Alternative Asset Opps Pcc Share Discussion Threads

[langland] 08/3/2016 08:12

The other thing I forgot to mention is that together with the loan facility they now have enough cash to cover 2 years of premiums.

[skyship] 08/3/2016 08:00

Don't be misled by today's numbers. The Co. declared the end Jan'16 NAV as 51.5p, to which you need to add the latest maturity & continuing $strength (though that is now off the top).

$/GBP rate as at 31st Jan'16 = 1.4246
$/GBP rate as at 29th Feb'16 = 1.3921.............$ up 2.28%

[langland] 08/3/2016 07:57

Steady report I thought. Nav should be around 52 now based on current FX and this includes 12% discount rate. One negative is the move by some companies to try and increase premiums (being challenged in some cases) but on the plus side market is seeing increasing demand for these types of policies in the low interest rate environment and with recent equity volatility.

[papy02] 24/2/2016 18:39

Half yearly report should be soon? (Feb 27 last yr)

[cockerhoop] 23/2/2016 08:26

I could speculate further that the recent maturity is 1 of those 3 lives as the $4m payout only adds 1.4p to NAV (whilst previous maturities of $3m, $3m, and $4m have added 1.6p, 2.0p and 2.0p) suggesting it's NAV had already been shaded up.

[cockerhoop] 23/2/2016 08:17

Sleepy,

Regards your post after the recent Net Asset Value RNS.
For the life expectancy to be adjusted by 1.2p on only 3 lives I would speculate that it may be a specific degradation of health or perhaps a negative diagnosis on those lives.
I'm unsure what the level of monitoring of the insured lives are though so may be wide of the mark.

[papy02] 23/2/2016 07:18

I'd suggested that before but TLI batted away (major investors ..., bod considered all options ..., blah).

Reaction here was negative also. I guess you get more and more geared to the outcome on the remaining rump.

I just reinvest the proceeds in TLI, to similar effect (SP can overshoot downwards after payouts, which helps).

[ironstorm] 22/2/2016 22:29

What about buying back shares at a discount. Might help narrow the discount sooner.

[papy02] 22/2/2016 17:16

They will now have $10.6 m cash, or 10.4p/share.
I think they'll be cautious not to overdistribute, but 5p might be possible?

[langland] 22/2/2016 17:05

Lets hope. I bought a few more after the announcement.....decent market ....53.25 bid a 100 and 53.88 offered in 50.

[skyship] 22/2/2016 16:53

Langland - true; and with the addition of another 1.4p to the NAV that takes it up to 52.9p. I would expect more like 3p rather than the recent 2p redemptions.

[langland] 22/2/2016 16:44

Policy maturity equivalent to about 4p per share. I would have thought at least half of this will get returned to us bearing in mind they already have a good cash balance.

[sleepy] 17/2/2016 15:13

The NAV calculations here have been and are based on assumptions including assumptions on life expectancy.

Historically I don't believe the life expectancy assumptions have been very accurate and would be concerned that they are still not very accurate though I would accept that the discount factor helps provide a margin of safety

Wonder why 3 adjusted life expectancies were announced today?

[skyship] 17/2/2016 10:28

NAV @ 51.5p, yet these still plateau @ 42p - Bizarre really, especially as the next Maturity will almost inevitably trigger another 2p+ repayment.

[langland] 18/1/2016 10:28

Exchange rate movement since month end should elevate current NAV to 50.5 all other things being equal.

[cockerhoop] 31/12/2015 09:41

Something to look forward to :-)

[skyship] 16/12/2015 18:00

Surely should be some cash back shortly:
========================================

16 December 2015

The Board of Alternative Asset Opportunities PCC Limited (the "Company") announces that the net asset value of the US Traded Life Interests Fund at 30 November 2015 was 48.8 pence per share. This represents an increase of 2.8 pence per share from the NAV at 31 October 2015.

It is estimated that exchange rate movements during the month had a positive impact of approximately 1.2 pence per share whilst other valuation changes, including the uplift to NAV from the policy maturity announced on 20 August (which has now been formally certified), had a positive impact of 2.2 pence per share. Premiums and other administration expenses cost approximately 0.6 pence per share.

The Company's borrowings as at 30 November 2015 stood at US$nil. Total cash amounted to US$8,153,785 and includes receipt of all the proceeds from the three recent maturities.

[cockerhoop] 23/9/2015 19:41

Playful,

Hope you're keeping well and had a good summer.

You would think so...........but it was far from a steady flow between January and August.
Anyway $10m matured in 5 weeks is a decent run rate. Opens up the possibility of a further return of capital in due course i'd imagine.

[playful] 23/9/2015 17:53

I think we can expect a steady flow looking at the average age, so we should return to recent highs before too long.

[poacher45] 23/9/2015 17:38

The average age of the policyholders is 92. How many people do you know over that age?

[cockerhoop] 23/9/2015 16:05

Blimey another high value maturity...........I suspect foul play :-)

[cockerhoop] 16/9/2015 16:42

Just when I thought the policy holders had discovered the elixir of eternal life another Policy Matures



And results

[poacher45] 22/8/2015 09:35

This is America not England. The rule is the price of the premiums goes up on age not inflation and just remember with half the policies if you reach 100 they don't pay out.

[woodenman] 21/8/2015 22:21

Surely it's just inflationary increases? It's not as though they're writing out new policies every year, it's continuation of existing ones, so I wouldn't have thought they could rebase the risk like that.

If they could rebase for age risk they'd charge a fortune for a 90+ yr old