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12 Jan 2010 16:22
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FactsheetΒ NovemberΒ 2009Β
Bramdean Alternatives LimitedΒ (the "Company")
This Factsheet contains commentary and news for the month endedΒ 30Β NovemberΒ 2009, unless otherwise stated.Β
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Overview Bramdean Alternatives LimitedΒ is aΒ GuernseyΒ closed-endedΒ investment companyΒ 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. |
NovemberΒ Estimated Net Asset Values Sterling shares: 83.96Β pence US Dollar shares:Β US$ 0.8006 As described in the Company's prospectus,Β and as has been the case since its launch, theΒ netΒ assetΒ value ("NAV") and the NAV per share are both calculated monthly by the Company's administrator based on the latest publishedΒ NAVΒ for each underlying fund. Investments in underlying funds for the month endedΒ 30Β NovemberΒ 2009 are valued using the values (whether final or estimated) as advised by their managers, general partners or administrators. The Company has therefore relied on valuation and reporting methods used by the managers, general partners or administrators of the underlying funds in deriving theΒ 30Β NovemberΒ 2009 NAV and NAV per share.Β For the avoidance of doubt the Directors have not exercised their discretion to depart from the above valuation policy with regard to theΒ NovemberΒ 2009Β NAV. |
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KEY FACTSΒ |
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Market Capitalisation |
Β£74.1Β million |
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InvestmentΒ Manager |
Aberdeen Asset Managers Limited (with effect from 19 November 2009) Bramdean Asset Management LLPΒ (in the period to 19 November 2009) |
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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 CapitalΒ LLP JPMorgan Cazenove |
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Sterling class share price onΒ 30Β NovemberΒ 2009 |
50.00Β pence |
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Sterling class issue price (9Β July 2007) |
100.00Β pence |
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Number ofΒ SterlingΒ shares in issue |
90,825,782 |
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US Dollar class share price onΒ 30Β NovemberΒ 2009 |
US$Β 0.60 |
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US Dollar class issue price (9Β July 2007) |
US$ 1.00 |
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Number of US Dollar shares in issue |
78,383,754 |
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Minimum investment |
N/A |
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Dealing |
Daily |
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Valuation |
Monthly |
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NAV publication |
Monthly |
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NovemberΒ Sterling Estimated NAV per share |
83.96Β pence |
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NovemberΒ US Dollar Estimated NAV per share |
US$Β 0.8006 |
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Total commonΒ netΒ assets |
US$Β 188,141,382.46 |
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Total Estimated Net Asset Value |
US$Β 187,906,205.73 |
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Half-year end |
30 SeptemberΒ |
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Financial year end |
31Β MarchΒ |
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Company SecretaryΒ and Administrator |
RBCΒ Offshore Fund Managers Limited |
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Registrar |
Capita Registrars (Guernsey) Limited |
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Stock Exchange code (SterlingΒ shares) |
BRAL |
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Stock Exchange code (U.S.Β Dollar shares) |
BRAU |
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Sedol code (SterlingΒ shares) |
B1XCHB9 |
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Sedol code (U.S.Β Dollar shares) |
B1XCLF1 |
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ISIN code (SterlingΒ shares) |
GG00B1XCHB94 |
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ISIN code (US Dollar shares) |
GG00B1XCLF11 |
NOVEMBERΒ MARKET COMMENTARY
Data from the major economies continued to point to a global recovery and equity markets progressed over the month. However, this recent advance in stocks is beginning to show signs of abating. Dubai World's attempt to reschedule its debt is not likely to mark a new phase in the global crisis, yet has compounded investor focus on a series of stresses in other countries.
Gold reachedΒ US$1,195 an ounce in November, oil hitΒ US$81 a barrel and the VIX index of equity volatility fell back to its lowest level for a year.
The Federal Reserve confirmed its commitment to support accommodative monetary policy for an 'extended period', and maintained a rate of 0-0.25% this month. The Fed will closely watch resource utilisation, as well as inflation expectations and trends in the coming months for signs that the real economy's rebound is self sustaining.
In theΒ US, theΒ InstituteΒ ofΒ Supply Management's manufacturing surveys hit a cycle high in November; however the new orders series is below its peak, suggesting a decline of momentum in industrial production growth. In addition unemployment rose to a fresh 26-year high of 10.2%, impacting confidence.
The EuropeanΒ CentralΒ BankΒ kept rates on hold this month, citing that risks are broadly balanced and long run inflationary expectations remain anchored. Trichet confirmed that one year repo operations would be scaled back, and when the time is right the general exit strategy will be 'timely and adequate, clear and credible.'Β
The Euro-zone emerged from recession in Q3. However, the trade surplusΒ continued to widen, although a stronger currency is now threatening export competitiveness. Rising unemployment across the region has put continued downward pressure on consumer prices vindicating the EuropeanΒ CentralΒ Bank's current stance.Β
The Bank ofΒ EnglandΒ held rates at 0.5% this month which look set to remain at this level for another year. They also announced an extra Β£25Β billionΒ of additional QuantitativeΒ Easing, taking them to the limit recommended by the UK Treasury. However, there had been speculation that Mervyn King may seek approval for Β£50Β billionΒ additionalΒ QuantitativeΒ EasingΒ to give the central bank more flexibility should they feel it is necessary.
UKΒ growth remains weak and the budget deficit remains top of the political agenda. Housing market data is more encouraging showingΒ the housing sector moving forward more quickly than anticipated, whilst industrial production surprised on the upside as theΒ UK's car scrappage scheme had full impact.Β
The 0.1% policy target rate inΒ JapanΒ remained in place which could well extend into 2011. The BankΒ ofΒ JapanΒ reiterated its belief that the economy is 'picking up', and GDP data certainly seems to support this, with an annualised expansion rate of 1.3% recorded last quarter. However, consumer prices fell at a near record pace, reinforcing the government's recent admission that the economy is still in a 'mild deflationary phase'.Β
PORTFOLIO NEWSΒ
General
The underlying unaudited performance inΒ NovemberΒ wasΒ +0.55% for the Sterling Share class and +0.11% for the US Dollar Share class. There were 22 holdings in the Company's overall portfolio as at 30Β NovemberΒ 2009.
As previously noted,Β the Company's redemption notice to Aarkad Plc ("Aarkad") remains suspendedΒ andΒ the Company continues toΒ engageΒ with the manager.Β
WithinΒ the Company's Hedge Fund portfolio, Paulson Advantage Plus Ltd,Β D.E. Shaw Oculus International Members Interest and Deephaven Global Multi Strategy FundΒ delivered positiveΒ performanceΒ duringΒ November.
The Company benefited from upward revaluations ofΒ fiveΒ of its Private Equity & Specialty holdings.Β The portfolios of underlying holdings with substantial mark-to-market securitiesΒ haveΒ continuedΒ to benefit from revaluations driven by the current market recovery.
Hedging
NeitherΒ the Sterling Share class nor the US Dollar Share class currently hasΒ any currency hedges in place. The Company's overcommitted status makes it difficult to bear the mark-to-market volatility from passive currency hedges. Instead, the Company continues to monitor its currency exposure to determine whether hedging such exposure is in the Company's interests and will implement currency hedges tactically as necessary to guard against currency volatility.
Private Equity & Specialty Funds
The Company has commitments to 17 Private Equity & Specialty Funds amounting to approximately US$217 million; no new commitments were made duringΒ November.Β
The total amount that has been drawn-down on the commitments made is approximately US$111.5Β million, withΒ twoΒ capital calls totalling approximately US$2.3Β million having been drawn-down inΒ November. The Company has now received total distributions of US$5.3Β million since inception, with US$37,500.00Β received inΒ November.
Revaluations were received fromΒ fiveΒ managers and these have been incorporated into theΒ NovemberΒ NAV calculations;Β allΒ were upward revaluations to reflect recovering values in the underlying portfolios.
Transitional portfolio
The portfolioΒ holdsΒ one fund, Aarkad, which as noted, remains suspended.Β
Strategic Hedge Funds portfolio
Strategic Hedge FundΒ Performance wasΒ up for the month of November, with a return of +1.97% as equity markets rallied during most of the period, then gave back some of the gains with Dubai World delaying debt payments. Year to date the portfolioΒ has returned +11.69%.
PORTFOLIO HIGHLIGHTS
Event Driven
The distressed fund was positive in November.Β Positive contribution came fromΒ U.S.Β curve steepeners as yields at the front end of the curve declined significantly and from long derivative positions in gold (inflation hedge).
The special situations manager performed very positively with most of the longs attributing positively. Gold-related event names did very well and outperformed the spot price strongly. Long financial positions also contributed positively, but performance was limited slightly by hedges in this sector.
Global Macro
The fund posted a positive return for November. The discretionary macro strategy was the largest contributor, with gains driven by a relative value theme that is long high quality equities vs. low quality equities. The ABS strategy was flat and re-insurance was modestly positive on premium accrual.Β
Relative Value
Returns during the month were driven byΒ U.S.Β corporate credit, primarily the aircraft-skewed ABS portfolio. A number of equity long-short positions performed well. A positive performance was registered on the Asian and Japanese convertibles book.
Outlook
We continue to see positive cyclical tailwinds driving risk assets higher, however we are mindfulΒ ofΒ significant structural headwinds heading into 2010. Given uncertainty over the timing of renewed market difficulties and the actions of policy makers, we prefer to maintain significant exposure to those managers with good trading capabilities.Β
Portfolio HighlightsΒ
Geographical AllocationΒ
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North America 74.73% |
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Europe 14.67% |
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Global 7.66% |
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AsiaΒ & Other 2.94% |
Portfolio Holdings Asset AllocationΒ
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Cash 39.30% |
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Private EquityΒ Funds 27.32% |
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Specialty Funds 20.22% |
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Strategic Hedge Funds 10.20% |
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TransitionalΒ Portfolio 2.96% |
PORTFOLIO HOLDINGS (INVESTED CAPITAL) ONΒ 30Β NovemberΒ 2009Β Β
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Manager |
Type |
Portfolio Weighting |
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Cash |
Cash |
39.3% |
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Oaktree OCM Opportunities Fund VIIb LP |
Specialty |
8.6% |
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Greenpark International Investors III LP |
Private Equity |
6.3% |
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D.E. Shaw Oculus International Members Interest |
Strategic Hedge Funds |
4.5% |
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Thomas H LeeΒ ParallelΒ Fund VI LP |
Private Equity |
3.7% |
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Coller International Partners V LP |
Private Equity |
3.6% |
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SVG Strategic Recovery Fund II LP |
Specialty |
3.6% |
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Aarkad Plc |
Transitional |
Β 2.9% |
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MatlinPatterson Global Opportunities Partners III LP |
Specialty |
2.8% |
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HIG Bayside Debt & LBO Fund II LPΒ |
Specialty |
2.7% |
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Paulson Advantage Plus LtdΒ |
Strategic Hedge Funds |
2.6% |
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DFJ Athena LP |
Private Equity |
2.5% |
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SilverΒ LakeΒ Partners III LP |
Private Equity |
2.3% |
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Terra Firma Capital Partners III LP |
Private Equity |
2.2% |
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Goldman Sachs Capital Partners VI LP |
Private Equity |
2.0% |
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Tenaya Capital V LP |
Private Equity |
1.8% |
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King Street Capital Ltd |
Strategic Hedge Funds |
1.7% |
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Deephaven Global Multi-Strategy FundΒ Ltd |
Strategic Hedge Funds |
1.4% |
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Thoma Bravo Fund IX LP |
Private Equity |
1.4% |
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Resonant Music LP |
Specialty |
1.3% |
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Pine Brook Capital Partners LP |
Specialty |
1.2% |
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AIGΒ BrazilΒ Special Situations II LP |
Private Equity |
0.9% |
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RhoΒ Ventures VI LP |
Private Equity |
0.7% |
Cash: The Company currently has six approved cash deposit accounts.
Transitional Investments:Β 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.Β
Strategic Hedge Funds:Β TheΒ part of the Company's portfolio managedΒ byΒ Man Investments (CH) AG).Β
DISCLAIMER
On 19 November 2009, the appointment of Aberdeen Asset Managers Limited ("Aberdeen") as the investment manager of the Company in place of Bramdean Asset Management LLP was announced.
This Factsheet update has been produced byΒ Aberdeen Asset Managers LtdΒ which is authorised and regulated by the Financial Services Authority ("FSA").Β BramdeanΒ Asset ManagementΒ LLPΒ was the Company's investment manager for the periodΒ 1stΒ - 19thΒ November 2009 and Aberdeen Asset Managers Ltd was the Company's investment manager for the period 19thΒ - 30thΒ 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 fromΒ 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 byΒ Aberdeen Asset Managers LtdΒ and its affiliates to be reliable, butΒ AberdeenΒ makes no representation as to their accuracy or completeness.Β AberdeenΒ accepts no liability for loss arising from the use of this material.Β AberdeenΒ givesΒ 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 theΒ CompanyΒ 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.Β 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. AberdeenΒ 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,Β Annual Report and Financial Statements,Β Prospectus and portfolio information canΒ currentlyΒ be found atΒ www.bramdeanalternatives.com.
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 theΒ UK, please dial: +44Β 20 8639 3399.Β
Registered Office:Β Canada Court,Β UplandΒ Road,Β St.Β PeterΒ Port,Β Guernsey,Β GY1 3QE,Β Channel Islands.
CONTACT DETAILS:
Aberdeen Asset Managers Limited
Karen DraytonΒ
Assistant Product ManagerΒ
E:Β karen.drayton@aberdeen-asset.com T: +44 20 7463 6525
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