2 Mar 2010 14:14
Factsheet January 2010
Bramdean Alternatives Limited (the "Company")
This Factsheet contains commentary and news for the month ended 29 January 2010, 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.
| January Estimated Net Asset Values
Sterling shares: 83.50 pence US Dollar shares: US$ 0.7774
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 29 January 2010 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 29 January 2010 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 | £68.6 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 29 January 2010 | 50.25 pence |
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| Number of Sterling shares in issue | 90.825 million |
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| US Dollar class share price on 29 January 2010 | US$ 0.47 |
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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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| January Sterling Estimated NAV per share | 83.50 pence |
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| January US Dollar Estimated NAV per share | US$ 0.7774 |
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| Total Estimated Net Asset Value | US$ 182,455,829.43 |
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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 |
JANUARY MARKET COMMENTARY
The New Year began positively, most likely on the back of some appetite for risk returning. Corporate bond spreads narrowed and global equity indices advanced. However, towards the end of the month global equities tumbled as President Obama stated his intention to reform banking regulation and prevent deposit taking banks from undertaking any proprietary trading.
In the US, the Federal Reserve kept interest rates at 0.25% in January, and the overall tone of the statement was a little more upbeat. Q4 GDP figures indicated the US grew at an annualised rate of 5.7%. Producer prices increased as higher food costs impacted. Retail sales fell over the month, suggesting that rising unemployment, tight credit and a struggling housing market are holding back the country's largest sector.
In Europe there was no change in the monetary policy stance and no new announcements on the liquidity provisions at January's European Central Bank meeting. Jean-Claude Trichet, President of the ECB, continued to view the 1% rate as 'appropriate' and described inflation pressures as 'subdued' given the uneven recovery. European consumer prices accelerated at their fastest pace in almost a year as the cold weather caused oil prices to rise. Unemployment had increased by the end of 2009, and PMI data declined as modest improvements in manufacturing data were outweighed by falling services figures.
In January, the Bank of England's Monetary Policy Committee kept interest rates at 0.5%, and maintained Quantitative Easing at £200bn. There are signs that the UK economy may be emerging from recession, with a return to growth for the first time in six quarters, as GDP data reported a 0.1% rate of growth in the fourth quarter of last year. Unemployment declined at the fastest pace since spring 2007, housing data suggested property prices are rising, and increased industrial production shows firms are raising production to cope with the gradual recovery in global demand. UK retail sales were weak over the festive season as price increases and worries over job security caused consumers to cut back on purchases.
In Japan, the bulk of economic data showed growth was stronger at the start of 2010. Demand for Japanese exports increased across other Asian countries and, encouragingly, there has been a much needed improvement in industrial production. However, doubt remains on the medium term outlook, as the need for fiscal tightening and the threat of deflation drags on for the foreseeable future.
PORTFOLIO NEWS
The company remains committed to 16 Private Equity funds, with commitments totalling US$213.9 million. No new commitments were made during January. The total drawn down on commitments made is approximately US$116.9 million, with three capital calls being made in January, totalling US$1.4 million. The company has received total distributions of US$6.5 million since inception, with US$ 854,662 received in January. Revaluations were received from two managers in January, these were both upwards revaluations.
The portfolio holds two specialty funds, one of which, Aarkad, remains suspended. We advised in last month's factsheet that we have written its valuation down by 75%. No further substantive information has been released by Aarkad to enable us to adjust further that price adjustment. We are looking at alternative means of unlocking what written down value remains and will report progress to date in next month's factsheet.
The Strategic Hedge Funds portfolio was up for January. Our multi-strategy manager registered a gain, driven by the rally in its airline related ABS positions. The global macro manager posted a loss, largely on poor performance of its relative value equity trades.
The portfolio's commitment cover which includes cash and the strategic hedge funds was 89.9% at the end of the month.
Portfolio Highlights
Geographical Allocation
| North America 74.3% |
| Europe 12.8% |
| Global 9.7% |
| Asia & Other 3.2% |
Portfolio Holdings Asset Allocation
| Cash 38.3% |
| Private Equity Funds 49.8% |
| Specialty Funds 2.2% |
| Strategic Hedge Funds 9.7% |
PORTFOLIO HOLDINGS (INVESTED CAPITAL) ON 29 January 2010
| Manager | Type | Portfolio Weighting |
| Cash | Cash | 38.3% |
| Oaktree OCM Opportunities Fund VIIb LP | Private Equity | 9.5% |
| Greenpark International Investors III LP | Private Equity | 6.2% |
| D.E. Shaw Oculus International Members Interest | Strategic Hedge Funds | 4.4% |
| Coller International Partners V LP | Private Equity | 4.0% |
| SVG Strategic Recovery Fund II LP | Private Equity | 3.8% |
| Thomas H Lee Parallel Fund VI LP | Private Equity | 3.7% |
| MatlinPatterson Global Opportunities Partners III LP | Private Equity | 3.2% |
| DFJ Athena LP | Private Equity | 2.9% |
| HIG Bayside Debt & LBO Fund II LP | Private Equity | 2.8% |
| Paulson Advantage Plus Ltd | Strategic Hedge Funds | 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 | 2.1% |
| 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% |
| Deephaven Global Multi-Strategy Fund Ltd | Strategic Hedge Funds | 0.9% |
| Aarkad Plc | Specialty | 0.8% |
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