a)) - - At 31 December 2013 the fund had surplus management expenses of 0 (prior period: 345,720). It is unlikely that the fund will generate sufficient taxable profits in the future to utilise these expenses and, therefore, a deferred tax asset of 0 (prior period: 69,144 has not been recognised. Each sub-fund of an authorised OEIC is exempt from tax on capital gains made within the sub-fund. 6. Finance costs Accumulations and interest The accumulations take account of revenue received on creation of shares and revenue paid on the cancellation of units and comprise: 1st interim 1,497,959 1,123,445 2nd Interim 1,503,850 1,133,657 3rd Interim 1,519,077 1,145,148 4th Interim 1,538,195 1,162,452 5th Interim 1,543,187 1,176,843 6th Interim 1,538,207 1,182,900 7th Interim 1,543,096 1,193,364 8th Interim 1,544,510 1,203,818 9th Interim 1,556,986 1,208,139 10th Interim 1,563,643 1,453,238 11th Interim 1,571,949 1,479,686 Final 2,099,996 1,676,433 19,020,655 15,139,123 Add: revenue deducted on cancellation of units 73,864 24,492 Less: revenue received on creation of units (118,217) (297,410) Net distribution 18,976,302 14,866,205 Interest 12,356 65,897 Total finance costs 18,988,658 14,932,102 Reconciliation of distributions: Net revenue after taxation 16,251,839 12,921,600 Expenses charged to capital 682, ,516 Adjustment for effective yield* 2,042, ,089 Net distribution 18,976,302 14,866,205 The Distribution per share is set out in the table on page 54. Refer to note k) Distributions, on page Debtors Accrued revenue 7,151,730 6,904,957 Amounts receivable for creation of shares 414,658 1,243,464 Total debtors 7,566,388 8,148,421

51 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 49 Notes to the financial statements for the period ended 31 December 2013 (continued) 8. Cash and bank balances Amount held at futures clearing houses and brokers 814, ,203 Cash and bank balances 2,367,450 1,558,923 Total cash and bank balances 3,182,223 2,011, Creditors Accrued expenses 343, ,476 Amounts payable for cancellation of shares 75, ,476 Income tax payable 299, ,936 Total creditors 717,608 1,098, Contingent liabilities and outstanding commitments There were no contingent liabilities or outstanding commitments at the balance sheet date. 11. Related party transactions The balance due to Alliance Trust Investments Limited and its associates at the period end was 173,981 (previous period: 577,834). The total expense due to Alliance Trust Investments Limited and its associates for the period was 682,078 (prior period: 962,516). The following party held a material holding in the sub-fund as at the period end date: Alliance Trust PLC 100% of the Class Z Gross Income shares. 12. Share classes The Fund currently has 16 share classes; Class A (Retail) Net Income and Net Accumulation, Class B (Institutional) Net Income and Net Accumulation, and Class C (Institutional) Net Income and Net Accumulation. The ACD s periodic charge on each share class is as follows: Class A: 1.00% (prior period 1.00%) Class B: 0.50% (prior period 0.50%) Class P: 0.20% (prior period 0.20%) Class Z: 0.00% (prior period 0.00%)

52 Alliance Trust Investment Funds ICVC 50 Alliance Trust Monthly Income Bond Fund Notes to the financial statements for the period from 1 January 2013 to 31 December 2013 (continued) 13. Derivatives and other financial instruments The risks inherent in the Fund s investment portfolio are as follows: In pursuing its investment objective and investment policy, the Fund holds a number of financial instruments. These may comprise: Investment grade Corporate bonds and Government bonds (Both Sterling and non-sterling). These are held in accordance with the Fund s investment policies; Sub-investment grade bonds, covered bonds and preference shares. Cash, liquid resources and short-term debtors and creditors that arise directly from its operation; Shareholders funds, which represent investors monies that are invested on their behalf; Derivative transactions which the Fund may enter into, the purpose of which is to manage certain aspects of the risks arising from the Fund s investment activities. Currently the fund utilises interest rate swaps and bond futures to manage interest rate risk, credit default swaps to manage credit exposure and forward fx positions to manage currency exposure; Short-term borrowings used to finance operational cash flows. Derivatives are also used for investment purposes not just to manage risk/exposures. The main risks arising from the financial instruments are market price (including emerging markets price risk ), foreign currency, interest rate, liquidity and counterparty credit risk. The ACD reviews the policies for managing each of these risks and they are summarised below. These policies have remained unchanged since the beginning of the period to which these financial statements relate. It should be noted that the ACD has a detailed Risk Management Policy which is reviewed and updated, if necessary, periodically. An independent Risk Function is also present who monitor all relevant risks appropriately. Market price risk Market price risk is the risk that the Fund might suffer potential loss through holding market positions in the face of price movements. It arises mainly due to uncertainty about future prices of financial instruments held. The Fund s investment portfolio is monitored by the ACD in pursuance of its investment objective and policy as set out in the Prospectus. Futures contracts may be used to hedge against market price risk where deemed appropriate for efficient portfolio management purposes. Currency risk Currency risk is the risk that the revenue and net asset value of the Fund may be adversely affected by movements in foreign exchange rates. The revenue and capital value of the Fund s investments can be significantly affected by currency risk movements as some of the assets and income are denominated in currencies other than Sterling, which is the Company s functional and reporting currency. The ACD has identified three principal areas where foreign currency risk could impact the Fund: movements in exchange rates affecting the value of investments; movements in exchange rates affecting short-term timing differences; and movements in exchange rates affecting the income received. Currency exposure is monitored closely and is considered to be part of the overall investment process. Currency hedges via forward exchange contracts will only be used in the event of a specific currency risk being identified. The Fund may be subject to short-term exposure to exchange rate movements, for instance, where there is a difference between the date an investment purchase or sale is entered into and the date when settlement of the proceeds occurs. The ACD believes that the impact of such movements is not significant enough to warrant the cost incurred of eliminating them via hedging. The Fund may receive income in currencies other than Sterling, and the Sterling values of this income can be affected by movements in exchange rates. Interest rate risk Interest rate risk is the risk that the revenue cashflow or the fair value of investments may be adversely affected by movements in market interest rates. The Fund s revenue is generated by the holding of bonds, which contractually oblige the borrower to repay the Fund interest under specific terms. Changes to interest rates may affect the cash inflows and outflows calculated with reference to financial assets and liabilities. By a careful assessment of economic and other relevant factors, the Fund Manager will seek to invest in those companies most likely to benefit, or be shielded, from anticipated changes in interest rates. Liquidity risk Liquidity risk is the risk that the Fund will not be able to meet its obligations as they fall due. The Fund s assets comprise wholly of readily realisable securities which can be sold to meet liquidity requirements. The main liquidity risk of the Fund is the redemption of any shares that investors wish to sell, which are redeemable on demand under the Prospectus.

53 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund Derivatives and other financial instruments (continued) Counterparty credit risk Counterparty credit risk is the risk of suffering loss due to another party not meeting its financial obligation. Investments may be adversely affected if any of the institutions with which money is deposited or invested suffers insolvency or other financial difficulties or the credit rating of the bearers of the bonds held by the Fund are downgraded. The Fund holds bonds issued by companies and governments in order to achieve its investment objective. Any impairment to the borrower s ability to repay amounts due may result in changes to the tradable value of the bond and the amount to be received upon maturity of the bond. The ability of the borrower to repay not only the principal value but also any interest due on the bond, referred to as the borrower s credit rating, is monitored by the Manager. The Fund may enter into transactions in financial instruments (including derivatives) which exposes it to the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Fund will only buy and sell financial instruments through parties that have been approved as acceptable by the ACD. The Fund may enter into stock lending activities which exposes it to the risk that the counterparty will not deliver the stock or cash after the Fund has fulfilled its obligations. The Fund will only enter into stock lending activities with parties that have been approved as acceptable by the ACD and obtaining collateral from counterparties which has a fair value in excess of the related stock on loan. Fair value of financial assets and financial liabilities There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair value. The numerical disclosures in respect of financial instruments and the management of interest rate and currency risks are included below where applicable. The Fund s global exposure to derivatives at the period-end calculated on a gross commitment basis was 282,586,343 (prior period: 203,301,289). Counterparties to open derivative contracts at the balance sheet date were Barclays, UBS AG & Deutsche Bank. At the period-end no collateral was received from these counterparties in respect of derivative contracts. Collateral pledged to these counterparties in respect of derivative contracts was 9,569, wholly in the form of UK Treasury bonds. a) Currency exposures A proportion of the net assets of the Fund are denominated in currencies other than Sterling, with the effect that the balance sheet and total return can be affected by currency movements. As at 31 December 2013 the Fund had the following net currency exposure: Net foreign currency assets Monetary exposure Non-monetary exposure Total Currency Australian dollar 9,562 72,868 82,430 Euro (282) 2,008,285 2,008,285 Sterling 2,669, ,034, ,704,213 US dollar 503,319 1,027,576 1,530,895 Total 3,182, ,143, ,325,823 As at 31 December 2012 the Fund had the following net currency exposure: Net foreign currency assets Monetary exposure Non-monetary exposure Total Currency Australian dollar (55,490) (7,196) (62,686) Euro 158,332 1,524,244 1,682,576 Sterling 1,665, ,239, ,904,156 US dollar (2,074) 1,690,011 1,687,937 Total 1,765, ,446, ,211,983

54 Alliance Trust Investment Funds ICVC 52 Alliance Trust Monthly Income Bond Fund Notes to the financial statements for the period ended 31 December 2013 (continued) b) Interest rate risks The interest rate risk profile of the sub-fund s financial assets and liabilities at 31 December 2013 was as follows: Floating rate financial assets* ( ) Fixed rate financial assets ( ) Financial assets not carrying interest ( ) Total ( ) Currency Australian dollar 9,562-1,800,119 1,809,681 Euro 21,853,620 18,871,398 5,175,775 45,900,793 Japanese yen - - 6,319,963 6,319,963 Sterling 57,071, ,453,187 85,705, ,229,532 US dollar 25,969,080 8,028, ,165 34,674,157 Total 104,903, ,353,497 99,677, ,934,126 Floating rate financial liabilities* ( ) Financial liabilities not carrying interest ( ) Total ( ) Currency Australian dollar - (1,727,251) (1,727,251) Euro (282) (43,892,508) (43,892,790) Japanese yen - (6,319,963) (6,319,963) Sterling - (14,525,319) (14,525,319) US dollar - (33,143,262) (33,143,262) Total (282) (99,608,303) (99,608,585) The following table represents the weighted average interest rate on the market value of the fixed interest securities held by the sub-fund at 31 December 2013: Weighted average fixed interest rate (%) Weighted average period for which rate is fixed Total Currency equivalent ( ) Euro 18,871, years Sterling 197,453, years US dollar 8,028, years The interest rate risk profile of the sub-fund s financial assets and liabilities at 31 December 2012 was as follows: Floating rate financial assets* ( ) Fixed rate financial assets ( ) Financial assets not carrying interest ( ) Total ( ) Currency Australian dollar 2,091,947-18,670 2,110,617 Euro 23,931,279 22,258,002 1,976,662 48,165,943 Sterling 61,209, ,872,298 65,475, ,557,167 US dollar 6,719,311 3,227,653 6,201,980 16,148,944 Total 93,951, ,357,953 73,673, ,982,671 Floating rate financial liabilities* ( ) Financial liabilities not carrying interest ( ) Total ( ) Currency Australian dollar (55,490) (2,117,813) (2,173,303) Euro (187,772) (46,295,596) (46,483,368) Sterling - (8,653,010) (8,653,010) US dollar (2,074) (14,458,933) (14,461,007) Total (245,336) (71,525,352) (71,770,688) The weighted average interest on the fixed rate financial assets at 31 December 2012 was as follows: Currency Total equivalent ( ) Weighted average fixed interest rate (%) Weighted average period for which rate is fixed Euro 22,258, years Sterling 197,872, years US dollar 3,227, years * Changes in the base rate will cause movements in the interest rate applied to cash balances and overdrafts. The sub-fund holds cash on a deposit account with the National Westminster Bank plc which has an interest rate of the Bank of England base rate less 50 basis points. Other bank accounts of the sub-fund held with the Bank of New York Mellon have a contractual right of set off. Interest receivable in the net position is currently at a rate of 0.25% and interest payable at 2%. There are no material amounts of non-interest bearing financial assets, other than equities, which do not have a maturity date.

55 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 53 Notes to the financial statements for the period ended 31 December 2013 (continued) 14. Portfolio transaction costs Analysis of total purchase costs Purchases in the period before transaction costs 214,557, ,370,376 Commissions - - Other costs - - Total purchase costs - - Gross purchase total 214,557, ,370,376 Analysis of total sale costs Gross sales in the period before transaction costs 197,742, ,220,421 Commissions - - Other costs - - Total sales costs - - Total sales net of transaction costs 197,742, ,220, Non Adjusting Post Balance Sheet Event Since the last business day of the accounting period, the Fund s quoted net asset value per share has risen as shown below: Class Net asset value as at (pence) Net asset value as at (pence) Rise/Fall (%) A Net Accumulation % A Net Income % A Gross Accumulation % A Gross Income % B Net Accumulation % B Net Income % B Gross Accumulation % B Gross Income % P Net Accumulation % P Net Income % P Gross Accumulation % P Gross Income % Z Gross Income % This movement takes into account routine transactions but also reflects the market movements of recent months.

56 Alliance Trust Investment Funds ICVC 54 Alliance Trust Monthly Income Bond Fund Distribution Table for the period ended 31 December 2013 Final distribution Group 1 - Shares purchased prior to 1 December 2013 Group 2 - Shares purchased 1 December 2013 to 31 December 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

57 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 55 Distribution Table for the period ended 31 December 2013 (continued) Eleventh interim distribution Group 1 - Shares purchased prior to 1 November 2013 Group 2 - Shares purchased 1 November 2013 to 30 November 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

58 Alliance Trust Investment Funds ICVC 56 Alliance Trust Monthly Income Bond Fund Distribution Table for the period ended 31 December 2013 (continued) Tenth interim distribution Group 1 - Shares purchased prior to 1 October 2013 Group 2 - Shares purchased 1 October 2013 to 31 October 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

59 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 57 Distribution Table for the period ended 31 December 2013 (continued) Ninth interim distribution Group 1 - Shares purchased prior to 1 September 2013 Group 2 - Shares purchased 1 September 2013 to 30 September 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

60 Alliance Trust Investment Funds ICVC 58 Alliance Trust Monthly Income Bond Fund Distribution Table for the period ended 31 December 2013 (continued) Eighth interim distribution Group 1 - Shares purchased prior to 1 August 2013 Group 2 - Shares purchased 1 August 2013 to 31 August 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

61 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 59 Distribution Table for the period ended 31 December 2013 (continued) Seventh interim distribution Group 1 - Shares purchased prior to 1 July 2013 Group 2 - Shares purchased 1 July 2013 to 31 July 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

62 Alliance Trust Investment Funds ICVC 60 Alliance Trust Monthly Income Bond Fund Distribution Table for the period ended 31 December 2013 (continued) Sixth interim distribution Group 1 - Shares purchased prior to 1 June 2013 Group 2 - Shares purchased 1 June 2013 to 30 June 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

63 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 61 Distribution Table for the period ended 31 December 2013 (continued) Fifth interim distribution Group 1 - Shares purchased prior to 1 May 2013 Group 2 - Shares purchased 1 May 2013 to 31 May 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

64 Alliance Trust Investment Funds ICVC 62 Alliance Trust Monthly Income Bond Fund Distribution Table for the period ended 31 December 2013 (continued) Fourth interim distribution Group 1 - Shares purchased prior to 1 April 2013 Group 2 - Shares purchased 1 April 2013 to 30 April 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

65 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 63 Distribution Table for the period ended 31 December 2013 (continued) Third interim distribution Group 1 - Shares purchased prior to 1 March 2013 Group 2 - Shares purchased 1 March 2013 to 31 March 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

66 Alliance Trust Investment Funds ICVC 64 Alliance Trust Monthly Income Bond Fund Distribution Table for the period ended 31 December 2013 (continued) Second interim distribution Group 1 - Shares purchased prior to 1 February 2013 Group 2 - Shares purchased 1 February 2013 to 28 February 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

67 Report & Accounts December 2013 Alliance Trust Monthly Income Bond Fund 65 Distribution Table for the period ended 31 December 2013 (continued) First interim distribution Group 1 - Shares purchased prior to 1 January 2013 Group 2 - Shares purchased 1 January 2013 to 31 January 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Income Shares Class A Net - Group Class A Net - Group Class A Gross - Group Class A Gross - Group Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class P Net - Group Class P Net - Group Class P Gross - Group Class P Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

68 Alliance Trust Investment Funds ICVC 66 Alliance Trust Global Thematic Opportunities Fund Alliance Trust Global Thematic Opportunities Fund Report for the period from 1 January 2013 to 31 December 2013 Investment objective and policy The Fund aims to achieve long term capital growth primarily from investment in a portfolio of equities quoted on world stock markets. The Fund will aim to meet its objective by investing primarily in a concentrated portfolio of global equities. The Fund may also invest in collective investment schemes, other transferable securities and debt instruments, cash and near cash deposits, warrants and money market instruments. The portfolio will be unconstrained by reference to global stock market indices or by market cap. The Manager will employ a fundamental, long term approach to stock selection with a thematic overlay which seeks to identify macro and micro trends within global markets. Currently, it is intended that the Fund will enter into derivative and forward transactions only for the purposes of efficient portfolio management (including hedging) ( EPM ). The specific aims of EPM are the reduction of risk, the reduction of cost or the generation of additional capital or income with a risk level which is consistent with the risk profile of the Fund and the risk diversification rules laid down in COLL. The Fund, however, at the discretion of the ACD, may in future decide to enter into derivative and forward transactions also for the purpose of meeting its investment objectives. The ACD shall give the Shareholders no less than 60 days notice of any such decision. The use of derivative and forward transactions for the purpose of meeting the Fund s investment objectives may increase the risk profile of the Fund. Investment review Market review The fund stuck to its bottom up selection approach centred on a long-term assessment of companies fundamentals. The first half of 2013 saw a strong start with the MSCI ACWI up 11.7% through mid-may, aided by stronger US data and relative calm in the Eurozone. Subsequently it experienced a setback and finished the first half up 4.7%. This performance, however, belies the multi-speed economy that we currently see. Chinese equities, after peaking in January, were a significant underperformer, along with fellow BRIC nations Brazil, Russia and India. In contrast, the US S&P500 was a strong outperformer as the US economy gathered pace, with the job market improving and government spending cuts offset by a robust private sector. The Fund was well positioned for these moves, as we prepared for the possibility of a Chinese rebalancing-linked slowdown. US healthcare for instance (a significantly overweight position for us) continued it s rerating towards our perceived fair valuation. The transition to the second half of the year saw volatility in equity indices with the market contending with many additional macro drivers. The Fed s debate over tapering asset purchases unsettled fixed income markets and proved difficult for yield sensitive (income providing) stocks. Within this volatile environment, the Fund gave back some of the strong performance which was achieved in the earlier part of the year. It was, however, a good time to position ourselves to take advantage of this volatility. We added some high quality emerging market stocks over mid 2013, for example Grupoe Bancario Banorte. Penetration of financial services in countries like Mexico should lead to superior value creation for this company. Additionally we see our Mexican holdings - like Grupoe - supported by a decisive reforms drive and took opportunities to increase our exposure to this country when valuations became attractive. As the year came to a close regional positioning was still paramount. A rebound in oversold markets such as China and India unwound some of the underperformance there. Nevertheless, the US maintained its strong performance. Within developed markets, our stock selection and sector positioning was strong, with healthcare, technology and financials all performing well in absolute terms. Portfolio Activity All in all 2013 was a year of strong global equity markets led by a resurgence of US growth, a pickup in Europe and a Japanese policy driven turnaround. The Fund was well positioned to benefit from these developments, seizing the opportunities in the US and parts of Europe, whilst avoiding some of the weakest markets, such as China and Latin America. Portfolio Outlook Looking forward into 2014, we continue to assert that equities remain relatively good value, particularly when compared to other asset classes. Although stock markets can no longer be described as cheap, at a company level we continue to see a range of interesting investment opportunities in well managed companies with strong balance sheets and sustainable business models. These are the investments we seek and they still offer value and the prospect of above average returns for long-term investors such as ourselves. Our assessment of the global economic backdrop has improved and most commentators agree that global output will expand in The recent World Bank forecast suggests global economic growth will be 3.2%, and it has issued a more favourable outlook for Europe. This backdrop will help underpin investor confidence as well as business investment, which slowed in 2012 and There are still some risks inherent in the financial system and we are not complacent about the consequences that QE unwinding might bring. Other

69 Report & Accounts December 2013 Alliance Trust Global Thematic Opportunities Fund 67 areas that still continue cause concern are the US debt ceiling, Abenomics in Japan and the risk of a hard landing in China; none of these should be underestimated. We believe that the best way to achieve our long-term capital growth objectives is to focus on the stock specific risks and let our rigorous thematic and bottom-up approach bring to light companies that will be successful throughout the economic cycle. We are confident that we can maintain a portfolio of companies that are well placed to drive returns for the Fund in the future. Material Portfolio Changes Purchases CADENCE DESIGN SYS INC USD 0.01 BARCLAYS PLC GBp 25 KRAFT FOODS GROUP INC TWENTY-FIRST CENTURY FOX-A USD 0.01 CITIGROUP INC USD 0.01 VISA INC-CLASS A SHARES USD DEUTSCHE TELEKOM AG- REG JOHNSON & JOHNSON USD 1 WALT DISNEY CO/THE USD 0.01 SAP AG Sales DEUTSCHE TELEKOM AG- REG AUST AND NZ BANKING GROUP ZURICH INSURANCE GROUP AG CHF 0.1 US BANCORP USD 0.01 JOHNSON & JOHNSON USD 1 JPMORGAN CHASE & CO USD 1 APPLE INC MICROSOFT CORP USD M CO USD 0.01 BANK OF NOVA SCOTIA risk. However, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment. This fund holds a limited number of investments. If one of these investments falls in value this can have a greater impact on the Fund s value than if it held a larger number of investments. This fund may invest in emerging markets or less developed countries; these may have less regulatory control and less supervision of their financial markets, and consequently less investor protection. Transaction costs, commissions and local taxes may be higher than in more developed financial markets. This may all mean your money is at greater risk. Risk and Reward Profile The Risk and Reward Indicator table demonstrates where the Fund ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund. The shaded area in the table below shows the Fund s ranking on the Risk and Reward Indicator. Typically lower rewards, lower risk Typically higher rewards, higher risk This Fund is ranked at 6 because funds of this type have experienced high rises and falls in value in the past. Please note that even the lowest risk class can lose you money and that extreme market circumstances can mean you suffer severe losses in all cases. The indicator does not take into account the following risks of investing in this fund: Investing globally can bring additional returns and diversify

70 Alliance Trust Investment Funds ICVC 68 Alliance Trust Global Thematic Opportunities Fund Portfolio statement as at 31 December 2013 Holding Stock Description AUSTRALIA %; (31 December %) Banks %; (31 December %) Market value ( ) Percentage of total net assets (%) CANADA %; (31 December %) Banks %; (31 December %) Industrial Metals & Mining %; (31 December %) DENMARK %; (31 December %) Pharmaceuticals & Biotechnology %; (31 December %) 31,608 Novo Nordisk 3,501, FRANCE %; (31 December %) Industrials %; (31 December %) 54,830 Schneider Electric 2,892, Oil & Gas Producers %; (31 December %) 46,606 Technip 2,708, GERMANY %; (31 December %) Automobiles & Parts %; (31 December %) 28,925 Volkswagen preference shares 4,918, Chemicals %; (31 December %) 44,536 BASF 2,878, Household Goods & Home Construction %; (31 December %) 53,948 Henkel 3,792, Personal Goods %; (31 December %) 35,131 Adidas 2,706, Software & Computer Services %; (31 December %) 111,644 SAP 5,807, Technology Hardware & Equipment %; (31 December %) HONG KONG %; (31 December %) Oil Equipment, Services & Distribution %; (31 December %) 3,630,000 ANTON OILFIELD SER 1,331, INDONESIA %; (31 December %) Banks %; (31 December %) 3,399,000 Bank Rakyat Indonesia 1,214, JAPAN %; (31 December %) Banks %; (31 December %) 1,287,200 Mitsubishi UFJ Financial 5,124, Industrial Engineering %; (31 December %) 28,600 Fanuc 3,157, MEXICO %; (31 December %) Banks %; (31 December %) 347,057 Grupo Financiero Banco 1,460, Beverages %; (31 December %) 367,394 Fomento Economico Mexicana 2,137,

71 Report & Accounts December 2013 Alliance Trust Global Thematic Opportunities Fund 69 Portfolio statement as at 31 December 2013 (continued) Holding Stock Description NETHERLANDS %; (31 December %) Food Producers %; (31 December %) Market value ( ) Percentage of total net assets (%) RUSSIA %; (31 December %) Oil & Gas Producers %; (31 December %) SOUTH KOREA %; (31 December %) Automobiles & Parts %; (31 December %) 6,008 Samsung Electronics 4,712, SWEDEN %; (31 December %) Technology Hardware & Equipment %; (31 December %) SWITZERLAND %; (31 December %) Banks %; (31 December %) 205,514 Credit Suisse 3,804, Nonlife Insurance %; (31 December %) Pharmaceuticals & Biotechnology %; (31 December %) 28,060 Roche Holding 4,745, TAIWAN %; (31 December %) Health Care Equipment & Service %; (31 December %) 269,000 Ginko 3,068, Technology Hardware & Equipment %; (31 December %) UNITED KINGDOM %; (31 December %) Banks %; (31 December %) 1,231,132 Barclays 3,346, Beverages %; (31 December %) Financials %; (31 December %) 975,062 Aberdeen Asset Management 4,827, ,716 Prudential 5,325, ,152, Household Goods & Home Construction %; (31 December %) 74,785 Reckitt Benckiser 3,580, Insurance %; (31 December %) 1,581,606 Resolution 5,594, Mining %; (31 December %) 564,727 Glencore Xstrata 1,765, Oil & Gas Producers %; (31 December %) 2,177,338 Afren 3,681, UNITED STATES %; (31 December %) Aerospace & Defence %; (31 December %) 82,500 United Technologies 5,667, Automobiles & Parts %; (31 December %) 99,928 Borg Warner 3,373, Banks %; (31 December %) 124,300 Citi 3,909, ,259 Wells Fargo 4,611, ,520,

72 Alliance Trust Investment Funds ICVC 70 Alliance Trust Global Thematic Opportunities Fund Portfolio statement as at 31 December 2013 (continued) Holding Stock Description Market value ( ) Percentage of total net assets (%) Chemicals %; (31 December %) 56,863 Praxair 4,463, Electronic & Electrical Equipment %; (31 December %) 43,200 Roper Industries 3,615, Financial Services %; (31 December %) 488,400 Och-Ziff Capital 4,364, ,600 VISA 4,247, ,612, Food & Drug Retailers %; (31 December %) 88,028 CVS Caremark 3,803, Food Producers %; (31 December %) 80,104 Kraft Foods 2,607, ,065 Monsanto 3,241, ,848, General Industrials %; (31 December %) 125,310 Danaher 5,840, General Retailers- 2.11%; (31 December %) 134,200 ebay 4,445, Health Care Equipment & Services %; (31 December %) 159,328 Express Scripts 6,755, ,215 Humana 3,129, ,058 Intuitive Surgical 2,331, ,216, Industrial Engineering %; (31 December %) 22,423 Cummins 1,908, Leisure Goods %; (31 December %) Media %; (31 December %) 64,867 Liberty Global 3,485, ,524 Twentyfirst 5,298, ,084 Walt Disney 4,616, ,399, Oil Equipment, Services & Distribution %; (31 December %) 73,000 Enterprise Product Partners 2,922, ,570 FMC Technologies 1,908, ,831, Oil & Gas Producers %; (31 December %) 102,304 Noble Energy 4,206, Personal Goods %; (31 December %) 72,300 Coach 2,448, Pharmaceuticals & Biotechnology %; (31 December %) 64,200 Amgen 4,422, ,557 Pfizer 5,001, ,424, Software & Computer Services %; (31 December %) 355,982 Cadence Design 3,013, ,915 Google 3,999, ,013, Support Services %; (31 December %) 116,791 Accenture 5,798, Technology Hardware & Equipment %; (31 December %) 90,194 Qualcomm 4,042,

73 Report & Accounts December 2013 Alliance Trust Global Thematic Opportunities Fund 71 Portfolio statement as at 31 December 2013 (continued) Holding Stock Description Tobacco %; (31 December %) Market value ( ) Percentage of total net assets (%) Portfolio of investments 207,568, Net other assets 3,622, Total net assets 211,191, All investments are approved securities being either officially listed in a member state or under the rules of an eligible market, unless otherwise stated. All investments are in ordinary shares unless otherwise stated.

74 Alliance Trust Investment Funds ICVC 72 Alliance Trust Global Thematic Opportunities Fund Performance record as at 31 December 2013 Launch date 29 December 2011 Share price history Calendar year Highest price Lowest price 2013 A Accumulation 131.0p 108.9p B Accumulation 132.4p 109.2p P Accumulation 132.6p 109.6p Z Accumulation 134.3p 110.0p 2012 A Accumulation 110.0p 97.14p B Accumulation 110.0p 97.24p P Accumulation 110.1p 97.40p Z Accumulation 110.1p 97.57p 2011 A Accumulation* 100.6p 99.93p B Accumulation* 100.6p 99.93p P Accumulation* 100.6p 99.93p Z Accumulation* 100.6p 99.93p * From 29 December 2011 General price information Fund period end 31 December 2013 price 31 December 2012 price A Accumulation 130.8p 106.4p B Accumulation 132.2p 106.7p P Accumulation 132.5p 107.1p Z Accumulation 134.1p 107.5p Income record The record of net distributions per share and per 1,000 invested is shown below. Calendar year per share per 1, A Accumulation* p 0.05 B Accumulation* p 2.88 P Accumulation* p 4.78 Z Accumulation* p A Accumulation p 7.41 B Accumulation p P Accumulation p Z Accumulation p A Accumulation p 7.03 B Accumulation p 8.63 P Accumulation p Z Accumulation p A Accumulation** p 0.00 B Accumulation** p 0.00 P Accumulation** p 0.00 Z Accumulation** p 0.00 * To 28 February 2014 ** From 29 December 2011

75 Report & Accounts December 2013 Alliance Trust Global Thematic Opportunities Fund 73 Performance record as at 31 December 2013 (continued) Net Asset Value Fund period end Shares in issue Net Asset Value Net Asset Value per share 31 December 2013 A Accumulation 220, , p B Accumulation 2,705,960 3,577, p P Accumulation 1,230,839 1,630, p Z Accumulation 153,353, ,694, p 31 December 2012 A Accumulation 224, , p B Accumulation 2,253,042 2,404, p P Accumulation 550, , p Z Accumulation 153,353, ,810, p 31 December 2011 A Accumulation* 1, p B Accumulation* 18,682 18, p P Accumulation* 24,894 24, p Z Accumulation* 153,353, ,243, p * Fund launched on the 29 December 2011 Ongoing Charges Figure* (previously Total Expense Ratio) Total Including performance fee 31 December 2013 A Accumulation 1.34% 1.64% B Accumulation 0.88% 0.88% P Accumulation 0.58% 1.02% Z Accumulation 0.13% 0.13% * The Ongoing Charges Figure (OCF) represents the annual operating expenses of the Fund expressed as a percentage of the average net assets for the period - it does not include initial charges or performance fees. The OCF includes the annual management charge and all charges which are deducted directly from the Fund. The OCF is expressed as an annual percentage rate. In addition to the above, the A Accumulation and P Accumulation share classes charged a performance fee. A performance fee of 20% is payable to the ACD on any outperformance of the sub-fund s benchmark as at the end of the accounting period in December each year. The performance fee charged for the period was 5,929.

76 Alliance Trust Investment Funds ICVC 74 Alliance Trust Global Thematic Opportunities Fund Statement of total return for the period ended 31 December 2013 Note Income Net capital gains 2 38,452,530 8,580,190 Revenue 3 4,020,562 3,654,157 Expenses 4 (304,216) (258,950) Finance costs: Interest 6 (10,950) (8,431) Net revenue before taxation 3,705,396 3,386,776 Taxation 5 (433,756) (361,013) Net revenue after taxation 3,271,640 3,025,763 Total return before distributions 41,724,170 11,605,953 Finance costs: Distributions 6 (3,274,357) (3,025,763) Change in net assets attributable to shareholders from investment activities 38,449,813 8,580,190 Statement of change in net assets attributable to shareholders for the period ended 31 December 2013 Opening net assets attributable to shareholders 168,042, ,288,254 Movement due to issue and cancellation of shares: Amounts received on creation of shares 1,896,276 3,389,816 Amounts paid on cancellation of shares (479,141) (249,933) 1,417,135 3,139,883 Dilution adjustment - 1,782 Stamp duty reserve tax (89) (45) Change in net assets attributable to shareholders from investment activities 38,449,813 8,580,190 Retained distribution on accumulation shares 3,281,584 3,032,922 Closing net assets attributable to shareholders 211,191, ,042,986 Notes to the Financial Statements are on pages 75 to 81. Balance Sheet as at 31 December 2013 Note Assets Investment assets 207,568, ,742,925 Debtors 7 302,137 1,156,253 Cash and bank balances 8 3,420,142 4,686,132 Total other assets 3,722,279 5,842,385 Total assets 211,291, ,585,310 Liabilities Creditors 9 (99,578) (1,542,309) Bank Overdrafts - (15) Total other liabilities (99,578) (1,542,324) Total liabilities (99,578) (1,542,324) Net assets attributable to shareholders 211,191, ,042,986 The notes on pages 75 to 81 form an integral part of these financial statements. The distribution per share is set out in the table on page 82.

77 Report & Accounts December 2013 Alliance Trust Global Thematic Opportunities Fund 75 Notes to the financial statements for the period ended 31 December Accounting policies The accounting policies for the sub-fund are set out in note 1 of the aggregate accounts on pages 6 and Net capital gains Gains on non-derivative securities 38,964,986 8,395,533 (Losses)/gains on derivative contracts (105,006) 433,601 Losses on forward currency contracts - (15,731) Currency losses (406,911) (233,224) Transaction costs (539) 11 Net capital gains 38,452,530 8,580, Revenue Bank interest 1, Non-taxable overseas dividends 3,320,553 2,971,475 Non-taxable stock dividends 79,176 - Taxable overseas dividends 208, ,394 UK dividends 410, ,531 Total revenue 4,020,562 3,654, Expenses Payable to the ACD, associates of the ACD, and agents of either of them: ACD s periodic charge 30,726 16,616 Performance Fee 5,929 - Registration fees 5,715 4,363 42,370 20,979 Payable to the Depositary, associates of the Depositary, and agents of either of them: Depositary fees 75,050 70,721 Safe custody fees 7,407 10,691 82,457 81,412 Other expenses Administration fees 153, ,307 Audit fees 8,378 8,100 Dividend ADR charges 231 4,702 FCA fees* Indian SEB fee - 3,276 Legal fees 5,950 6,429 Management Accounts fees 3,989 3,990 Printing fees 1,540 1,540 Reconciliation fees RIY Calculator fees - (6) Sundry expense 4, , ,559 Total expenses 304, ,950 Irrecoverable VAT is included in the above expenses where relevant. * With effect from 1 April 2013, the Financial Services Authority (FSA) ceased to exist and was replaced by the Financial Conduct Authority (FCA).

78 Alliance Trust Investment Funds ICVC 76 Alliance Trust Global Thematic Opportunities Fund Notes to the financial statements for the period ended 31 December 2013 (continued) 5. Taxation a) Analysis of charge in period Overseas tax 433, ,031 Direct tax charge - 16,982 Total current tax charge for the period (see note 5(b)) 433, ,013 b) Factors affecting current tax charge for the period The taxation assessed for the period is lower (prior period: lower) than the standard rate of corporation tax in the UK for a OEIC (20%). The differences are explained below: Net revenue before taxation 3,705,396 3,386,776 Return on ordinary activities multiplied by the standard rate of Corporation Tax of 20% 741, ,355 Effects of: Excess expense for which no relief taken 20,543 32,064 Expensed overseas tax (732) (1,904) Expenses not deductible for tax purposes 1,190 1,286 Franked investment revenue at 20% (82,134) (114,506) Non-taxable overseas dividends (664,111) (591,201) Non-taxable stock dividend (15,835) (3,094) Overseas tax 433, ,013 Total current tax charge for period (see note 5(a)) 433, ,013 At 31 December 2012 the fund had surplus management expenses of 266,832 (prior period: 164,115). It is unlikely that the fund will generate sufficient taxable profits in the future to utilise these expenses and therefore a deferred tax asset of 53,366 (prior period: 32,823) has not been recognised. Each sub-fund of an authorised OEIC is exempt from tax on capital gains made within the sub-fund. 6. Finance costs Distributions and interest The distributions take account of revenue received on the issue of shares and revenue paid on the cancellation of shares, and comprise: Interim 2,086,608 1,855,348 Final 1,194,976 1,177,573 3,281,584 3,032,921 Add: revenue deducted on cancellation of shares 1, Less: revenue received on creation of shares (9,002) (8,042) Net distribution 3,274,357 3,025,763 Interest 10,950 8,431 Total finance costs 3,285,307 3,034,194 Reconciliation of distributions: Net revenue after taxation 3,271,640 3,025,763 Expenses charged to capital 2,717 - Net distribution 3,274,357 3,025,763 The Distribution per share is set out in the table on page 82. Refer to note k) Distributions, on page 7 for the relevant accounting policy. 7. Debtors Accrued revenue 227,618 72,655 Amounts receivable for creation of shares Overseas tax recoverable 73,984 68,952 Sales awaiting settlement - 1,014,616 Total debtors 302,137 1,156, Cash and bank balances Cash and bank balances 3,420,142 4,686,132 Total cash and bank balances 3,420,142 4,686,132

79 Report & Accounts December 2013 Alliance Trust Global Thematic Opportunities Fund 77 Notes to the financial statements for the period ended 31 December 2013 (continued) 9. Creditors Accrued expenses 99,338 61,488 Amounts payable for cancellation of shares Purchases awaiting settlement - 1,479,832 Total creditors 99,578 1,542, Contingent liabilities and outstanding commitments There were no contingent liabilities or outstanding commitments at the balance sheet date. 11. Related party transactions The balance due to Alliance Trust Investments Limited and its associates at the period end was 8,947 (31 December 2012: 2,026). The total expense due to Alliance Trust Investments Limited and its associates for the period was 36,655 (prior period: 16,616). The following party held a material holding in the sub fund as at the period end date: Alliance Trust PLC 100% of the Class Z Gross Accumulation shares. 12. Share classes The Fund currently has four share classes; Class A Net Accumulation, Class B Net Accumulation, Class P Net Accumulation and Class Z Net Accumulation. The ACD s periodic charge on each share share class is as follows: Class A: 1.20% (prior period: 1.25%) Class B: 0.75% (prior period: 0.75%) Class P: 0.45% (prior period: 0.45%) Class Z: 0.00% (prior period: 0.00%)

80 Alliance Trust Investment Funds ICVC 78 Alliance Trust Global Thematic Opportunities Fund Notes to the financial statements for the period from 1 January 2013 to 31 December 2013 (continued) 13. Derivatives and other financial instruments The risks inherent in the Fund s investment portfolio are as follows: In pursuing its investment objective and investment policy, the Fund holds a number of financial instruments. These may comprise: Equity shares, equity related shares, non-equity shares and debt securities. These are held in accordance with the Fund s investment policies; Cash, liquid resources and short-term debtors and creditors that arise directly from its operation; Shareholders funds, which represent investors monies that are invested on their behalf; Derivative transactions which the Fund may enter into, the purpose of which is to manage certain aspects of the risks arising from the Fund s investment activities and generate additional capital and revenue; Short-term borrowings used to finance operational cash flows. Derivatives are also used for investment purposes not just to manage risk/exposures. The main risks arising from the financial instruments are market price (including emerging markets price risk ), foreign currency, interest rate, liquidity and counterparty credit risk. The ACD reviews the policies for managing each of these risks and they are summarised below. These policies have remained unchanged since the beginning of the period to which these financial statements relate. It should be noted that the ACD has a detailed Risk Management Policy which is reviewed and updated, if necessary, periodically. An independent Risk Function is also present who monitor all relevant risks appropriately. Market price risk Market price risk is the risk that the Fund might suffer potential loss through holding market positions in the face of price movements. It arises mainly due to uncertainty about future prices of financial instruments held. The Fund s investment portfolio is monitored by the ACD in pursuance of its investment objective and policy as set out in the Prospectus. Futures contracts may be used to hedge against market price risk where deemed appropriate for efficient portfolio management purposes. Currency risk Currency risk is the risk that the revenue and net asset value of the Fund may be affected adversely by movements in foreign exchange rates. The revenue and capital value of the Fund s investments can be significantly affected by currency risk movements as some of the assets and income are denominated in currencies other than Sterling, which is the Company s functional and reporting currency. The ACD has identified three principal areas where foreign currency risk could impact the Fund: movements in exchange rates affecting the value of investments; movements in exchange rates affecting short-term timing differences; and movements in exchange rates affecting the income received. Currency exposure is monitored closely and is considered to be part of the overall investment process. Currency hedges via forward exchange contracts will only be used in the event of a specific currency risk being identified. The Fund may be subject to short-term exposure to exchange rate movements, for instance, where there is a difference between the date an investment purchase or sale is entered into and the date when settlement of the proceeds occurs. The ACD believes that the impact of such movements is not significant enough to warrant the cost incurred of eliminating them via hedging. The Fund may receive income in currencies other than Sterling, and the Sterling values of this income can be affected by movements in exchange rates. Interest rate risk Interest rate risk is the risk that the revenue cashflow or the fair value of investments may be affected adversely by movements in market interest rates. As the Fund invests in equity instruments its exposure to interest rate risk is limited to interest receivable and payable on cash and overdraft balances, which will be affected by fluctuations in interest rates. Liquidity risk Liquidity risk is the risk that the Fund will not be able to meet its obligations as they fall due. The Fund s assets comprise wholly of readily realisable securities which can be sold to meet liquidity requirements. The main liquidity risk of the Fund is the redemption of any shares that investors wish to sell, which are redeemable on demand under the Prospectus. Counterparty credit risk Counterparty credit risk is the risk of suffering loss due to another party not meeting its financial obligation. Investments may be adversely affected if any of the institutions with which money is deposited or invested suffers insolvency or other financial difficulties or the credit rating of the bearers of the bonds held by the Funds are downgraded.

81 Report & Accounts December 2013 Alliance Trust Global Thematic Opportunities Fund Derivatives and other financial instruments (continued) The Fund may enter into transactions in financial instruments (including derivatives) which exposes it to the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Fund will only buy and sell financial instruments through parties that have been approved by the ACD as acceptable. The Fund may enter into stock lending activities which expose it to the risk that the counterparty will not deliver the stock or cash after the Fund has fulfilled its obligations. The Fund will only enter into stock lending activities with parties that have been approved as acceptable by the ACD and obtain collateral from counterparties with a fair value in excess of the related stock on loan. Fair value of financial assets and financial liabilities There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair value. The numerical disclosures in respect of financial instruments and the management of interest rate and currency risks are included below where applicable. a) Currency exposures A proportion of the net assets of the Fund are denominated in currencies other than Sterling, with the effect that the balance sheet and total return can be affected by currency movements. As at 31 December 2013 the Fund had the following net currency exposure: Net foreign currency assets Monetary exposure Non-monetary exposure Total Currency Danish krone - 3,501,974 3,501,974 Euro 52,972 25,739,946 25,792,918 Hong Kong dollar - 1,331,342 1,331,342 Indonesian rupiah - 1,214,135 1,214,135 Japanese yen - 8,281,941 8,281,941 Mexican peso - 3,604,771 3,604,771 Singapore dollar 952, ,041 South Korean won - 4,749,418 4,749,418 Swiss franc - 8,581,639 8,581,639 Taiwan dollar 6,974 3,068,086 3,075,060 Sterling 499,426 28,120,870 28,620,296 US dollar 1,908, ,577, ,485,894 Total 3,420, ,771, ,191,429 As at 31 December 2012 the Fund had the following net currency exposure: Net foreign currency assets Monetary exposure Non-monetary exposure Total Currency Australian dollar 2 3,416,299 3,416,301 Canadian dollar - 4,581,802 4,581,802 Danish krone - 4,366,851 4,366,851 Euro (15) 12,955,731 12,955,716 Indonesian rupiah - 1,294,706 1,294,706 Singapore dollar 125, ,257 South Korean won - 6,661,052 6,661,052 Swedish krona - 2,191,231 2,191,231 Swiss franc - 11,203,613 11,203,613 Sterling 1,828,882 11,578,848 13,407,730 US dollar 2,731, ,106, ,838,727 Total 4,686, ,356, ,042,986

82 Alliance Trust Investment Funds ICVC 80 Alliance Trust Global Thematic Opportunities Fund Notes to the financial statements for the period ended 31 December 2013 (continued) b) Interest rate risk The interest rate risk profile of the sub-fund s financial assets and liabilities at 31 December 2013 was as follows: Floating rate financial assets* ( ) Fixed rate financial assets ( ) Financial assets not carrying interest ( ) Total ( ) Currency Danish krone - - 3,501,974 3,501,974 Euro 52,972-25,739,946 25,792,918 Hong Kong dollar - - 1,331,342 1,331,342 Indonesian rupiah - - 1,214,135 1,214,135 Japanese yen - - 8,281,941 8,281,941 Mexican peso - - 3,604,771 3,604,771 Singapore dollar 952, ,041 South Korean won - - 4,749,418 4,749,418 Swiss franc - - 8,581,639 8,581,639 Taiwan dollar 6,974-3,068,086 3,075,060 Sterling 499,426-28,220,448 28,719,874 US dollar 1,908, ,577, ,485,894 Total 3,420, ,870, ,291,007 Floating rate financial liabilities* ( ) Financial liabilities not carrying interest ( ) Total ( ) Currency Sterling - (99,578) (99,578) Total - (99,578) (99,578) The interest rate risk profile of the sub-fund s financial assets and liabilities at 31 December 2012 was as follows: Floating rate financial assets* ( ) Fixed rate financial assets ( ) Financial assets not carrying interest ( ) Total ( ) Currency Australian dollar 2-3,416,299 3,416,301 Canadian dollar - - 4,581,802 4,581,802 Danish krone - - 4,366,851 4,366,851 Euro ,955,731 12,955,731 Indonesian rupiah - - 1,294,706 1,294,706 Singapore dollar 125, ,257 South Korean won - - 6,661,052 6,661,052 Swedish krona - - 2,191,231 2,191,231 Swiss franc ,203,613 11,203,613 Sterling 1,828,882-11,641,325 13,470,207 US dollar 2,731, ,586, ,318,559 Total 4,686, ,899, ,585,310 Floating rate financial liabilities* ( ) Financial liabilities not carrying interest ( ) Total ( ) Currency Euro (15) - (15) Sterling - (62,477) (62,477) US dollar - (1,479,832) (1,479,832) Total (15) (1,542,309) (1,542,324) * Changes in the base rate will cause movements in the interest rate applied to cash balances and overdrafts. The sub-fund holds cash on a deposit account with the National Westminster Bank plc which has an interest rate of the Bank of England base rate less 50 basis points. Other bank accounts of the sub-fund held with the Bank of New York Mellon have a contractual right of set off. Interest receivable in the net position is currently at a rate of 0.25% and interest payable at 2%. There are no material amounts of non-interest bearing financial assets, other than equities, which do not have a maturity date.

83 Report & Accounts December 2013 Alliance Trust Global Thematic Opportunities Fund 81 Notes to the financial statements for the period ended 31 December 2013 (continued) 14. Portfolio transaction costs Analysis of total purchase costs Purchases in the period before transaction costs 142,166, ,291,152 Commissions 228, ,715 Other costs 96, ,465 Total purchase costs 325, ,180 Gross purchase total 142,492, ,733,332 Analysis of total sale costs Gross sales in the period before transaction costs 137,931, ,723,195 Commissions (221,116) (257,499) Other costs (4,446) (14,518) Total sales costs (225,562) (272,017) Total sales net of transaction costs 137,706, ,451, Non Adjusting Post Balance Sheet Event Since the last business day of the accounting period, the Fund s quoted net asset value per share has risen as shown below: Class Net asset value as at (pence) Net asset value as at (pence) Rise/Fall (%) A Accumulation % B Accumulation % P Accumulation % Z Accumulation % This movement takes into account routine transactions but also reflects the market movements of recent months.

84 Alliance Trust Investment Funds ICVC 82 Alliance Trust Global Thematic Opportunities Fund Distribution Table for the period ended 31 December 2013 Final distribution Accumulation shares Group 1 - Shares purchased prior to 1 July 2013 Group 2 - Shares purchased 1 July 2013 to 31 December 2013 Accumulation shares Net revenue pence per share Equalisation pence per share* Distribution paid pence per share Distribution paid pence per share Class A - Group Class A - Group Class B - Group Class B - Group Class P - Group Class P - Group Class Z - Group Class Z - Group Interim distribution Accumulation shares Group 1 - Shares purchased prior to 1 January 2013 Group 2 - Shares purchased 1 January 2013 to 30 June 2013 Distribution paid pence per share Distribution paid pence per share Accumulation shares Net revenue pence per share Equalisation pence per share* Class A - Group Class A - Group Class B - Group Class B - Group Class P - Group Class P - Group Class Z - Group Class Z - Group * Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. As capital,it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

85 Report & Accounts December 2013 Alliance Trust Dynamic Bond Fund 83 Alliance Trust Dynamic Bond Fund Report for the period from 1 January 2013 to 31 December 2013 Investment objective and policy The Fund aims to provide a positive absolute return over 12 month rolling periods whilst seeking to provide an annualised total return (a combination of growth and income) of 6% over three year rolling periods. For the avoidance of doubt, the Fund does not offer any form of guarantee with respect to investment performance over any time period. No form of capital protection will apply and capital is therefore at risk. The Fund aims to achieve its objective by actively managing a portfolio of assets predominantly comprising bonds, derivative instruments, and cash and near cash. The Fund will invest in a broad universe of bonds, including government bonds, investment-grade bonds and high yield bonds. The Fund may also invest in other assets including collective investment schemes, other transferable securities and other debt instruments, warrants and money market instruments. beta by moving lower in the credit structure of financial companies. The Fund will use forward and derivative instruments for the purposes of efficient portfolio management (including hedging) ( EPM ) and investment purposes. Derivative use will include, but is not limited to, bond futures, interest rate swaps, credit default swaps and foreign exchange instruments. Other derivative instruments may be used from time to time. Portfolio composition and allocation will vary significantly over the cycle and derivatives will be used to enhance market liquidity. Currency exposure in the fund will be managed actively within defined limits. In addition, internal limits will restrict interest rate and credit exposure, including a restriction preventing net exposure to credit exceeding 75%. The use of derivative and forward transactions for the purpose of meeting the Fund s investment objectives may increase the risk profile of the Fund. Investment review Market review The Fund returned just below 5% over the year, gross of management fees and fund expenses. The return was evenly split between credit and government bond strategies. Within credit we have maintained our exposure to the financial and insurance sectors. In the last quarter we increased our financial credit exposure through higher beta bond selection while our nominal exposure remained fairly static through the year. In the corporate sector we were selectively exposed to hybrid bonds. Against these positions we bought protection on investment grade and high yield credit in the US where in our view the risk reward profile of the asset class is not as compelling. In our rates strategy we kept a short bias towards G3 government bonds throughout the entire year. Our short duration position mainly focused on the UK and the US. The fund also benefited from long positions in Spain, Italy, Australia and New Zealand. Portfolio Activity The fund maintained a long credit beta exposure throughout the period. Toward the end of the year we increased our credit beta exposure as the economic environment improved in the developed markets and found some stability in Emerging Market economies. We increased our credit beta by moving lower in the credit structure of financial companies. In corporate bonds our exposure remained very moderate and through the period we gained selective exposure to some corporate hybrids. In rates we have been of the view that Government bonds in developed economies do not offer an attractive risk reward profile. Consistent with this view, we have maintained a short duration exposure to G3 markets. The magnitude of the short duration exposure has fluctuated between flat and minus two years on the overall fund. In the last quarter we have marginally reduced our short duration position as we see the market more fairly priced but we are looking for opportunities to sell the market again, as yields reprice lower or we have further confirmation of our positive economic outlook. In currencies, we believe that over the medium term the dollar will appreciate. The US is ahead of most countries in the economic cycle, interest rate differentials and an improving current account should be the key drivers of dollar outperformance in the coming quarters. Portfolio Outlook We expect a confirmation of the better economic environment in the developed and emerging economies over the coming year. This should be a good environment for risk, therefore we expect a moderate tightening of credit spreads. We believe that the financial sector still offers attractive investment opportunities with stock selection becoming an increasingly important driver of performance. This economic environment should also cause a repricing of interest rate expectations which should drive government bond yields moderately higher during the year. Our yield forecast is modestly higher than the forwards are pricing. We envisage maintaining our short duration bias over the coming months unless the macroeconomic reality suggests that the yield adjustment to date is sufficient. Material Portfolio Changes Purchases UKTREASURY 4.75% 07/09/2015 Sales GERMANY BUNDESOBL-I/L 0.75% 15/04/2018

86 Alliance Trust Investment Funds ICVC 84 UK TREASURY 5% 07/09/2014 UK TREASURY 2.75% 22/01/2015 SPANISH GOV T 5.4% 31/01/2023 UK TREASURY 3.5% 22/07/2068 UK TSY I/L STOCK 2.5% 26/07/2016 SWEDISH GOVRNMNT 3.5% 01/06/2022 GERMANY BUNDESOBL-I/L 0.75% 15/04/2018 UK TSY I/L STOCK 2.5% 16/04/2020 UK TSY I/L STOCK 2.5% 26/07/2016 UK TREASURY 2.75% 22/01/2015 SPANISH GOV T 5.4% 31/01/2023 UK TSY I/L STOCK 2.5% 26/07/2016 SWEDISH GOVRNMNT 3.5% 01/06/2022 UK TREASURY 5% 07/03/2018 THYSSENKR 4% 27/08/2018 THYSSENKR 4% 27/08/2018 UK TREASURY /03/2014 ITALY BTPS I/L 2.1% 15/09/2016 This fund may invest in derivatives. Derivatives are used to protect against currencies, credit and interests rates move or for investment purposes. There is therefore a risk that losses could be made on derivative positions. This fund may invest in government or corporate bonds. The issuers of these may become insolvent which will mean that bonds may lose some or all of their value. Risk and Reward Profile The Risk and Reward Indicator table demonstrates where the Fund ranks in terms of its potential risk and reward. The higher the rank the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund. The shaded area in the table below shows the Fund s ranking on the Risk and Reward Indicator. Typically lower rewards, lower risk Typically higher rewards, higher risk This Fund is ranked at 3 based on the expected level of volatility of this Fund. Please note that even the lowest risk class can lose you money and that extreme market circumstances can mean you suffer severe losses in all cases. The indicator does not take into account the following risks of investing in this Fund: Investing globally can bring additional returns and diversify risk. However, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment. This fund holds a limited number of investments. If one of these investments falls in value this can have a greater impact on the fund s value than if it held a larger number of investments. This fund may invest in emerging markets or less developed countries; these may have less regulatory control and less supervision of their financial markets, and consequently less investor protection. Transaction costs, commissions and local taxes may be higher than in more developed financial markets. This may all mean your money is at greater risk.

87 Report & Accounts December Portfolio statement as at 31 December 2013 Holding Stock Description Market value ( ) Percentage of total net assets (%) UNITED KINGDOM GOVERNMENT BONDS %; (31 December %) 2,000,000 UK Treasury 0% 3/3/2014 1,998, ,000,000 UK Treasury 0% 17/3/2014 1,998, ,000,000 Treasury 2.25% Gilt 7/3/2014 7,020, ,500,000 Treasury 2.75% Stock 22/1/2015 2,557, ,700,000 Treasury 3.25% Bonds 22/1/2044 1,571, ,025,000 Treasury 4.75% Stock 7/9/2015 5,372, ,000,000 Treasury 5% Stock 7/9/2014 5,179, ,698, STERLING DENOMINATED DEBT SECURITIES %; (31 December %) 847,000 Barclays Bank 8.25% Guaranteed Perpetual Subordinated Floating Rate European Medium 919, Term Bonds 600,000 Co-Operative Bank 5.125% Guaranteed Senior European Medium Term Notes 20/9/ , ,000 GE Capital 6.5% Guaranteed Subordinated Floating Rate Bonds 15/9/ , ,000,000 GE Capital UK Funding % Floating Rate Notes 9/5/2016 1,996, ,000,000 LBG Capital No % Bonds 14/9/2023 1,145, ,000 RSA Insurance 9.375% Guaranteed Floating Rate Bonds 20/5/ , ,000 Telefonica Europe BV 6.75% Floating Rate 29/11/ , ,209, STERLING DENOMINATED FORWARD EXCHANGE CONTRACTS %; (31 December %) 822,752 UK sterling vs Australian dollar 53, ,432,945 UK sterling vs Australian dollar 181, ,252 UK sterling vs Euro ,801 UK sterling vs Euro 4, ,178 UK sterling vs Euro 10, ,055 UK sterling vs Euro 2, ,062 UK sterling vs Euro 4, ,922,595 UK sterling vs Euro 10, ,103,858 UK sterling vs Euro 135, ,503,560 UK sterling vs New Zealand dollar 13, ,250,173 UK sterling vs New Zealand dollar 178, ,618 UK sterling vs US dollar 1, ,763 UK sterling vs US dollar 10, ,310,623 UK sterling vs US dollar 221, , STERLING DENOMINATED INTEREST RATE SWAPS - (0.04)%; (31 December %) 3,500,000 Pay GBP 20yr 30y Forward (1,138) ,500,000 Pay GBP 20yr 30y Forward (12,725) (0.02) 9,500,000 Pay GBP 10Yr 30Yr Forward (22,734) (0.04) 1,500,000 Pay GBP 30 Yr 14, (21,786) (0.04) STERLING DENOMINATED OPEN FUTURES CONTRACTS - (0.01)%; (31 December %) 7 Long Gilt March 2014 (8,540) (0.01) AUSTRALIAN GOVERNMENT BONDS %; (31 December %) AUSTRALIAN DOLLAR DENOMINATED DEBT SECURITIES %; (31 December %) 2,800,000 Rabobank Nederland 2.805% Index Linked Bonds 28/8/2020 1,763, ,000,000 Royal Bank Of Scotland 6.5% Floating Rate Medium Term Note 17/5/ , ,244,

88 Alliance Trust Investment Funds ICVC 86 Alliance Trust Dynamic Bond Fund Portfolio statement as at 31 December 2013 (continued) Holding Stock Description Market value ( ) Percentage of total net assets (%) AUSTRALIAN DOLLAR DENOMINATED FORWARD EXCHANGE CONTRACTS %; (31 December %) 1,500,000 Australian dollar vs New Zealand dollar 3, ,675,000 Australian dollar vs UK sterling (4,517) (0.01) 1,000,000 Australian dollar vs US dollar 1, , AUSTRALIAN DOLLAR DENOMINATED OPEN FUTURES CONTRACTS - (0.06)%; (31 December %) (50) Australian 10 Year Bond March 2014 (36,597) (0.06) EURO GOVERNMENT BONDS %; (31 December %) 2,500,000 Italy Buoni Poliennali Del Tesoro 2.45% 26/3/2016 2,121, ,375,000 Italy Buoni Poliennali Del Tesoro 2.55% 22/10/2016 2,875, ,100,000 Spain Government Bond 2.1% 30/04/17 3,399, ,396, EURO DENOMINATED DEBT SECURITIES %; (31 December %) 750,000 Achmea 6% Subordinated Floating Rate Notes 4/4/ , ,000 Achmea 2.5% 19/11/ , ,500,000 Hutchison Whampoa Europe Finance % Guaranteed Perpetual Floating Rate Notes 1,210, ,000 Lloyds TSB Bank % Subordinated Floating Rate European Medium Term Bonds 1,060, /2/ ,000 Ngg Finance 4.25% Guaranteed Floating Rate Bonds 18/6/ , ,000 Origin Energy 7.875% Variable Guaranteed Bonds 16/6/ , ,000,000 Rabobank Nederland 6.875% Senior European Medium Term Bonds 19/3/ , ,000 Santos Finance 8.25% Guaranteed Floating Rate European Medium Term Bonds 22/9/ , ,605, EURO DENOMINATED INTEREST RATE SWAPS - (0.05)%; (31 December %) 20,000,000 RECV IRS:PAY0.94EUR (28,991) (0.05) EURO DENOMINATED CREDIT DEFAULT SWAPS - (1.64)%; (31 December %) (10,500,000) Sell protection SNR Financials (Dec 18) 56, ,000,000 Buy Protection Sub Financials (Dec 18) (1,032,769) (1.70) 3,500,000 Buy protection Senior Financials (Dec 18) (18,798) (0.03) (995,174) (1.64) EURO DENOMINATED OPEN FUTURES CONTRACTS %; (31 December (0.10)%) (27) Euro-Bund March , EURO DENOMINATED FORWARD EXCHANGE CONTRACTS - (0.17)%; (31 December %) 1,100,000 Euro vs Swiss franc (4,440) (0.01) 205,000 Euro vs UK sterling (2,279) ,000 Euro vs UK sterling 1, ,000 Euro vs UK sterling ,000 Euro vs UK sterling (7,025) (0.01) 1,200,000 Euro vs UK sterling (6,424) (0.01) 1,500,000 Euro vs UK sterling (9,436) (0.01) 2,300,000 Euro vs UK sterling (15,829) (0.03) 7,550,000 Euro vs UK sterling (59,041) (0.10) (102,628) (0.17)

89 Report & Accounts December 2013 Alliance Trust Dynamic Bond Fund 87 Portfolio statement as at 31 December 2013 Holding Stock Description Market value ( ) Percentage of total net assets (%) JAPANESE YEN DENOMINATED FORWARD EXCHANGE CONTRACTS - (0.16)%; (31 December (0.02)%) 170,000,000 Japanese yen vs US dollar (57,774) (0.10) 200,000,000 Japanese yen vs US dollar (35,836) (0.06) (93,610) (0.16) NEW ZEALAND DOLLAR GOVERNMENT BONDS %; (31 December %) 6,500,000 New Zealand Government 3% Index Linked Bonds 20/9/2030 3,247, ,500,000 New Zealand Government 4.5% Index Linked Bonds 15/2/2016 1,174, ,421, NEW ZEALAND DOLLAR DENOMINATED FORWARD EXCHANGE CONTRACTS - (0.08)%; (31 December (0.04)%) 1,500,000 New Zealand dollar vs UK sterling (5,388) (0.01) 2,750,000 New Zealand dollar vs UK sterling (44,940) (0.07) (50,328) (0.08) UNITED STATES GOVERNMENT BONDS %; (31 December %) 5,000,000 US Treasury 1.25% Index Linked 15/4/2014 3,354, UNITED STATES DOLLAR DENOMINATED DEBT SECURITIES %; (31 December %) 200,000 Credit Suisse 7.5% Floating Rate 11/12/ , ,000,000 Societe Generale 7.875% Floating Rate 29/12/ , , UNITED STATES DOLLAR DENOMINATED CREDIT DEFAULT SWAPS - (0.14)%; (31 December (0.43)%) 7,500,000 Buy protection US Investment Grade 5yr (Dec 18) (82,241) (0.14) UNITED STATES DOLLAR DENOMINATED FORWARD EXCHANGE CONTRACTS - (0.01)%; (31 December (0.03)%) 928,349 US dollar vs Australian dollar 20, ,828 US dollar vs Euro (14,653) (0.02) 1,343,462 US dollar vs Euro (20,806) (0.03) 1,706,661 US dollar vs Japanese yen 53, ,923,859 US dollar vs Japanese yen 12, ,638,213 US dollar vs Swiss franc (29,340) (0.05) 850,000 US dollar vs UK sterling (11,528) (0.02) 1,280,000 US dollar vs UK sterling (8,918) (0.01) 2,020,000 US dollar vs UK sterling (10,122) (0.02) (8,095) (0.01) UNITED STATES DOLLAR DENOMINATED OPEN FUTURES CONTRACTS - (0.12)%; (31 December %) (70) US 5 Year Note (CBT) March , (25) US 10 Year Note (CBT) March , , Portfolio of investments 56,196, Net other assets 4,463, Total net assets 60,659,

90 Alliance Trust Investment Funds ICVC 88 Alliance Trust Dynamic Bond Fund Performance record as at 31 December 2013 Launch date 28 September 2012 Share price history Calendar year Highest price Lowest price 2013 B Net Accumulation 105.6p 102.1p B Gross Accumulation 105.9p 102.1p Z Gross Accumulation 106.7p 102.2p 2012 B Net Accumulation* 102.1p 100.0p B Gross Accumulation* 102.1p 100.0p Z Gross Accumulation* 102.2p 100.0p * From 28 September 2012 General price information Fund period end 31 December 2013 price 31 December 2012 price B Net Accumulation 105.4p 101.7p B Gross Accumulation 105.7p 101.7p Z Gross Accumulation 106.5p 101.8p Income record The record of net distributions per share and per 1,000 invested is shown below. Calendar year per share per 1, B Net Accumulation* p 6.81 B Gross Accumulation* p 8.38 Z Gross Accumulation* p B Net Accumulation p B Gross Accumulation p Z Gross Accumulation p B Net Accumulation** - - B Gross Accumulation** - - Z Gross Accumulation** - - * To 28 February 2014 ** From 28 September 2012 Net Asset Value Fund period end Shares in issue Net Asset Value Net Asset Value per share 31 December 2013 B Net Accumulation 979,504 1,032, p B Gross Accumulation 6,038,550 6,381, p Z Gross Accumulation 50,001,000 53,245, p 31 December 2012 B Net Accumulation 195, , p B Gross Accumulation 1,000 1, p Z Gross Accumulation 50,001,000 50,944, p Ongoing Charges Figure* (previously Total Expense Ratio) 31 December 2013 B Net Accumulation 0.73% B Gross Accumulation 0.76% Z Gross Accumulation 0.16% * The Ongoing Charges Figure (OCF) represents the annual operating expenses of the Fund expressed as a percentage of the average net assets for the period - it does not include initial charges or performance fees. The OCF includes the annual management charge and all charges which are deducted directly from the Fund. The OCF is expressed as an annual percentage rate.

91 Report & Accounts December 2013 Alliance Trust Dynamic Bond Fund 89 Statement of total return for the period ended 31 December 2013 Note to to Income Net capital gains 2 1,232, ,491 Revenue 3 1,354, ,632 Expenses 4 (127,708) (29,423) Finance costs: Interest 6 (7,013) (729) Net revenue before taxation 1,219, ,480 Taxation (152) Net revenue after taxation 1,219, ,328 Total return before distributions 2,452, ,819 Finance costs: Distributions 6 (1,219,745) (267,328) Change in net assets attributable to shareholders from investment activities 1,232, ,491 Statement of change in net assets attributable to shareholders for the period ended 31 December to to Opening net assets attributable to shareholders 51,144,122 - Movement due to issue and cancellation of shares: Amounts received on creation of shares 7,106,766 50,198,113 Amounts paid on cancellation of shares (61,109) - 7,045,657 50,198,113 Dilution adjustment - 7 Change in net assets attributable to shareholders from investment activities 1,232, ,491 Retained distribution on accumulation shares 1,237, ,511 Closing net assets attributable to shareholders 60,659,945 51,144,122 Notes to the Financial Statements are on pages 90 to 96. Balance Sheet as at 31 December 2013 Note Assets Investment assets 57,789,034 33,242,489 Debtors 7 639, ,613 Cash and bank balances 8 3,871,031 18,078,390 Total other assets 4,510,077 18,594,003 Total assets 62,299,111 51,836,492 Liabilities Investment liabilities (1,592,829) (630,337) Creditors 9 (46,337) (29,701) Amounts held at futures clearing houses and brokers - (32,332) Total other liabilities (46,337) (62,033) Total liabilities (1,639,166) (692,370) Net assets attributable to shareholders 60,659,945 51,144,122 The notes on pages 90 to 96 form an integral part of these financial statements. The distribution per share is set out in the table on page 97.

92 Alliance Trust Investment Funds ICVC 90 Alliance Trust Dynamic Bond Fund Notes to the financial statements for the period ended 31 December Accounting policies The accounting policies for the sub-fund are set out in note 1 of the aggregate accounts on pages 6 to Net capital gains to Gains on non-derivative contracts 63, ,007 Gains/(losses) on derivative contracts 241,521 (133,188) Gains/(losses) on forward currency contracts 1,026,526 (111,574) Currency (losses)/gains (101,849) 58,649 Transaction charges 2,944 (3,403) Net capital gains 1,232, , Revenue to Bank interest 3, Income from credit default swaps - 39,072 Income from interest rate swaps (31,973) - Interest from Overseas debt securities 866, ,346 Interest from UK debt securities 515, ,202 Total revenue 1,354, , Expenses to Payable to the ACD, associates of the ACD, and agents of either of them: ACD s periodic charge 32, Registration fees , Payable to the Depositary, associates of the Depositary, and agents of either of them: Depositary fees 26,571 6,022 Safe custody fees 1,812 1,260 28,383 7,282 Other expenses Administration fees 48,784 10,271 Audit fees 8,378 8,100 FCA fees Legal fees 2, Management accounts fees 4,000 1,008 Printing fees 2, Reconciliation fees ,381 21,391 Total expenses 127,708 29,423 Irrecoverable VAT is included in the above expenses where relevant.

93 Report & Accounts December 2013 Alliance Trust Dynamic Bond Fund 91 Notes to the financial statements for the period ended 31 December 2013 (continued) 5. Taxation a) Analysis of charge in period to Corporation tax Prior year adjustment (853) - Total current tax charge for the period (see note 5(b)) (406) 152 b) Factors affecting current tax charge for the period The taxation assessed for the period is lower (prior period: lower) than the standard rate of corporation tax in the UK for a OEIC (20%). The differences are explained below: to Net revenue before taxation 1,219, ,480 Return on ordinary activities multiplied by the standard rate of Corporation Tax of 20% 243,868 53,496 Effects of: Corporation Tax effect expenses disallowed Prior year 20% Prior year adjustment (853) - Tax deductible interest distributions (244,039) (53,496) Total current tax charge for period (see note 5(a)) (406) 152 Each sub-fund of an authorised OEIC is exempt from tax on capital gains made within the sub-fund. 6. Finance costs Accumulations and interest The accumulations take account of revenue received on creation of shares and revenue paid on the cancellation of units and comprise: to Interim 601,947 - Final 637, ,497 1,239, ,947 Add: revenue deducted on cancellation of units Less: revenue received on creation of units (20,161) (169) Net distribution 1,219, ,328 Interest 7, Total finance costs 1,226, ,057 The Distribution per share is set out in the table on page 82. Refer to note k) Distributions, on page 7 for the relevant accounting policy. 7. Debtors Accrued revenue 626, ,103 Amounts receivable for creation of shares 12,815 - Sales awaiting settlement - 19,510 Total debtors 639, , Cash and bank balances Amount held at futures clearing houses and brokers 916, ,356 Cash and bank balances 2,954,289 17,721,034 Total cash and bank balances 3,871,031 18,078,390

94 Alliance Trust Investment Funds ICVC 92 Alliance Trust Dynamic Bond Fund Notes to the financial statements for the period ended 31 December 2013 (continued) 9. Creditors Accrued expenses 39,174 28,564 Corporation tax payable Income tax payable 1, Purchases awaiting settlement 4,930 - Total creditors 46,337 29, Contingent liabilities and outstanding commitments There were no contingent liabilities or outstanding commitments at the balance sheet date. 11. Related party transactions The balance due to Alliance Trust Investments Limited and its associates at the period end was 3,185 (prior period: 97). The total expense due to Alliance Trust Investments Limited and its associates for the period was 32,514 (prior period: 156). The following party held a material holding in the sub-fund as at the period end date: Alliance Trust PLC 100% of the Class Z Gross Accumulation shares. 12. Share classes The Fund currently has three share classes; Class B (Institutional) Gross and Net and Class Z (Institutional) Gross; Accumulation. The ACD s periodic charge on each share class is as follows: Class B Net Accumulation: 0.60% (prior period: 0.60%) Class B Gross Accumulation: 0.60% (prior period: 0.60%) Class Z Gross Accumulation: 0.00% (prior period: 0.00%)

95 Report & Accounts December 2013 Alliance Trust Dynamic Bond Fund 93 Notes to the financial statements for the period ended 31 December 2013 (continued) 13. Derivatives and other financial instruments The risks inherent in the Fund s investment portfolio are as follows: In pursuing its investment objective and investment policy, the Fund holds a number of financial instruments. These may comprise: Investment grade Corporate bonds and Government bonds (Both Sterling and non-sterling). These are held in accordance with the Fund s investment policies; Sub-investment grade bonds, covered bonds and preference shares. Cash, liquid resources and short-term debtors and creditors that arise directly from its operation; Shareholders funds, which represent investors monies that are invested on their behalf; Derivative transactions which the Fund may enter into, the purpose of which is to manage certain aspects of the risks arising from the Fund s investment activities. Currently the fund utilises interest rate swaps and bond futures to manage interest rate risk, credit default swaps to manage credit exposure and forward fx positions to manage currency exposure; Short-term borrowings used to finance operational cash flows. Derivatives are also used for investment purposes not just to manage risk/exposures. The main risks arising from the financial instruments are market price (including emerging markets price risk ), foreign currency, interest rate, liquidity and counterparty credit risk. The ACD reviews the policies for managing each of these risks and they are summarised below. These policies have remained unchanged since the beginning of the period to which these financial statements relate. It should be noted that the ACD has a detailed Risk Management Policy which is reviewed and updated, if necessary, periodically. An independent Risk Function is also present who monitor all relevant risks appropriately. Market price risk Market price risk is the risk that the Fund might suffer potential loss through holding market positions in the face of price movements. It arises mainly due to uncertainty about future prices of financial instruments held. The Fund s investment portfolio is monitored by the ACD in pursuance of its investment objective and policy as set out in the Prospectus. Futures contracts may be used to hedge against market price risk where deemed appropriate for efficient portfolio management purposes. Currency risk Currency risk is the risk that the revenue and net asset value of the Fund may be adversely affected by movements in foreign exchange rates. The revenue and capital value of the Fund s investments can be significantly affected by currency risk movements as some of the assets and income are denominated in currencies other than Sterling, which is the Company s functional and reporting currency. The ACD has identified three principal areas where foreign currency risk could impact the Fund: movements in exchange rates affecting the value of investments; movements in exchange rates affecting short-term timing differences; and movements in exchange rates affecting the income received. Currency exposure is monitored closely and is considered to be part of the overall investment process. Currency hedges via forward exchange contracts will only be used in the event of a specific currency risk being identified. The Fund may be subject to short-term exposure to exchange rate movements, for instance, where there is a difference between the date an investment purchase or sale is entered into and the date when settlement of the proceeds occurs. The ACD believes that the impact of such movements is not significant enough to warrant the cost incurred of eliminating them via hedging. The Fund may receive income in currencies other than Sterling, and the Sterling values of this income can be affected by movements in exchange rates. Interest rate risk Interest rate risk is the risk that the revenue cashflow or the fair value of investments may be adversely affected by movements in market interest rates. The Fund s revenue is generated by the holding of bonds, which contractually oblige the borrower to repay the Fund interest under specific terms. Changes to interest rates may affect the cash inflows and outflows calculated with reference to financial assets and liabilities. By a careful assessment of economic and other relevant factors, the Fund Manager will seek to invest in those companies most likely to benefit, or be shielded, from anticipated changes in interest rates. Liquidity risk Liquidity risk is the risk that the Fund will not be able to meet its obligations as they fall due. The Fund s assets comprise wholly of readily realisable securities which can be sold to meet liquidity requirements. The main liquidity risk of the Fund is the redemption of any shares that investors wish to sell, which are redeemable on demand under the Prospectus.

96 Alliance Trust Investment Funds ICVC 94 Alliance Trust Dynamic Bond Fund 13. Derivatives and other financial instruments (continued) Counterparty credit risk Counterparty credit risk is the risk of suffering loss due to another party not meeting its financial obligation. Investments may be adversely affected if any of the institutions with which money is deposited or invested suffers insolvency or other financial difficulties or the credit rating of the bearers of the bonds held by the Fund are downgraded. The Fund holds bonds issued by companies and governments in order to achieve its investment objective. Any impairment to the borrower s ability to repay amounts due may result in changes to the tradable value of the bond and the amount to be received upon maturity of the bond. The ability of the borrower to repay not only the principal value but also any interest due on the bond, referred to as the borrower s credit rating, is monitored by the Manager. The Fund may enter into transactions in financial instruments (including derivatives) which exposes it to the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Fund will only buy and sell financial instruments through parties that have been approved as acceptable by the ACD. The Fund may enter into stock lending activities which exposes it to the risk that the counterparty will not deliver the stock or cash after the Fund has fulfilled its obligations. The Fund will only enter into stock lending activities with parties that have been approved as acceptable by the ACD and obtain collateral from counterparties with a fair value in excess of the related stock on loan. Fair value of financial assets and financial liabilities There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet, and their fair value. The numerical disclosures in respect of financial instruments and the management of interest rate and currency risks are included below where applicable. Risk management process The Fund adopts full UCITS IV derivative powers in its scheme documentation, using the COLL VaR based absolute approach. This is consistent with the sophisticated total return focused nature of the Fund. The use of derivatives will be strictly controlled by the Group s approved derivative policy. Since inception the Fund Absolute VaR has fluctuated between 0.5% and 2.5% (20 business days 99% confidence). The maximum VaR permitted is 7%, the Head of Fixed Income will have to approve VaR levels above 5%. The Fund s global exposure to derivatives at the period-end calculated on a gross commitment basis was 135,517,875 (2012: 78,239,066). At the period-end no collateral was received from these counterparties in respect of derivative contracts. Collateral pledged to these counterparties in respect of derivative contracts was 2,318, wholly in the form of UK Treasury bonds. a) Currency exposures A proportion of the net assets of the Fund are denominated in currencies other than Sterling, with the effect that the balance sheet and total return can be affected by currency movements. As at 31 December 2013 the Fund had the following net currency exposure: Net foreign currency assets/(liabilities) Monetary exposure Non-monetary exposure Total Currency Australian dollar 14, , ,345 Canadian dollar 2,713-2,713 Euro 10,810 (297,134) (286,324) Japanese yen 47,050-47,050 Mexican peso 692, ,018 New Zealand dollar 2,393 (830,992) (828,599) Swiss franc 28,128 (1,938,209) (1,910,081) UK sterling 2,871,168 56,826,875 59,698,043 US dollar 201,868 2,120,912 2,322,780 Total 3,871,031 56,788,914 60,692,945 As at 31 December 2012 the Fund had the following net currency exposure: Net foreign currency assets/(liabilities) Monetary exposure Non-monetary exposure Total Currency Australian dollar 35,253 (3,520) 31,733 Euro 194,685 58, ,055 Japanese yen - (230) (230) New Zealand dollar 8,746 (9,724) (978) UK sterling 17,761,623 32,287,623 50,049,246 US dollar 45, , ,296 Total 18,046,058 33,098,064 51,144,122

97 Report & Accounts December 2013 Alliance Trust Dynamic Bond Fund 95 Notes to the financial statements for the period ended 31 December 2013 (continued) b) Interest rate risk The interest rate risk profile of the sub-fund s financial assets and liabilities at 31 December 2013 was as follows: Floating rate financial assets* ( ) Fixed rate financial assets ( ) Financial assets not carrying interest ( ) Total ( ) Currency Australian dollar 496,675 1,763,063 2,259,974 4,519,712 Canadian dollar 2, ,713 Euro 4,161,632 9,851,319 13,008,951 27,021,902 Japanese yen 47,050-2,125,806 2,172,856 Mexican peso 692, ,018 New Zealand dollar 2,393 4,421,963 2,119,516 6,543,872 Swiss franc 28, ,128 UK sterling 7,334,337 27,445,426 42,452,564 77,232,327 US dollar 937,868 3,354,393 7,690,210 11,982,471 Total 13,702,814 46,836,164 69,657, ,195,999 Floating rate financial liabilities* ( ) Financial liabilities not carrying interest ( ) Total ( ) Currency Australian dollar - (3,597,367) (3,597,367) Euro - (27,308,226) (27,308,226) Japanese yen - (2,125,806) (2,125,806) New Zealand dollar - (7,372,471) (7,372,471) Swiss franc - (1,938,209) (1,938,209) UK Sterling - (17,534,284) (17,534,284) US dollar - (9,659,691) (9,659,691) Total - (69,536,054) (69,536,054) The interest rate risk profile of the sub-fund s financial assets and liabilities at 31 December 2012 was as follows: Floating rate financial assets* ( ) Fixed rate financial assets ( ) Financial assets not carrying interest ( ) Total ( ) Currency Australian dollar 600,644 2,795, ,307 3,898,849 Euro 2,303,625 8,847, ,948 11,767,930 Japanese yen , ,682 New Zealand dollar 8,746 1,238, ,694 2,074,363 UK sterling 19,785,206 13,481,137 20,054,886 53,321,229 US dollar 45,751 1,733,890 2,391,754 4,171,395 Total 22,743,972 28,097,205 24,876,271 75,717,448 Floating rate financial liabilities* ( ) Financial liabilities not carrying interest ( ) Total ( ) Currency Australian dollar - (3,867,116) (3,867,116) Euro (32,332) (11,482,543) (11,514,875) Japanese yen - (483,912) (483,912) New Zealand dollar - (2,075,341) (2,075,341) UK sterling - (3,271,983) (3,271,983) US dollar - (3,360,099) (3,360,099) Total (32,332) (24,540,994) (24,573,326) * Changes in the base rate will cause movements in the interest rate applied to cash balances and overdrafts. The sub-fund holds cash on a deposit account with the National Westminster Bank plc which has an interest rate of the Bank of England base rate less 50 basis points. Other bank accounts of the sub-fund held with the Bank of New York Mellon have a contractual right of set off. Interest receivable in the net position is currently at a rate of 0.25% and interest payable at 2%.

98 Alliance Trust Investment Funds ICVC 96 Alliance Trust Dynamic Bond Fund Notes to the financial statements for the period ended 31 December 2013 (continued) b) Interest rate risk (continued) The following table represents the weighted average interest rate on the market value of the fixed interest securities held by the sub-fund at 31 December 2013 Weighted average fixed interest rate (%) Weighted average period for which rate is fixed Total Currency equivalent ( ) Australian Dollar 1,763, years Euro 9,851, years New Zealand dollar 4,421, years UK sterling 27,445, years US dollar 3,354, years The weighted average interest on the fixed rate financial assets at 31 December 2012 was as follows: Currency Total equivalent ( ) Weighted average fixed interest rate (%) Weighted average period for which rate is fixed Australian Dollar 2,795, years Euro 8,847, years New Zealand dollar 1,238, years UK sterling 13,481, years US dollar 1,733, years 14. Portfolio transaction costs Analysis of total purchase costs to Purchases in the year before transaction costs 174,497,349 47,367,216 Gross purchase total 174,497,349 47,367,216 Analysis of total sale costs to Gross sales in the year before transaction costs 151,967,207 16,406,561 Total sales net of transaction costs 151,967,207 16,406, Non Adjusting Post Balance Sheet Event Since the last business day of the accounting period, the Fund s quoted net asset value per share has risen as shown below: Class Net asset value as at (pence) Net asset value as at (pence) Rise/Fall (%) B Net Accumulation % B Gross Accumulation % Z Gross Income % This movement takes into account routine transactions but also reflects the market movements of recent months.

99 Report & Accounts December 2013 Alliance Trust Dynamic Bond Fund 97 Distribution Table for the period ended 31 December 2013 Final distribution Group 1 - Shares purchased prior to 1 July 2013 Group 2 - Shares purchased 1 July 2013 to 31 December 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Distribution paid Accumulation shares Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class Z Gross - Group Class Z Gross - Group Interim distribution Group 1 - Shares purchased prior to 1 January 2013 Group 2 - Shares purchased 1 January 2013 to 30 June 2013 Gross income pence per share Income tax pence per share* Net income pence per share Equalisation pence per share** Distribution paid Accumulation Shares Class B Net - Group Class B Net - Group Class B Gross - Group Class B Gross - Group Class Z Gross - Group Class Z Gross - Group * There may be no tax in the case of interest distributions paid gross to shareholders. ** Equalisation only applies to shares purchased during the distribution period (Group 2 shares). It is the average amount of revenue included in the purchase price of all Group 2 shares and is refunded to holders of these shares as a return of capital. Being capital, it is not liable to income tax but must be deducted from the cost of shares for capital gains tax purposes.

100 Alliance Trust Investments 8 West Marketgait Dundee DD1 1QN T E [email protected] Alliance Trust Investments Limited is a subsidiary of Alliance Trust PLC. Alliance Trust Investments Limited is registered in Scotland No. SC330862, registered office, 8 West Marketgait, Dundee DD1 1QN; is authorised and regulated by the Financial Conduct Authority whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS firm reference number ; gives no financial or investment advice. ATI-408 (April 2014)