Regulatory Story
Go to market news section View chart   Print
RNS

Results for the six months ended 30 September 2018

Released 16:57 04-Dec-2018

RNS Number : 4397J
Henderson Alternative Strat Tst PLC
04 December 2018
 

Legal Entity Identifier: 213800J6LLOCA3CUDF69

 

HENDERSON ALTERNATIVE STRATEGIES TRUST PLC

 

Unaudited Results for the six-month period ended 30 SEPTEMBER 2018

 

 

This announcement contains regulated information

 

Following the change of the Company's year end to 31 March from 30 September, this shareholder update reports on a second set of interim results covering the six months to 30 September 2018 and the 12 months ended 30 September 2018.

 

INVESTMENT OBJECTIVE

The Company exploits global opportunities not normally readily accessible in one vehicle 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 (a combination of income and capital growth) in Sterling terms. 

 

 

Six months ended

Year ended

Performance

(Unaudited)

(Unaudited)

(Audited)

 

30 September

2018

31 March

2018

  30 September 2017

Net asset value (NAV) per ordinary share

344.8p

329.3p

335.4p

Total return per ordinary share

15.58p

(1.42p)

32.20p

Share price per ordinary share

278.0p

272.0p

291.5p

Market capitalisation

£107.5m

£105.2m

£112.7m

Discount

19.4%

17.4%

13.1%

Dividend

5.00p1

-

4.75p

 

Total Return Performance to 30 September 2018 (including dividends reinvested and excluding transaction costs)

 

6 months

%

1 year

%

3 years

%

5 years

%

10 years

%

NAV2

4.7

4.2

31.0

26.3

14.9

Share price3

2.2

(3.1)

32.9

22.2

(3.1)

Benchmark4

13.8

14.2

72.9

95.1

221.9

Peer Group5

3.4

1.9

29.1

30.7

88.8

 

1.     2018 interim dividend

2.     Net asset value total return per ordinary share with income reinvested for six months and one, three and five years, and capital NAV plus income reinvested for ten years

3.     Share price total return using mid-market closing price

4.     FTSE World Total Return Index in Sterling terms

5.     Flexible Investment sector share price total return

Sources: Morningstar Direct, Datastream, Janus Henderson, Association of Investment Companies ('AIC')

 

 

 

INTERIM MANAGEMENT REPORT

 

CHAIRMAN'S STATEMENT

Global stock markets in the developed world made strong returns during the six-month period to 30 September 2018, led by the US and in particular technology stocks. In contrast, developing markets saw material losses as a stronger US dollar increased concerns over funding costs, especially in Argentina and Turkey, which saw their borrowing costs spike and currencies plunge. Meanwhile, rising interest rates in the US, and inflation more broadly, led to losses for holders of government bonds. Against this backdrop, the Company generated a 4.7% NAV total return over the period. This compares to a 13.8% total return from its benchmark, the FTSE World Total Return Index (in Sterling). Disappointingly, the Company share price total return was 2.2% during the period, reflecting some widening of the discount. While the NAV return is some way behind the benchmark for the period, deviations are to be expected given the very different composition of the Company's portfolio to the benchmark. The Board believes that the Company's performance should only be judged against the benchmark on a long-term basis.

 

The average share price discount to NAV was 17.8% over the period, beginning slightly narrower than this and ending slightly wider at 19.4%. While we had hoped that the Company's differentiated approach and steady NAV appreciation might lead to a tighter discount, the Board has observed that discounts have widened overall across investment trusts with emerging market, private equity and hedge fund exposure.

 

The Board has declared an interim dividend of 5.00p (2017: 4.75p) in respect of the first 12 months (1 October 2017 to 30 September 2018) of the current financial year, payable on 31 January 2019. This represents a 5% increase on the dividend in respect of the prior 12-month period.

 

With our financial year being extended to 31 March 2019, the Board then intends to declare a final dividend, i.e. in respect of the last 6 months (1 October 2018 to 31 March 2019), in July 2019. Given the relative time periods, the final dividend, all other things being equal, is likely to be a correspondingly smaller amount than the interim dividend.

 

For future financial years after 31 March 2019, the Board expects to revert to declaring a single dividend in or around July after the end of each financial year. The Board will take account of any special dividends received and, barring any unforeseen circumstances, intends to maintain dividend levels or follow a progressive dividend policy when comparing equivalent 12-month periods, using accumulated revenue reserves where necessary.

 

The Company's shares will trade ex-dividend on 13 December 2018.

Volatility picked up markedly in October, thereby reminding investors that markets do not just go up in a straight line. As in January this year, the correction in global stock markets was apparently precipitated by rising US government bond yields, but the sharpness and speed of the fall was surprising to many. The concurrent losses in both equities and fixed income also served as a reminder that a simple balanced portfolio of stocks and bonds may not prove as robust as it has in recent years defined by falling interest rates and quantitative easing. With the US Federal Reserve continuing to raise interest rates and to shrink its balance sheet and the European Central Bank also looking to shift to a less accommodative monetary policy, we can expect uncertain times ahead for mainstream assets. With this in mind, the Board continues to believe that the Company's mandate to invest in alternative and specialist assets and strategies is an attractive one for investors looking to diversify away from more traditional investments. 

4 December 2018
 

 

 

FUND MANAGERS' REPORT  

Market returns in the period under review and immediately following the period in October have aptly illustrated how different our portfolio is to the benchmark. The NAV return of 4.7% versus 13.8% from the benchmark over the period at first glance appears a little underwhelming but is readily understandable given the narrow focus of the market moves, driven by a relatively small group of US equities. The purpose of HAST is to provide investors with something they do not already own elsewhere in their portfolios. This differentiated set of investments enabled us to perform relatively well and retain value in what turned out to be a fairly chastening episode for mainstream markets.

 

While the small widening in the discount over the period appears to be general noise around the three-year average discount of around 17%, we remain committed to bringing the Company's share price structurally closer to NAV. We believe the most effective ways to achieve this are: ongoing NAV growth, even in challenging markets; active marketing and communication with shareholders; enhanced holdings disclosure; and improved portfolio liquidity.

 

Positive performance came from a number of themes and idiosyncratic stories. Our healthcare and biotech equity funds made attractive returns, while property funds focused on Germany and Cuba made decent gains. Our listed private equity assets continued to perform well, underpinned by robust underlying NAV returns, while our distressed debt holdings made more progress towards a full realisation of their portfolios. Meanwhile, Mantra Secondary Opportunities underwent a significant valuation uplift and property developer and REIT manager Sigma Capital Group PLC gained strongly as earnings grew rapidly.

 

On the negative side, our emerging markets exposure was the biggest drag on returns. Losses were experienced on the equity side, via the KLS Sloane Robinson Emerging Markets Fund, and on the debt side, through the Ashmore SICAV Emerging Markets Local Currency Fund. The Schroder GAIA Indus PacifiChoice Asia Fund also struggled owing to concerns over trade wars centering on Asian supply chains. On a stock-specific basis, Eurovestech was marked down by roughly a third as a handful of shares were traded at an extremely large discount to the latest NAV. Listed US private equity firm Safeguard Scientifics Inc gave back recent gains as its realisation process got off to a disappointing start.

 

Generally speaking, we continued to position the portfolio more defensively. Our view at the outset of the year was that markets had come a long way, valuations looked stretched and the tailwinds of synchronous global growth, low inflation and ultra-easy monetary policy were likely to fade. There was little turnover in names among our core holdings but the emphasis was placed on trimming the winners and backing the laggards that we expect to do well in more volatile markets, either in relative or absolute terms.

The largest new holding, the Bank of America Merrill Lynch Commodities Strategy, represented 4.3% of NAV at investment. This commodities strategy is market-neutral strategy with returns which are not normally dependent on commodity prices appreciating (or depreciating). It is a purely systematic approach which makes returns from various inefficiencies or 'risk premia' in commodity futures markets. It is a strategy with which we are very familiar and which has generated attractive annualised returns over an extended period, with relatively low volatility and minimal correlation to equities, bonds or commodities themselves.

 

We also took part in a placing for listed UK warehouse fund Urban Logistics REIT PLC. This is a clear structural growth story with the exponential rise in online retail and, although a fairly well understood theme, we think that its highly experienced manager has the wherewithal to continue to generate within its chosen niche double-digit returns over the next few years from keener pricing and good asset management.

 

The final 'new' addition was, in reality a re-investment in the Ashmore SICAV Emerging Markets Short Duration Fund. The troubles in emerging markets are widely known, and largely confined to Argentina and Turkey, but sentiment has turned very negative across the asset class and this is usually the time to give managers such as Ashmore capital to allocate where it sees interesting opportunities emerge. We also topped up the Ashmore SICAV Emerging Markets Local Currency Fund.  On a longer-term view, we expect to make attractive returns.

 

Since the beginning of April we also topped up Safeguard Scientifics Inc and the Axiom European Financial Debt Fund Ltd. Safeguard investors have reacted negatively to the first tranche of exits in the company's wind-up plans but we see significant value ahead, while Italian political risk has created some very interesting opportunities in European financial bonds. Axiom raised new capital with which to exploit this. Finally, Mantra Secondary Opportunities and Renewable Energy And Infrastructure Fund II made further capital calls. 

 

In terms of exits, we sold EF Realisation Co Ltd after a very strong run. We knew we might be foregoing some gains when we sold but this was an illiquid holding and there was a material risk that we would end up with an in specie transfer of the holdings in the fund as it neared its wind-up date. 3i Infrastructure PLC, part of our tactical trade in UK infrastructure names, was sold having generated a return of around 12% in just four months. The other full exit was from Blackstone GSO Loan Financing Ltd. This was part of a more general de-risking, where we have reduced exposure to assets and strategies that are more sensitive to investor sentiment, such as structured credit and listed private equity. Meanwhile, we trimmed Baring Vostok, Blackrock European Hedge Fund and Biotech Growth Trust, taking profits and managing position sizes.

 

Since the period end, in October, our Cuban property fund (5.6% of NAV), CEIBA, listed on the Specialist Fund Segment of the Main Market of the London Stock Exchange. It managed to attract £30m of new capital and listed with a market capitalisation of c£137m. These fresh funds will allow CEIBA to undertake some new development and increase the potential returns of the portfolio at a time when Cuba is opening up to foreign investment. The re-listing of CEIBA validates our policy of treating each investment on its own merits and not undertaking a fire sale after taking on the mandate. Under the aegis of a well-respected emerging markets investor such as Aberdeen Standard, we expect CEIBA to go from strength to strength as a listed vehicle. Importantly for the Company, this means that the overall liquidity profile improves and this can have an impact on our rating. This brings the 'Unlisted - without redemption rights' down from 18% to 12% post period end.

 

As part of our drive to improve the transparency and clarity of the portfolio, we have decided to re-classify our portfolio holdings. By grouping our investments by commonly understood asset classes, we believe that investors will get a better sense of what is in the portfolio and its key drivers and sensitivities. Some classifications will remain the same, such as Private Equity, Hedge Funds and Property. We now also include Commodities, Public Equity and Credit, while jettisoning the less helpful categories of Specialist Sector and Specialist Geography.

 

While Public Equity and Credit are not alternative asset classes, the composition of our investments in these sectors will vary greatly from traditional allocations to equities and bonds. Here our focus is on niche strategies and sectors, often managed by dedicated specialists, or in more tactical areas of the broader market, where we see particular value and/or a catalyst. These investments are, however, equities and bonds and it is important to describe them as such to enable investors to understand our portfolio's sensitivity to key factors such as earnings growth, market multiples, credit spreads and interest rates.

 

This does not impact any of our portfolio maximum limits, which remain in place at: 35% in Private Equity; 30% in Hedge Funds; 20% in Property or any other sector; and 50% in Emerging Markets.

The period after the end of this six-month review saw risk aversion spike. An uptick in market volatility is not necessarily a bad thing for this Company's strategy. While we may see a lot of red on our screens, we also see a lot of opportunity. So too do the underlying managers to whom we allocate capital. This is particularly evident in the Hedge Funds sleeve, where managers run unconstrained mandates and can nimbly increase and decrease risk levels as well as their sizing of holdings in individual stocks. At the other end of the spectrum our Private Equity managers have the luxury of looking through the noise of daily market volatility and focusing on generating attractive long-term returns. Our flexibility to blend assets and strategies with different return drivers and sensitivities allows us to build a robust portfolio. We believe these characteristics will appeal increasingly to new and existing investors as monetary policy becomes less accommodative globally and there is increased uncertainty as to how long this economic cycle will last.

 

Investment category

Characteristics

Private Equity

•    Access to early-stage, high-growth companies and buy-outs

•    Historically outperforms listed markets over the long term

Public Equity

•   Allocate selectively to secular growth and tactical opportunities

•   Leverage from multi-asset team to invest by sector or geography

Commodities

•   Potential for uncorrelated returns

•   Underpenetrated markets providing above-normal returns

Hedge Funds

•   Access to a diversified pool of different strategies

•   Strategies can protect capital during volatile periods

Credit

•   Bank disintermediation has led to growth in alternative finance providers

•   Caution required as many new strategies yet to be tested

Property

•   Focus away from UK prime commercial property markets

•   Specific growth sectors help reduce beta to global property values

 

 

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 2017. In the view of the Board these principal risks and uncertainties are applicable to the remainder of the 18-month period ending 31 March 2019 as they were to the period under review.

 

RELATED PARTY TRANSACTIONS

Other than the relationship between the Company and its Directors, the provision of services by Janus 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 and the provision of sales and marketing services, there have been no material transactions with the Company's related parties affecting the financial position of the Company during the period under review.

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors confirm that, to the best of their knowledge:

 

a)   the financial statements for the period ended 30 September 2018 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 remainder of the 18-month period ending 31 March 2019); 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

 

                

 

 

 

INVESTMENT PORTFOLIO           

 

Market

Value

Portfolio

£'000

%

Mantra Secondary Opportunities4

Private Equity

 7,592

5.9

CEIBA Investments Limited4&5

Property

 7,292

5.6

BlackRock European Hedge Fund Limited3

Hedge Funds

 6,886

5.3

Riverstone Energy Limited1

Private Equity

5,611

4.3

Bank of America Merrill Lynch Commodity3

Commodities

5,553

4.3

Summit Germany Limited1

Property

5,359

4.1

Majedie Asset Management Tortoise Fund3

Hedge Funds

 5,204

4.0

Schroder GAIA Indus PacifiChoice Asia Fund3

Hedge Funds

 5,199

4.0

KLS Sloane Robinson Emerging Market Equity Fund3

Public Equity

 4,890

3.8

Polar Capital Global Financials Trust plc1

Public Equity

 4,750

3.7

 

 58,336

45.0

Baring Vostok Investments Limited Core2

Private Equity

 4,721

3.6

Harbourvest Global Private Equity Limited1

Private Equity

4,572

3.5

Helium Selection Fund3

Hedge Funds

4,515

3.5

The Biotech Growth Trust1

Public Equity

4,467

3.4

Sagil Latin America Opportunities Fund3

Hedge Funds

4,262

3.3

Ashmore SICAV Emerging Markets Local Currency Broad Fund3

Credit

 3,972

3.1

NB Distressed Debt Investment Fund Limited - Global Shares1        

Credit

 3,692

2.8

Worldwide Healthcare Trust Plc1

Public Equity

 3,605

2.8

Renewable Energy and Infrastructure Fund II4

Private Equity

 3,569

2.8

Safeguard Scientifics, Inc1

Private Equity

 3,383

2.6

 

 99,094

76.4

Axiom European Financial Debt Fund Limited1

Credit

 3,159

2.4

Urban Logistics REIT1

Property

2,987

2.3

Tetragon Financial Group Limited1

Public Equity

2,892

2.2

Ashmore SICAV Emerging Markets Short Duration Fund3

Credit

2,604

2.0

Eurovestech plc2

Private Equity

2,343

1.8

Sigma Capital Group PLC1

Public Equity

2,234

1.7

Standard Life Private Equity Trust Plc1

Private Equity

2,077

1.6

Princess Private Equity Holding Limited1

Private Equity

2,004

1.6

Toro Limited1

Credit

1,938

1.5

Amber Trust SCA4

Private Equity

 1,528

1.2

 

122,860

94.7

Century Capital Partners IV L.P.4

Private Equity

 1,425

1.1

Firebird Republics Fund SPV4

Private Equity

1,342

1.0

NB Distressed Debt Investment Fund Limited - Extended Life Shares1

Credit

1,037

0.8

HICL Infrastructure Company Limited1

Public Equity

1,017

0.8

International Public Partnerships Limited1

Public Equity

971

0.8

ASM Asian Recovery Fund4

Hedge Funds

765

0.6

Value Catalyst Fund Limited4

Private Equity

99

0.1

Armadillo Investments Limited4

Private Equity

70

0.1

Zouk Solar Opportunities Limited4

Private Equity

40

0.0

Prosperity Voskhod Fund Limited4

Private Equity

3

0.0

 

129,629

100.0

Other investments

Various

0

 

Cash and other net current assets

Cash

3,750

 

133,379

 

 

1.     Listed on major market

2.     Listed on minor market

3.     Unlisted investment - with redemption rights

4.     Unlisted investment - without redemption rights

5.     Since the period end CEIBA listed on the Specialist Fund Segment of the Main Market of the London Stock Exchange

 

 

 

Investment by geography on a look-through basis

 

Investment by sector on a look-through basis

 

30 September

 

30 September

 

2018

2017

 

 

2018

2017

 

%

%

 

 

%

%

Western Europe

31

31

 

Property

17

14

North America

30

31

 

Miscellaneous

15

17

Developing Markets

21

23

 

Financial Services and Banks

13

11

Miscellaneous

10

5

 

Healthcare and Education

12

12

Cash1

4

4

 

Technology and Media

11

11

Japan, Australia, New Zealand

4

6

 

Personal Goods and Retail

7

9

 

------

------

 

Oil & Gas

7

8

 

100

100

 

Infrastructure and Transport

5

3

 

------

------

 

Cash1

4

4

 

 

 

 

Industrial Goods and Services

3

4

 

 

 

 

Utilities and Telecoms

3

3

 

 

 

 

Basic Resources

2

2

 

 

 

 

Insurance

1

2

 

 

 

 

 

------

100

------

------

100

------

1 Cash held in underlying investments

 

 

 

 

 

 

 

 

 

Value of investment by vehicle type

 

Value of investment by classification

 

30 September

 

 

30 September

 

2018

2017

 

 

2018

2017

Category of Listing

%

%

 

Investment Focus

%

%

Listed - major exchange1

43

45

 

Private Equity

31

33

Listed - minor exchange

6

7

 

Hedge

21

23

Unlisted - with redemption rights

33

30

 

Public Equity

19

17

Unlisted - without redemption rights1

18

18

 

Property

12

9

 

------

------

 

Credit

13

18

 

100

------

100

------

 

Commodities

4

-

 

 

 

 

 

------

100

------

------

100

------

                 

 

1 Note CEIBA listed post period end, increasing Listed - major exchange to 49% and decreasing Unlisted - without redemption rights to 12%.

 

 

 

 

 

 

 

 

 

(Unaudited)

(Unaudited)

 

 

Six months ended

Six-months ended

 

 

30 September 2018

30 September 2017

 

 

Revenue

Capital

 

Revenue

Capital

 

 

 

 

return

return

Total

return

return

Total

 

 

 

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

Investment income

748

-

748

938

-

938

 

 

 

Exchange differences

-

(31)

(31)

-

(11)

(11)

 

 

 

Gains on investments held at fair value through profit or loss

-

5,894

5,894

-

3,877

3,877

 

 

 

748

5,863

6,611

938

3,866

4,804

 

 

 

Expenses (Note 2)

 

 

 

 

 

 

 

 

 

Management fees

(79)

(318)

(397)

(45)

(405)

(450)

 

 

 

Other expenses

(189)

-

(189)

(239)

-

(239)

 

 

 

480

5,545

6,025

654

3,461

4,115

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs

-

-

-

-

-

-

 

 

 

480

5,545

6,025

654

3,461

4,115

 

 

 

Taxation

-

-

-

(5)

-

(5)

 

 

 

480

5,545

6,025

649

3,461

4,110

 

 

 

 

 

 

 

 

 

 

 

 

 

Return per ordinary share (Note 3)

1.24p

14.34p

15.58p

1.68p

8.95p

10.63p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

(Unaudited)

12 months ended

(Audited)

12 months ended

 

 

30 September 2018

30 September 2017

 

Revenue

Capital

 

Revenue

Capital

 

 

 

 

return

return

Total

return

return

Total

 

 

 

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

Investment income

2,607

-

2,607

2,644

-

2,644

 

 

 

Exchange differences

-

69

69

-

(55)

(55)

 

 

 

Gains on investments held at fair value through profit or loss

-

4,051

4,051

-

11,684

11,684

 

 

 

2,607

4,120

6,727

2,644

11,629

14,273

 

 

 

Expenses (Note 2)

 

 

 

 

 

 

 

 

 

Management fees

(170)

(681)

(851)

(91)

(821)

(912)

 

 

 

Other expenses

(402)

-

(402)

(442)

-

(442)

 

 

 

2,035

3,439

5,474

2,111

10,808

12,919

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs

-

-

-

-

(1)

(1)

 

 

 

2,035

3,439

5,474

2,111

10,807

12,918

 

 

 

Taxation

-

-

-

(15)

-

(15)

 

 

 

2,035

3,439

5,474

2,096

10,807

12,903

 

 

 

 

 

 

 

 

 

 

 

 

 

Return per ordinary share (Note 3)

5.26p

8.89p

14.15p

5.23p

26.97p

32.20p

 

 

 

 

 

 

 

 

 

 

 

 

 

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 six-month period ended 30 September 2018. 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.

 

 

 

 

(Unaudited)

 

12 months ended 30 September 2018

 

 

 

Capital

Other

 

 

 

Share

Share

redemption

capital

Revenue

 

 

capital

premium

reserve

reserves

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

Balance at 1 October 2017

9,670

10,966

8,783

97,255

3,068

129,742

Return attributable to shareholders

-

-

-

3,439

2,035

5,474

Ordinary dividends (Note 4)

-

-

-

-

(1,837)

(1,837)

9.670

10,966

8,783

100,694

3,266

133,379

 

(Unaudited)

 

Six months ended 30 September 2018

 

 

 

Capital

Other

 

 

 

Share

Share

redemption

capital

Revenue

 

 

capital

premium

reserve

reserves

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

Balance at 1 April 2018

9,670

10,966

8,783

95,149

2,786

127,354

Return attributable to shareholders

-

-

-

5,545

480

6,025

Balance at 30 September 2018

9,670

10,966

8,783

100,694

3,266

133,379

 

 

 

(Audited)

 

Year ended 30 September 2017

 

 

 

Capital

Other

 

 

 

Share

Share

redemption

capital

Revenue

 

 

capital

premium

reserve

reserves

reserve

Total

 

£'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

-

-

-

10,807

2,096

12,903

Shares bought back - tender offer

(1,074)

-

1,074

(13,059)

-

(13,059)

Ordinary dividends (Note 4)

-

-

-

-

(2,750)

(2,750)

Balance at 30 September 2017

9,670

10,966

8,783

97,255

3,068

129,742

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed financial statements.

               

 

 

 

 

(Unaudited)

(Unaudited)

(Audited)

 

 

30 September 2018

31 March 2018

30 September 2017

 

 

£'000

£'000

£'000

 

 

 

 

 

Investments held at fair value through profit or loss (Note 8)

129,629

122,598

123,690

 

 

 

 

 

 

 

 

 

Investments held at fair value through profit or loss (Note 7)

2,990

1,557

4,718

 

Debtors

1,132

3,847

1,545

 

Cash at bank

-

82

155

 

4,122

5,486

6,418

 

 

 

 

 

Creditors: amounts falling due within one year

(372)

(730)

(366)

 

 

 

 

 

 

3,750

4,756

6,052

 

 

 

 

 

133,379

127,354

129,742

 

 

 

 

 

 

 

 

 

 

Called up share capital (Note 5)

9,670

9,670

9,670

 

Share premium

10,966

10,966

10,966

 

Capital redemption reserve

8,783

8,783

8,783

 

Capital reserves

100,694

95,149

97,255

 

Revenue reserve

3,266

2,786

3,068

 

133,379

127,354

129,742

 

 

 

 

 

 

 

 

 

 

 

344.84

329.26

335.44

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed financial statements.

 

 

 

 

 

 

 

 

 (Unaudited)

 (Unaudited)

 (Audited)

 

 

12 months ended 

30 September 2018

Six months ended 

30 September 2018

12 months

ended

 30 September 2017

 

 

£'000

£'000

£'000

 

 

 

Net return before taxation

5,474

6,025

12,918

Add back: finance costs

-

-

1

Gains on investments held at fair value through profit or loss

(4,051)

(5,894)

(11,684)

Withholding tax on dividends deducted at source             

-

-

(15)

Increase in prepayments and accrued income

(457)

(5)

(381)

Increase in accruals and deferred income

6

(29)

32

Exchange movements: cash and cash equivalents

-

15

-

972

112

871

 

 

 

Purchases of investments held at fair value through profit or loss

(22,350)

(11,736)

(36,122)

Sales of investments held at fair value through profit or loss

21,332

12,990

33,068

Purchases of current asset investments held at fair value through profit or loss                                                                 

(22,626)

(13,538)

(27,631)

Sales of current asset investments held at fair value through profit or loss                                                                                     

24,354

12,105

45,781

710

(179)

15,096

 

 

 

 

 

 

 

 

Share buybacks

-

-

(13,059)

Equity dividends paid

(1,837)

-

(2,750)

Interest paid

-

-

(1)

 

(1,837)

-

(15,810)

 

Net (decrease)/increase in cash and equivalents

(155)

(67)

157

Cash and cash equivalents at beginning of period

155

82

(2)

Exchange movements

-

(15)

-

-

-

155

 

 

 

Comprising:

 

 

 

Cash held at bank

-

-

155

           

 

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.                            

 

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. The "Statement of Recommended Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts", in accordance with which the Company's financial statements are also prepared, was updated by the Association of Investment Companies in November 2014 and February 2018 with consequential amendments.

 

The condensed set of financial statements has been neither audited nor reviewed by the Company's auditors.

 

As previously announced, the Company has changed its year-end from 30 September to 31 March, with the first period of this new reporting cycle being the 18-month period to 31 March 2019. Accordingly, the next financial statements to be produced will be for the year ended 31 March 2019.

 

 

Henderson Investment Funds Limited ('Henderson') received a management fee of 0.60% per annum on the first £250,000,000 of net chargeable assets and 0.55% per annum, in excess thereof, payable quarterly in arrears based on the level of net chargeable assets at the relevant quarter end. Prior to 1 April 2018, the rate was 0.70% per annum, payable quarterly in arrears based on the level of net chargeable assets at the relevant quarter end. 

 

With effect from 1 October 2017, investment management fees and finance costs were allocated 80% to capital and 20% to revenue. Fees had previously been allocated 90% to capital and 10% to revenue. This change reflects the Company's revised view of the appropriate long-term revenue/capital allocation.

 

 

The return/loss per ordinary share figure is based on the following figures:

 

(Unaudited)

Six months ended

30 September 2018

£'000

(Unaudited)

Six months ended

30 September 2017

£'000

 

Net revenue return

480

649

 

Net capital return

5,545

3,461

 

Total return

6,025

4,110

 

 

 

 

 

Weighted average number of

ordinary shares in issue during

the period

38,678,638

 

 

38,678,638

 

 

 

 

 

 

Pence

Pence

 

 

Revenue profit per ordinary share

1.24

1.68

 

Capital return per ordinary share

14.34

8.95

 

Total return per ordinary share

15.58

10.63

 

 

(Unaudited)

12 months ended

30 September 2018

£'000

(Audited)

12 months ended

30 September 2017

£'000

 

 

Net revenue return

2,035

2,096

 

Net capital return

3,439

10,807

 

Total return

5,474

12,903

 

 

 

 

 

Weighted average number of

ordinary shares in issue during

the period

38,678,638

 

 

38,678,638

 

 

 

 

 

 

Pence

Pence

 

Revenue profit per ordinary share

5.26

5.23

 

Capital return per ordinary share

8.89

26.97

 

Total return per ordinary share

14.15

32.20

 

Dividends

An interim dividend of 5.0p per ordinary share has been declared and will be paid on 31 January 2019 to shareholders on the register of members at the close of business on 14 December 2018. The ex-dividend date is 13 December 2018. Based on the number of shares in issue on 3 December 2018 of 38,678,638, the cost of the dividend will be £1,934,000 (2017: £1,837,000).

 

The final dividend of 4.75p per ordinary share, paid on 7 February 2018, in respect of the year ended 30 September 2017, has been recognised as a distribution in the 12 months to 30 September 2018.                     

 

At 30 September 2018 there were 38,678,638 ordinary shares in issue (31 March 2018: 38,678,638; 30 September 2017: 38,678,638). During the six-month period ended 30 September 2018 no shares were bought back (31 March 2018: no shares bought back; 30 September 2017: 4,297,626 ordinary shares bought back pursuant to the 10% Tender offer).

 

The cost of the shares purchased pursuant to the Tender Offer in January 2017, including stamp duty, amounted to £12,952,000, and a further £107,000 of costs were incurred in connection with the Tender Offer.

 

The net asset value per ordinary share is based on the net assets attributable to the equity shareholders of £133,373,000 (31 March 2018: £127,354,000; 30 September 2017: £129,742,000) and on 38,678,638 ordinary shares (31 March 2018: 38,678,638; 30 September 2017: 38,678,638), being the number of ordinary shares (excluding treasury shares) in issue at the period-end.

                       

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 30 September 2018 this holding had a value of £2,990,000 (31 March 2018: £1,557,000; 30 September 2017: £4,718,000). 

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:

 

Level 1: reflects financial instruments quoted in active markets.

 

Level 2: reflects financial instruments whose fair value is evidenced by comparison with other observable current market transactions in the same instrument or based on a valuation technique of which variables include only data from observable markets. These are principally investments in funds with redemption rights, where the price is based on valuations provided by the fund's administrator, or CFDs, where the price is based on the underlying quoted investment price.

 

Level 3: reflects financial instruments that trade in markets that are not considered to be active but are valued based on fund administrator prices, dealer quotations or alternative pricing sources supported by unobservable inputs. These include monthly priced funds and quarterly priced limited partnerships.

 

The Company's application of these levels is explained in the Company's Annual Report for the year ended 30 September 2017.

 

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 2017.

 

 

 

 

 

Level 1

Level 2

Level 3

Total

 

 

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

Investments

 

62,819

43,085

23,725

129,629

 

2,990

-

-

2,990

65,809

43,085

23,725

132,619

 

 

 

 

 

31 March 2018

 

 

 

 

Level 1

Level 2

Level 3

Total

(unaudited)

 

 

 

 

£'000

£'000

£'000

£'000

 

Investments

63,349

37,893

21,356

122,598

Current asset investments

1,557

-

-

1,557

Total

64,906

37,893

21,356

124,155

 

 

 

 

 

30 September 2017

Level 1

Level 2

Level 3

Total

(audited)

£'000

£'000

£'000

£'000

 

Investments

65,017

37,293

21,380

123,690

Current asset investments

4,718

-

-

4,718

69,735

37,293

21,380

128,408

 

 

 

 

 

                         

 

There have been no transfers between the levels of the fair value hierarchy during the period.

 

Subsequent to the period end, the Company's holding in CEIBA Investments Limited ('CEIBA') was transferred from Level 3 to Level 1 as CEIBA listed on the London Stock Exchange on 22 October 2018.

9.

Transaction Costs

Purchase transaction costs for the 12 months ended 30 September 2018 were £10,000 (30 September 2017: £41,000). These comprise mainly stamp duty and commission. Sale transaction costs for the 12 months ended 30 September 2018 were £7,000 (30 September 2017: £21,000).

Comparative Information

The financial information contained in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the interim periods ended 30 September 2018 and 31 March 2018 has not been audited.

 

The information for the year ended 30 September 2017 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.

 

Related Party Transactions

Other than the relationship between the Company and its Directors, the provision of services by Janus 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 and the provision of sales and marketing services, there have been no material transactions with the Company's related parties affecting the financial position of the Company during the period under review.

Having considered the Company's investment objective, risk management and capital management policies and 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.

 

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), Jamie Korner (Senior Independent Director) and Mary-Anne McIntyre.

 

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 Janus Henderson 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

 

The Report for the Second Six-Month Period will shortly be available on the Company's website. An abbreviated version of the Report for the Six-Month Period, the 'Second Six-Monthly Update', will be circulated to shareholders in December and will also be available on the website thereafter. A hard copy of both documents will be available from the Corporate Secretary at the Company's correspondence address, 201 Bishopsgate, London EC2M 3AE.

 

           

 

For further information please contact:

 

 James de Bunsen

 Fund Manager

 Henderson Alternative Strategies Trust plc

 Telephone:

 

Laura Thomas

Investment Trust PR Manager

Janus Henderson Investors

Telephone: 020 7818 2636

 Richard Gubbins

 Chairman

 Henderson Alternative Strategies Trust plc

 Telephone: 07818 454 175

James de Sausmarez

Director and Head of Investment Trusts

Janus Henderson Investors

Telephone: 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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR EAKALESFPFFF
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Results for the six months ended 30 September 2018 - RNS