Alternative Invest. Strategies Ld Investment Update February 2014 (1467D)
25 Marzo 2014 - 4:15PM
UK Regulatory
TIDMAIS
RNS Number : 1467D
Alternative Invest. Strategies Ld
25 March 2014
ALTERNATIVE INVESTMENT STRATEGIES LIMITED
February Investment Manager's Review
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.
Investment Manager's Review
The portfolio is in the process of being wound-down and the
first of a series of compulsory redemptions of shares was
administered on the 14 August and shareholders received a
redemption price of 139.09p on 65% of their shares. A second
payment was administered on the 14 November and shareholders
received a redemption price of 139.44p on 33% of their remaining
shares. The third payment was administered on the 14 February and
shareholders received a redemption price of 142.66p on 68% of their
remaining shares. This now means that around 93% of the issued
share capital has been so far compulsory redeemed during this
wind-down process. It is expected that the Company will be put into
liquidation in May 2014, with a circular being despatched to
shareholders in due course in order to convene the necessary
general meeting to implement the liquidation. It is anticipated
that a further distribution will be made to shareholders around the
end of May 2014 in the form of a first liquidation distribution
shortly after the Company has been placed in liquidation.
A large number of positions were sold out of the portfolio at
the end of June 2013 with further sales made subsequently, in line
with the ongoing managed wind-down objective of the Company, such
that there is now only one core holding in the portfolio left for
the month of February. This was the Event Driven manager, Brevan
Howard Credit Catalysts. The remaining other holdings were either
cash or cash receivables. The following review commentary refers to
the general environment and how it impacted the remaining holdings.
During February, developed equity markets in Europe and the US more
than recovered the losses experienced in January as investor
appetite for risk assets returned. Leading indicators have
continued to indicate economic recovery albeit the upward momentum
has recently slowed while Fed policy remains accommodative. The
Russian involvement in the Ukraine has reminded investors of
geopolitical risk but, for the time being, more sanguine scenarios
have been generally assumed. Emerging Market equities and
currencies also rallied while the US dollar weakened. Movements in
government bonds were much smaller in comparison. Specialist credit
managers in the Event Driven strategy like Brevan Howard Credit
Catalysts with a focus on structured credits captured upside
movements and produced a positive return.
As announced on 21 February and in accordance with the proposals
for the Managed Wind-down detailed in the circular to shareholders
dated 15 May 2013, the currency hedging programme was recently
terminated in time for the third redemption on 14 February 2014.
The Company's remaining underlying investments are all denominated
in US dollars apart from cash and shareholders were thus exposed
not only to the investment performance of the Company's underlying
portfolio holdings but also to fluctuations in the US
dollar/Sterling exchange rate. Since the removal of the hedging
programme and the subsequent depreciation of the US dollar against
Sterling in February, there was a meaningful impact on the net
asset value per share this month. In this environment, the net
asset value of Alternative Investment Strategies Limited returned
-4.94% over the month.
The Investment Manager is holding cash in Sterling and will be
converting cash received by the Company as part of the Managed
Wind-down into Sterling on receipt to help mitigate against
potential future fluctuations. Since the last monthly investment
commentary, the Investment Manager has been able to realise all the
remaining illiquid holdings (which accounted for 4.1% as at 31
January). The Company's investments now have the following
breakdown as at end February 2014:
27.2% Sterling cash
27.7% Brevan Howard Credit Catalysts
45.1% Cash receivables being US dollar amounts from former
portfolio holdings
Performance Summary
The net asset value performance for the month of February 2014
was -4.94%.
The net asset value performance since inception in December 1996
to 28 February 2014 is 165.72%, equivalent to an annualised rate of
5.83%.
Source of data: International Asset Management Limited
General Information
Investment Manager: International Asset Management Limited
Website: www.aisinvest.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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