Alternative Liquidity Solutions Ltd Net Asset Value(s) (9950N)

TIDMALSL

RNS Number : 9950N

Alternative Liquidity Solutions Ltd

05 October 2012

Alternative Liquidity Solutions Limited

(ALSL LN / ALSL.L)

Final Net Asset Value as at end August 2012

05 October 2012

As previously reported, the Company has adopted a Valuation Methodology since 30 June 2012 which the Directors believe is more conservative than is the industry norm amongst other listed funds holding hedge fund assets. Rather than simply reporting the value of the Company's portfolio based upon valuations provided by underlying managers and their administrators, the Valuation Methodology considers among other factors, the present value of expected future recoveries, discounted at a rate appropriate for the level of uncertainty over quantum and timeframe.

Based on this valuation methodology, as at the close of business on 31 August 2012, the Company's Final Net Asset Value per share was as follows:

Ordinary shares

45.06p

The Net Asset Value per share as at 31 August 2012 reflects an increase of 0.5% versus the Net Asset Value per share on 30 June 2012, comprising a positive 2.0% return in local currency terms and a negative 1.5% foreign exchange translation effect.

The Net Asset Value represents a 20% discount to what the Net Asset Value per share would have been if its calculation had been based on the valuations provided by the underlying managers, and an investment portfolio valuation that is 26% lower. This is illustrated by the table below:

 
                   Investments      Estimated        Weighted     Discount   Present         Discount 
                    at managers'     Nominal          average      rate       value           to underlying 
                    valuations       % Recovery       estimated                               managers' 
                                                      recovery                                value 
                                                      period 
----------------  ---------------  ---------------  -----------  ---------  --------------  --------------- 
 Redeemable 
  Funds            GBP7,492,782     GBP7,479,768     0.4          20%        GBP6,993,728    7% 
----------------  ---------------  ---------------  -----------  ---------  --------------  --------------- 
 Long Lock 
  Funds            GBP6,048,558     GBP6,040,714     3.6          20%        GBP3,149,337    48% 
----------------  ---------------  ---------------  -----------  ---------  --------------  --------------- 
 Liquidation 
  Share Classes    GBP1,458,348     GBP1,421,228     1.7          30%        GBP908,619      38% 
----------------  ---------------  ---------------  -----------  ---------  --------------  --------------- 
 
 Investment 
  Portfolio 
  Valuation        GBP14,999,688    GBP14,941,710                            GBP11,051,684   26% 
----------------  ---------------  ---------------  -----------  ---------  --------------  --------------- 
 
 Cash              GBP5,159,308     GBP5,159,308                             GBP5,159,308 
----------------  ---------------  ---------------  -----------  ---------  --------------  --------------- 
 Other Net         -GBP73,526       -GBP73,526                               -GBP73,526 
  Liabilities 
----------------  ---------------  ---------------  -----------  ---------  --------------  --------------- 
 
 Net Asset 
  Value            GBP20,085,470    GBP20,027,492                            GBP16,137,466   20% 
----------------  ---------------  ---------------  -----------  ---------  --------------  --------------- 
 
 Net Asset Value per 
  share                                                                      45.06p 
---------------------------------  ---------------  -----------  ---------  --------------  --------------- 
 

Reflecting the conservativeness of the Company's Valuation Methodology, between 30 June 2012 and 31 August 2012 the Company received cash proceeds from redemptions of GBP2.5 million versus a carrying value at 30 June 2012 of GBP2.4 million, representing an annualised IRR of 16.2 %.

Other

As at 31 August 2012, approximately 68% of the Company's net assets were invested in EUR denominated assets, 15% in $ denominated assets and 17% in GBP denominated assets.

These valuations, which have been prepared in good faith by the Company's administrator, are for information purposes only and are based on the unaudited estimated valuations supplied to the administrators or managers of the Company's underlying investments. Such estimates may be subject to little verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. In addition, some of those estimates may not be supplied on a regular or timely basis with the result that the values of such investments are based on the latest available estimates which may be some time before the date set out above. Other risk factors which may be relevant to this valuation are set out in the Company's prospectus dated 23 May 2007.

For more information please contact:

Jon Macintosh

Saltus Partners LLP

[phone]

Ed Gascoigne Pees

FTI Consulting

[phone]

Hugh van Cutsem

Kepler Partners LLP

[phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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