Alternative Invest. Strategies Ld Investment Update March 2014 (3329F)

TIDMAIS

RNS Number : 3329F

Alternative Invest. Strategies Ld

23 April 2014

ALTERNATIVE INVESTMENT STRATEGIES LIMITED

March 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 cash and receivables and one core holding in the portfolio left for the month of March. This was the Event Driven manager; Brevan Howard Credit Catalysts. The manager produced a positive return continuing its positive contribution to the portfolio as it benefited from positions in structured credits.

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 terminated in time for the third redemption on 14 February 2014. 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 the potential impact of future US dollar fluctuations.

The Company's investments had the following breakdown as at end March 2014:

39% Sterling cash

28% Brevan Howard Credit Catalysts (US dollar denominated)

33% Cash receivables being US dollar amounts from former portfolio holdings.

Performance Summary

The net asset value performance for the month of March 2014 was 0.27%.

The net asset value performance since inception in December 1996 to 31 March 2014 is 166.44%, equivalent to an annualised rate of 5.82%.

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