TIDMALGW
RNS Number : 1632E
Alpha Growth PLC
04 November 2020
Alpha Growth Plc
("Alpha", or the "Company")
Corporate Update
Alpha Growth Plc (LSE: ALGW), the financial services specialist
in the growing Senior Life Settlement ("SLS") asset class is
pleased to provide the market with a corporate update on the
Company's business. This release provides an update on the Impact
of Covid-19 and addresses shareholder questions that the Company
has received since its last update.
The Company's fiscal year ended on 31 August 2020 with the
audited accounts expected to be released in December. As expected,
the Company generated its first revenues, albeit a modest amount,
through its fund management activity. This initial revenue
generation was a milestone that was eagerly passed and continues to
be built upon.
The significant activity the past few months has been the focus
on marketing the BlackOak Alpha Growth Fund (the "Fund"). We are
pleased to report that the AUM in the Fund has been doubled to
approximately $20 million. In the month of October alone $7.6
million of subscriptions were received. The increase in AUM builds
upon itself as the Fund will become eligible to investors who seek
to invest a meaningful amount but do not want to hold, or cannot
hold for internal or regulatory reasons more than a certain
percentage of the overall AUM.
We continue to market to registered investment advisors and
experience higher open, click, and reply rates for email campaigns.
These translate into introductory conference calls, due diligence
reviews, and so on. The subscriptions in October into the Fund were
the result of this process and excellent client service.
The Fund continues to perform well and is on course to provide a
return within the 10% to 14% target range. For the months of August
and September the returns were 1.82% and 1.42% respectively. We
will continue to build strength on strength.
The Company's discussion with the Warehouse Loan/Short Term
Credit Facility counterparty continues and is nearing a conclusive
step. The counterparty's COVID policy is limiting their ability to
conclude site visits to the Company's and our servicing agents' US
based offices. The Company will provide further updates as
discussions progress.
The Company has begun its promotion of the Alpha Growth &
Income ("AGI") strategy. As previously announced, this strategy is
a combination of life settlements and life contingent structured
settlements hedged by a life insurance policy that is suitable for
investors seeking cashflow and growth, funded in either a separate
managed account or as a co-mingled fund with a minimum investment
of $50 million. The AGI can provide the investor an annual cash
flow through the structured settlement asset and growth in the
principal invested through the life settlement asset. The Company
will provide further updates as discussions merit an
announcement.
The impact of Covid-19 has no doubt influenced the timing of
various counterparties to transact with the Company. Over the past
few months, it is evident that the management of the pandemic by
various Governments is unpredictable and impacts the movement of
individuals. In addition, the internal policies of counterparties
pose some hurdles to concluding transactions in a timely
fashion.
The Company works with European, UK, and USA counterparties. A
number of European and UK investors are stalled in their abilities
to conduct business as before and adjusting to new ways of
complying with their internal requirements for completing due
diligence and progressing analysis with a dispersed workforce. This
no doubt affects the ability of the Company to increase assets
under management.
As life settlements are uniquely a US based asset, the Company
is allocating more time to prospective clients for its strategies
in the USA, allowing for in person meetings, which has produced
results for the Fund. The Company's CEO, Gobind Sahney, comments
that "since July, I have travelled every month for meetings in New
York, Florida, and Texas and continue to schedule meetings with US
investors that are open to meeting."
On an operational level, the Company continues to maintain a
lean operating structure and sufficient working capital for its
strategies. We are also pleased to announce the launch of our new
website www.algwplc.com which is truly reflective of the
professional and contemporary nature of the Company. The new
website was influenced through shareholder input. In addition we
launched a stand alone website for the Fund at www.BOAGF.com . The
Fund's website continues the look, branding, and provides
functionality for clients to access documents and other information
through a password protected format.
Going into the future the 2021 outlook is positive. At the
conclusion of the US elections, whoever is the winner, the Company
is still confident that, particularly with record low interest
rates, continued volatility in the equity markets and the
non-correlation of SLS assets, it will be able to continue its
strategies, and also take advantage of further opportunities as and
when they arise in the longevity asset sector..
As previously stated, the continued impact of Covid19 policies
are unpredictable and there will be an impact on Company's
financial results if delays continue for an extended period of
time. However, the Company's executives continue to allocate time
to what they can control in order to build on the Company's
progress.
The Directors thank the shareholders for their continuing
support and look forward to making progress on all strategies in as
timely a manner as possible. Further details are provided on the
Company website www.algwplc.com .
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
For more information, please visit www.algwplc.com or contact
the following:
Alpha Growth Plc +44 (0) 20 3959 8600
Gobind Sahney, Executive Chairman info@algwplc.com
Pello Capital Limited +44 (0) 20 7710 9610
Mark Treharne mt@pellocapital.com
Alpha Growth Plc: Gobind Sahney, Executive Chairman +44 (0) 20
3959 8600 i nfo @algwplc.com
About Alpha Growth Plc
Specialist in Longevity Assets
Alpha Growth Plc is a financial advisory business providing
specialist consultancy, advisory, and supplementary services to
institutional and qualified investors globally in the multi-billion
dollar market of longevity assets. Building on its well-established
network, the Alpha Growth Group has a unique position in the
longevity asset services and investment business, as a listed
entity with global reach. The Group's strategy is to expand its
advisory and business services via acquisitions and joint ventures
in the UK and the US to attain commercial scale and provide
holistic solutions to alternative institutional investors who are
in need of specialised skills and unique access to deploy their
financial resource in longevity assets.
SLS Assets and Non-correlation
A SLS refers to the sale of an existing life insurance policy to
a third party for a cash payment. Such a payment will be in excess
of the policy's surrender value, but less than its face value.
After the sale, the purchaser becomes the policy's beneficiary and
assumes payment of its premiums. There are many reasons why policy
holders may choose to sell their life insurance policies and sales
are usually only undertaken when the insured person doesn't have a
known life-threatening illness. The SLS provides individuals with
policies the option to realise value from an asset under a
regulated transaction. As a longevity asset, the SLS is
non-correlated to the real estate, equity capital and commodity
markets. Its value is a function of time because as time passes the
value gets closer to the face value of the policy. Hence creating a
steady increase in the net asset value of the investment. This
makes it highly attractive to investors wishing to counteract
volatility within an investment portfolio and add yield.
Note: The Company only advises on and manages SLS Assets that
originate in the USA where the SLS market is highly regulated.
Forward Looking Statements Disclaimer
Certain statements, beliefs and opinions in this document are
forward-looking, which reflect the Company's or, as appropriate,
the Company's directors' current expectations and projections about
future events. By their nature, forward-looking statements involve
a number of risks, uncertainties and assumptions that could cause
actual results or events to differ materially from those expressed
or implied by the forward-looking statements. These risks,
uncertainties and assumptions could adversely affect the outcome
and financial effects of the plans and events described herein.
Forward-looking statements contained in this document regarding
past trends or activities should not be taken as a representation
that such trends or activities will continue in the future. The
Company does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. You should not place undue reliance on
forward- looking statements, which speak only as of the date of
this document. Readers should not treat the contents of this
document as advice relating to legal, taxation or investment
matters, and are to make their own assessments concerning these and
other consequences, including the merits of information and the
risks. Readers of this announcement are advised to conduct their
own due diligence and agree to be bound by the limitations of this
disclaimer.
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