Alternative Invest. Strategies Ld The Second Interim Management Statement 2013 (4320M)

TIDMAIS

RNS Number : 4320M

Alternative Invest. Strategies Ld

23 August 2013

Alternative Investment Strategies Limited

(the "Company")

Interim Management Statement

23 August 2013

This interim management statement relates to the period from 1 May 2013 to the date of publication of this statement and has been prepared solely to provide additional information in order to meet the relevant requirement of the UK Listing Authority's Disclosure and Transparency Rules, and should not be relied on by Shareholders, or any other party, for any other purpose.

Investment objective

The objective of the Company was to invest in a diversified portfolio of hedge funds on a worldwide basis with the aim of achieving superior absolute returns with low volatility. On the 12 June 2013, the Company's shareholders approved the Managed Wind-down of the Company and since this date, the revised investment objective and policy of the Company has been to seek to realise all existing assets in the portfolio with a view to maximising the return of invested capital to shareholders in an orderly manner.

Financial position and performance

In the period from 1 May 2013 to 16 August 2013 (the date of the latest available estimated weekly net asset value), the Company's net asset value increased by 0.08% to 138.64 pence. As at 23 August 2012, the shares were trading at a 3.3% discount to net asset value.

The net asset value performance since inception in December 1996 to 16 August 2013 is 170.55%, equivalent to an annualised rate of 6.14%.

Investment Manager's review

The Investment Manager's review covers the period from 1 May to 31 July 2013. During this period, the portfolio was diversified across six hedge fund strategies until the end of June and focused on the favoured strategic themes and high conviction managers identified by the investment manager.

In May, market conditions were relatively constructive and gains were led by the performance of the managers focused on favoured strategic themes in the Long/Short Equity, Event Driven and Credit strategies. The relatively high weighting to these themes in the portfolio and the zero exposure to the Trend Followers/CTAs strategy benefitted returns as managers in the Trend Followers/CTAs strategy all suffered from the significant reversals in the market direction of some asset classes. All of the managers in the Long/Short Equity, Event Driven and Credit strategies held in the portfolio produced gains. In contrast, the returns from the Macro managers were more mixed depending on positioning.

However, many markets moved significant in June following comments made by the Fed on the tapering down of their monthly bond purchase program. Most government bond yields meaningfully rose while equities moved sharply lower in the first three weeks of the month before some recovery in the latter part of the month. Volatility rose across all asset classes and many hedge fund strategies produced negative returns. The portfolio protected against much of the adverse movements but the loss in June offset much of the gains achieved in May.

At the June month end, a large number of positions were sold out of the portfolio in line with the Managed Wind-down objective of the Company. Cash was built up during July and on the 14 August, the first of a series of compulsory redemptions of shares was administered and shareholders received a redemption price of 139.09p on 65% of their shares. In the latter part of the period, the remaining managers in the portfolio produced a small loss.

Strategy allocation

The strategy allocation as at 31 July 2013 was as follows:

 
 Strategy                    % 
 Cash & Receivables       70.3 
 Event Driven             13.2 
 Long/Short Equity         7.2 
 Fixed Income Relative 
  Value                    7.1 
 Multi-Strategy            2.0 
 Credit                    0.1 
 Macro                     0.1

Source of data: International Asset Management Limited

Results of General Meeting

A circular to shareholders was published on 15 May 2013 outlining proposals for the Managed Wind-down of the Company and at the Extraordinary General Meeting held on 12 June 2013, the Company's shareholders approved the Managed Wind-down of the Company.

Compulsory Partial Redemption of Shares

On 29 July, it was announced that GBP97,795,826.00 (equivalent to 90.4085p per share) would be returned to holders of shares on 13 August 2013 by way of a compulsory partial redemption of shares. This represented 65.0% of the Company's issued share capital.

Compulsory Redemption and Total Voting rights

On 14 August, the Board confirmed that 70,311,086 shares were redeemed at a redemption price of 139.09p and that the total number of shares in issue is now 37,859,966.

The Board continues to expect that projected cashflows from redemptions will be in line with the forecasts detailed in the circular of 15 May 2013.

The remaining portfolio at the end of July had 7 core holdings of which the top three funds represented 14.5% of the assets at month end.

Other than described above, the Board is not aware of any material events during the period from 1 May 2013 to the date of this announcement, which would have had a material impact on the financial position of the Company.

Investor information

The latest available information on the Company can be accessed via www.aisinvest.com.

By order of the Board

Alternative Investment Strategies Limited

Enquiries:

Sean Molony Tel: 020 7734 8488

International Asset Management Limited

This information is provided by RNS

The company news service from the London Stock Exchange

END

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