TIDMAIS

RNS Number : 3720M

Alternative Invest. Strategies Ld

23 August 2013

ALTERNATIVE INVESTMENT STRATEGIES LIMITED

July Investment Manager's Review

Objective

Alternative Investment Strategies Limited invests in a diversified portfolio of hedge funds on a worldwide basis with the aim of achieving superior absolute returns with low volatility.

Investment Manager's Review

The net asset value of Alternative Investment Strategies Limited produced 0.0% over the month of July. A large number of positions were sold out of the portfolio at the end of June in line with the managed wind-down objective of the Company. Cash was built up during the month and, after the month end, on the 14 August, the first of a series of compulsory redemptions of shares was administered and shareholders received a redemption price of 139.09p on 65% of their shares.

The market environment during July was constructive for the majority of the managers formerly held in the Long/Short Equity and Event Driven strategies and they would have contributed positively to the portfolio had they still been held. This review thus refers to the general environment and how it impacted the remaining holdings. The portfolio is therefore no longer so finely balanced and future returns maybe more volatile than when the portfolio was fully diversified. However, the investment manager believes the prospects for the remaining managers in the portfolio have the potential to be reasonably strong over the period until they are all redeemed.

Most equity markets recovered significantly in July. The strongest bounces were provided by the US and European equity markets as the central bankers in these regions honed their messages to industry participants on the future levels of interest rates. Furthermore, faith in the economic recovery was supported by encouraging data on manufacturing, home prices and consumer spending. The strongest returns within the Long/Short Equity strategy tended to be provided by those managers with higher levels of net exposure, the most conviction or by some of the sector specialists. There was clear evidence of strong stock selection, particularly on the long side of books and amongst the largest holdings. Unsurprisingly, with the strong upward movements in developed markets, shorts tended to partly offset these gains. However, losses from short positions cost the US manager and this offset the gains produced by the other remaining manager in this strategy.

In the Event Driven strategy, gains were widespread. Stronger returns were sourced by managers from exposure to equity special situations and the recovery in the valuations of stressed and distressed investments. In comparison, structured credits experienced less of a recovery and so returns from the Specialist Credit managers within the strategy were lower within the range. The best performance in this area was produced by the equity special situations specialist.

Government bond yields generally fell along most yield curves. In the Fixed Income Relative Value strategy, gains were modest but positive and depending on the manager were sourced from curve and relative value trades, MBS positions and some directional trades. There was a small negative overall contribution from the remaining multi-strategy holdings.

Performance Summary

The net asset value performance for the month of July 2013 was 0.0%.

The net asset value performance since inception in December 1996 to 31 July 2013 is 172.26%, equivalent to an annualised rate of 6.19%.

Strategy Allocation

The strategy allocation as at 31 July 2013 was as follows:

   Strategy                                          % 
 
 Cash & Receivables      70.3 
----------------------  ----- 
 Event Driven            13.2 
----------------------  ----- 
 Long/Short Equity       7.2 
----------------------  ----- 
 Fixed Income Rel Val    7.1 
----------------------  ----- 
 Multi-Strategy          2.0 
----------------------  ----- 
 Credit                  0.1 
----------------------  ----- 
 Macro                   0.1 
----------------------  -----

Source of data: International Asset Management Limited

General Information

Investment Manager: International Asset Management Limited

Website: www.aisinvest.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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