AIS Alt.Inv.Strat

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

MSCUVRVRSAAOUAR

Grafico Azioni Alternative Invest. Strategies (LSE:AIS)
Storico
Da Mag 2024 a Giu 2024

Grafico Azioni Alternative Invest. Strategies (LSE:AIS)
Storico
Da Giu 2023 a Giu 2024