Blue Capital Alternative Income Fd 2017 December NAV Announcement (4384C)

TIDMBCAI

RNS Number : 4384C

Blue Capital Alternative Income Fd

19 January 2018

Blue Capital Alternative Income Fund Limited (the "Company") (Ticker: "BCAI")

19 January 2018

Net Asset Value, December 2017

As at the close of business on 31 December 2017, the unaudited net asset value of the Company's Ordinary Shares is as follows:

 
                Unaudited NAV       December   Year-to-Date 
              31 December2017    Performance    Performance 
 Ordinary 
  Shares              $0.7939        (1.79%)       (24.85%) 
 

The Company's Ordinary Share performance in the month of December reflects the impact of a $0.0082 per share or (1.01%) charge to recognize the fair value of a risk margin applied against net assets that are required to be held as buffer loss collateral following the significant loss events in 2017. Such buffer loss collateral balances are not expected to be available for deployment immediately following the expiry of the underlying reinsurance contracts in their entirety. Fair value accounting principles require a risk margin charge to reflect the risk associated with the uncertainty of the buffer loss collateral being released in the future. Management expects the risk margin charge to decline, with a corresponding accretion of net asset value over time as the buffer loss collateral balances decline.

In addition, the Company's Ordinary Share performance in December was impacted by a modest increase in estimated losses from Hurricane Irma, other attritional losses incurred and a reduction in estimated earned premium.

In accordance with the Circular of the Company dated 4 November 2016, the Company's administrator has calculated the estimated Net Asset Value per Redemption Share as at the close of business on 31 December 2017.

 
                   Unaudited NAV 
                31 December 2017 
 Redemption 
  Shares                 $1.1229 
 

For more information about the Company, including access to the Company's monthly Fact Sheets, please visit our website at www.bcai.bm.

Enquiries:

 
Blue Capital Management 
 Ltd. 
 Michael J. McGuire                        [phone] 
Email: [e-mail] 
 
Stifel Nicolaus Europe 
 Limited                                   [phone] 
Neil Winward 
Mark Bloomfield 
Tunga Chigovanyika 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 19, 2018 10:22 ET (15:22 GMT)