Interim Management Statement
May 19 2009 - 1:28PM
UK Regulatory
TIDMTLI
19 May 2009
Alternative Asset Opportunities PCC Limited
(the "Company")
Interim Management Statement
This interim management statement relates to the period from 1
January 2009 to the date of publication of this statement and has
been prepared solely to provide additional information in order to
meet the relevant requirement of the UK Listing Authority's
Disclosure and Transparency Rules, and should not be relied on by
Shareholders, or any other party, for any other purpose.
The Company is a closed-ended Guernsey protected cell company with
one cell known as the US Traded Life Interests Fund (the "Fund").
Investment objective
The Company's investment objective in respect of the Fund is to
provide investors with an attractive capital return through
investment predominantly in a diversified portfolio of U.S. Traded
Life Interests ("TLIs").
Financial position and performance
Over the period to 31 March 2009, the Company's net asset value
decreased by 1.8% to 92.1 pence. As at 31 March 2009, the shares were
trading at a 62.5% discount to net asset value.
No mortalities were recorded in the period. There have been, in
aggregate, 17 policy maturities since the Fund's inception.
On 16 March 2009, the Company entered into a new $38 million
borrowing facility with Allied Irish Banks which expires in March
2010. The terms and conditions are similar to those relating to the
previous facility, except that the margin over US$ Libor has risen to
2.00% on the first $28 million borrowed and 2.75% on the balance of
$10 million. As at 31 March 2009, the Company had drawn down $28
million of borrowings with a further $4 million of borrowings drawn
down after the quarter end.
The Board have been made aware of a recent US Inland Revenue Service
("IRS") ruling relating to, inter alia, taxation of maturity benefits
from TLIs. Under this IRS ruling, in certain circumstances, non-US
secondary market purchasers may be subject to a 30% withholding tax
on any death benefits, net of cost and premiums. The Board is in
discussions with its advisers to establish any potential impact of
this ruling on the Company's portfolio and what mitigating action, if
any, might be necessary.
Other than described above, the Board is not aware of any material
events during the period from 1 January 2009 to 31 March 2009, or in
the period from 1 April to the date of this announcement, which would
have had a material impact on the financial position of the Company.
Illustrative predicted yields
The table below sets out the range of illustrative predicted yields over the remaining
life of the Company, with reference to the 31 March 2009 NAV of 92.1 pence.
Impact
on 80yr Valuation
old male of IRR based on exit price range[5]:
Variation in non Proportion surviving
mortality[1] smoker[2] surviving[3] policies[4] -10c -5c 0c +5c +10c
125% -1.09 58% 41.1c +10.6% +14.0% +17.2% +20.3% +23.2%
110% -0.48 61% 41.5c +7.1% +11.0% +14.6% +18.0% +21.2%
100% 0.00 64% 41.7c +4.5% +8.7% +12.6% +16.3% +19.7%
80% +1.20 70% 42.2c -1.7% +3.4% +8.1% +12.4% +16.4%
50% +4.12 79% 42.9c -14.5% -7.1% -0.6% +5.1% +10.2%
30% +8.00 87% 43.4c -27.9% -17.1% -8.5% -1.3% +5.0%
Ignore Medical
Underwriting & Use 79% 43.8c -12.9% -5.7% +0.5% +6.1% +11.1%
Full VBT Table[6]
Notes
1. The central case (100%) assumes that claims experience matches the
valuation basis in force at 31 March 2009. The other scenarios assume
mortality experience is higher (e.g. 110%) or lower (e.g. 80%).
2. This shows the effect of the selected mortality experiences on the
life expectation (in years) for an otherwise normal 80-year-old male
non-smoker.
3. This shows the percentage of the lives assured which are assumed
to survive throughout the life of the company.
4. This shows the assumed average realisation values (per US$1 of TLI
policy face value) for the surviving lives at the end of the
Company's life. The central case (41.7c) corresponds to the valuation
assumptions used in arriving at the end-March NAV.
5. This shows how returns might be expected to vary should
realisation values differ from those shown in column 4 by the margins
shown.
6. This shows the returns using the full VBT Select Table without any
adjustment for the life expectancy assessments.
Source: Surrenda-link Limited
Top ten holdings
By reference to the most recent portfolio valuation of the Company as
at 31 March 2009, the largest ten investments held by the Company,
measured by life office exposure, were as follows:
Number % of total
of assets as at
Issuer policies 31 March 2009
American General Life Insurance Company 13 14.18%
(TX)
Lincoln National Life Insurance Co 19 13.50%
Transamerica Life Insurance Company 21 11.54%
Massachusetts Mutual Life Insurance Co 11 10.51%
John Hancock Life Insurance Company 13 8.17%
Pacific Life Insurance Company 6 6.72%
Aviva Life and Annuity Company 6 5.77%
Jackson National Life Insurance Company 1 3.76%
MetLife Insurance Company of 8 3.59%
Connecticut
New York Life Insurance and Annuity 6 2.94%
Corp
Company Information
Launch date 25 March 2004
EPIC TLI
Year end 30 June
Report & Accounts Final posted October, Interim posted February
AGM December
Price Information Financial Times (under INVESTMENT COMPANIES,
listed as 'Alt Asts Rd P.')
Investor Information
The latest available portfolio information included in the interim
and annual report and accounts can be accessed via
http://www.rcm.com/investmenttrusts/investors_tlif.php.
By order of the Board
Alternative Asset Opportunities PCC Limited
Enquiries:
Sharon Wrench Tel: 01481 752 591
Kleinwort Benson (Channel Islands) Fund Services
Limited
=--END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
Alternative Asset Opps Pcc (LSE:TLI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Alternative Asset Opps Pcc (LSE:TLI)
Historical Stock Chart
From Jul 2023 to Jul 2024
