1 Feb 2010 12:56
Factsheet December 2009
Bramdean Alternatives Limited (the "Company")
This Factsheet contains commentary and news for the month ended 31 December 2009, unless otherwise stated.
| Overview
Bramdean Alternatives Limited is a Guernsey closed-ended investment company listed on the London Stock Exchange. The Company invests in a diversified portfolio of Private Equity Funds, Hedge Funds and other Specialty Funds.
On 19 November 2009, the appointment of Aberdeen Asset Managers Limited as the investment manager of the Company in place of Bramdean Asset Management LLP was announced.
| December Estimated Net Asset Values
Sterling shares: 82.33 pence US Dollar shares: US$ 0.7724
As described in the Company's prospectus, and as has been the case since its launch, the net asset value ("NAV") and the NAV per share are both calculated monthly by the Company's administrator based on the latest published NAV for each underlying fund.
With only one exception, investments in underlying funds for the month ended 31 December 2009 are valued using the values (whether final or estimated) as advised by their managers, general partners or administrators. The Company therefore relied on valuation and reporting methods used by the managers, general partners or administrators of the underlying funds in deriving the 31 December 2009 NAV and NAV per share. The remaining holding has been valued at a level recommended by the Company's Investment Manager.
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| KEY FACTS |
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| Market Capitalisation | £72.7 million |
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| Investment Manager | Aberdeen Asset Managers Limited |
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| Annual Management Fee | 1.5% |
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| Performance fee | 10% subject to an 8% return and a high watermark |
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| Company Brokers | Matrix Corporate Capital LLP JPMorgan Cazenove |
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| Sterling class share price on 31 December 2009 | 52.00 pence |
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| Number of Sterling shares in issue | 90.825 million |
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| US Dollar class share price on 31 December 2009 | US$ 0.525 |
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| Number of US Dollar shares in issue | 78.384 million |
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| NAV publication | Monthly |
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| December Sterling Estimated NAV per share | 82.33 pence |
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| December US Dollar Estimated NAV per share | US$ 0.7724 |
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| Total Estimated Net Asset Value | US$ 181,297,723.88 |
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| Half-year end | 30 September |
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| Financial year end | 31 March |
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| Company Secretary and Administrator | RBC Offshore Fund Managers Limited |
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| Registrar | Capita Registrars (Guernsey) Limited |
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| Stock Exchange code (Sterling shares) | BRAL |
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| Stock Exchange code (U.S. Dollar shares) | BRAU |
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| Sedol code (Sterling shares) | B1XCHB9 |
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| Sedol code (U.S. Dollar shares) | B1XCLF1 |
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| ISIN code (Sterling shares) | GG00B1XCHB94 |
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| ISIN code (US Dollar shares) | GG00B1XCLF11 |
DECEMBER MARKET COMMENTARY
The major equity markets rallied in December, with the UK outperforming its European peers, mainly due to the appreciation of Sterling against the Euro over the month. The US Dollar also strengthened over December. Treasury yields remained close to historically low levels and risk appetite was generally positive.
The Federal Open Market Committee held rates at 0.25% as the Fed repeated its pledge to keep interest rates near zero for an "extended period." The economic recovery continued to gather pace, highlighted by the strong advance retail sales which boded well for consumer spending over the festive period and the housing market activity which was boosted by the tax credits.
In Europe, economic sentiment deteriorated for both Germany and the Eurozone as a whole as investor confidence retreated. In the UK, rates stayed at 0.5% and the Pre-Budget Report declared that government borrowing is likely to rise to £178 billion this year from an earlier forecast of £175 billion. The UK has so far lagged behind in the global economic recovery, yet surveys suggest the GDP growth may have returned to positive territory in Q3, as consumer confidence and asset prices have recovered in recent months.
In Japan, Industrial Production figures served as a wary reminder that the economy is still in the midst of a crisis as Japanese GDP expanded significantly slower than reported this month.
PORTFOLIO NEWS
The company remains committed to 16 Private Equity funds, with commitments totalling US$215.3 million. No new commitments were made during December. The total drawn down on commitments made is approximately US$115.5m, with nine capital calls being made in December, totalling US$4.0 million. The company has received total distributions of US$5.6 million since inception, with $US306,107 received in December. Revaluations were received from two managers in December, these were, in aggregate, downwards revaluations.
The portfolio holds two specialty funds, one of which, Aarkad, remains suspended. Following a substantial analysis of this holding we have written its valuation down by 75%. This is based on ongoing sales of underlying 'called up' assets realising considerably lower proceeds than might have been expected when referenced to the original loan value on those underlying assets. Please note that Aarkad has been reclassified by Aberdeen, from a Transitional Fund, to a Specialty Fund.
The Strategic Hedge Funds portfolio was down for December. Our multi-strategy manager registered a substantial loss based on potential tax liability that could arise from historical trades in Spain and Australia. The markdown is conservative and there is a possibility that it will be reduced. Trading performance for the manager was also slightly negative.
The portfolio's commitment cover which includes cash and the strategic hedge funds was 89.1% at the end of the month.
Portfolio Highlights
Geographical Allocation
| North America 77.2% |
| Europe 12.6% |
| Global 7.1% |
| Asia & Other 3.1% |
Portfolio Holdings Asset Allocation
| Cash 39.0% |
| Private Equity Funds 49.1% |
| Specialty Funds 2.2% |
| Strategic Hedge Funds 9.7% |
PORTFOLIO HOLDINGS (INVESTED CAPITAL) ON 31 December 2009
| Manager | Type | Portfolio Weighting |
| Cash | Cash | 39.0% |
| Oaktree OCM Opportunities Fund VIIb LP | Private Equity | 8.9% |
| Greenpark International Investors III LP | Private Equity | 6.5% |
| D.E. Shaw Oculus International Members Interest | Strategic Hedge Funds | 4.6% |
| Thomas H Lee Parallel Fund VI LP | Private Equity | 3.8% |
| Coller International Partners V LP | Private Equity | 3.7% |
| SVG Strategic Recovery Fund II LP | Private Equity | 3.6% |
| MatlinPatterson Global Opportunities Partners III LP | Private Equity | 3.2% |
| HIG Bayside Debt & LBO Fund II LP | Private Equity | 2.8% |
| Paulson Advantage Plus Ltd | Strategic Hedge Funds | 2.6% |
| DFJ Athena LP | Private Equity | 2.6% |
| Silver Lake Partners III LP | Private Equity | 2.5% |
| Tenaya Capital V LP | Private Equity | 2.3% |
| Goldman Sachs Capital Partners VI LP | Private Equity | 2.2% |
| Terra Firma Capital Partners III LP | Private Equity | 2.2% |
| King Street Capital Ltd | Strategic Hedge Funds | 1.8% |
| Pine Brook Capital Partners LP | Private Equity | 1.5% |
| Thoma Bravo Fund IX LP | Private Equity | 1.4% |
| Resonant Music LP | Specialty | 1.4% |
| Rho Ventures VI LP | Private Equity | 1.0% |
| AIG Brazil Special Situations II LP | Private Equity | 0.9% |
| Aarkad Plc | Specialty | 0.8% |
| Deephaven Global Multi-Strategy Fund Ltd | Strategic Hedge Funds | 0.7% |
Cash: The Company currently has six approved cash deposit accounts.
Transitional Investments: The Company will seek to avoid return dilution caused by holding amounts that are not committed or are committed, but not yet drawn-down, on both underlying private equity funds and underlying specialty funds by investing such amounts in a range of transitional investments, which may include equity hedge, senior debt, mezzanine and market neutral funds.
Strategic Hedge Funds: The part of the Company's portfolio managed by Man Investments (CH) AG).
DISCLAIMER
This Factsheet update has been produced by Aberdeen Asset Managers Ltd which is authorised and regulated by the Financial Services Authority ("FSA") in the United Kingdom. Bramdean Asset Management LLP was the Company's investment manager for the period prior to 19th November 2009 and Aberdeen Asset Managers Ltd has been the Company's investment manager for the period since 19th November 2009.
This material constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 (the "Act") and the handbook of rules and guidance issued from time to time by the FSA (the "FSA Rules").
This material is provided for information purposes, is intended for your use only and does not constitute an invitation or offer to subscribe for or purchase any of the products or services mentioned. This material has been provided specifically for the use of the recipient only and must be treated as proprietary and confidential information. It may not be passed on, nor reproduced in whole or in part under any circumstances without express written consent from Aberdeen. The material provided is not intended to provide a sufficient basis on which to make an investment decision. Information and opinions presented in this material have been obtained or derived from sources believed by Aberdeen Asset Managers Ltd and its affiliates to be reliable, but Aberdeen makes no representation as to their accuracy or completeness. Aberdeen accepts no liability for loss arising from the use of this material. Aberdeen gives no representations or warranty that any indicative performance or return will be achieved in the future or that the investment objectives and policies from time to time of the Company will be achieved.
You should note that, if you choose to invest in the Company, your capital will be at risk and you may therefore lose some or all of any amount that you choose to invest. This material is not intended to constitute, and should not be construed as, investment advice.
Potential investors in the Company should seek their own independent financial advice. Aberdeen neither provides investment advice to, nor receives and transmits orders from, investors in the Company nor does it carry on any other activities with or for such investors that constitute "MiFID or equivalent third country business" for the purposes of this FSA Rule.
PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE RESULTS.
Please note that up-to-date information on the Company, including its monthly NAV and share prices, factsheets, Annual Report and Financial Statements, Prospectus and portfolio information can currently be found at www.invtrusts.co.uk/bramdean.
Capita Registrar's helpline is 0871 664 0300 (calls cost 10 pence per minute plus network extras, lines are open 8.30am-5.30pm Monday-Friday). For callers outside the UK, please dial: +44 20 8639 3399.
Registered Office: Canada Court, Upland Road, St. Peter Port, Guernsey, GY1 3QE, Channel Islands.
CONTACT DETAILS:
Aberdeen Asset Managers Limited
Ian Massie
Head of Investment Trust Investor Relations
E: ian.massie@aberdeen-asset.com T: +44 (0)131 528 4123