18 May 2017 07:00
HENDERSON ALTERNATIVE STRATEGIES TRUST PLC
Unaudited Results for the half-year ended 31 March 2017
This announcement contains regulated information
INVESTMENT OBJECTIVE
The Company exploits global opportunities to provide long-term growth to shareholders via a diversified, international, multi-strategy portfolio which also offers access to specialist funds including hedge and private equity. The Company aims to outperform the FTSE World Total Return Index on a total return basis in Sterling terms.
| Half-year ended | Year ended | |
Performance | (Unaudited) | (Unaudited) | (Audited) |
| 31 March 2017 | 31 March 2016 | 30 September 2016 |
Net asset value (NAV) per ordinary share | 324.7p | 266.6p | 308.7p |
Total return per ordinary share | 21.21p | (5.74)p | 36.35p |
Share price per ordinary share | 284.0p | 210.0p | 249.1p |
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Market capitalisation | £109.8m | £98.0m | £107.1m |
Discount | 12.5% | 14.5% | 19.3% |
Ordinary shares in issue | 38,678,638 | 42,976,264 | 42,976,264 |
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Total Return Performance to 31 March 2017 (including dividends reinvested and excluding transaction costs) | |||||
| 6 months % | 1 year % | 3 years % | 5 years % | 10 years % |
NAV1 | 6.9 | 24.1 | 15.8 | 1.4 | -12.9 |
Share price2 | 16.6 | 38.3 | 24.5 | 4.5 | -24.9 |
Benchmark3 | 12.9 | 32.9 | 57.9 | 99.6 | 149.5 |
FTSE Developed/EM 75/25 Composite4 | 12.6 | 33.6 | 55.7 | 86.5 | 146.4 |
1. Net asset value total return per ordinary share with income reinvested for 6 months, 1, 3 and 5 years and capital NAV plus income reinvested for 10 years
2. Share price total return using mid-market share price
3. FTSE World Total Return Index in Sterling terms
4. FTSE Developed Total Return Index (75%) / FTSE Emerging Markets Total Return Index (25%) - a composite index introduced as an additional informal performance measure
Sources: Morningstar Direct, Datastream, Henderson, Association of Investment Companies ('AIC')
INTERIM MANAGEMENT REPORT
CHAIRMAN'S STATEMENT
Performance
I am pleased to report that your Company continued to perform well during the half-year to 31 March 2017, delivering a share price total return of 16.6%. This compared with an increase of 12.9% in the Company's benchmark, the FTSE World Total Return Index (in Sterling). In addition, the Company's share price total return compared favourably with the 9.6% average weighted share price total return of its peer group in the AIC's Flexible Investment Sector. The Company also produced a solid six-month NAV total return of 6.9%, with each of its five investment categories making a positive contribution.
Share Price Discount
Importantly, the Company's share price discount to NAV per share narrowed significantly during the half-year from 19.3% to 12.5%. The Board believes that this reflected growing investor confidence in the quality and performance of the Company's restructured investment portfolio together with the impact of Henderson's marketing of the Company's shares to both professional and retail investors.
Second 10% Tender Offer
In January 2017 the Company completed a second tender offer for up to 10% of its ordinary shares at a discount of 5% to NAV less tender costs. The tender offer was oversubscribed and resulted in the return of almost £13.0 million of cash to participating shareholders. Although the Board has no current plans for a further tender offer, it will continue to consider the use of additional discount control measures as and when appropriate.
Outlook
As 2017 progresses, we are seeing global financial markets at their highest levels for some time, and these will continue to face significant political and macro-economic uncertainties. In such an environment the Board believes that the Company's investment strategy provides investors with a valuable source of diversification through exposure to a well-managed, good-quality portfolio of alternative asset and specialist funds, which is capable of delivering attractive long-term returns.
The Company's performance has improved significantly over the last year or so and the Company ranks well against its peers in its comparable sector over this period. The Board and Henderson are focused not only on the short term but also particularly on delivering good and sustained long-term performance, on a relative and absolute basis. Shareholders will have the opportunity to make their views known about the Company, and its potential returns, at the coming triennial continuation vote scheduled to take place at the Company's AGM in January 2018.
I look forward to reporting on further progress at the Company's financial year end.
Richard Gubbins
Chairman
18 May 2017
FUND MANAGERS' REPORT
Overview
The half-year to 31 March 2017 saw world stock markets rise against an improving global macro-economic backdrop. The surprise victory of President Trump in November was quickly interpreted by investors as beneficial to the US economy; also initial concerns regarding the threat to global growth posed by increased US protectionism receded as equity markets chose to focus more on the positive aspects of "Trumponomics". Global fixed income valuations also remained high with yields at historic lows despite several years of loose central bank monetary policy apparently moving towards their conclusion.
There are, however, significant risks which could threaten the elevated valuations across the world's mainstream financial markets. These include the threat of significantly increased political instability in the Eurozone, question marks over the sustainability of current levels of growth in China, the tapering of Quantitative Easing leading to a rising interest rate environment and the on-going military engagement in parts of the Middle East.
Given this environment, some investors are understandably keen to seek alternative sources of return to mainstream financial markets. We believe that the Company is well-positioned to offer such diversification through its differentiated investment proposition focused on good-quality alternative and specialist asset funds which the Company's investors are unlikely to own directly themselves.
Performance
The Company's investment portfolio performed well during the half-year to 31 March 2017, generating a NAV total return of 6.9%. When annualised, this was comfortably above our NAV total return target for the Company of 8.0% per annum over the long term. All five of the Company's investment categories, Specialist Sector, Specialist Geography, Private Equity, Hedge and Property, made positive contributions and reflected the improved quality of the Company's investments. Returns would probably have been slightly higher had it not been necessary to build a large cash position between October and December in order to fund the second 10% tender offer.
The Company's share price total return of 16.6% was driven by NAV growth and significant discount narrowing from 19.3% to 12.5%, the latter reflecting increased interest in the Company's shares arising from improved performance and Henderson's on-going marketing efforts.
At this time last year the Company's Board observed that, with Henderson's restructuring of the Company's investment portfolio largely complete, the Company had to begin to deliver improved performance. We believe that the Company's 12-month performance to 31 March 2017 shows that the Company is now heading in the right direction, having produced share price and NAV total returns of 38.3% and 24.1% respectively.
Portfolio Activity
We now have a high-conviction portfolio of approximately 30 core longer-term holdings. In future, shareholders may expect relatively low levels of stock turnover within the portfolio. We may, however, at any given time also hold a modest number of tactical shorter-term investments.
In selecting new core holdings we are mindful of the need to maintain the Company's differentiated investment proposition by continuing to focus on niche, complex or hard-to-access investments, with the proviso that they must always be of satisfactory quality.
During the half-year we made three new core investments. First, we invested £4.0 million in Sagil Latin American Opportunities Fund ("Sagil"), a long/short fund investing mainly in Latin American equity instruments. We monitored Sagil for over a year before investing. The fund has an outstanding long-term track record in all market conditions and has delivered equity-like returns but with significantly lower volatility. Second, we invested £4.2 million in the Helium Selection Fund, a fund focused predominantly on merger arbitrage in Europe and the US. Third, we invested £2.0 million in Safeguard Scientifics Inc., a long-established US-listed private equity vehicle with direct investments in a portfolio of healthcare, financial services and digital media companies seeking to exploit new technologies in their sectors.
These purchases were funded mainly by taking partial profits on some of the strongest recent performers in the Company's portfolio, particularly listed credit and private equity funds.
Outlook
The Company's restructured investment portfolio is robust, well-diversified and, we believe, contains multiple NAV growth opportunities. We are therefore confident that the Company is now positioned to complete its rehabilitation as a genuinely differentiated investment proposition with the ability to generate attractive long-term equity-like returns.
Our marketing activities during the first three months of 2017 included presenting the Company to some 40 investment organisations which are either existing or potential shareholders. It was again evident from these meetings that the Company provides a useful "one-stop-shop" for certain types of professional investor seeking exposure to alternative and specialist funds, especially at a time of elevated valuations in mainstream financial markets. We also believe that the Company can play a useful diversifying role for retail investors. Accordingly, Henderson's dedicated investment trust marketing team is currently exploring ways to raise the Company's profile in the retail investor market. Overall, we therefore believe that there is considerable scope to add new investors to the Company's shareholder register over the coming months.
Ian Barrass and James de Bunsen
Fund Managers
18 May 2017
Principal risks and uncertainties
The principal risks and uncertainties facing the Company are market related and include market price, foreign exchange, interest rate, liquidity and credit risk. The Company may also be affected by economic and political conditions.
Information on these risks is given in the Annual Report for the year ended 30 September 2016. In the view of the Board these principal risks and uncertainties are applicable to the remaining six months of the financial year as they were to the six months under review.
Statement of Directors' Responsibilities
The Directors confirm that, to the best of their knowledge:
a) the financial statements for the half-year ended 31 March 2017 have been prepared in accordance with FRS 104 Interim Financial Reporting;
b) the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
c) the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).
For and on behalf of the Board
Richard Gubbins
Chairman
18 May 2017
INVESTMENT PORTFOLIO |
| Market Value | Portfolio |
Investments | Focus | £'000 | % |
BlackRock European Hedge Fund Limited3 | Hedge | 6,831 | 5.7 |
CEIBA Investments Limited4 | Property | 6,509 | 5.4 |
Riverstone Energy Limited2 | Private Equity | 5,440 | 4.5 |
Mantra Secondary Opportunities4 | Private Equity | 5,319 | 4.4 |
Majedie Asset Management Tortoise Fund3 | Hedge | 5,206 | 4.3 |
Schroder GAIA Indus Pacifichoice Asia Fund3 | Hedge | 5,192 | 4.2 |
Baring Vostok Investments Limited core1 | Private Equity | 4,572 | 3.8 |
Polar Capital Global Financials Trust plc2 | Specialist Sector | 4,420 | 3.7 |
Sagil Latin America Opportunities Fund3 | Hedge | 4,262 | 3.5 |
Helium Selection Fund3 | Hedge | 4,259 | 3.5 |
Ten largest |
| 52,010 | 43.0 |
Genesis Emerging Markets Fund Limited2 | Specialist Geography | 4,227 | 3.5 |
Eurovestech plc1 | Private Equity | 4,100 | 3.4 |
Summit Germany Limited2 | Property | 3,988 | 3.3 |
NB Distressed Debt Investment Fund Limited - Global Shares2 | Specialist Sector | 3,852 | 3.2 |
Harbourvest Global Private Equity Limited2 | Private Equity | 3,769 | 3.1 |
Toro Limited2 | Specialist Sector | 3,720 | 3.1 |
Voya Prime Rate Trust Fund2 | Specialist Sector | 3,553 | 2.9 |
Worldwide Healthcare Trust Plc2 | Specialist Sector | 3,516 | 2.9 |
Biotech Growth Trust plc2 | Specialist Sector | 3,184 | 2.6 |
Tetragon Financial Group Limited2 | Specialist Sector | 2,876 | 2.4 |
Twenty largest |
| 88,795 | 73.4 |
Chenavari Capital Solutions Limited2 | Specialist Sector | 2,772 | 2.3 |
Princess Private Equity Holding Limited2 | Private Equity | 2,757 | 2.3 |
Oryx International Growth Fund Limited2 | Specialist Sector | 2,740 | 2.3 |
Ashmore SICAV Emerging Markets Short Duration Fund3 | Specialist Geography | 2,733 | 2.3 |
Axiom European Financial Debt Fund Limited2 | Specialist Sector | 2,565 | 2.1 |
Blackstone/GSO Loan Financing Limited2 | Specialist Sector | 2,473 | 2.0 |
Standard Life Private Equity Trust Plc2 | Private Equity | 2,459 | 2.0 |
Renewable Energy and Infrastructure Fund II4 | Specialist Sector | 2,433 | 2.0 |
Safeguard Scientifics,Inc2 | Private Equity | 1,937 | 1.6 |
Century Capital Partners IV L.P.4 | Private Equity | 1,708 | 1.4 |
Thirty largest |
| 113,372 | 93.7 |
ASM Asian Recovery Fund4 | Hedge | 1,561 | 1.3 |
NB Distressed Debt Investment Fund Limited - Extended Life Shares2 | Specialist Sector | 1,343 | 1.1 |
Amber Trust SCA4 | Private Equity | 1,264 | 1.0 |
Firebird Republics Fund SPV4 | Specialist Geography | 1,086 | 0.9 |
EF Realisation Co Limited2 | Specialist Sector | 971 | 0.8 |
Acheron Portfolio Corporation (A Shares)1 | Specialist Sector | 618 | 0.5 |
Zouk Solar Opportunities Limited4 | Specialist Sector | 485 | 0.4 |
Value Catalyst Fund Limited4 | Specialist Sector | 96 | 0.1 |
Armadillo Investments Limited4 | Liquidation | 70 | 0.1 |
Baring Vostok Investments Limited cell1 | Private Equity | 14 | 0.0 |
Forty largest |
| 120,880 | 99.9 |
Total Investments |
| 120,883 | 100.0 |
1. Listed on minor market (includes: Luxembourg Stock Exchange, Channel Islands Stock Exchange, ISDX and LMMX)
2. Listed on major market (includes: London Stock Exchange (full listing and AIM) and Euronext)
3. Unlisted investment - with redemption rights
4. Unlisted investment - without redemption rights
Investment by geography on a look-through basis |
| Investment by sector on a look-through basis | ||||||
| 31 March |
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| 2017 | 2016 |
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| 2017 | 2016 | ||
| % | % |
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| % | % | ||
Western Europe | 33 | 32 |
| Miscellaneous | 16 | 12 | ||
North America | 32 | 27 |
| Property | 15 | 15 | ||
BRICS | 11 | 8 |
| Technology and Media | 12 | 12 | ||
Japan, Australia, New Zealand | 6 | 7 |
| Financial Services and Banks | 11 | 8 | ||
Frontier | 5 | 4 |
| Healthcare and Education | 10 | 6 | ||
Miscellaneous | 4 | 1 |
| Personal Goods and Retail | 10 | 9 | ||
Cash | 4 | 16 |
| Oil and Gas | 8 | 3 | ||
Eastern Europe | 3 | 4 |
| Industrial Goods and Services | 4 | 6 | ||
Asia Emerging | 2 | 1 |
| Cash | 4 | 16 | ||
| 100 | 100 |
| Utilities and Telecoms | 4 | 4 | ||
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| Infrastructure and Transport | 3 | 5 | ||
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| Insurance | 2 | 2 | ||
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| Basic Resources | 1 | 1 | ||
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| Food and Beverage | - | 1 | ||
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| 100 | 100 | ||
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Value of investment by vehicle type |
| Value of investment by classification | ||||||
| 31 March |
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| 31 March | ||||
| 2017 | 2016 |
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| 2017 | 2016 | ||
Category of Listing | % | % |
| Investment Focus | % | % | ||
Listed - major exchange | 52 | 59 |
| Specialist Sector | 34 | 32 | ||
Listed - minor exchange | 8 | 8 |
| Private Equity | 28 | 30 | ||
Unlisted - with redemption rights | 24 | 17 |
| Hedge | 22 | 14 | ||
Unlisted - without redemption rights | 16 | 16 |
| Property | 9 | 10 | ||
| 100 | 100 |
| Specialist Geography | 7 | 14 | ||
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| 100 | 100 | ||
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Condensed Income Statement |
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| (Unaudited) | (Unaudited) | (Audited) | |||||||
| Half-year ended | Half-year ended | Year ended | |||||||
| 31 March 2017 | 31 March 2016 | 30 September 2016 | |||||||
| Revenue | Capital |
| Revenue | Capital |
| Revenue | Capital |
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| return | return | Total | return | return | Total | return | return | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Investment income | 1,706 | - | 1,706 | 1,364 | - | 1,364 | 3,685 | - | 3,685 | |
Exchange differences | - | (44) | (44) | - | (40) | (40) | - | 254 | 254 | |
Gains/(losses) on investments held at fair value through profit or loss | - | 7,807 | 7,807 | - | (3,195) | (3,195) | - | 12,977 | 12,977 | |
Total income/(loss) | 1,706 | 7,763 | 9,469 | 1,364 | (3,235) | (1,871) | 3,685 | 13,231 | 16,916 | |
Expenses (Note 2) |
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Management fees | (46) | (416) | (462) | (41) | (368) | (409) | (85) | (766) | (851) | |
Other expenses | (203) | - | (203) | (174) | - | (174) | (354) | - | (354) | |
Net return/(loss) before interest and taxation | 1,457 | 7,347 | 8,804 | 1,149 | (3,603) | (2,454) | 3,246 | 12,465 | 15,711 | |
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Finance costs | - | (1) | (1) | - | (3) | (3) | (7) | (66) | (73) | |
Net return/(loss) on ordinary activities before taxation | 1,457 | 7,346 | 8,803 | 1,149 | (3,606) | (2,457) | 3,239 | 12,399 | 15,638 | |
Taxation | (10) | - | (10) | (10) | - | (10) | (16) | - | (16) | |
Net return/(loss) on ordinary activities after taxation | 1,447 | 7,346 | 8,793 | 1,139 | (3,606) | (2,467) | 3,223 | 12,399 | 15,622 | |
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Return/(loss) per ordinary share (Note 3) | 3.49p | 17.72p | 21.21p | 2.65p | (8.39p) | (5.74p) | 7.50p | 28.85p | 36.35p | |
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The total columns of this statement represent the Income Statement of the Company, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies. | ||||||||||
All revenue and capital returns in the above statement derive from continuing operations. | ||||||||||
No operations were acquired or discontinued during the half-year ended 31 March 2017. The Company has no recognised gains or losses other than those recognised in the Income Statement and the Statement of Changes in Equity. | ||||||||||
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The accompanying notes are an integral part of these condensed financial statements.
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Condensed Statement of Changes in Equity | |||||||
| (Unaudited) | ||||||
| Half-year ended 31 March 2017 | ||||||
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| Capital | Other |
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| Share | Share | redemption | capital | Revenue |
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| capital | premium | reserve | reserves | reserve | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Balance at 1 October 2016 | 10,744 | 10,966 | 7,709 | 99,507 | 3,722 | 132,648 | |
Return attributable to shareholders | - | - | - | 7,346 | 1,447 | 8,793 | |
Shares bought back - Tender Offer | (1,074) | - | 1,074 | (13,120) | - | (13,120) | |
Ordinary dividends (Note 4) | - | - | - | - | (2,750) | (2,750) | |
Balance at 31 March 2017 | 9,670 | 10,966 | 8,783 | 93,733 | 2,419 | 125,571 | |
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| (Unaudited) | ||||||
| Half-year ended 31 March 2016 | ||||||
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| Capital | Other |
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| Share | Share | redemption | capital | Revenue |
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| capital | premium | reserve | reserves | reserve | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Balance at 1 October 2015 | 10,744 | 10,966 | 7,709 | 87,108 | 1,917 | 118,444 | |
Return attributable to shareholders | - | - | - | (3,606) | 1,139 | (2,467) | |
Ordinary dividends (Note 4) | - | - | - | - | (1,418) | (1,418) | |
Balance at 31 March 2016 | 10,744 | 10,966 | 7,709 | 83,502 | 1,638 | 114,559 | |
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| (Audited) | ||||||
| Year ended 30 September 2016 | ||||||
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| Capital | Other |
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| Share | Share | redemption | capital | Revenue |
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| capital | premium | reserve | reserves | reserve | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Balance at 1 October 2015 | 10,744 | 10,966 | 7,709 | 87,108 | 1,917 | 118,444 | |
Return attributable to shareholders | - | - | - | 12,399 | 3,223 | 15,622 | |
Ordinary dividends (Note 4) | - | - | - | - | (1,418) | (1,418) | |
Balance at 30 September 2016 | 10,744 | 10,966 | 7,709 | 99,507 | 3,722 | 132,648 | |
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The accompanying notes are an integral part of these condensed financial statements. | |||||||
Condensed Statement of Financial Position | ||||
| (Unaudited) | (Unaudited) | (Audited) | |
| Half-year ended | Half-year ended | Year ended | |
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| 31 March 2017 | 31 March 2016 | 30 September 2016 |
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| £'000 | £'000 | £'000 |
| Fixed assets |
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| Investments held at fair value through profit or loss (Note 8) | 120,883 | 104,208 | 111,935 |
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| Current assets |
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| Investments held at fair value through profit or loss (Note 7) | 4,313 | 4,511 | 22,868 |
| Debtors | 677 | 717 | 689 |
| Cash at bank | 162 | 3,878 | - |
| Cash held as CFD and futures margin deposit | - | 2,859 | - |
| Unrealised gains on future contracts |
| 178 |
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| Total current assets | 5,152 | 12,143 | 23,557 |
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| Creditors: amounts falling due within one year | 464 | 1,792 | 2,844 |
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| Net current assets | 4,688 | 10,351 | 20,713 |
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| Total assets less current liabilities | 125,571 | 114,559 | 132,648 |
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| Equity attributable to equity shareholders: |
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| Called up share capital (Note 5) | 9,670 | 10,744 | 10,744 |
| Share premium | 10,966 | 10,966 | 10,966 |
| Capital redemption reserve | 8,783 | 7,709 | 7,709 |
| Capital reserves | 93,733 | 83,502 | 99,507 |
| Revenue reserve | 2,419 | 1,638 | 3,722 |
| Total equity shareholders' funds | 125,571 | 114,559 | 132,648 |
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| Net asset value per ordinary share (pence) (Note 6) | 324.65 | 266.56 | 308.66 |
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| The accompanying notes are an integral part of these condensed financial statements. | |||
Condensed Cash Flow Statement |
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| (Unaudited) | (Unaudited) | (Audited) |
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| Half-year ended 31 March 2017 | Half-year ended 31 March 2016 | Year ended 30 September 2016 |
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| £'000 | £'000 | £'000 |
Cash flows from operating activities |
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Net return on ordinary activities before taxation | 8,803 | (2,457) | 15,638 | |
Add back: finance costs | 1 | 3 | 73 | |
Losses/(gains) on investments held at fair value through profit or loss | (7,807) | 3,195 | (12,977) | |
Unrealised gains on future contracts | - | (178) | - | |
Withholding tax on dividends deducted at source | (10) | (10) | (16) | |
Increase in prepayments and accrued income | (384) | (90) | (47) | |
Increase / (decrease) in accruals and deferred income | 130 | 164 | (190) | |
Exchange movements : cash and cash equivalents | 1 | (26) | (6) | |
Net cash inflow from operating activities | 734 | 601 | 2,475 | |
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Cash flows from investing activities |
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Purchases of investments held at fair value through profit or loss | (23,715) | (19,762) | (43,465) | |
Sales of investments held at fair value through profit or loss | 20,461 | 21,897 | 55,434 | |
Purchases of current asset investments held at fair value through profit or loss | (17,187) | (17,053) | (51,612) | |
Sales of current asset investments held at fair value through profit or loss | 35,743 | 19,537 | 35,739 | |
Net cash inflow/(outflow) from investing activities | 15,302 | 4,619 | (3,904) | |
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Cash flows from financing activities |
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Share buybacks | (13,120) | - | - | |
Equity dividends paid | (2,750) | (1,418) | (1,418) | |
Interest paid | (1) | (3) | (73) | |
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Net cash outflow from financing activities | (15,871) | (1,421) | (1,491) | |
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Net increase/(decrease) in cash and equivalents | 165 | 3,799 | (2,920) | |
Cash and cash equivalents at beginning of period | (2) | 2,912 | 2,912 | |
Exchange movements | (1) | 26 | 6 | |
Cash and cash equivalents at end of period | 162 | 6,737 | (2) | |
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Comprising: |
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Cash held / (overdrawn) at bank | 162 | 3,878 | (2) | |
Cash held as CFD and futures margin deposits | - | 2,859 | - | |
| 162 | 6,737 | (2) | |
The accompanying notes are an integral part of the condensed financial statements.
Notes
The accompanying Notes are an integral part of the condensed financial statements.
1. | Accounting Policies The condensed financial statements have been prepared in accordance with FRS 104, Interim Financial Reporting, issued in March 2015, the revised reporting standard for Half-Year reporting that was issued following the introduction of FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, which is effective for periods commencing on or after 1 January 2015 and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts", issued by the Association of Investment Companies in November 2014 and updated in January 2017 with consequential amendments.
The Company has early adopted the amendments to FRS 102 in respect of fair value hierarchy disclosures issued in March 2016.
The condensed set of financial statements has been neither audited nor reviewed by the Company's auditors.
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2. | Expenses and Management Fees Henderson Investment Funds Limited ('Henderson') receives a management fee of 0.7% per annum, payable quarterly in arrears based on the level of net chargeable assets at the relevant quarter end. Management fees are allocated 90% to capital and 10% to revenue.
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3. | Return/(loss) per Ordinary Share The return/loss per ordinary share figure is based on the following figures: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (Unaudited) Half-year ended 31 March 2017 £'000 | (Unaudited) Half-year ended 31 March 2016 £'000 | (Audited) Year ended 30 September 2016 £'000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net revenue profit | 1,447 | 1,139 | 3,223 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net capital return/ (loss) | 7,346 | (3,606) | 12,399 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total return/ (loss) | 8,793 | (2,467) | 15,622 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Weighted average number of ordinary shares in issue during the period |
41,465,011 |
42,976,264 |
42,976,264 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Pence | Pence | Pence | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue profit per ordinary share | 3.49 | 2.65 | 7.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital return/ (loss) per ordinary share | 17.72 | (8.39) | 28.85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total return/(loss) per ordinary share | 22.21 | (5.74) | 36.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4. |
Dividends The Company has not declared an interim dividend (2016: nil).
The final dividend of 3.8p and a special dividend of 2.6p per ordinary share, paid on 3 February 2017, in respect of the year ended 30 September 2016, have been recognised as a distribution in the period.
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5. | Called up Share Capital At 31 March 2017 there were 38,678,638 ordinary shares in issue (31 March 2016: 42,976,264; 30 September 2016: 42,976,264). During the half-year ended 31 March 2017 there were 4,297,626 ordinary shares bought back pursuant to the 10% Tender offer (half-year ended 31 March 2016: nil; year ended 30 September 2016: nil).
The cost of the cancelled shares, including stamp duty, amounted to £12,952,000 (half-year ended 31 March 2016: £nil; year ended 30 September 2016: £nil) and a further £168,000 of costs were incurred in connection with the tender offer. The total cost of £13,120,000 has been charged to the capital reserve.
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6. | Net Asset Value per Ordinary Share The net asset value per ordinary share is based on the net assets attributable to the equity shareholders of £125,184,000 (31 March 2016: £114,559,000; 30 September 2016: £132,648,000) and on 38,678,638 (31 March 2016: 42,976,264; 30 September 2016: 42,976,264) ordinary shares, being the number of ordinary shares (excluding treasury shares) in issue at the period end. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7. | Current asset investments The Company has a holding in Deutsche Global Liquidity Managed Platinum Fund, a money market fund which is viewed as a readily disposable store of value and which is used to invest cash balances that would otherwise be placed on short term deposit. At the half-year this holding had a value of £4,313,000 (31 March 2016: £4,511,000; year ended 30 September 2016: £22,868,000). As FRS 102 states that an investment normally qualifies as a cash equivalent only when it has a short-term maturity of, say, three months or less from the date of acquisition, the money market fund has been classified as a current asset investment instead of a cash equivalent within the Statement of Financial Position, Cash Flow Statement and tabulation of Investments held at Fair Value Through Profit or Loss.
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8.
| Investments held at Fair Value Through Profit or Loss The table below analyses fair value measurements for investments held at fair value through profit or loss. These fair value measurements are categorised into different levels in the fair value hierarchy based on valuation techniques used and are defined as follows under FRS 102:
Level 1: valued using quoted prices in active markets for identical assets. Level 2: valued by reference to valuation techniques using observable inputs other than quoted prices included in level 1. Level 3: valued by reference to valuation techniques using inputs that are not based on observable market data.
The Company's application of these levels is explained in the Company's Annual Report for the year ended 30 September 2016.
There have been no transfers between the levels of the fair value hierarchy during the period.
The valuation techniques used by the Company are explained in the accounting policies note in the Company's Annual Report for the year ended 30 September 2016.
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9. | Transaction Costs Purchase transaction costs for the half-year ended 31 March 2017 were £32,000 (half-year ended 31 March 2016: £16,000; year ended 30 September 2016: £40,000). These comprise mainly stamp duty and commission. Sale transaction costs for the half-year ended 31 March 2017 were £15,000 (half-year ended 31 March 2016: £8,000; year ended 30 September 2016: £34,000). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10. | Comparative Information The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half-years ended 31 March 2017 and 31 March 2016 has not been audited.
The information for the year ended 30 September 2016 has been extracted from the statutory accounts for that year, which have been filed with the Registrar of Companies. The report of the auditors on those accounts was unqualified and contained no statement under either section 498(2) or section 498(3) of the Companies Act 2006.
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11. | Related Party Transactions With the exception of the relationship between the Company and its Directors, the provision of services by Henderson is the only related party arrangement currently in place as defined in the Listing Rules. Other than fees payable by the Company in the ordinary course of business, there have been no material transactions with the Company's related parties affecting the financial position or performance, of the Company during the period under review.
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12. | Going Concern Having considered the Company's investment objective, risk management and capital management policies, the nature of the portfolio and expenditure projections, the Directors believe that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.
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13. | General information
Company Status The Company is an investment trust company, registered in Scotland with company registration number SC015905.
The SEDOL/ISIN number is GB0001216000. The London Stock Exchange (TIDM) Code is HAST. The Company's Legal Entity Identifier (LEI) is 213800J6LLOCA3CUDF69. The Company's Global Intermediary Identification Number (GIIN) is AEFUI2.99999.SL.826.
Directors, Secretary and Registered Office The Directors of the Company are Richard Gubbins (Chairman), Graham Oldroyd (Audit Committee Chairman), Graham Fuller (Senior Independent Director) and Jamie Korner.
The Corporate Secretary is Henderson Secretarial Services Limited.
The registered office is Leven House, 10 Lochside Place, Edinburgh Park, Edinburgh EH12 9DF.
The correspondence address is Henderson Global Investors, 201 Bishopsgate, London EC2M 3AE.
Website Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersonalternativestrategies.com
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14. | Half-Year Report The Half-Year Report will shortly be available in typed format on the Company's website. An abbreviated version, the Half-Year Update, will be circulated to shareholders in May and will be available on the website thereafter. Both the Half-Year Report and the Half-Year Update will be available from the Corporate Secretary at the Company's correspondence address: 201 Bishopsgate, London EC2M 3AE.
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For further information please contact:
Ian Barrass Fund Manager Henderson Alternative Strategies Trust plc Telephone: 020 7818 2964
| James de Bunsen Fund Manager Henderson Alternative Strategies Trust plc Telephone: 020 7818 3869 |
Richard Gubbins Chairman Henderson Alternative Strategies Trust plc Telephone: 07818 454 175 | Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Investment Funds Limited Telephone: 020 7818 3198
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James de Sausmarez Director and Head of Investment Trusts Henderson Investment Funds Limited Tel: 020 7818 3349 |
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Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement