TIDMHAST
RNS Number : 7597Y
Henderson Alternative Strat Tst PLC
19 May 2016
HERSON ALTERNATIVE STRATEGIES TRUST PLC
Unaudited Results for the half-year ended 31 March 2016
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 offers access also to specialist
funds including hedge and private equity. The Company aims to
outperform the FTSE World Total Return Index.
Performance
31 March 2016 30 September 2015
-------------------------------- -------------- -------------------
NAV per ordinary share 266.6p 275.6p
Share price per ordinary share 210.0p 221.0p
Total Return Performance to 31 March (including dividends reinvested
and excluding transaction costs)
6 months 1 year 3 years 5 years 10 years
% % % % %
---------------------------- ---------- -------- --------- -------- ---------
NAV(1) -2.3 -6.4 -5.8 -22.7 -20.0
Share price(2) -3.5 -6.4 -13.0 -26.4 -34.0
FTSE World Total Return
Index(3) 11.5 0.0 27.9 50.9 93.2
FTSE Developed/EM 75/25
Composite(4) 11.5 -1.9 20.8 37.7 91.9
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 - the
Company's benchmark
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
INTERIM MANAGEMENT REPORT
CHAIRMAN'S STATEMENT
Performance
The Company delivered a NAV total return of -2.3% during the
half-year to 31 March 2016 compared to a rise of 11.5% in its FTSE
World Total Return Index global equity benchmark. Whilst the
Company tends to outperform in testing markets (e.g. for the
six-month period to 30 September 2015) it tends equally to
underperform in rising markets. The extent of the recent
underperformance is unsatisfactory, as is the fact that the fund
made a negative absolute return. The Fund Managers' Report explains
some of the reasons for this trend, reviews portfolio activity and
performance during the half-year and describes the Company's
prospects for the second half of the financial year.
Your Board appointed Henderson as Fund Manager in April 2013 in
order to address a preceding period of unsatisfactory investment
performance and to reposition the Company for future growth. In
doing so, it considered it necessary to give Henderson sufficient
time to complete its portfolio restructuring with a view to
achieving attractive long-term returns for shareholders. The Board
also recognises, however, that the Company must now begin to
demonstrate that performance is indeed improving and is sustainable
longer term.
The Company's share price total return of -3.5% during the
half-year did not reflect the Company's commitment to deliver
stronger returns. It is similarly clear that improved performance
is required to increase demand for the Company's shares which, in
turn, should help to reduce its persistent share price discount to
NAV per share. During the half-year the discount widened slightly
from 19.8% to 21.2%.
Second 10% Tender Offer
In January 2015 the Company completed a tender offer for up to
10% of its ordinary shares. As announced previously, a second 10%
tender offer will be made available to shareholders towards the end
of 2016 if the Company's discount averages more than 10% during the
financial year-ended 30 September 2016. It is now very likely that
the second tender offer will take place.
Outlook
Whilst the Board remains confident that the Company's
restructured portfolio now has the potential to generate attractive
long-term returns, it continues to regard improved near-term
investment performance as the Company's key priority during the
second half of the financial year. This is particularly important
as the Board, Henderson and the Company's broker engage in further
marketing activities over the coming months.
It is now almost 18 months since our shareholders gave the
Company the mandate to continue with its identified strategy. The
Company is therefore at a critical point as it strives to
re-establish itself as a compelling vehicle for investors seeking
exposure to a high-quality diverse portfolio of alternative asset
and specialist funds. Although significant progress has been made
towards creating such a portfolio, the Board is fully aware of the
importance of engaging with shareholders regarding the Company's
future direction if improved investment performance continues to be
elusive during 2016. The Board will continue to keep under
consideration other potential means of enhancing shareholder value,
including additional discount control mechanisms.
At the time of writing, there are a number of more encouraging
signs of improvement in the value of some of the Company's
underlying investments and, as you will also note in the Fund
Managers' Report, the fund management team believes that such signs
should translate into better performance over the remainder of
2016.
Richard Gubbins
Chairman
FUND MANAGERS' REPORT
Market Review and Performance against Benchmark
Global stock markets were volatile during the half-year to 31
March 2016. Between October and December investors recovered their
poise, following August's sharp declines, reflecting an increased
acceptance of China's slowing growth rate, an apparent resolution
to the Greek crisis and the end to speculation regarding the timing
of the much anticipated increase in US interest rates. This
improved sentiment was shattered in January and early February as
renewed concerns regarding a slowdown in global growth and possible
recession in the US led to severe market falls. This was then
followed, as these concerns receded, by a strong rally from
mid-February through to the end of March. Over the half-year period
these market gyrations resulted in an overall increase of 11.5% in
the Company's FTSE World Total Return Index global equity
benchmark.
Against this backdrop, the Company's NAV total return during the
half-year was -2.3%, again demonstrating that the Company's
short-term investment performance diverges significantly from its
global equities benchmark. As we have outlined in previous reports,
this should not be a surprise to shareholders given the specialist
nature of the Company's flexible and differentiated investment
mandate. The benchmark is, however, an important yardstick for
measuring whether the Company's investment strategy, focused mainly
on alternative asset and specialist fund investment, is capable of
generating long-term returns above those of global equity markets.
By 'long-term' we mean periods of at least five years.
There are a number of reasons why the Company's short-term
performance diverges from its benchmark. For example, at the
half-year 17% of the Company's total investments comprised unlisted
holdings that reprice monthly, quarterly, semi-annually or
annually. In addition, a further 5% consisted of illiquid listed
investments that reprice irregularly. As a result, these parts of
the portfolio tend not to reflect short-term movements in global
equity indices, but may still be perfectly capable of generating
the necessary long-term returns. Another reason for short-term
divergence is that some of our most significant areas of investment
focus, such as specialist credit funds and long/short absolute
return hedge fund strategies, exhibit limited correlation to global
equity markets. They do, however, have the potential to outperform
those markets in the long-term.
Portfolio Activity
We were active across all five of the Company's investment
categories during the period under review. These are Specialist
Sector, Specialist Geography, Private Equity, Hedge and Property.
The significant portfolio changes are outlined below.
In the Specialist Sector category we increased our exposure to
the floating rate senior bank loan asset class. We did this to take
advantage of attractive pricing arising from what we considered to
be overdone investor concerns regarding the health of the US
high-yield market and the risk of US recession. We therefore
invested in Voya Prime Rate Trust, a US-listed senior loan fund,
and Carador Income Fund PLC, a UK-listed fund that trades senior,
mezzanine and equity securities issued by Collateralised Loan
Obligation vehicles.
The Specialist Geography sleeve saw two material disposals as we
reduced country-specific emerging market risk by selling the
Company's remaining positions in Value Partners China Greenchip
Fund Limited and Weiss Korea Opportunity Fund Limited. Some of the
proceeds were reinvested into Genesis Emerging Markets Fund
Limited, a good-quality UK-listed fund with well-diversified
geographic exposure. We also took advantage of the overly
pessimistic market mood in January to purchase a position in Euro
Stoxx 50 Index Dividend Futures (December 2017) at an attractive
valuation.
Activity in the Private Equity category was limited, although we
were pleased to fund a further drawdown under our USD 10.0 million
commitment to Mantra Secondary Opportunities, a small unlisted
vehicle which invests in mature private equity limited
partnerships. We also added to the Company's holding in Riverstone
Energy Limited, a UK-listed fund which has been investing in the
North American shale oil and gas sector since the oil price
collapse towards the end of 2014.
In the Hedge category our extended search for a suitable
long/short listed equities fund focused on Asia reached a
conclusion when we invested in Indus PacifiChoice Asia. This fund
is run by an experienced management team and has a good track
record. After the half-year end we also invested in the Majedie
Asset Management Tortoise Fund, a successful long/short global
listed equities vehicle. We believe such funds are well-equipped to
deal with what is likely to be a volatile equity market environment
given that the era of market-friendly accommodative central bank
monetary policy is now past its peak. These two investments were
funded partly by a significant reduction in the Company's position
in Pershing Square Holdings Limited, an activist US hedge fund
which experienced a major blemish against its hitherto excellent
track record following well-publicised problems at its largest
portfolio investment, Valeant Pharmaceuticals International
Inc.
Finally, the Property sleeve benefited from a short-lived
investment in Japan Residential Property Company Limited, a
UK-listed fund investing in Japanese residential property. Having
obtained approximately one-third of our target holding, the fund's
shareholders accepted a cash bid at a considerable premium to our
entry price. We also opened a position in Summit Germany Limited, a
UK-listed fund which invests in the German commercial property
sector. This, in our view, is one of the few significantly
undervalued parts of the European property market.
Portfolio Prospects
When we assumed management of the Company's problematic,
poor-performing and relatively illiquid investment portfolio on 1
April 2013, we made it clear that we thought a properly managed
restructuring would take up to three years. This has proved to be
the case, but the process is now complete and we are confident that
the portfolio, subject to a normal level of turnover, now contains
a significant number of good-quality investments which are capable
of generating attractive NAV growth over the next few years.
Although overall portfolio performance was unsatisfactory during
the half-year, we believe there are grounds for optimism over the
coming months and that there are multiple growth opportunities
embedded within the Company's investment portfolio. For example, we
think there are good prospects for both NAV growth and discount
narrowing across our extensive listed private equity and specialist
credit holdings which were oversold during January and February as
concerns regarding global growth came to the fore. Also, our
long/short listed equity hedge fund investments are delivering
improved returns following a challenging few months. Furthermore,
we expect attractive NAV uplifts from some of our illiquid unlisted
holdings such as CEIBA Investment Limited (Cuban property) and
Mantra Secondary Opportunities.
We therefore look forward to the coming months with
confidence.
Ian Barrass and James de Bunsen
Fund Managers
Principal Risks and Uncertainties
The principal risks and uncertainties associated with the
Company are market related and include market price, foreign
exchange, interest rate, liquidity and credit risk.
Information on these risks is given in the Annual Report for the
year ended 30 September 2015. 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
2016 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 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 and Transparency Rule 4.2.8R
(disclosure of related party transactions and changes therein).
For and on behalf of the Board
Richard Gubbins
Chairman
INVESTMENT PORTFOLIO at 31 March 2016
Market
Value Portfolio
Investments (excluding CFDs) Focus GBP'000 %
------------------------------------------- ---------------------- ---------- ------------- ----------
BlackRock European Hedge Fund Limited(3) Hedge 7,531 7.2
Riverstone Energy Limited(2) Private Equity 4,680 4.5
Indus PacifiChoice Asia Fund(3) Specialist Geography 4,608 4.4
CT Investment Fund - A Non Restricted
Shares(3) Hedge 4,556 4.4
CEIBA Investments Limited(4) Property 4,383 4.1
Blackstone/GSO Loan Financing Limited(2) Specialist Sector 4,223 4.1
Princess Private Equity Holding
Limited(2) Private Equity 4,123 4.0
Polar Capital Global Financials
Trust plc(2) Specialist Sector 3,962 3.8
Eurovestech plc(1) Private Equity 3,954 3.8
Oryx International Growth Fund
Limited(2) Specialist Sector 3,913 3.8
------------------------------------------- ---------------------- ---------- ------------- ----------
Ten largest 45,933 44.1
------------------------------------------------------------------- ---------- ------------- ----------
Ediston Property Investment Company
Plc(2) Property 3,608 3.5
Toro Limited(2) Specialist Sector 3,591 3.4
Genesis Emerging Markets Fund Limited(2) Specialist Geography 3,510 3.4
NB Private Equity Partners Limited(2) Private Equity 3,393 3.3
Voya Prime Rate Trust Fund(2) Specialist Sector 3,242 3.1
NB Distressed Debt Investment Fund
Limited - Global Shares(2) Specialist Sector 3,136 3.0
Firebird Republics Fund Limited(3) Specialist Geography 3,020 2.9
Ishares V MSCI Japan GBP Hedged
UCITS(2) Specialist Geography 3,010 2.9
Baring Vostok Investments Limited
core(1) Private Equity 2,929 2.8
Standard Life European Private
Equity Trust Plc(2) Private Equity 2,829 2.7
------------------------------------------- ---------------------- ---------- ------------- ----------
Twenty largest 78,201 75.1
------------------------------------------------------------------- ---------- ------------- ----------
Carador Income Fund Plc(2) Specialist Sector 2,585 2.5
Apax Global Alpha Limited(2) Private Equity 2,300 2.2
Mantra Secondary Opportunities(4) Private Equity 2,219 2.1
Renewable Energy and Infrastructure
Fund II(4) Specialist Sector 2,141 2.1
Tetragon Financial Group Limited(2) Specialist Sector 1,975 1.9
Century Capital Partners IV L.P.(4) Private Equity 1,552 1.5
Chenavari Capital Solutions Limited(2) Specialist Sector 1,517 1.5
NB Distressed Debt Investment Fund
Limited - Extended Life Shares(2) Specialist Sector 1,341 1.2
ASM Asian Recovery Fund(4) Hedge 1,299 1.2
Amber Trust SCA(4) Private Equity 1,215 1.1
------------------------------------------- ---------------------- ---------- ------------- ----------
Thirty largest 96,345 92.4
------------------------------------------------------------------- ---------- ------------- ----------
Ishares European Property Yield(2) Property 1,165 1.1
Pershing Square Holdings Limited(2) Hedge 970 0.9
Summit Germany Limited(2) Property 761 0.7
EPE Special Opportunities plc Ordinary(2) Private Equity 747 0.7
Firebird Republics Fund SPV(4) Specialist Geography 740 0.7
Metage Emerging Markets Opportunities
Fund(3) Hedge 697 0.7
Baring Vostok Investments Limited
cell(1) Private Equity 697 0.7
Ludgate Environmental Fund Limited(2) Specialist Sector 691 0.7
Acheron Portfolio Corporation (A
Shares)(1) Specialist Sector 600 0.6
South African Property Opportunities
plc(2) Property 243 0.2
Forty largest 103,656 99.4
Market Value Portfolio
Investments (excluding CFDs) Focus GBP'000 %
------------------------------------------- ---------------------- ---------- ------------- ----------
Zouk Solar Opportunities Limited(4) Specialist Sector 151 0.1
Prosperity Voskhod Fund Limited(4) Specialist Geography 118 0.1
Armadillo Investments Limited(4) Liquidation 87 0.1
Value Catalyst Fund Limited(4) Specialist Sector 82 0.1
Strathdon Investments Plc(4) Specialist Sector 67 0.1
Low Carbon Accelerator Limited(4) Liquidation 36 0.0
Polar Capital Global Financials
Trust plc - Subscription Shares(2) Specialist Sector 10 0.0
China CDM Exchange Centre Limited(1) Specialist Sector 1 0.0
Buena Vista Latin America Fund
Limited(4) Property - 0.0
Buena Vista Latin America Fund
(CULS)(4) Property - 0.0
Fifty largest 104,208 99.9
------------------------------------------------------------------- ---------- ------------- ----------
Denholm Hall Russia Arbitrage Fund
B - Redemption(4) Hedge - 0.0
Denholm Hall Russia Arbitrage Fund
B - Investment(4) Hedge - 0.0
International Oil & Gas Technology
Limited(2) Specialist Sector - 0.0
iO Adria Limited(1) Property - 0.0
PSource Structured Debt Limited(4) Liquidation - 0.0
Thompson Clive Investments Plc(4) Liquidation - 0.0
Total Investments (excluding CFDs
and Futures) 104,208 99.9
------------------------------------------------------------------- ---------- ------------- ----------
Gross
Market Fair
Exposure Value Portfolio
CFD Assets Focus GBP000 GBP'000 %
------------------------------------------- ---------------------- ---------- ------------- ----------
Ecofin Water and Power Opportunities
plc Specialist Sector 2,407 (117) -0.1
Futures
Eux SX5E Div Dec 17 Future (Exp
15/12/17) 3,810 178 0.2
Total Investments 104,269 100.0
------------------------------------------------------------------- ---------- ------------- ----------
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
31 March
2016 2015
% %
-------------------------------- --------- ------
West Europe 32 34
North America 27 20
Cash 16 12
Japan,Australia,New Zealand 7 2
Other BRICS 5 9
Eastern Europe 4 5
Frontier 4 3
Russia 3 6
Miscellaneous 1 3
Asia Emerging 1 6
--------- ------
100 100
--------- ------
Investment by sector on a look through
basis
31 March
2016 2015
% %
------------------------------- -------- -------
Cash 16 12
Property 15 17
Miscellaneous 12 13
Technology and Media 12 13
Personal Goods and Retail 9 6
Financial Services and
Banks 8 9
Industrial Goods and Services 6 4
Healthcare and Education 6 5
Infrastructure and Transport 5 4
Utilities and Telecoms 4 5
Oil & Gas 3 4
Insurance 2 5
Basic Resources 1 2
Food & Beverage 1 1
-------- -------
100 100
-------- -------
Value of investments by vehicle type
31 March
2016 2015
Category of Listing % %
------------------------------- -------- --------
Listed - Major Exchange 59 54
Listed - Minor Exchange 8 10
Unlisted - with redemption
rights 17 22
Unlisted - without redemption
rights 16 14
Liquidation 0 0
-------- --------
100 100
-------- --------
Value of investments by classification
31 March
---------------------------- ------------------
2016 2015
---------------------------- -------- --------
Investment Focus % %
Specialist Sector 32 31
Private Equity 30 25
Specialist Geography 14 18
Hedge 14 18
Property 10 8
Liquidation 0 0
-------- --------
100 100
-------- --------
Condensed Income Statement
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year ended
31 March 2016 31 March 2015 30 September 2015
Revenue Capital Revenue Capital Revenue Capital
return return Total return return Total return return Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ -------- -------- -------- -------- -------- -------- -------- --------- ---------
Investment income 1,364 - 1,364 1,023 - 1,023 2,090 - 2,090
Exchange differences - (40) (40) - 6 6 - 61 61
Losses on investments
held at fair value
through profit or
loss(1) - (3,195) (3,195) - (1,816) (1,816) - (7,509) (7,509)
-------- -------- -------- -------- -------- -------- -------- --------- ---------
Total income/(loss) 1,364 (3,235) (1,871) 1,023 (1,810) (787) 2,090 (7,448) (5,358)
Expenses (Note 2)
Management fees (41) (368) (409) (45) (403) (448) (86) (782) (868)
Other expenses (174) - (174) (162) - (162) (351) - (351)
-------- -------- -------- -------- -------- -------- -------- --------- ---------
Net return/(loss)
before interest
and taxation 1,149 (3,603) (2,454) 816 (2,213) (1,397) 1,653 (8,230) (6,577)
Finance costs - (3) (3) (2) (20) (22) (3) (26) (29)
-------- -------- -------- -------- -------- -------- -------- --------- ---------
Net return/(loss)
on ordinary activities
before taxation 1,149 (3,606) (2,457) 814 (2,233) (1,419) 1,650 (8,256) (6,606)
Taxation (10) - (10) - - - - - -
-------- -------- -------- -------- -------- -------- -------- --------- ---------
Net return/(loss)
on ordinary activities
after taxation 1,139 (3,606) (2,467) 814 (2,233) (1,419) 1,650 (8,256) (6,606)
-------- -------- -------- -------- -------- -------- -------- --------- ---------
Return/(loss) per
ordinary share (Note
3) 2.65p (8.39p) (5.74p) 1.78p (4.88p) (3.10p) 3.72p (18.61p) (14.89p)
-------- -------- -------- -------- -------- -------- -------- --------- ---------
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 2016. The Company has no recognised gains or losses other than those
recognised in the Income Statement and the Statement of Changes in Equity.
The accompanying notes are an integral part of these condensed financial statements.
1 Restated net of transaction costs (see Note 1)
Condensed Statement of Changes in Equity
(Unaudited)
Half-year ended 31 March 2016
Capital Other
Share Share redemption capital Revenue
capital premium reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'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 - - - - (1,418) (1,418)
Balance at 31 March 2016 10,744 10,966 7,709 83,502 1,638 114,559
-------- -------- ----------- --------- -------- ---------
(Unaudited)
Half-year ended 31 March 2015
Capital Other
Share Share redemption capital Revenue
capital premium reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- -------- ----------- --------- -------- ---------
Balance at 1 October
2014 11,938 10,966 6,515 108,289 1,700 139,408
Return attributable to
shareholders - - - (2,233) 814 (1,419)
Shares bought back -
Tender Offer (1,194) - 1,194 (12,922) - (12,922)
Ordinary dividends - - - - (1,433) (1,433)
-------- -------- ----------- --------- -------- ---------
Balance at 31 March 2015 10,744 10,966 7,709 93,134 1,081 123,634
-------- -------- ----------- --------- -------- ---------
(Audited)
Year ended 30 September 2015
Capital Other
Share Share redemption capital Revenue
capital premium reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- -------- ----------- --------- -------- ---------
Balance at 1 October
2014 11,938 10,966 6,515 108,289 1,700 139,408
Return attributable to
shareholders - - - (8,256) 1,650 (6,606)
Shares bought back -
Tender Offer (1,194) - 1,194 (12,925) - (12,925)
Ordinary dividends - - - - (1,433) (1,433)
Balance at 30 September
2015 10,744 10,966 7,709 87,108 1,917 118,444
-------- -------- ----------- --------- -------- ---------
The accompanying notes are an integral part of these condensed financial
statements.
Condensed Statement of Financial
Position
(Unaudited) (Unaudited) (Audited)
Half-year Half-year
ended ended Year ended
30 September
31 March 2016 31 March 2016 2015
GBP'000 GBP'000 GBP'000
--------------------------------------- -------------- -------------- -------------
Fixed assets
Investments held at fair value
through profit or loss 104,208 117,228 106,982
-------------- -------------- -------------
Current assets
Investments held at fair value
through profit or loss 4,511 2,672 6,995
Securities sold for future
settlement 569 - 1,934
Taxation recoverable 51 12 33
Prepayments and other receivables 97 67 23
Cash at bank 3,878 1,806 220
Unrealised gains on future
contracts 178 - -
Cash held as CFD and futures
margin deposit 2,859 2,872 2,692
Total current assets 12,143 7,429 11,897
-------------- -------------- -------------
Current liabilities
Securities purchased for future
settlement 1,178 439 -
CFD liabilities held at fair
value through profit and loss 117 - 101
Accruals and deferred income 497 584 334
1,792 1,023 435
-------------- -------------- -------------
Net current assets 10,351 6,406 11,462
Total assets less current liabilities 114,559 123,634 118,444
-------------- -------------- -------------
Equity attributable to equity
shareholders:
Called up share capital (Note
5) 10,744 10,744 10,744
Share premium 10,966 10,966 10,966
Capital redemption reserve 7,709 7,709 7,709
Capital reserves 83,502 93,134 87,108
Revenue reserve 1,638 1,081 1,917
Total equity shareholders'
funds 114,559 123,634 118,444
-------------- -------------- -------------
Net asset value per ordinary
share (pence)
(Note 6) 266.56 287.68 275.60
-------------- -------------- -------------
The accompanying notes are an integral part of these condensed financial
statements.
Condensed Cash Flow Statement
(Unaudited (Audited
and restated(1) and restated(1)
(Unaudited) ) )
Half-year Half-year
ended ended Year ended
31 March 31 March 30 September
2016 2015 2015
GBP'000 GBP'000 GBP'000
------------------------------------------------ ------------- ------------------ ------------------
Cash flows from operating activities
Net return on ordinary activities before
taxation (2,457) (1,419) (6,606)
Add back: finance costs 3 22 29
Add losses on investments held at fair
value through profit or loss 3,195 1,816 7,509
Unrealised gains on future contracts (178) - -
Withholding tax on dividends deducted at
source (10) - -
(Increase) / decrease in prepayments and
accrued income (90) (6) 17
Increase / (decrease) in accruals and deferred
income 164 2 (248)
Increase / (decrease) in amounts due to
brokers 2,543 1,403 (970)
Exchange movements : cash and cash equivalents (26) (32) (2)
Net cash inflow / (outflow)from operating
activities 3,144 1,786 (271)
------------- ------------------ ------------------
Cash flows from investing activities
Purchases of investments held at fair value
through profit or loss (20,940) (16,591) (38,057)
Sales of investments held at fair value
through profit or loss 20,532 17,480 43,600
Purchases of current asset investments
held at fair value through profit or loss (17,053) (16,002) (40,699)
Sales of current asset investments held
at fair value through profit or loss 19,537 29,580 49,954
------------- ------------------ ------------------
Net cash inflow from investing activities 2,076 14,467 14,798
------------- ------------------ ------------------
Cash flows from financing activities
Share buybacks - (12,922) (12,925)
Equity dividends paid (1,418) (1,433) (1,433)
Interest paid (3) (22) (29)
Net cash outflow from financing activities (1,421) (14,377) (14,387)
------------- ------------------ ------------------
Net increase in cash and equivalents 3,799 1,876 140
Cash and cash equivalents at beginning
of period 2,912 2,770 2,770
Exchange movements 26 32 2
------------- ------------------ ------------------
Cash and cash equivalents at end of period 6,737 4,678 2,912
------------- ------------------ ------------------
Comprising:
Cash at bank 3,878 1,806 220
Cash held as CFD and futures margin deposits 2,859 2,872 2,692
6,737 4,678 2,912
------------- ------------------ ------------------
1 The Cash Flow Statements previously reported have been
restated to comply with the new disclosure requirements of FRS 102
and the re-classification of money market funds as current asset
investments. For more details see Note 1.
The accompanying notes are an integral part of the condensed
financial statements.
The accompanying notes are an integral part of the condensed
financial statements.
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting Policies
The condensed set of financial statements has 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. The Statement of Recommended
Practice for "Financial Statements of Investment Trust Companies and
Venture Capital Trusts", in accordance with which the Company's financial
statements are also prepared, was re-issued by the Association of
Investment Companies in November 2014 to comply with the revised reporting
standards. The Company has early adopted the amendments to FRS 102
in respect of fair value hierarchy disclosures issued in March 2016.
Following the application of the revised reporting standards, there
have been no changes to the accounting policies set out in the Company's
Annual Report for the year ended 30 September 2015.
The condensed financial statements for the year ended 30 September
2015 and the six months ended 31 March 2016 have been restated where
necessary to comply with the new standards and disclosure requirements.
In line with FRS 102 and the revised SORP, transaction costs incidental
to the purchase and sale of investments have been reclassified and
included as part of the loss on investments held at fair value through
profit or loss instead of being shown separately on the face of the
income statement as a capital expense.
The Cash Flow Statements previously reported have been restated to
comply with the new disclosure requirements and the re-classification
of money market funds as current asset investments. The Statement
of Financial Position for each period also reflect the re-classification.
There has been no other impact on the Company's Income Statement,
Statement of Financial Position (previously called the Balance Sheet
or Statement of Changes in Equity (previously called the Reconciliation
of Movements in Shareholders' Funds) for periods previously reported.
The condensed set of financial statements has been neither audited
nor reviewed by the Company's auditors.
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.
3. Return/(loss) per Ordinary Share
The return/loss per ordinary share figure is based on the following
figures:
(Unaudited) (Unaudited) (Audited)
Half-year ended Half-year ended Year ended
31 March 2016 31 March 2015 30 September 2015
GBP'000 GBP'000 GBP'000
Net revenue profit 1,139 814 1,650
Net capital (loss)/profit (3,606) (2,233) (8,256)
--------------------------- --------------------------- -------------------
Total (loss)/profit (2,467) (1,419) (6,606)
--------------------------- --------------------------- -------------------
Weighted average number
of
ordinary shares in issue
during
the period 42,976,264 45,757,389 44,363,017
Revenue profit per ordinary
share 2.65 1.78 3.72
Capital (loss)/profit
per ordinary share (8.39) (4.88) (18.61)
--------------------------- --------------------------- -------------------
Total (loss)/profit per
ordinary share (5.74) (3.10) (14.89)
--------------------------- --------------------------- -------------------
4. Dividends
The Company has not declared an interim dividend (2015: nil).
The final dividend of 3.3p per ordinary share, paid on 26 February
2016, in respect of the year ended 30 September 2015, has been recognised
as a distribution in the period.
5. Called up Share Capital
At 31 March 2016 there were 42,976,264 ordinary shares in issue (31
March 2015: 42,976,264; 30 September 2015: 42,976,264).
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 GBP114,559,000 (31 March
2015: GBP123,634,000; 30 September 2015: GBP118,444,000) and on 42,976,264
(31 March 2015: 42,976,264; 30 September 2015: 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
Income 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 31 March 2016 this holding
had a value of GBP4,511,000 (31 March 2015: GBP2,672,000: 30 September
2015: GBP6,995,000). As FRS 102 states that an investment normally
qualifies as a cash equivalent only when it has a short maturity of,
say, three months or less from the date of acquisition, it has been
considered that the money market fund should be reclassified as a
8. current asset investment instead of a cash equivalent within the Statement
of Financial Position (previously called the Balance Sheet) and Cash
Flow Statement.
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 the 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.
31 March
2016 Level Level Level
(unaudited) 1 2 3 Total
GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- --------
Investments excluding CFDs 60,309 26,603 17,296 104,208
CFDs - (117) - (117)
Futures - 178 - 178
Current asset investments 4,511 - - 4,511
-------- -------- -------- --------
Total 64,820 26,664 17,296 108,780
-------- -------- -------- --------
31 March
2015 Level Level Level
(unaudited) 1 2 3 Total
GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- --------
Investments excluding CFDs 64,253 35,920 16,391 116,564
CFDs - 664 - 664
Current asset investments 2,672 - - 2,672
-------- -------- -------- --------
Total 66,925 36,584 16,391 119,900
-------- -------- -------- --------
30 September Level Level Level
2015 (audited) 1 2 3 Total
GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- -------- --------
Investments excluding CFDs 61,492 30,492 14,998 106,982
CFDs - (101) - (101)
Current asset investments 6,995 - - 6,995
-------- -------- -------- --------
Total 68,487 30,391 14,998 113,876
-------- -------- -------- --------
The total valuations shown above include investments held at fair
value through profit and loss, the CFD and Future held at fair value
through profit or loss and the current asset investment that was previously
classified as a cash equivalent.
The investments were previously reported as Level 1, Level 2 or Level
3 investments under the FRS 29 fair value hierarchy and are now reported
as Level 1, Level 2 or Level 3 investments under the FRS 102 classifications
as amended in March 2016 by the amendments to the fair value hierarchy.
This results in there being no change to the classifications under
FRS 102 compared to previous periods.
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 2015 and are equally applicable under both FRS
29 and FRS 102.
9. Transaction Costs
Purchase transaction costs for the half-year ended 31 March 2016 were
GBP16,000 (31 March 2015: GBP9,000; 30 September 2015: GBP14,000).
These comprise mainly stamp duty and commission. Sale transaction
costs for the half-year ended 31 March 2016 were GBP8,000 (31 March
2015: GBP7,000; 30 September 2015: GBP13,000).
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 2016 and 31 March 2015 has not been audited.
The information for the year ended 30 September 2015 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.
11. Related Party Transactions
Other than 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 and the provision of sales and
marketing services, of the Company during the period under review.
12. Going Concern
Having reassessed the principal risks and uncertainties the Directors
believe that it is appropriate to adopt the going concern basis in
preparing the financial statements.
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,
represented by Rachel Peat, ACIS.
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
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 June 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.
For further information please contact:
Ian Barrass James de Bunsen
Fund Manager Fund Manager
Henderson Alternative Strategies Trust Henderson Alternative Strategies
plc Trust plc Telephone: 020 7818
Telephone: 020 7818 2964 3869
Richard Gubbins Sarah Gibbons-Cook
Chairman Investor Relations and PR Manager
Henderson Alternative Strategies Trust Henderson Investment Funds Limited
plc Telephone: 020 7818 3198
Telephone: 07818 454 175
James de Sausmarez
Director and Head of Investment Trusts
Henderson Investment Funds Limited
Tel: 020 7818 3349
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FKLFFQEFXBBB
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