2009 Financial Statements and the Notice of AGM

 

TIDMBRAL 
 
RNS Number : 9012V 
Bramdean Alternatives Limited 
17 July 2009 
 

 
 
 
 
Regulatory Announcement 
Bramdean Alternatives Limited 
 
 
17 July 2009 
 
 
 
 
 
 
 
 
Posting of Notice of Annual General Meeting and Report & Financial Statements 
for the year ended 31 March 2009 
 
 
Bramdean Alternatives Limited (the "Company") announces that its Annual General 
Meeting (the "AGM") will be held at 10.30 am on Thursday 27 August 2009 at 
Canada Court, Upland Road, St Peter Port, Guernsey GY1 3QE, Channel Islands. 
In connection with this, the following documents have been posted to 
shareholders today: 
- Report & Financial Statements for the year ended 31 March 2009, which includes 
the Notice of the 2009 Annual General Meeting 
- Proxy form for the 2009 Annual General Meeting 
These documents have also been submitted to the Financial Services Authority 
(the "FSA") and will shortly be available for inspection at the FSA document 
viewing facility, which is situated at: Financial Services Authority, 25 The 
North Colonnade, Canary Wharf, London E14 5HS. 
Copies of the Report & Financial Statements 2009 and the Notice of AGM are 
available to view on the Company's website at www.bramdeanalternatives.com. Full 
copies of the Notice of AGM are set out in this announcement. 
 
 
Enquiries 
Company Secretary and Administrator 
RBC Offshore Fund Managers Limited 
Robin Amer    T: 01481 744000 
 
 
Mainland PR 
Neil Mainland    T: 020 3008 7400 
                 M: 07753 787290 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notice of Annual General Meeting 
 
 
Bramdean Alternatives Limited (the "Company") 
(A closed-ended investment company incorporated in Guernsey with registered 
number 46192) 
 
 
Notice is hereby given that the third Annual General Meeting of the Company will 
be held at Canada Court, Upland Road, St Peter Port, Guernsey, Channel Islands 
GY1 3QE, on Thursday 27 August 2009 at 10.30 am to consider, and if thought 
appropriate, approve the following resolutions: 
 
 
Ordinary Resolutions 
 
 
1  THAT the financial statements of the Company for the year ended 31 March 2009 
with the Report of the Directors and auditors thereon be received and adopted. 
 
 
2  THAT the appointment of PricewaterhouseCoopers CI LLP as auditors of the 
Company to hold office until the conclusion of the next Annual General Meeting 
of the Company, at a remuneration to be determined by the Directors, be 
approved. 
 
 
3 THAT the Directors be and hereby are generally and unconditionally authorised 
pursuant to Article 38A(8) of the Articles of Incorporation of the Company to 
issue and allot participating shares of no par value in the capital of the 
Company ("Shares") as if Article 38A(1) does not apply to such issue and 
allotment. This authority shall expire at the conclusion of the Annual General 
Meeting of the Company to be held in 2010 or following the passing of an 
ordinary resolution to that effect, whichever is the earlier, (save that the 
Company may before such expiry make any offer or agreement which would or might 
require Shares to be allotted after such expiry and the Directors may allot 
Shares in pursuance of any such offer or agreement as if the authority conferred 
hereby had not expired). 
 
 
Special Resolution 
 
 
4 THAT the Company be and is hereby generally and unconditionally authorised in 
accordance with section 315 of the Companies (Guernsey) Law, 2008, as amended 
(the "Law") to make one or more market acquisitions (as defined in section 316 
of the Law) of Shares in the Company provided that: 
(a) the maximum number of Shares authorised to be acquired is 14.99% of each 
class of Shares in issue at the time this resolution is duly passed; 
(b) the minimum price payable by the Company for each Share (of whatever class) 
is 1 pence for sterling denominated Shares (or for Shares designated in other 
currencies the smallest available monetary unit in such other currency) and the 
maximum price payable is the higher of (i) 105% of the average of the mid-market 
quotations for such class of Share taken from and calculated by reference to the 
London Stock Exchange Daily Official List for the five business days prior to 
the date of the acquisition and (ii) the higher of the price of the last 
independent trade and highest current independent bid as stipulated by Article 
5(1) of Commission Regulation (EC) 22 December 2003 implementing the Market 
Abuse Directive as regards exemptions for buy back programmes and stabilisation 
of financial investments (No 2233/2003); 
(c) such authority shall expire at the conclusion of the next Annual General 
Meeting of the Company; and 
(d) notwithstanding paragraph (c), the Company may make a contract to purchase 
Shares under this authority before the expiry of this authority which will or 
may be executed wholly or partly after the expiry of this authority and may make 
a purchase of Shares in pursuance of any such contract after such expiry. 
 
 
 
 
 
 
By order of the Board 
 
 
Bramdean Alternatives Limited 
Canada Court 
Upland Road 
St Peter Port 
Guernsey 
Channel Islands GY1 3QE 
 
 
8 July 2009 
Registered number 46192 
 
 
 
 
Notes 
 
 
1  A shareholder entitled to attend and vote at the meeting may appoint a proxy 
to attend, speak and vote instead of him/her. A proxy need not be a shareholder 
of the Company. A shareholder may appoint more than one proxy in relation to the 
meeting provided that such proxy is appointed to exercise the rights attached to 
a different share or shares held by the shareholder. 
The following persons should complete, sign and return form(s) of proxy of 
the following colours: 
+-------------------------------+-------------------------------+ 
| Shares held                   | Form(s) of proxy to complete, | 
|                               | sign and return               | 
+-------------------------------+-------------------------------+ 
| U.S. Dollar Shares            | White                         | 
+-------------------------------+-------------------------------+ 
| Sterling Shares               | Blue                          | 
+-------------------------------+-------------------------------+ 
If you hold U.S. Dollar Shares and Sterling Shares, you should complete forms of 
proxy in relation to each. 
2  Form(s) of proxy is (are) included for use by shareholders to complete, sign 
and return. Completion and return of the form(s) of proxy will not prevent a 
shareholder from subsequently attending the meeting (or any adjournments) and 
voting in person if he/she so wishes. 
3  To appoint more than one proxy to vote in relation to different shares within 
your holding you may photocopy the form. Please indicate the proxy holder's name 
and the number of shares and whether they are Sterling Shares or U.S. Dollar 
Shares in relation to which they are authorised to act as your proxy (which, in 
aggregate, should not exceed the number of shares of that class held by you). 
Please also indicate if the proxy instruction is one of multiple instructions 
being given. All forms must be signed and should be returned together in the 
same envelope. 
4  Form(s) of proxy, duly completed together with any power of attorney or other 
authority (if any) under which it is signed, or a notarially certified copy of 
such power or authority, must be lodged with Capita Registrars, Proxy 
Department, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU not less 
than 48 hours before the time fixed for the meeting or any adjournment thereof, 
or in the case of a poll taken more than 48 hours after it was demanded, 24 
hours before the time appointed for the taking of the poll. 
5  There are no service contracts between any of the Directors and the Company. 
6  No shareholder will be entitled to be present or vote at the meeting (or any 
adjournment) either personally or by proxy unless their name appears on the 
register of members of the Company as at 10.30 am on Tuesday 25 August 2009. 
Changes to the entries on the register of members after that time shall be 
disregarded in determining the rights of any person to attend and vote at the 
meeting (or any adjournments). This record time is being set for voting at the 
meeting (and any adjournments) because the procedures for updating the register 
of members in respect of shares held in uncertificated form require a record 
time to be set for the purpose of determining entitlements to attend and vote at 
the meeting. 
7  CREST members who wish to appoint a proxy or proxies through the CREST 
electronic proxy appointment service may do so for the meeting and any 
adjournment(s) of the meeting by using the procedures described in the CREST 
Manual. CREST personal members or other CREST sponsored members, and those CREST 
members who have appointed a voting service provider(s), should refer to their 
CREST sponsor or voting service provider(s), who will be able to take the 
appropriate action on their behalf. In order for a proxy appointment or 
instruction made using the CREST service to be valid, the appropriate CREST 
message (a "CREST Proxy Instruction") must be properly authenticated in 
accordance with CRESTCo's specifications and must contain the information 
required for such instructions, as described in the CREST Manual. The message, 
regardless of whether it constitutes the appointment of a proxy or an amendment 
to the instruction given to a previously appointed proxy must, in order to be 
valid, be transmitted so as to be received by the Company's agent (ID RA10) by 
the latest time(s) for receipt of proxy appointments specified above. For this 
purpose, the time of receipt will be taken to be the time (as determined by the 
timestamp applied to the message by the CREST Applications Host) from which the 
Company's agent is able to retrieve the message by enquiry to CREST in the 
manner prescribed by CREST. After this time any change of instructions to 
proxies appointed through CREST should be communicated to the appointee through 
other means. CREST members and, where applicable, their CREST sponsors or voting 
service provider(s) should note that CRESTCo does not make available special 
procedures in CREST for any particular messages. Normal system timings and 
limitations will therefore apply in relation to the input of CREST Proxy 
Instructions. It is the responsibility of the CREST member concerned to take 
(or, if the CREST member is a CREST personal member or sponsored member or has 
appointed a voting service provider(s), to procure that his CREST sponsor or 
voting service provider(s) take(s)) such action as shall be necessary to ensure 
that a message is transmitted by means of the CREST system by any particular 
time. In this connection, CREST members and, where applicable, their CREST 
sponsors or voting service provider(s) are referred, in particular, to those 
sections of the CREST Manual concerning practical limitations of the CREST 
system and timings. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BRAMDEAN ALTERNATIVES LIMITED 
 
 
STATEMENT OF ANNUAL FINANCIAL REPORT 
17 JULY 2009 
 
 
The financial information set out in this announcement does not constitute the 
Company's statutory accounts for the year ended 31 March 2009. 
 
 
The financial information for the year ended 31 March 2009 is derived from the 
financial statements delivered to the UK Listing Authority. The Auditors 
reported on those accounts, their report was unqualified and did not contain a 
statement under Section 263 of The Companies (Guernsey) Law, 2008. 
 
 
 
 
CHAIRMAN'S STATEMENT 
 
 
Extraordinary General Meeting ("EGM") 
On 21 May 2009, the Company issued a circular to shareholders convening an EGM, 
pursuant to a shareholder's requisition, which set out the proposed resolutions 
to remove the existing Board and appoint three individuals nominated by the 
shareholder. 
The EGM was held on 18 June 2009 and, as a result of a shareholder vote on the 
resolutions, the existing Board was removed and three new Board members were 
appointed with immediate effect. 
 
 
Commenting on the new Board's appointment, Jonathan Carr incoming Chairman, said 
"I would like to thank the outgoing Directors for their service to the Company. 
I would also like to thank the shareholders for the support that they have shown 
in appointing the new Board to consider the best course of action for their 
Company to take. The new Board of Bramdean Alternatives Limited has significant 
experience in finance and investment and it is our intention to conduct a 
comprehensive review of the Company's strategy and investments and consider all 
possible options to maximise value for shareholders. As independent Directors we 
will report back to shareholders on the avenues open to us. We take up our 
appointments with open minds and welcome all advice and suggestions from 
stakeholders as to how maximum value can be achieved.' 
 
 
 
 
As the newly appointed Chairman I am pleased to present to shareholders the 
Report & Financial Statement of Bramdean Alternatives Limited for the financial 
year ended 31March 2009. 
 
 
During the first financial year of the Company's life there was extraordinary 
turmoil in financial markets stemming from the decision to allow Lehman Brothers 
to go into administration. The Federal Reserve took early action in cutting 
interest rates, which seemed to some like a high risk policy given the level of 
commodity prices. Eventually, commodity prices began to fall in response to a 
faster slowdown in global economic activity than had been predicted. Against 
this background, equity markets were extremely weak. In 2008, the US market fell 
by 37.5% and Europe ex-UK fell by 40.4% in local currency terms. The UK equity 
market, as measured by the FT Actuaries All-Share Index, fell by 32.2% over the 
year. Within the fixed income markets, gilts performed well, with the Government 
All Stocks Index returning 10.3% (including income). But UK corporate bonds 
declined in value by 13.5% (also including income). Over the course of the 
financial year to 31 March 2009, the Credit Suisse Tremont Hedge Fund Index fell 
by 16.7%, whilst the HFRI Fund Weighted Composite Index of hedge funds fell by 
20.6%. 
 
 
At the end of March 2008, the Company's net asset value ("NAV") per Sterling 
Share was 98.55 pence and stood at 90.10 pence at the end of March 2009. This 
represented a decline of 8.6%, which was encouraging when compared with the 
overall performance of the equity markets. The U.S. Dollar Share's NAV began the 
year under review at US$0.9782 and ended the period at US$0.7503, a fall of 
23.3%. The disparity in performance between the two share classes was due to 
movements in the value of Sterling against the U.S. Dollar. The Investment 
Manager had followed a policy of hedging the majority of the U.S. Dollar and 
Euro exposure for the Sterling class shareholders up until October 2008. 
Thereafter, the hedge was significantly reduced and was at zero by the end of 
the year. This resulted in a currency gain for the Sterling class shareholders 
over the year as a whole because Sterling had declined sharply against the U.S. 
Dollar. 
 
 
It was extremely disappointing that the Company had to write off 9.5% of its NAV 
following the arrest of Bernard L Madoff on allegations of securities fraud. The 
Company was holding two investments that, directly or indirectly, held trading 
accounts with Bernard L. Madoff Investment Securities LLC ("BMIS"). The first 
was Rye Select Broad Market XL portfolio Ltd. ("Rye Select"), an investment 
which represented 4.4% of the Company's NAV as at 31 October 2008 and which was 
held in the Strategic Hedge Funds portfolio. 
 
 
The second was Defender Ltd. ("Defender"), which represented 5.1% of the 
Company's NAV as at 31 October 2008 and was held in the Transitional portfolio. 
On 12 December 2008, the Company received a letter from Defender stating that 
the Federal Bureau of Investigation in the US had arrested Mr Madoff, the 
founder of BMIS, on charges of alleged securities fraud. Mr Madoff was later 
convicted and imprisoned, having pleaded guilty to the charges brought against 
him. 
 
 
Having received the news about Mr Madoff, the Company immediately consulted with 
its auditors, PricewaterhouseCoopers CI LLP and it was decided to take a full 
provision against its investments in Rye Select and Defender to nil in the 
calculation of the November 2008 NAV, which was announced via the London Stock 
Exchange's Regulatory News Service on 18 December 2008. The Company is 
continuing to monitor the situation in respect of its investments in Rye Select 
and Defender and will make every appropriate effort to seek recovery of the 
assets. 
 
 
The Company has invested its assets with a view to spreading investment risk in 
accordance with its published investment policy. As at 31 March 2009, the 
Company was invested in a diversified portfolio of 33 funds across many 
geographical regions and investment strategies. Further details on the 
diversification of the investment portfolio are set out in the Investment 
Manager's review. The Company's total NAV at the end of the year was US$176.11 
million. Out of the 33 funds held by the Company, 18 were Private Equity and 
Speciality Funds and the total commitments to these funds stood at US$223 
million at the Company's year end. The Company's current level of over 
commitments is low relative to many peer group private equity funds and no 
borrowing facility has been put in place. The Company's private equity 
commitments may not be easily transferred or sold in the current market and the 
Company has contractual obligations to fund undrawn amounts in its private 
equity commitments. Where commitments cannot be transferred or sold the Company 
will maintain adequate provision to meet such contractual obligations. 
 
 
Although the NAV performance of the Company was creditable, even after writing 
off the value of the Madoff investments, the share price performance has been 
unsatisfactory. The Sterling Shares saw a decline of 49.7% over the year ended 
31 March 2009, whilst the U.S. Dollar Shares declined by 45.1%. The nervousness 
of the market about the private equity sector was demonstrated by the widening 
of discounts to NAV. At the end of the year, the Company's Sterling Shares stood 
at a discount of 55.5% relative to NAV and the U.S. Dollar Shares stood at a 
discount of 25.4%. The private equity fund of funds sector stood at an average 
discount of 63.6% at 31 March 2009. 
 
 
The Board monitors the level of share price relative to the NAV carefully and 
has been concerned about the widening discount. This is reviewed at each 
quarterly Board Meeting. 
 
 
As stated above, the Company had no debt at 31 March 2009. In line with the 
Company's dividend policy, the Board has not recommended payment of a final 
dividend. 
 
 
Over the last financial year, the Company's Investment Manager has sought to 
position the Company's investments in light of continued financial turmoil, 
including taking steps to increase cash balances. At the year end, the Company 
was holding 30.8% of its assets in cash. However, it should be noted that the 
Company has made commitments to Private Equity and Speciality funds and that 
this cash will be drawn down by these funds over time. 
 
 
On behalf of the new Board I would like to assure shareholders that we are 
committed to enhancing shareholder value and thank shareholders for their 
support during this period of transition. 
 
 
Annual General Meeting 
I look forward to welcoming shareholders to the Annual General Meeting of the 
Company at 10.30 am on Thursday 27 August 2009, which will be held at Canada 
Court, Upland Road, St Peter Port, Guernsey, GY 3QE, Channel Islands. 
 
 
Jonathan D Carr 
Chairman 
8 July 2009 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTORS' REPORT 
 
 
Incorporation and principal activity 
Bramdean Alternatives Limited (the "Company") was incorporated on 5 January 2007 
in Guernsey, Channel Islands, with limited liability under The Companies 
(Guernsey) Law, 1994 (as amended) as an investment holding company. The Company 
is now a Guernsey closed-ended investment company, following its admission to 
the London Stock Exchange. Trading in the Company's U.S. Dollar and Sterling 
Shares commenced on 9 July 2007. 
 
 
Management arrangements 
Dividends 
For the year ended 31 March 2009 the Directors do not propose the payment of a 
dividend. 
 
 
Investment Management Agreement 
The Company has entered into an Investment Management Agreement with Bramdean 
Asset Management LLP (the "Investment Manager"). The Investment Manager is 
responsible for the management of the Company's assets, subject to the overall 
supervision of the Board. The Investment Manager's investment team consists of 
five investment professionals and is led by its Chief Executive Officer, Nicola 
Horlick. 
 
 
The annual management fee is 1.5% of the Net Asset Value ("NAV"), payable 
monthly in arrears with a 10% performance fee subject to an 8% return with a 
high watermark. 
 
 
Following the recent appointment of the Directors, and in light of their ongoing 
discussions with shareholders, the Board is currently considering the future of 
the Company. Pending their decision as to what proposals they consider would be 
in the best interest of shareholders as a whole, the Directors are currently of 
the opinion that the continuing appointment of the Investment Manager on 
the terms agreed is in the interests of shareholders as a whole. 
 
 
The Investment Manager has appointed RMF Investment Management - Nassau Branch 
("RMF") to manage investments in that part of the Company's portfolio which may, 
from time to time, be allocated to investments in hedge funds. RMF has 
discretionary authority to invest and divest with respect to all investments 
making up the part of the portfolio allocated to investments in hedge funds. 
 
 
Discount control 
As part of the discount control mechanisms, the Board may consider implementing 
a share buy-back (subject to the limitations set out in resolution 4 in the 
Notice of the Annual General Meeting of the Company and all other applicable 
laws and regulations) at each quarterly Board meeting should the Shares have 
been trading at a discount to NAV of 10% or greater for more than 90 days. 
The Company has the authority to manage demand flows for its Shares by 
purchasing up to 14.99% of each class of Share. Up to 10% may be held within its 
Treasury function and resold. The remainder will be cancelled. 
 
 
Annual shareholder approval will be sought to renew this authority. 
 
 
In the year ended 31 March 2009, the Company bought back 260,000 Sterling Shares 
for cancellation at a cost of US$427,684. 
 
 
Investment objective and investment policy 
The investment objective of the Company is to generate long-term capital gains. 
The Company invests in a diversified portfolio of private equity funds, hedge 
funds and other specialty funds as described below. The Company may also hold 
direct holdings in unquoted companies and quoted securities. 
 
 
The Company seeks to hold a broadly diversified portfolio of investments by 
country, industry sector, investment stage and size of investment, as well as by 
strategy. Geographical analysis of investments is disclosed in Note 15. 
 
 
The Company seeks to operate within the asset allocation ranges set out below. 
While the Company is establishing its strategic allocation to private equity 
funds and specialty funds, the Company manages the capital that is committed but 
not yet called in a Transitional portfolio. This portfolio invests in funds that 
reflect the characteristics of private equity and is also structured to 
preserve that capital over the medium-term and be as liquid as possible so that 
the Company can satisfy capital calls. Over the course of the reporting period 
and as a reflection of the turbulence being experienced by the global equity 
markets, the decision was taken to reduce the emphasis on achieving private 
equity-type returns and to increase the focus on capital preservation. 
 
 
Asset allocation ranges 
The Company operates on the basis of the following long-term asset allocations: 
 
 
Private Equity Funds 30% - 60% 
Strategic Hedge Funds  15% - 45% 
Specialty Funds  10% - 30% 
 
 
The actual percentage of the Company's gross assets invested in private equity 
funds and direct holdings, strategic hedge funds and specialty funds may fall 
outside these ranges. 
 
 
Private equity funds and direct holdings 
The Private Equity Funds portfolio comprises investments primarily in the 
buy-out, growth equity, venture capital, secondaries and mezzanine debt sectors. 
The Company may also make co-investments, either directly with the general 
partners of the private equity funds that the Company invests in, or via a 
co-investment fund. The underlying private equity funds are expected to 
be primarily invested in Europe and the United States. No co-investments have 
been made to date. 
 
 
Hedge funds 
The Company invests in a concentrated range of hedge funds which pursue multiple 
investment strategies - specifically: Relative Value, Event Driven, Equity 
Hedge, Global Macro and Managed Futures to create balance within the portfolio. 
The Company will typically hold 10 to 15 underlying hedge funds at any given 
point in time within its Strategic Hedge Funds portfolio. The Strategic 
Hedge Funds portfolio is neither style nor strategy specific. RMF has 
been appointed as Investment Sub-Manager under the terms of an Investment 
Sub-Management Agreement. RMF is responsible for taking decisions on all 
individual hedge funds which form part of the Company's Strategic Hedge Funds 
portfolio. 
 
 
 
 
 
 
Specialty funds 
The Company invests in a globally diversified portfolio of specialty funds which 
include, but are not limited to: 
- real estate funds; 
- infrastructure funds; 
- natural resources funds; and 
- structured finance funds. 
 
 
Over-commitment 
The Company employs a policy of over-commitment in order to ensure it deploys 
its capital efficiently and that its intended investment allocation to private 
equity is met. At 31 March 2009, the Company was 81% over-committed to its 
private equity and specialty investments. The over-commitment is based on 
the Company's expectation to have approximately 70% of its NAV represented by 
the Private Equity and Specialty Funds portfolio. 
 
 
Gearing 
The Company may borrow up to 25% of the NAV of the Company for short-term 
purposes as may be necessary for settlement of transactions, or for long-term 
purposes to fund over-commitments to private equity and specialty funds, to fund 
hedging contracts or to meet ongoing expenses. The Company will also be 
geared indirectly to the extent that underlying funds are themselves geared. The 
Company had no debt as at 31 March 2009 and no loan facility was in place. 
 
 
Substantial interests 
The Disclosure and Transparency Directive, which became effective on 20 January 
2007, required shareholders to disclose their direct or indirect holdings in the 
Company to the UK Listing Authority on reaching or exceeding thresholds at 5%, 
10%, 15%, 20%, 25%, 30%, 50% and 75% (based on voting rights owned or 
controlled in the issued share capital of the Company). The Company 
must disseminate notifications it receives to the wider market. 
 
 
The Company has been notified of the following substantial interests: 
Elsina Limited  28.72% 
Hampshire County Council Pension Fund 19.20% 
RMF Investment Management - Nassau Branch 19.08% 
Merseyside Pension Fund 15.15% 
Tilney Investment Management  5.68% 
 
 
Directors' holdings 
The former Directors all served from 1 April 2008 to 31 March 2009. As at 31 
March 2009 and 31 March 2008, the following Directors, who were in office at 31 
March 2009, had a beneficial ownership of Shares representing the 
following percentage interest in the Company's voting rights and net assets: 
 
 
B P Larcombe 50,000 Sterling Shares 0.04% 
M P S Barton 10,000 Sterling Shares 0.01% 
M D Buckley 100,000 U.S. Dollar Shares 0.04% 
 
 
 
 
 
 
Statement of Directors' responsibilities 
The Directors are responsible for preparing financial statements for each 
financial year which give a true and fair view in accordance with applicable 
Guernsey law and International Financial Reporting Standards, of the state of 
affairs of the Company and of the profit or loss of the Company for that year. 
In preparing the financial statements, the Directors are required to: 
- select suitable accounting policies and apply them consistently; 
- make judgements and estimates that are reasonable and prudent; 
- state whether applicable accounting standards have been followed, subject to 
any material departures disclosed and explained in the financial statements; and 
- prepare the financial statements on the going concern basis unless it is 
inappropriate to presume that the Company will continue in business. 
 
 
The Directors confirm to the best of their knowledge that: 
- they have complied with the above requirements in preparing the financial 
statements; 
- there is no relevant audit information of which the Company's auditor is 
unaware; and 
- each Director has taken all steps he ought to have taken as a director to make 
himself aware of any relevant audit information and to establish that the 
Company's auditor is aware of that information. 
 
 
The Directors are responsible for keeping proper accounting records which 
disclose with reasonable accuracy at any time the financial position of the 
Company and enable them to ensure that the financial statements comply with The 
Companies (Guernsey) Law, 2008. They are also responsible for safeguarding the 
assets of the Company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities. 
 
 
The maintenance and integrity of the Bramdean Alternatives Limited website is 
the responsibility of the Directors; the work carried out by the auditors does 
not involve consideration of the maintenance and integrity of this website and, 
accordingly, the auditors accept no responsibility for any changes that may have 
occurred to the financial statements since they were initially presented on 
the website. Legislation in Guernsey governing the preparation and dissemination 
of financial statements may differ from legislation in other jurisdictions 
 
 
Update on regulatory regime for Guernsey funds 
There have recently been a number of changes to the regulatory regime for 
Guernsey funds. A number of provisions which were contained in The Control of 
Borrowing (Bailiwick of Guernsey) Ordinance, 1959 to 2003 ("COBO") (which 
governed closed-ended funds) have been consolidated into The Protection of 
Investors (Bailiwick of Guernsey) Law, 1987, as amended (the "POI Law") (which 
governed open-ended funds and licensees) so that the POI Law now governs both 
open-ended and closed-ended funds (as well as licensees). 
 
 
Closed-ended funds are now Category 1 controlled investments under the POI Law. 
The changes have also codified a number of standard conditions and ongoing 
notification requirements imposed on the licensees of funds which were listed on 
the Company's COBO consent, but were not explicitly set out in COBO. It is 
intended that the changes will simplify Guernsey's investment fund regime 
by categorising all funds (whether open-ended or closed-ended) as either 
registered schemes or authorised schemes. The Directors have determined that the 
Company will continue as an Authorised 
Closed-Ended Investment Scheme. 
Corporate governance 
Introduction 
As a closed-ended investment company registered in Guernsey, the Company is 
eligible for exemption from the requirements of the Combined Code (the "Code") 
issued by the UK Listing Authority as updated by the Financial Reporting Council 
in June 2006. The main requirements of the Code set out principles of good 
governance and a code of best practice. The Board has put in place a framework 
for corporate governance which it believes is suitable for an investment company 
and enables the Company to comply voluntarily with the main requirements of the 
Code. 
 
 
The Board will receive full details of the Company's assets, liabilities and 
other relevant information in advance of Board meetings. The Board meets 
formally at least four times a year; however, the Investment Manager and Company 
Secretary will stay in more regular contact with the Directors on a less formal 
basis. Individual Directors have direct access to the Company Secretary and may, 
at the expense of the Company, seek independent professional advice on any 
matter that concerns them in the furtherance of their duties. 
 
 
The Board 
As at 31 March 2009, the Board consisted of the five non-executive Directors all 
of whom, with the exception of Peter Barton, were independent of the Investment 
Manager and RMF and free from any business or other relationship that could 
materially interfere with the exercise of their independent judgement. Peter 
Barton was appointed Chairman of the Investment Manager on 9 June 2008 and from 
that date ceased to be an independent Director of the Company and resigned from 
its Audit Committee. Peter Barton remained on the Board as a non-executive 
Director until his resignation on 11 May 2009. Brian Larcombe, Ceasar 
Anquillare, Michael Buckley and Nicholas Moss were removed as 
non-executive Directors of the Company pursuant to a vote of shareholders at an 
extraordinary general meeting of the Company on 18 June 2009 (the "EGM"). 
 
 
Mr Jonathan Carr was appointed as non-executive Chairman of the Company. Mr 
David Copperwaite and Mr Mark Tucker have been appointed as non-executive 
Directors of the Company. Each of these appointments was made pursuant to a vote 
of shareholders at the EGM and the appointments took effect immediately 
following completion of the EGM. Each of Mr Carr, Mr Copperwaite and Mr Tucker 
will be subject to re-election at intervals of no more than three years. The 
Board does not consider it necessary to appoint a Chief Executive or senior 
Independent Director. The Board has agreed to conduct annually an evaluation of 
the individual performance of the Directors to assess whether the performance of 
each Director for the year under review is, and continues to be, effective and 
demonstrates commitment to the role. 
 
 
The attendance record of the Directors for the year ended 31 March 2009 is set 
out below: 
 
 
+--------------------+--------------+--------------+--------------+----------+ 
|                    | Quarterly    | Annual       | Audit        | Ad Hoc   | 
|                    | Board        | General      | Committee    | Meetings | 
|                    | Meetings     | Meetings     | Meetings     |          | 
+--------------------+--------------+--------------+--------------+----------+ 
| B P Larcombe       | 4            | 1            | 1            | 2        | 
+--------------------+--------------+--------------+--------------+----------+ 
| C N Anquillare, JP | 4            | 1            | 2            | 3        | 
+--------------------+--------------+--------------+--------------+----------+ 
| M D Buckley        | 4            | 1            | 3            | 6        | 
+--------------------+--------------+--------------+--------------+----------+ 
| M P S Barton       | 4            | 1            | n/a          | 2        | 
+--------------------+--------------+--------------+--------------+----------+ 
| N D Moss           | 4            | 1            | 3            | 6        | 
+--------------------+--------------+--------------+--------------+----------+ 
The new Board has a breadth of experience relevant to the Company, and the 
Directors believe that any changes to the Board's composition can be managed 
without undue disruption. With any new Director appointment to the Board, 
consideration will be given as to whether an induction process is appropriate 
and the Board as a whole, will consider new Board appointments. 
 
 
Audit Committee 
The Board has established an Audit Committee. The Audit Committee meets at least 
twice a year and is responsible for ensuring that the financial performance of 
the Company is properly reported on and monitored and provides a forum through 
which the Company's external auditors may report to the Board. The Audit 
Committee reviews the annual and interim accounts, results, announcements, 
internal control systems and accounting policies of the Company, as well as the 
independence and objectivity of the external auditors. 
 
 
During the year ended 31 March 2009, the Audit Committee comprised all the 
members of the Board with the exception of Peter Barton and was chaired by 
Nicholas Moss. Peter Barton resigned as a member and Chairman of the Audit 
Committee on 9 June 2008 and was replaced as Chairman by Nicholas 
Moss. Following the appointment of the new Directors, the Audit Committee now 
comprises all three members of the new Board and is chaired by David 
Copperwaite. The Company may use its external auditor to supply non-audit 
services with prior agreement of the Board and not before taking into account 
relevant ethical guidance regarding the provision of non-audit services by 
the external audit firm 
 
 
Remuneration Committee 
Given the size and nature of the Company, it is not deemed necessary to form a 
separate Remuneration Committee. 
 
 
Internal controls 
The Board is ultimately responsible for the Company's system of internal control 
and for reviewing its effectiveness. The Board confirms that there is an ongoing 
process for identifying, evaluating and managing the significant risks faced by 
the Company. This process has been in place for the period under review and up 
to the date of approval of this Annual Report and Financial Statements, is 
reviewed by the Board and accords with The Turnball Guidance. The Code requires 
Directors to conduct at least annually a review of the Company's system of 
internal control, covering all controls, including financial, operational, 
compliance and risk management, and to take the necessary action to address any 
significant failings or weaknesses identified. 
 
 
The internal control systems are designed to meet the Company's particular needs 
and the risks to which it is exposed. Accordingly, the internal control systems 
are designed to manage rather than eliminate the risk to achieve business 
objectives and by their nature can only provide reasonable and not absolute 
assurance against material misstatement and loss. On this basis the Board does 
not consider there to be any need for the Company to have its own internal audit 
function, as required by the Combined Code. 
 
 
The Board has delegated the responsibility for managing the Company's investment 
portfolio, the provision of custody services and the administration, registrar 
and corporate secretarial functions including the independent calculation of the 
Company's NAV and the production of the Annual Report and Financial 
Statements, which are independently audited. Whilst the Board 
delegates responsibility, it retains accountability for the functions it 
delegates and is responsible for the systems of internal control. 
Formal contractual agreements have been put in place between the Company and 
providers of these services. Compliance reports are provided at each Quarterly 
Board Meeting by the Administrator. 
 
 
Going concern 
After making enquiries of the Investment Manager and given the nature of the 
Company, its investments and outstanding commitments, the Directors are 
satisfied that it is appropriate to adopt the going concern basis in preparing 
the financial statements; after due consideration, the Directors consider 
that the Company is able to continue as a going concern for the foreseeable 
future. 
 
 
Financial instruments 
The Company's financial risk management objectives and policies, including the 
policy for currency hedging to reduce the risk of currency fluctuations, and the 
exposure to capital risk, credit risk and liquidity risk are set out in Note 9 
in the Notes to the Financial 
Statements under the heading "Financial risk management". 
 
 
Independent auditors 
PricewaterhouseCoopers CI LLP have indicated their willingness to continue in 
office. A resolution to re-appoint PricewaterhouseCoopers CI LLP will be 
proposed at the forthcoming Annual General Meeting. 
 
 
Statement under the Disclosure and Transparency Rules 4.1.12 
The Directors each confirm to the best of their knowledge that: 
  *  the financial statements, prepared in accordance with applicable accounting 
  standards, give a true and fair view of the assets, liabilities, financial 
  position and profit or loss of the Company; and 
  *  this Annual Report includes a fair review of the development and performance of 
  the business and the position of the Company, together with a description of the 
  principal risks and uncertainties that it faces. 
 
 
 
By order of the Board 
 
 
J D Carr 
Director 
 
 
D S Copperwaite 
Director 
 
 
8 JULY 2009 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INVESTMENT MANAGER'S REVIEW 
 
 
Synopsis 
Over the past year, Bramdean Asset Management (the "Investment Manager"), was 
becoming increasingly nervous about the markets. As a result, the decision was 
taken to reduce the Company's exposure to hedge funds and to increase the 
percentage of its assets held in cash. At the beginning of the Company's 
financial year, 70.9% of its assets were invested in hedge funds and cash stood 
at 10.9%. By the end of the year, hedge funds represented 29.0% and cash had 
risen to 30.8% of the Company's total assets. Although hedge funds are meant to 
afford some protection when markets are weak, this was not so in 2008/09. During 
the year under review, the Credit Suisse Tremont Hedge Fund Index fell by 16.7% 
and the HFRI Fund Weighted Composite Index of hedge funds fell by 20.6%. Hence, 
it was the correct strategy to reduce the Company's overall exposure to hedge 
funds over the year. Ironically, the bearish view taken by the Investment 
Manager and RMF, led us to leave the Madoff investments in place, which were 
widely regarded by fund of fund managers as defensive strategies. An exposure 
held between the two managers of 9.5% of the Company's total net assets had to 
be written off on the advice of the Company's auditors, PricewaterhouseCoopers 
CI LLP, when it became apparent that fraudulent activity had taken place. This 
was extremely disappointing, but the overall performance of the Company's 
portfolio was still creditable relative to other vehicles over the year. 
 
 
Performance 
The Investment Manager is responsible for the performance of the Company's 
assets. As the Chairman has noted, the Sterling class shareholders saw a decline 
of 8.6% over the year ended 31 March 2009, which was a good performance relative 
to all market indices and hedge fund indices. A large part of this performance 
came from the Investment Manager's decision to remove the currency hedge, which 
was reduced in three stages between early October 2008 and early March 2009. The 
U.S. Dollar Share's NAV declined by 23.3% over the period as it did not benefit 
from the removal of the U.S. Dollar hedge. This compared reasonably well to 
indices, despite the write-down of the Madoff investments. 
 
 
Investment Portfolio 
As stated above, there was a major shift in asset allocation over the course of 
the year under review. At 31 March 2008, the Transitional portfolio represented 
37.3% of the Company's assets and this had fallen to 6.1% by 31 March 2009. The 
Transitional portfolio seeks to provide returns higher than cash while the 
Company awaits drawdowns for its Private Equity and Speciality investments. The 
Investment Manager's view was that few asset classes were likely to provide 
returns in excess of cash, despite the sharp fall in cash yields as governments 
reduced interest rates. It was therefore felt necessary to continue redeeming 
hedge funds and holding the proceeds in cash. In the Company's Prospectus, it 
was stated that the range for the Strategic Hedge Funds portfolio would be 
15-45% and an initial target of 30% was set. This part of the Company's overall 
portfolio represented 33.6% of the Company's assets at 31 March 2008 and a 
decision by the Investment Manager to reduce the target for this part of the 
portfolio meant that the Strategic Hedge Funds portfolio represented 23% of the 
Company's NAV at 31 March 2009, with further redemptions pending. The overall 
result was that cash increased from 10.9% to 30.8% over the year. 
 
 
By the Company's year end, there were only three funds in the Transitional 
portfolio and a redemption notice was pending for one of these, Aarkad Plc. 
Since the year end, a redemption notice has been submitted for another fund, 
Kaiser Trading Fund SPC. There were 12 funds in the Strategic Hedge Funds 
portfolio at the year end, although redemption notices were submitted for two of 
these. 
 
 
At 31 March 2009 the Company had made commitments to 18 Private Equity and 
Speciality funds. Of these, 11 were classified as Private Equity funds and 7 as 
Speciality funds. At the year end, total commitments across these 18 funds stood 
at US$223.0 million and the Company's net assets were valued at US$176.1 
million. It should be noted that the Company had no borrowings at the year end 
and that this was in contrast to many similar vehicles, which had used leverage 
to finance over-commitment. Although the market has shown nervousness about any 
over-commitment in the current environment, the Investment Manger is comfortable 
with the Company's position. During January and February 2009, the Investment 
Manger undertook a detailed review of the Company's Private Equity and 
Speciality funds on behalf of the Board and, in particular, focused on the 
drawdown plans of the underlying managers. Most were very cautious about the 
outlook and were not looking to take advantage to any great extent of lower 
valuations resulting from weak equity markets. The exception was the distressed 
debt funds in the portfolio, which were looking to draw cash down quickly. 
 
 
At the year end, the total amount that had been drawn down on Private Equity and 
Speciality fund commitments was US$94.6 million or 42.4%. The Company had 
received US$3.9 million in distributions from inception to 31 March 2009. The 
Company intends to reinvest the distributions. 
 
 
At 31 March 2009, 6.1% of the Company's assets were invested in the Transitional 
portfolio, 23.0% in the Strategic Hedge Funds portfolio, 22.8% in Private Equity 
funds, 12.1% in Speciality funds, 30.8% in cash and 5.2% in other assets and 
liabilities. The significant rise in the Company's cash balances reflected the 
Investment Manger's negative view about the outlook for markets. 
 
 
In this financial year, hedge funds performed extremely poorly. During the bear 
markets of 2002-2003, hedge funds proved to be defensive and some managers 
posted impressive positive results. However, during 2008/09, most managers 
struggled and the main indices showed significant negative returns, with many 
funds losing a fifth of their value. Part of the reason for this was the sharp 
rise in volatility, which saw the VIX index (the index that measures volatility) 
rise to over 85 when Lehman Brothers went into administration. The previous high 
for the index was 40 and it usually trades at between 15 and 25. Against this 
background hedge funds found it very difficult to deliver positive returns. 
 
 
Given the high exposure to hedge funds at the beginning of the year, the 
performance of the Company's NAV was satisfactory, particularly for the Sterling 
class shareholders. 
 
 
Hedging Activity 
During the first part of the year, Sterling was strong against the U.S. Dollar 
and the Investment Manger hedged around 70% of the currency exposure on behalf 
of the Company. Between the end of March 2008 and mid-July 2008, the Investment 
Manger was responsible for implementing the currency hedging. From mid-July 
2008, the Company appointed Mesirow Financial Currency Management Inc. 
("Mesirow"), which is based in Chicago, to manage its currency exposure. 
Initially, it was agreed that the default position of a 70% hedge for the major 
currencies would be maintained. However, during September 2008, the Investment 
Manger became increasingly bearish about the prospects for Sterling and 
instructed Mesirow to reduce the neutral position for the Sterling class shares 
to 35% from 70%; this was implemented on 8 October 2008. Sterling then began to 
fall precipitously against both the U.S. Dollar and the Euro, it was therefore 
decided to reduce the hedge even further. By the beginning of March 2009, the 
hedge fund had been taken off completely. 
The decision to reduce the U.S. Dollar and Euro hedges for the Sterling Shares 
had a positive effect on the Sterling Share class over the year under review. 
The assets of the Company are predominantly in U.S. Dollars, as are the undrawn 
commitments. However, having removed the hedge, the Sterling class shareholders 
are now exposed to a translational effect on currency. 
 
 
The Investment Manger believes that, because the Company is over-committed 
relative to its NAV to Private Equity and Speciality funds, it cannot take the 
risk of large cash outflows resulting from a hedge going the wrong way and it 
considers that the policy of not hedging should be retained for the time being, 
especially given that the shareholders have the opportunity, twice yearly, to 
switch between the two share classes. 
 
 
Private Equity Funds portfolio review 
As markets declined over the financial year, the Company saw a number of 
markdowns in the value of its Private Equity holdings. When private equity firms 
are valuing their investment, one of the major components in determining the 
value of a particular company is comparative valuations placed by equity markets 
on similar businesses. During recession, company earnings broadly decline and 
there is generally 'multiple compression'. Thus, a company that might have been 
valued on 15x earnings when equity markets are strong, will find that it is now 
valued at 10x a lower earnings figure. The impact of this then feeds through to 
the private equity industry. The underlying managers of the Company's private 
equity funds have broadly taken a cautious view over the last few years and have 
held back money for investment. They have not generally used excessive levels of 
leverage, having shared the Investment Manager's bearish view of the outlook. 
The Company has limited exposure, therefore, to mega buy-outs and the highly 
leveraged deals that signalled the top of the equity markets in 2007. 
 
 
Furthermore, because the Company's portfolio of Private Equity funds is still 
relatively immature, the Company is experiencing what is described in the 
industry as a 'J-Curve effect'. The J-Curve defines the typical investment 
return pattern associated with investing in private equity. It shows how in the 
early years private equity funds generally show low or negative returns as 
initial investments are made to acquire and make changes to the portfolio 
businesses, and as a result of management fees together with start-up costs 
being drawn from the committed capital. The investment gains usually come in the 
later years as the companies in which investments have been made mature and, 
with the expertise of the general partner, increase in value. In the later 
years, partial or complete sales of those companies are also made, resulting in 
cash inflows to investors. The actual amount that will be received will be 
dependent on where we are in the economic cycle. During poor periods for the 
economy or markets, prices will be lower. When markets are more optimistic, 
prices will be higher. 
 
 
Five of the Company's private equity and speciality funds are 2006 vintage, five 
are 2007 vintage and one is 2008 vintage. 
 
 
The purpose of the two secondaries funds in the portfolio (which are both 2006 
vintages) is to provide vintage year diversification (their strategy is to 
acquire primarily pre-2006 funds across a range of vintages) to the Company's 
private equity portfolio. They are also expected to provide distributions to 
fund future private equity and speciality drawdowns. These two funds account for 
the majority of the distributions since inception. 
 
 
The other 2006 vintage private equity funds, together with one of 2007 fund, 
Silver Lake Partners III L.P., are all large-cap funds. Each made substantial 
investments prior to the beginning of the credit crunch, when the lending 
environment was more favourable for private equity funds, However, as described 
above, these funds have seen heavy write-downs on some of these investments 
because of the decline in value of comparable quoted companies. All of these 
managers have found it difficult to complete deals over the last 18 months, 
partly because of the lack of available credit. However, the Investment Manager 
recently met with Thomas H lee and was told that there were signs of recovery in 
credit markets. 
 
 
Two of the Company's private equity managers, Goldman Sachs Capital Partners VI 
L.P. and AIG Brazil Special Situations Fund II L.P. focus on mid-cap 
transactions. The mid-cap private equity market has remained more robust than 
the large cap sector in the wake of the credit crunch. 
 
 
Thoma Bravo IX L.P. was the last investment made in the Private Equity segments 
of the portfolio. The firm operates in the mid-cap area and tends to focus on IT 
and media companies. This manager has been negative about the outlook and so has 
not drawn down rapidly, with only three investments having being made by the 
Company's year end. 
 
 
The Company has an overweight position in venture to other similar vehicles. 
Venture is an area of private equity investing where it is essential to select 
top quartile managers. In addition, the better managers tend to be located in 
the US. The Investment Manager selected three venture managers for the Company's 
portfolio: Rho Ventures VI L.P., Tenaya Capital V L.P. (formerly Lehman Brothers 
Venture Partners V L.P.) and DFJ Athena L.P. The latter invests in companies run 
by Koreans either in Korea or in the US. DFJ is one of the leading venture firms 
in the US. Tenaya and DFJ are situated near each other in Silicon Valley, whilst 
Rho is based in New York. Venture firms do not generally employ leverage and an 
interesting feature of the credit crunch has been that they have found that the 
quality of the investment opportunities available to them has risen sharply as 
good companies have been unable to get bank finance or go for early IPOs. The 
Company's exposure to this area has, therefore, proved to be defensive. However, 
venture firms have seen the same downward pressure on valuations as private 
equity firms generally and so have seen write-downs on existing investments, 
although the flipside is that they are generally paying lower prices now to fund 
new investments. The fact that no leverage is generally required means that this 
is currently a vibrant market. 
 
 
Following the collapse of Lehman Brothers, Lehman Brothers Venture Partners 
bought itself out and found new investors to take on the LP interests that 
Lehman was holding on its books. It then changed its name to Tenaya. 
 
 
Speciality Funds portfolio review 
Three distressed funds are held within this part of the portfolio. As the 
Investment Manager became more pessimistic about the outlook for economies and 
markets, it moved into this area in order to seek to allow the Company and its 
shareholders to benefit from the downturn. The first fund that was selected was 
MatlinPatterson Global Opportunities Partners III L.P. The Company then invested 
in Oaktree OCM Opportunities Fund VIIb L.P. Oaktree focuses on acquiring debt 
securities at discounted prices in stressed and distressed situations. Oaktree 
was selected to serve as a diversifier to the portfolio's private equity 
holdings because Oaktree benefits from distressed environments that would 
typically impact negatively on private equity managers. Following on from this 
theme, the Investment Manager invested in a third distressed fund, HIG Bayside 
Debt & LBO Fund II L.P. HIG is the largest middle-market firm specialising in 
distressed and distressed-for-control transactions in the US. The firm has an 
excellent track record going back to 1993. 
 
 
Pine Brook Capital Partners L.P. focuses on the energy and financial services 
sectors. Following the sharp fall in the oil prices form its peak of US$147 per 
barrel in May 2008, Pine Brook has been able to close a number of deals in the 
oil and gas sector. However, despite the weakness in the financial sector, it 
has been reluctant to invest in this area, and when it has done, it has stuck to 
the relatively safe area of insurance. The principal, Howard Newman, is one of 
the most experienced private equity investors in the financial services sector. 
 
 
LimeTree Emerging Beachfront Land Investment Fund II, L.P. invests in 
undervalued beachfront land across the Asia Pacific region. The team combines 
top-down analysis of a country's stability, prospects and legal practices with 
bottom-up analysis of individual plots of beachfront land. Given the world 
recession and the turmoil in markets over the last few moths, the team has been 
very cautious and the fund is largely undrawn. No leverage is utilised by this 
manager. 
 
 
Resonant Music I L.P. was established by Cutting Edge Music Holdings, a leading 
music supervisor in the UK and US, with the help of the Investment Manager and 
with exclusive access for the Company and the Investment Manager's clients. The 
fund was set up to exploit a compelling anomaly in the music-for-film and TV 
industry, acquiring the copyrights to the original scores for music in film and 
TV productions. These copyrights provide a long-term income stream, as well as 
the creation of a music publishing catalogue. The economic downturn has resulted 
in Hollywood producers finding it difficult to fund projects and so the interest 
in Resonant Music has been far greater than originally anticipated, with the 
fund drawing down more rapidly. No leverage is used by the manager and this is 
an area that is largely recession proof in that the income stream is dependent 
on TV showings of the movies and firms in which the Company is involved. 
 
 
SVG Strategic Recovery Fund II L.P takes large minority stakes in small listed 
companies in the UK. Listed small cap companies were badly hit as the bear 
market took hold and this fund performed very poorly as a result. However, as 
markets have bounced, the fund has seen a sharp rise in its Net Asset Value. 
This fund is more akin to a hedge fund in the way it performs than to a 
traditional private equity fund, even though the investments are contained in a 
limited partnership structure. 
 
 
It should be noted that the remit for the Speciality part of the Company's 
portfolio is extremely wide. The Investment Manager can invest in commodities, 
timber, leveraged real estate, distressed debt, intellectual property rights and 
infrastructure. Given the very negative view of the economic outlook that the 
Investment Manager took when constructing the overall portfolio a decision was 
taken to avoid commodities, infrastructure and leveraged real estate and the 
defensive nature of this part of the portfolio can be seen with a heavy emphasis 
being placed on distressed debt. 
 
 
 
 
 
 
Transitional portfolio review 
At the end of 2007, the Investment Manager decided to sell the long-only 
equities that were held in the Transitional portfolio and the proceeds of these 
sales came through in the early part of 2008. At the same time, the Investment 
Manager sought to reduce exposure to equities that the Transitional portfolio 
had through its hedge fund holdings. The purpose of this part of the portfolio 
is to manage the monies that are being held pending drawdowns form Private 
Equity and Speciality funds. The emphasis is on capital preservation and it was 
the Investment Manager's view that, in a major bear market for equities, 
long/short managers and other managers with equity-related strategies would 
suffer. The conclusion was that cash would be safer, in spite of the very low 
level of interest rates. 
 
 
The Transitional portfolio had a position in Defender, which was an unleveraged 
fund with exposure to the Madoff strategy. The fund offered high liquidity 
relative to other hedge funds which was necessary in order to ensure that 
drawdowns from the private equity and speciality investments could be met. 
Following the announcement of Bernard Madoff's arrest, the decision was taken to 
write the holding down to zero value on the advice of the Company's auditors. 
 
 
By the end of the year under review, only three hedge funds remained in the 
Transitional portfolio (which includes Defender Ltd). A redemption notice was 
submitted for one of these, Aarkad Plc, in November 2008. The fund provides 
short-term bridging finance to UK domestic property developers. As a result of 
the credit crunch, those developers have not been able to refinance the loans 
with the major banks and so the loans have remained on Aarkads's books. In 
January 2009, the manager announced that it was suspending redemptions and 
looking to restructure. Since the year end, it has announced plans to give 
holders the choice of liquidating or staying in the fund, although these 
proposals are yet to be approved by investors. 
 
 
The value of the holding has been written down by 34% on the advice of the 
fund's auditors KPMG. This was partly related to an impairment of the loan book 
and partly currency-related because the fund accounts in U.S. dollars and lends 
in Sterling. 
 
 
Another holding was in Kaiser Trading Fund SPC. Kaiser is a commodity trading 
advisor (CTA) manager based in Melbourne. The fund performed extremely well 
during the darkest days of the bear market, but has done less well while equity 
markets have rallied. A redemption notice was submitted after the Company's year 
end. 
 
 
Strategic Hedge Funds Portfolio review 
There are 12 funds in the Strategic Hedge Funds Portfolio. The Company has 
agreed investment parameters with RMF to target a 12% net annual return with 
appropriate volatility. The portfolio has a low correlation to both global 
equities and global bonds and is well diversified across the five main hedge 
fund strategies. In the period ending 31 March 2009, the Strategic Hedge Funds 
portfolio delivered a negative 9.24% return gross of the Company's fees. 
 
 
The prolonged credit crisis produced additional sources of uncertainty in the 
markets for investors to deal with. The global economic environment experienced 
widespread deterioration. With markets overwhelmed by massive liquidity 
withdrawals, the last year has also been characterised by unprecedented 
interventions from government and central banks. Early enthusiasm in 2009 gave 
way to continued weakness until March, when global markets staged a bear market 
rally. 
 
 
The portfolio had an excellent start, generating a return of +6.16% during the 
period 1 April 2008 to 30 June 2008, despite negative market sentiment and shaky 
equity markets. For the period 1 July 2008 to 30 September 2008, the portfolio 
delivered 
 -5.17%, as severe declines in global equity markets were witnessed coupled with 
an increase in volatility. As hedge fund strategies were adversely impacted by 
these deteriorating economic conditions and abrupt changes in market dynamics, 
the portfolio returned -13.03% for the period 1 October 2008 to 31 December 
2008. The biggest performance detractor here was the valuation write-down of Rye 
Select Broad Market XL Portfolio Limited to zero following the arrest of Bernard 
Madoff in connection with serious allegations of a massive fraud. For the period 
1 January 2009 to 31 March 2009 the portfolio returned 2.68% as investor 
sentiment began to improve towards the end of the financial year. 
 
 
There have been three stand-out performers in the Company's Strategic Hedge 
Funds portfolio in the reported year: Paulson Advantage Plus Ltd, Kei Ltd. And 
Arcas MAC79 Ltd. The biggest drag on performance came from Rye Select Broad 
Market XL Portfolio Limited, Atticus European and Deephaven Global 
Multi-Strategy Fund Ltd. 
 
 
In the year ended 31 March 2009, the Company redeemed its holdings in Abchurch 
Europe Fund, Arcas MAC79 Ltd., Hard Assets 2X Fund and Rye Select Broad Market 
XL Portfolio Limited. The Company added Alydar Fund Limited, Evergreen MAC Ltd, 
and Roy G Niederhoffer Negative Correlation Fund Ltd in the reported period. 
 
 
Portfolio Strategy and Outlook 
The year under review was one of the most difficult for investors in the history 
of the markets. The scale of the financial crisis that confronted the US was 
simply unprecedented. In the UK, too, the Government was forced to take extreme 
action in order to avert a collapse of the financial system. Ultimately, the 
turmoil impacted on the underlying economy and in particular, the lack of credit 
available for businesses and individuals led to a deep recession globally. 
 
 
It had been hoped that Asia would avoid the effects of the western malaise, but 
it became apparent that this was not possible. Japan suffered considerably as a 
result of the distressed state of the western consumer. China fought hard to 
avert economic decline and was successful to a certain extent, but many 
factories manufacturing consumer goods for western countries were mothballed and 
the workers sent back to rural areas. India continued to grow, but it too has 
suffered in certain sectors of its economy. 
 
 
Although there is growing evidence that the credit markets have stabilised and 
equity markets have rallied, the recovery is fragile and setbacks are possible. 
However, investors who are prepared to take the long term view should be 
prepared to buy and wait with markets still far below their previous highs. 
 
 
In terms of the Company's strategy, as has been described, the portfolio was 
constructed conservatively in anticipation of a downturn. It is hoped that the 
distressed managers in the Speciality portfolio will make good returns 
relatively quickly. The private equity funds in the portfolio, most of which 
shared the Investment Manager's cautious view, have been slow to draw money down 
and should now be able to execute deals at more advantageous prices as credit 
becomes more freely available. The Company is holding a very high level of cash 
and the Investment Manager is of the view that this should be gradually 
re-invested in hedge funds with an equity bias in the second half of the 
calendar year to take advantage of the expected recovery in equity markets. 
 
 
There is one problem tat the world many have to face in the coming months and 
that is the re-emergence of inflationary pressure. Some commentators believe 
that this will be the natural consequence of the policy of 'quantitative easing' 
that the US and UK governments have undertaken. 
 
 
It has been interesting to see since the Company's year end that the oil price 
has been steadily recovering. In addition, the failure of harvests in various 
geographic areas due to the effects of global warming over the last 12 months 
led to sharp spikes in the prices of soft commodities and this could happen 
again. 
 
 
Given these risks, the Investment Manager intends to continue to hold high 
levels of cash in the very short term. We do not expect any acceleration in 
drawdowns from the Private Equity or Speciality funds in the short term, but nor 
do we expect many realisations. It will take some time for IPO and M&A activity 
to increase, allowing private equity investors to exit deals. 
 
 
 
 
Nicola K C Horlick 
Investment Manager 
 
 
 
 
 
 
Bramdean Alternatives Limited Net Asset Value 
March 2008 - March 2009 
 
 
Net Asset Value MonthlyNet Asset Value                   Monthly 
                 per Sterling Shares                       performance 
           per U.S. Dollar                       performance 
                (Sterling Equivalent)                    Sterling Shares 
         SharesU.S. Dollar shares 
 
 
Mar 2008            98.55p                                 -0.62%     US$0.9782 
                              -0.65% 
Apr 2008            99.95p    1.42%    US$0.9883 
1.03% 
May 2008          101.86p                                  1.91% 
           US$1.0053                                  1.72% 
Jun 2008           101.11p                                  -0.74% 
             US$1.0005                                -0.48% 
Jul 2008          99.42p                                   -1.67% 
            US$0.9836                                -1.69% 
Aug 2008         102.22p     2.82%                            US$0.9742 
                      -0.96% 
Sept 2008          97.26p     -4.85%                             US$0.9109 
                         -6.50% 
Oct 2008         101.78p                                    4.65% 
             US$0.9028                                -0.89% 
Nov 2008          95.52p                                    -6.15% 
              US$0.8138                               -9.86% 
Dec 2008          99.81p                                     4.49% 
              US$0.8188                                 0.61% 
Jan 2009           96.14p                                    -3.68% 
               US$0.8033                               -1.89% 
Feb 2009           96.36p                                     0.23% 
               US$0.7969                               -0.80% 
Mar 2009          90.10p                                     -6.50% 
              US$0.7503                                -5.85% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments to Private Equity and Specialty funds at 31 March 2009 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Private Equity & Specialty   | Private Equity &         | Commitment | Date of   | Fund    | 
| funds                        | Specialty funds focus    | in local   | Admission | Vintage | 
|                              |                          | currency   |           |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Terra Firma Capital Partners | Europe - Large buy-out   | EUR15        | 26 Jan    | 2006    | 
| III L.P.                     |                          | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Goldman Sachs Capital        | Global - Mega buy-out    | US$15      | 15 Mar    | 2006    | 
| Partners VI L.P.             |                          | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Greenpark International      | Secondaries              | EUR14.6      | 29 Mar    | 2006    | 
| Investors III L.P.           |                          | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Coller International         | Secondaries              | US$15      | 13 Apr    | 2006    | 
| Partners V L.P.              |                          | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Thomas H. Lee Parallel Fund  | US - Mega buy-out        | US$15      | 27 Apr    | 2006    | 
| VI L.P.                      |                          | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Silver Lake Partners III     | Global - Large buy-out   | US$15      | 18 May    | 2007    | 
| L.P.                         |                          | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| MatlinPatterson Global       | Global - distressed      | US$10      | 28 Jun    | 2007    | 
| Opportunities Partners III   |                          | million    | 07        |         | 
| L.P.                         |                          |            |           |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| SVG Strategic Recovery Fund  | Activist UK small-cap    | GBP7.5     | 21 May    | 2006    | 
| II L.P.                      |                          | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| AIG Brazil Special           | Latin America - special  | US$10      | 10 Aug    | 2007    | 
| Situations Fund II L.P.      | situations               | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Tenaya Capital V L.P.*       | US - mid stage venture   | US$12.5    | 16 Jul    | 2007    | 
|                              | capital                  | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Oaktree OCM Opportunities    | Global - distressed debt | US$15      | 19 Sept   | 2008    | 
| Fund VIIb L.P.               |                          | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| DFJ Athena L.P.              | Venture capital - Korean | US$10      | 20 Dec    | 2007    | 
|                              | companies                | million    | 07        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Rho Ventures VI L.P.         | US venture capital -     | US$10      | 21 Dec    | 2008    | 
|                              | life sciences and        | million    | 07        |         | 
|                              | technology               |            |           |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Pine Brook Capital Partners  | Global - growth equity   | US$10      | 1 Oct 07  | 2007    | 
| L.P.                         |                          | million    |           |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Thoma Bravo Fund IX L.P.     | US - growth equity       | US$10      | 27 Mar    | 2008    | 
|                              |                          | million    | 08        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| HIG Bayside Debt & LBO Fund  | US - distressed debt and | US$15      | 14 May    | 2008    | 
| II L.P.                      | growth equity            | million    | 08        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| LimeTree Emerging            | Asia Pacific beachfront  | US$5       | 13 Aug    | 2008    | 
| Beachfront Land              | land with development    | million    | 08        |         | 
| Investment Fund II L.P.      | potential                |            |           |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
| Resonant Music I L.P.        | US and UK music-for-film | US$5.45    | 31 Oct    | 2008    | 
|                              | financing fund           | million    | 08        |         | 
+------------------------------+--------------------------+------------+-----------+---------+ 
 
 
*Formerly Lehman Brothers Venture Partners V L.P. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Top 10 holdings as at 31 March 2008 
 
 
+------------------------------------+----------------+-------------+--------------+------------+ 
| Fund name                          | Strategy       | Book cost   | Market value | Weighting% | 
|                                    |                | US$         | US$          |            | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| Platinum Grove Contingent Capital  | Relative Value | 16,300,000  | 15,615,889   | 6.1        | 
| Offshore Fund Ltd                  |                |             |              |            | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| York European Opportunities Unit   | Equity Hedged  | 14,741,050  | 14,795,498   | 5.8        | 
| Trust                              |                |             |              |            | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| Enso Global Equities Fund Ltd      | Market Neutral | 14,330,994  | 14,576,662   | 5.7        | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| Paulson Advantage Plus Ltd         | Special        | 8,799,673   | 11,969,996   | 4.7        | 
|                                    | Situations     |             |              |            | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| Defender Ltd                       | Relative Value | 10,200,000  | 10,712,158   | 4.2        | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| D.E. Shaw Oculus International     | Global Trading | 8,500,000   | 10,713,647   | 4.2        | 
| Members Interest                   |                |             |              |            | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| Terra Firma Capital Partners III   | Europe large   | 9,220,802   | 9,972,118    | 3.9        | 
| L.P.                               | buy-out        |             |              |            | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| Brencourt Enhanced Multi-Strategy  | Market Neutral | 11,400,001  | 9,012,538    | 3.5        | 
| International Ltd                  |                |             |              |            | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| Greenpark International Investors  | Private Equity | 7,368,096   | 9,002,347    | 3.5        | 
| III L.P.                           |                |             |              |            | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| Rye Select Broad Market XL         | Derivative     | 8,500,000   | 8,936,835    | 3.5        | 
| Portfolio L.P.                     | Arbitrage      |             |              |            | 
+------------------------------------+----------------+-------------+--------------+------------+ 
| Total                              |                | 109,360,616 | 115,307,688  | 45.1       | 
+------------------------------------+----------------+-------------+--------------+------------+ 
 
 
Top 10 holdings as at 31 March 2009 
 
 
+------------------------------------+----------------+------------+--------------+------------+ 
| Fund name                          | Strategy       | Book cost  | Market value | Weighting% | 
|                                    |                | US$        | US$          |            | 
+------------------------------------+----------------+------------+--------------+------------+ 
| Greenpark International Investors  | Private Equity | 13,371,418 | 10,999,425   | 6.3        | 
| III L.P.                           |                |            |              |            | 
+------------------------------------+----------------+------------+--------------+------------+ 
| D.E. Shaw Oculus International     | Strategic      | 7,791,667  | 9,501,738    | 5.4        | 
| Members Interest                   | Hedge Funds    |            |              |            | 
+------------------------------------+----------------+------------+--------------+------------+ 
| Oaktree OCM Opportunities Fund     | Specialty      | 10,500,000 | 8,925,524    | 5.1        | 
| VIIb L.P.                          |                |            |              |            | 
+------------------------------------+----------------+------------+--------------+------------+ 
| Lansdowne UK Equity Fund           | Strategic      | 7,200,000  | 8,271,732    | 4.7        | 
|                                    | Hedge Funds    |            |              |            | 
+------------------------------------+----------------+------------+--------------+------------+ 
| Thomas H. Lee Parallel Fund VI     | Private Equity | 7,310,775  | 6,666,512    | 3.8        | 
| L.P.                               |                |            |              |            | 
+------------------------------------+----------------+------------+--------------+------------+ 
| Aarkad Plc                         | Transitional   | 7,100,000  | 5,459,644    | 3.2        | 
+------------------------------------+----------------+------------+--------------+------------+ 
| Kaiser Trading Fund SPC            | Transitional   | 4,994,098  | 5,136,787    | 2.9        | 
+------------------------------------+----------------+------------+--------------+------------+ 
| Deephaven Global Multi-Strategy    | Strategic      | 8,792,213  | 5,069,234    | 2.9        | 
| Fund Ltd                           | Hedge Funds    |            |              |            | 
+------------------------------------+----------------+------------+--------------+------------+ 
| Paulson Advantage Plus Ltd         | Strategic      | 2,724,301  | 5,062,899    | 2.9        | 
|                                    | Hedge Funds    |            |              |            | 
+------------------------------------+----------------+------------+--------------+------------+ 
| Coller International Partners V    | Private Equity | 5,137,500  | 5,058,918    | 2.9        | 
| L.P.                               |                |            |              |            | 
+------------------------------------+----------------+------------+--------------+------------+ 
| Total                              |                | 74,921,972 | 70,242,404   | 40.1       | 
+------------------------------------+----------------+------------+--------------+------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet 
As at 31 March 2009 
 
 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
|                                                    |        |                  2009 |                  2008 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
|                                                    |  Notes |                   US$ |                   US$ | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
|                                                    |        |                       |                       | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Assets                                             |        |                       |                       | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Financial assets at fair value through profit or   | 4      |           112,609,762 |           229,477,844 | 
| loss                                               |        |                       |                       | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Cash and cash equivalents                          |        |            54,309,273 |            27,948,491 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Trade and other receivables                        | 6      |             9,697,124 |             1,098,405 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Total assets                                       |        |           176,616,159 |           258,524,740 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
|                                                    |        |                       |                       | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
|                                                    |        |                       |                       | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Liabilities                                        |        |                       |                       | 
| Trade and other payables                           | 7      |               509,856 |             2,123,835 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Total liabilities                                  |        |               509,856 |             2,123,835 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
|                                                    |        |                       |                       | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Net assets                                         |        |           176,106,303 |           256,400,905 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
|                                                    |        |                       |                       | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
|                                                    |        |                       |                       | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Represented by                                     |        |                       |                       | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Share capital                                      | 10     |                     4 |                     4 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Share premium                                      | 10     |           258,759,096 |           259,186,780 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Revenue reserves                                   | 14     |          (82,652,797) |           (2,785,879) | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Total shareholders funds                          |        |           176,106,303 |           256,400,905 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
|                                                    |        |                       |                       | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
| Net asset value per share                          |        |                       |                       | 
| US$ Shares                                         | 12     |            USD 0.7503 |            USD 0.9782 | 
| Sterling Shares                                    | 12     |            GBP 0.9010 |            GBP 0.9855 | 
+----------------------------------------------------+--------+-----------------------+-----------------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME STATEMENT 
FOR THE YEAR ENDED 31 MARCH 2009 
 
 
+------------------------------------------+-------+----------------+-----------------+ 
|                                          |       |           2009 |            2008 | 
+------------------------------------------+-------+----------------+-----------------+ 
|                                          | Notes |            US$ |             US$ | 
+------------------------------------------+-------+----------------+-----------------+ 
|                                          |       |                |                 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Income                                   |       |                |                 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Net income from investments in limited   |       |        498,598 |       1,202,849 | 
| partnerships and directly held           |       |                |                 | 
| investments                              |       |                |                 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Net interest income from cash and cash   |       |         48,266 |         163,995 | 
| equivalents                              |       |                |                 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Net changes in fair value of financial   |       |                |                 | 
| assets / liabilities at fair value       |       |                |                 | 
| through profit or loss:                  |       |                |                 | 
+------------------------------------------+-------+----------------+-----------------+ 
|     Net (losses) / gains on investments  |  5    |   (55,613,148) |       4,099,327 | 
+------------------------------------------+-------+----------------+-----------------+ 
|     Net losses on foreign exchange       |       |   (20,294,296) |     (1,464,760) | 
+------------------------------------------+-------+----------------+-----------------+ 
| Total (loss) / income                    |       |   (75,360,580) |       4,001,411 | 
+------------------------------------------+-------+----------------+-----------------+ 
|                                          |       |                |                 | 
+------------------------------------------+-------+----------------+-----------------+ 
|                                          |       |                |                 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Expenses                                 |       |                |                 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Investment management fees               |  8    |      3,373,765 |       2,829,902 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Directors' fees                          |  8    |        327,657 |         305,571 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Printing and communication costs         |       |        220,701 |         173,671 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Administration fees                      |  8    |        112,468 |          94,559 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Legal and professional fees              |       |        112,310 |       1,652,436 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Custody fees                             |  8    |        103,852 |          90,656 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Audit fees - services as auditor         |       |         70,000 |          61,500 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Audit fees - services as non auditor     |       |         30,000 |               - | 
+------------------------------------------+-------+----------------+-----------------+ 
| Brokerage fees                           |       |         62,000 |          46,125 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Directors' and officers' insurance       |       |         47,879 |          41,674 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Travelling expenses                      |       |         32,458 |          25,625 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Bank charges                             |       |         13,248 |          23,553 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Loan facility fee                        |       |              - |         871,403 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Interest on loan                         |       |              - |          53,097 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Total operating expenses                 |       |      4,506,338 |       6,269,772 | 
+------------------------------------------+-------+----------------+-----------------+ 
|                                          |       |                |                 | 
+------------------------------------------+-------+----------------+-----------------+ 
| Net loss from operations                 |       |   (79,866,918) |     (2,268,361) | 
+------------------------------------------+-------+----------------+-----------------+ 
| The Company had no other gains or losses |       |                |                 | 
| other than the net loss from operations  |       |                |                 | 
| disclosed in this statement.             |       |                |                 | 
| All income and expenditure relates to    |       |                |                 | 
| continuing activities.                   |       |                |                 | 
|                                          |       |                |                 | 
+------------------------------------------+-------+----------------+-----------------+ 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CHANGES IN EQUITY 
FOR THE YEAR ENDED 31 MARCH 2009 
 
 
+--------------------------------+-------+---------------+---------------+---------------+ 
|                                |       |         Share |       Revenue |        Total  | 
|                                |       |       Capital |      Reserves |               | 
|                                |       |     and Share |               |               | 
|                                |       |       Premium |               |               | 
+--------------------------------+-------+---------------+---------------+---------------+ 
|                                | Notes |           US$ |           US$ |           US$ | 
+--------------------------------+-------+---------------+---------------+---------------+ 
|                                |       |               |               |               | 
+--------------------------------+-------+---------------+---------------+---------------+ 
| Net assets at 1 April 2007     |       |             4 |     (517,518) |     (517,514) | 
+--------------------------------+-------+---------------+---------------+---------------+ 
| Issue of Shares                |    10 |   265,177,652 |             - |   265,177,652 | 
+--------------------------------+-------+---------------+---------------+---------------+ 
| Costs of Share issue           |    10 |   (5,789,235) |             - |   (5,789,235) | 
+--------------------------------+-------+---------------+---------------+---------------+ 
| Repurchase of Shares           |    10 |     (201,637) |             - |     (201,637) | 
+--------------------------------+-------+---------------+---------------+---------------+ 
| Net loss from operations       |       |            -  |   (2,268,361) |   (2,268,361) | 
+--------------------------------+-------+---------------+---------------+---------------+ 
| Net assets at 31 March 2008    |       |   259,186,784 |   (2,785,879) |   256,400,905 | 
+--------------------------------+-------+---------------+---------------+---------------+ 
 
 
+--------------------------------+------+--------------+--------------+---------------+ 
|                                |      |              |              |               | 
+--------------------------------+------+--------------+--------------+---------------+ 
| Net assets at 1 April 2008     |      |  259,186,784 |  (2,785,879) |   256,400,905 | 
+--------------------------------+------+--------------+--------------+---------------+ 
| Repurchase of shares           |   10 |   (427,684)  |            - |     (427,684) | 
+--------------------------------+------+--------------+--------------+---------------+ 
| Net loss from operations       |      |            - | (79,866,918) | (79,866,918)  | 
+--------------------------------+------+--------------+--------------+---------------+ 
| Net assets at 31 March 2009    |      |  258,759,100 | (82,652,797) |   176,106,303 | 
+--------------------------------+------+--------------+--------------+---------------+ 
|                                |      |              |              |               | 
+--------------------------------+------+--------------+--------------+---------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOW STATEMENT 
FOR THE YEAR ENDED 31 MARCH 2009 
 
 
+------------------------------------------+-------+----------------+----------------+ 
|                                          |       |           2009 |           2008 | 
+------------------------------------------+-------+----------------+----------------+ 
|                                          | Notes |            US$ |            US$ | 
+------------------------------------------+-------+----------------+----------------+ 
| Cash flows from operating activities     |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
| Loss for the year                        |       |   (79,866,918) |    (2,268,361) | 
+------------------------------------------+-------+----------------+----------------+ 
| Net interest income from cash and cash   |       |       (48,266) |      (163,995) | 
| equivalents                              |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
| Adjustments for unrealised losses /      |       |     49,285,255 |    (7,023,559) | 
| (gains) on investments                   |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
| (Decrease) / increase in trade and other |       |    (1,613,979) |        856,561 | 
| payables                                 |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
| Increase in trade and other receivables  |       |    (8,598,719) |      (128,792) | 
+------------------------------------------+-------+----------------+----------------+ 
| Purchase of investments                  |       |  (102,078,215) |  (336,095,667) | 
+------------------------------------------+-------+----------------+----------------+ 
| Proceeds from sale of investments        |       |   1689,661,042 |    113,871,773 | 
+------------------------------------------+-------+----------------+----------------+ 
| Net cash inflows / (outflows) from       |       |     26,740,200 |  (230,952,040) | 
| operating activities                     |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
|                                          |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
| Cash flows from financing activities     |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
| Repayment of loan                        |       |              - |      (450,244) | 
+------------------------------------------+-------+----------------+----------------+ 
| Issue of shares                          |       |              - |    265,177,652 | 
+------------------------------------------+-------+----------------+----------------+ 
| Costs relating to issue of shares        |       |              - |    (5,789,235) | 
+------------------------------------------+-------+----------------+----------------+ 
| Net interest income from cash and cash   |       |         48,266 |        163,995 | 
| equivalents                              |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
| Repurchase of shares                     |       |      (427,684) |      (201,637) | 
+------------------------------------------+-------+----------------+----------------+ 
| Net cash (outflows) / inflows from       |       |      (379,418) |    258,900,531 | 
| financing activities                     |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
|                                          |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
| Net change in cash and cash equivalents  |       |     26,360,782 |     27,948,491 | 
| for the year                             |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
| Cash and cash equivalents at beginning   |       |     27,948,491 |              - | 
| of the year                              |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
| Cash and cash equivalents at end of the  |       |     54,309,273 |     27,948,491 | 
| year                                     |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
|                                          |       |                |                | 
+------------------------------------------+-------+----------------+----------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 MARCH 2009 
 
 
1.General information 
Bramdean Alternatives Limited (the "Company") was incorporated with limited 
liability in Guernsey on 5 January 2007. The Company's U.S. Dollar and Sterling 
Shares were listed on the London Stock Exchange on 9 July 2007 whereupon the 
Company became a closed-ended investment company, domiciled in Guernsey. 
 
 
2. Significant accounting policies 
The financial statements were approved by the Board of Directors on 8 July 2009. 
The following accounting policies have been applied consistently in dealing with 
items which are considered material in relation to the Company's 
financial statements. 
 
 
a) Basis of accounting 
The financial statements are prepared in accordance with International Financial 
Reporting Standards ("IFRS") issued by the International Accounting Standards 
Board ("IASB"), and interpretations issued by the International Financial 
Reporting Interpretations Committee ("IFRIC"). 
 
 
The preparation of financial statements in conformity with IFRS requires 
management to make judgements, estimates and assumptions that effect the 
application of policies and the reported amounts of assets, liabilities, income 
and expenditure. Actual results may differ from these estimates. The particular 
accounting policies adopted in the presentation of the financial statements are 
set out below. These policies have been consistently applied. 
 
 
The following standards and amendments to existing standards, that are relevant 
to the Company's operations have been published and are mandatory for accounting 
periods beginning on 1 January 2009 or later periods and have not been early 
adopted: 
- IAS 1 (Revised) 'Presentation of Financial Statements' (effective from 1 
January 2009); 
- IAS 1 (Amendment) 'Presentation of Financial Statements' (effective from 1 
January 2009); 
- IFRS 8, 'Operating segments' (effective from 1 January 2009); 
- IAS 32 (Amendment), 'Financial Instruments: Presentation' (effective from 1 
January 2009); and 
- IAS 39 (Amendment), 'Financial Instruments: Recognition and Measurement' 
(effective from 1 January 2009). 
 
 
The Company will apply the standards and amendments from 1 January 2009, 
however, their adoption is not expected to have a significant impact on the 
financial statements. 
 
 
The following standards, amendments and interpretations are mandatory for 
accounting periods beginning on or after 1 January 2008, or later periods, but 
are not relevant to the Company's operations: 
- IFRIC 11, IFRS 2 - 'Group and treasury share transactions'; 
- IFRIC 12, 'Service concession arrangements'; 
- IFRIC 14, IAS 19 - 'The limit on a defined benefit asset, minimum funding 
requirements and their interaction'; 
- IFRS 1 (Amendment), 'First time adoption of IFRS' and IAS 27, 'Consolidated 
and separate financial statements' (effective from 1 January 2009); 
- IFRS 2 (Amendment), 'Share-based payment' (effective from 1 January 2009); 
- IFRS 3 (Revised), 'Business combinations' (effective from 1 January 2009); 
- IAS 23 (Amendment), 'Borrowing costs' (effective from 1 January 2009); 
- IAS 27 (Revised), 'Consolidated and separate financial statements' (effective 
from 1 July 2009); 
- IFRIC 13, 'Customer loyalty programmes' (effective from 1 July 2008); 
- IFRIC 15, 'Agreements for construction of real estates' (effective from 1 
January 2009); and 
- IFRIC 16, 'Hedges of a net investment in a foreign operation' (effective from 
1 October 2008). 
 
 
b) Financial instruments 
i) Classification 
A financial asset or financial liability at fair value through profit or loss is 
a financial asset or liability that is classified as held-for-trading 
or designated at fair value through profit or loss on inception. 
Forward contracts in a receivable position (positive fair value) are reported 
as financial assets at fair value through profit or loss. Forward contracts in a 
payable position (negative fair value) are reported as financial liabilities at 
fair value through profit or loss. 
 
 
Financial assets that are not at fair value through profit or loss 
include certain balances due from brokers and accounts receivable. Financial 
liabilities that are not at fair value through profit or loss include certain 
balances due to brokers and accounts payable. 
 
 
ii) Recognition 
The Company recognises financial assets and financial liabilities on the date it 
becomes party to the contractual provisions of the investment. Purchases and 
sales of financial assets and financial liabilities are recognised using trade 
date accounting. From trade date, any gains and losses arising from changes in 
fair value of the financial assets or financial liabilities are recorded in 
the Income Statement. 
 
 
iii) Forward currency contracts 
The Company enters into forward currency contracts as a way of managing foreign 
exchange risk for specific share classes. Gains and losses from these contracts 
are allocated solely to the corresponding share classes. Forward foreign 
currency exchange contracts are marked to market at the applicable translation 
rates and any resulting unrealised gains or losses are recorded in the Income 
Statement within net changes in fair value of financial assets at fair value 
through profit or loss. The Company records realised investment gains or losses 
upon settlement of the forward currency contracts. 
 
 
Forward currency contracts are offset and the amount reported in the Balance 
Sheet when there is a legally enforceable right to offset the recognised amounts 
and there is intention to settle on a net basis, or realise the asset and sell 
the liability simultaneously. Forward currency contracts result in credit 
exposure to the counterparty. The fair value of forward currency contracts is 
based on the price at which a new forward currency contract of the same notional 
value, currency and maturity could be effected at the close of business 
as provided from a third party pricing source or dealer. 
 
 
iv) Fair value measurement principles 
Financial assets and liabilities are initially recorded at their transaction 
price and then measured at fair value subsequent to initial recognition. Gains 
and losses arising from changes in the fair value of the 'financial assets or 
financial liabilities at fair value through profit or loss' category are 
presented in the Income Statement for the period in which they arise. 
 
 
Financial assets classified as receivables are carried at cost less impairment 
losses, if any. Financial liabilities, other than those at fair value through 
profit or loss, are measured at amortised cost using the effective interest rate 
method. 
 
 
v) Investees 
The Company's investments in investees are subject to the terms and conditions 
of the respective investee's offering documentation. The investments in the 
investees are valued based on the reported Net Asset Value ("NAV") of such 
shares as determined by the administrator or general partner of the investee and 
as adjusted by the Investment Manager so as to ensure that investments held at 
fair value through profit or loss are carried at fair value. The reported NAV is 
net of applicable fees and expenses of the investees and the underlying 
investments held by each investee are accounted for, as defined in the 
respective investee's offering documentation. While the underlying fund managers 
may utilise various model-based approaches to value their investment portfolios, 
on which the Company's valuations are based, no such models are used directly in 
the preparation of fair values of the investments. The NAV of investees reported 
by the administrators may subsequently be adjusted when such results are subject 
to audit and the audit adjustments may be material to the Company. 
 
 
vi) Cash and cash equivalents 
Cash and cash equivalents consist principally of cash on hand, demand deposits 
and short-term, highly liquid investments with maturities of three months or 
less. Cash and cash equivalents are valued at amortised cost, which approximates 
fair value. 
 
 
c) Interest income dividend/distribution income 
Interest income on cash and cash equivalents are accrued using the effective 
interest method. Dividend income and income from investees is recognised when 
the right to receive payment is established. 
 
 
d) Realised and unrealised gains and losses 
Realised gains and losses arising on the disposal of investments are calculated 
by reference to the proceeds received on disposal and the average cost 
attributable to those investments, and are recognised in the Income Statement. 
Unrealised gains and losses on investments held at fair value through profit or 
loss are also recognised in the Income Statement. 
 
 
e) Foreign currency 
i) Functional and presentation currency 
The Company aims to make investments primarily denominated in U.S. Dollars and 
to make returns to investors in U.S. Dollars. The Board of Directors considers 
U.S. Dollars as the currency that most faithfully represents the economic 
effects of the underlying transactions, events and conditions. The financial 
statements are presented in U.S. Dollars, which is the Company's functional and 
presentation currency. 
 
 
 
 
ii) Transactions and balances 
Foreign currency transactions are translated into the functional 
and presentation currency using the exchange rates prevailing at the dates of 
the transactions. Foreign exchange gains and losses resulting from the 
settlement of such transactions and from the translation at year-end exchange 
rates of monetary assets and liabilities denominated in foreign currencies other 
than U.S. Dollars are recognised in the Income Statement. 
 
 
Translation differences on non-monetary financial assets and liabilities such as 
investments at fair value through profit or loss are recognised in the Income 
Statement within the fair value net gain or loss. 
 
 
f) Expenses 
All expenses are recognised in the Income Statement on an accruals basis. 
 
 
g) Share issue expenses 
The expenses which are directly incurred only on the issue of Shares are written 
off against the share premium account. 
 
 
h) Cash flow statement 
For the purpose of the Cash Flow Statement, the Company considers balances due 
to and from banks as cash and cash equivalents. 
 
 
3. Taxation 
The Company is domiciled in Guernsey. The Company is exempt from paying income 
tax in Guernsey. The Company is registered for taxation purposes in Guernsey 
where it pays an annual exempt status fee which is currently GBP600 under The 
Income Tax (Exempt Bodies) (Guernsey) Ordinances 1989. 
 
 
4. Financial assets at fair value through profit or loss 
+----------------------------------------------+---------------+------------------+ 
|                                              |          2009 |             2008 | 
+----------------------------------------------+---------------+------------------+ 
|                                              |           US$ |              US$ | 
+----------------------------------------------+---------------+------------------+ 
| Designated at fair value through profit or   |               |                  | 
| loss at inception:                           |               |                  | 
+----------------------------------------------+---------------+------------------+ 
| Cost at beginning of the year                |   222,889,855 |  435,570         | 
+----------------------------------------------+---------------+------------------+ 
| Additions                                    |   102,078,215 | 337,295,667      | 
+----------------------------------------------+---------------+------------------+ 
| Disposals                                    | (165,270,808) | (111,917,150)    | 
+----------------------------------------------+---------------+------------------+ 
| Realised losses on investments               |   (4,390,234) | (2,924,232)      | 
+----------------------------------------------+---------------+------------------+ 
| Cost at end of the year                      |   155,307,028 | 222,889,855      | 
+----------------------------------------------+---------------+------------------+ 
| Unrealised (losses) / gains on investments   |  (42,697,266) | 6,587,989        | 
+----------------------------------------------+---------------+------------------+ 
| Market value at end of the year              |   112,609,762 |      229,477,844 | 
+----------------------------------------------+---------------+------------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5. Net changes in fair value of financial assets / liabilities at fair value 
through profit or loss 
The net realised and unrealised investment gain or loss from trading in 
financial assets and financial liabilities shown in the Income Statement for the 
year ended 31 March 2009 is analysed as follows: 
 
 
+----------------------------------------+-----------------+-------------------+ 
|                                        |            2009 |              2008 | 
+----------------------------------------+-----------------+-------------------+ 
|                                        |             US$ |               US$ | 
+----------------------------------------+-----------------+-------------------+ 
| Movement in unrealised (losses) /      | (49,285,255)    | 7,023,559         | 
| gains on investments                   |                 |                   | 
+----------------------------------------+-----------------+-------------------+ 
| Realised losses on investments         | (6,327,893)     | (2,924,232)       | 
+----------------------------------------+-----------------+-------------------+ 
|                                        | (55,613,148)    | 4,099,327         | 
+----------------------------------------+-----------------+-------------------+ 
 
 
6. Trade and other receivables 
+----------------------------------------+-----------------+-------------------+ 
|                                        |            2009 |              2008 | 
+----------------------------------------+-----------------+-------------------+ 
|                                        |             US$ |               US$ | 
+----------------------------------------+-----------------+-------------------+ 
| Prepayments                            |          95,057 |           110,782 | 
+----------------------------------------+-----------------+-------------------+ 
| Accrued interest                       |           6,654 |            18,014 | 
+----------------------------------------+-----------------+-------------------+ 
| Due from brokers                       |       9,595,413 |           969,609 | 
+----------------------------------------+-----------------+-------------------+ 
|                                        |       9,697,124 |         1,098,405 | 
+----------------------------------------+-----------------+-------------------+ 
 
 
7. Trade and other payables 
 
 
+----------------------------------------+----+--+------------------+------------------+ 
|                                                |             2009 |             2008 | 
+------------------------------------------------+------------------+------------------+ 
|                                                |              US$ |              US$ | 
+------------------------------------------------+------------------+------------------+ 
| Management fees                                |          227,354 |          320,902 | 
+------------------------------------------------+------------------+------------------+ 
| Administration fees                            |            7,579 |           10,698 | 
+------------------------------------------------+------------------+------------------+ 
| Custody fees                                   |            6,447 |           10,209 | 
+------------------------------------------------+------------------+------------------+ 
| Unrealised loss on forward foreign exchange    |                - |           68,121 | 
| contracts                                      |                  |                  | 
+------------------------------------------------+------------------+------------------+ 
| Capital calls payable                          |                - |        1,200,000 | 
+------------------------------------------------+------------------+------------------+ 
| Sundry expenses                                |          268,476 |          513,905 | 
+------------------------------------------------+------------------+------------------+ 
|                                                |          509,856 |        2,123,835 | 
+------------------------------------------------+------------------+------------------+ 
| At 31 March 2009, the Company had no commitments to forward       | 
| foreign exchange contracts outstanding.                           | 
+-------------------------------------------------------------------+ 
|                                        |  2009 |             2008 | 
+----------------------------------------+-------+------------------+ 
|                                        |   US$ |              US$ | 
+----------------------------------------+-------+------------------+ 
| Sold (U.S. Dollars)                    |     - |      150,200,000 | 
+----------------------------------------+-------+------------------+ 
| Bought (Sterling)                      |     - |    (150,131,879) | 
+----------------------------------------+-------+------------------+ 
|                                        |     - |           68,121 | 
+----------------------------------------+----+--+------------------+------------------+ 
 
 
 
 
8. Significant agreements and related parties 
Investment management 
The Company has appointed Bramdean Asset Management LLP as its Investment 
Manager. The Investment Manager is paid by the Company a monthly fee equal to 
one-twelfth of 1.5% of the Net Asset Value ("NAV") of the Company (before 
deduction of any performance fee). The fee is calculated and accrued as at the 
last business day of each month and is paid monthly in arrears. 
 
 
Total fees payable to the Investment Manager for the year ended 31 March 2009 
amounted to US$3,373,765 (year ended 31 March 2008 - US$2,829,902) of which 
US$227,354 was outstanding at 31 March 2009 (31 March 2008 - US$320,902). 
 
 
In addition, the Investment Manager is entitled to a performance fee of 10% with 
respect to each class of Shares based on the total increase in the NAV of the 
relevant class at the end of each performance year (ending 31 March each year). 
For a performance fee to be paid, the Investment Manager must achieve returns 
in excess of 8% (subject to a high watermark). No performance fee has been 
earned in the year ended 31 March 2009 (31 March 2008 - nil). 
 
 
Administration 
The Administrator is paid by the Company a fee of not greater than 0.06% per 
annum of the NAV of the Company, subject to a minimum annual fee of GBP50,000. 
 
 
Total fees payable to the Administrator for the year ended 31 March 2009 
amounted to US$112,468 (31 March 2008 - US$94,559) of which US$7,579 was 
outstanding at 31 March 2009 (31 March 2008 - US$10,698). 
 
 
Custody 
The Custodian is paid by the Company a fee not greater than 0.06% per annum of 
the NAV of the Company, subject to a minimum annual fee of GBP10,000. 
 
 
Total fees payable to the Custodian for the year ended 31 March 2009 amounted to 
US$103,852 (31 March 2008 - US$90,656) of which US$6,447 was outstanding at 31 
March 2009 (31 March 2008 - US$10,209). 
 
 
Transactions with Directors 
The Chairman of the previous Board received an annual fee of GBP75,000, the 
remaining four Directors each received an annual fee of GBP27,000, with the 
Chairman of the Audit Committee receiving an additional GBP5,000 per annum. 
Directors' fees were paid quarterly in advance. Total fees payable for the year 
ended 31 March 2009 amounted to US$327,657 (31 March 2008 - US$305,571). No 
fees were outstanding at 31 March 2009 (31 March 2008 - nil). The Chairman of 
the new Board receives an annual fee of GBP22,000, the remaining two Directors 
each receive an annual fee of GBP20,000. 
 
 
9. Financial risk management 
The Company maintains positions in a variety of investees and forward currency 
contracts as determined by its investment management strategy. 
 
 
The Investees' own investing activities expose the Company to various types of 
risks that are associated with the financial instruments and markets in which 
they invest. The significant types of financial risk, to which the Company is 
exposed are market price risk, credit risk and liquidity risk. 
 
 
Asset allocation is determined by the Company's Investment Manager who manages 
the allocation of assets to achieve the investment objectives as detailed in the 
Directors' Report on page 26. Achievement of the investment objectives 
involves taking risks. The Investment Manager exercises judgement based on 
analysis, research and risk management techniques when making investment 
decisions. Divergence from target asset allocations and the composition of the 
Portfolio is monitored by the Board. 
 
 
The significant types of risk that the Company is exposed to are detailed below: 
 
 
a) Capital management policies and procedures 
The Company's capital management objectives are: 
- to ensure the Company's ability to continue as a going concern; and 
- to provide an adequate return to shareholders. 
 
 
The Company seeks to achieve these objectives by adopting the investment 
objectives set out in the full report. 
 
 
b) Market price risk 
The potential for changes in the fair value of the Company's investment 
portfolio is referred to as market price risk. Commonly used categories of 
market price risk include currency risk, interest rate risk and other price 
risk. 
-Currency risk may result from exposure to changes in spot prices, forward 
prices and volatilities of currency exchange rates. 
- Interest rate risk may result from exposures to changes in the level, slope 
and curvature of the various yield curves, the volatility of interest rates, and 
credit spreads. 
- Other price risk is the risk that the value of an instrument will fluctuate as 
a result of changes in market prices other than those arising from currency risk 
or interest rate risk 
 
 
i) Market price risk management 
The Company's unlisted equity securities are susceptible to market price risk 
arising from uncertainties about future values of the investment securities. The 
Investment Manager provides the Company with investment recommendations that are 
consistent with the Company's objectives. 
 
 
The valuation method of these investments is described within the accounting 
policies. The nature of some of the Company's investments, which are unquoted 
investments in private equity funds, means that the investments are valued by 
the Investment Manager on behalf of the Company after due consideration of the 
most recent available information from the underlying investments as adjusted 
where relevant by the Directors. While the underlying fund managers may utilise 
various model-based approaches to value their investment portfolios on which the 
Company's valuations are based, no such models are used directly in the 
preparation of fair values of the investments. 
 
 
Market price risk is the risk that the fair value or future cash flows of a 
financial instrument will fluctuate because of changes in market prices. The 
investments of the Company are subject to normal market fluctuations and the 
risks inherent with investment in financial markets. The maximum risk resulting 
from financial instruments held by the Company is determined by the fair value 
of the financial instruments. The Investment Manager moderates this risk 
through careful selection of investees managed by experienced fund managers, 
which meet the investment objectives outlined in the report; the Company's 
market price risk is managed through diversification of the investment 
portfolio. Through a variety of analytical techniques, the Investment Manager 
monitors, on a daily basis, the Company's overall market positions, as well as 
its exposure to market price risk. 
 
 
By back testing the investment portfolio as it was invested at 31 March 2009 
over the previous 36 months and using appropriate equity market indices as 
proxies for the drawn down private equity commitments, the Investment Manager 
has estimated the volatility and sensitivity of the portfolio. Looking back over 
a 12 month period the portfolio would have had an annualised volatility 
(calculated as the standard deviation of returns) of 6.1%. The sensitivity of 
the portfolio to equity markets (as expressed by the portfolio's beta to 
the MSCI World Index) is circa 0.37. This means that with all other 
variables held constant, the market value of the investment portfolio would move 
by around 37% of any move in global equity markets. Over the three years to 31 
March 2009, the MSCI World Index has moved by an average of 22.4% per annum. If 
this movement were repeated in the next 12 months, the risk modelling would 
indicate a movement of 9.20% in the market value of the investment portfolio, 
which would result in an increase or decrease in the NAV of the Company 
of approximately US$16 million (2008 - US$11 million). 
 
 
ii) Currency risk 
The Company has assets and liabilities denominated in currencies other than U.S. 
Dollars, its functional currency. The Company is therefore exposed to currency 
risk, as the value of the assets and liabilities denominated in other currencies 
fluctuates due to changes in exchange rates. The Company may from time to 
time engage in currency hedging in an attempt to reduce the impact on the 
Sterling Shares of currency fluctuations. The U.S. Dollar exposure of the 
Sterling Shares is managed through the use of forward foreign exchange contracts 
although there can be no guarantee that the management of currency risk and 
exposure will be successful. As a result, the Net Asset Values of the 
different classes of Share may differ over time as the differing gains 
and losses realised on the hedging contracts are applied to the relevant class 
of Share. During the six months up to 31 March 2009, the value of Sterling 
decreased by 20.33% (2008 - 2.64%) against the U.S. Dollar. At 31 March 2009, a 
similar movement in the value of Sterling against the U.S. Dollar would, with 
all other variables held constant, increase or decrease the NAV of the Company 
by approximately US$663,000 (2008 - US$1.7 million). 
 
 
Due to the volatile movement between the U.S. Dollar, Sterling and the Euro, the 
Company discontinued hedging its U.S. Dollar, Sterling and Euro exposure to both 
Share classes to eliminate the cash flow volatility caused by hedging 
currencies. 
 
 
During the six months up to 31 March 2009, the value of the Euro decreased by 
7.60% (2008 - 9.67% increase) against the U.S. Dollar. At 31 March 2009, a 
similar movement in the value of the Euro against the U.S. Dollar would, with 
all other variables held constant, increase or decrease the NAV of the Company 
by approximately US$1.1 million (2008 - US$1.8 million). 
 
 
 
 
The table below summarises the Company's exposure to currency risks at the year 
end: 
 
 
+---------------------------------------+-------------+------------+------------+-------------+ 
| Assets                                |         US$ |        GBP |        EUR |       Total | 
+---------------------------------------+-------------+------------+------------+-------------+ 
| Financial assets at fair value        |  95,325,615 |  3,423,451 | 13,860,696 | 112,609,762 | 
| through profit or loss                |             |            |            |             | 
+---------------------------------------+-------------+------------+------------+-------------+ 
| Cash and fixed deposits               |  54,297,797 |     11,453 |         23 |  54,309,273 | 
+---------------------------------------+-------------+------------+------------+-------------+ 
| Other assets and liabilities          |   9,360,687 |  (173,419) |          - |   9,187,268 | 
+---------------------------------------+-------------+------------+------------+-------------+ 
| Total at 31 March 2009                | 158,984,099 |  3,261,485 | 13,860,719 | 176,106,303 | 
+---------------------------------------+-------------+------------+------------+-------------+ 
|                                       |             |            |            |             | 
+---------------------------------------+-------------+------------+------------+-------------+ 
| Assets                                |             |            |            |             | 
+---------------------------------------+-------------+------------+------------+-------------+ 
| Financial assets at fair value        | 206,130,733 |  4,372,646 | 18,974,465 | 229,477,844 | 
| through profit or loss                |             |            |            |             | 
+---------------------------------------+-------------+------------+------------+-------------+ 
| Cash and fixed deposits               |  15,326,335 | 12,622,554 |      (398) |  27,948,491 | 
+---------------------------------------+-------------+------------+------------+-------------+ 
| Other assets and liabilities          |   (963,321) |   (62,109) |          - | (1,025,430) | 
+---------------------------------------+-------------+------------+------------+-------------+ 
| Total at 31 March 2008                | 220,493,747 | 16,933,091 | 18,974,067 | 256,400,905 | 
+---------------------------------------+-------------+------------+------------+-------------+ 
 
 
iii) Interest rate risk 
The Company is exposed to interest rate risk. The Company invests primarily in 
private equity and hedge funds that are non interest bearing investments, 
primarily subject to market price risk. Investees may invest in fixed income 
securities and interest rate swap contracts. Interest receivable on bank 
deposits or payable on loan positions will be affected by fluctuations in 
interest rates. Changes to prevailing interest rates or changes in expectations 
of future rates may result in an increase or decrease in the value of the 
securities held. In general, if interest rates rise, the value of fixed 
income securities will decline. A decline in interest rates will, in general, 
have the opposite effect. 
 
 
Although the majority of the Company's financial assets and liabilities are non 
interest bearing, cash and cash equivalents represent 31% of the Company's NAV. 
As a result, the Company is subject to significant risk due to fluctuations in 
the prevailing levels of market interest rates. Any excess cash and cash 
equivalents are invested at short-term market interest rates. As at 31 March 
2009, the Company's interest bearing assets and liabilities, all of which 
receive or pay interest at a variable rate, were as follows: 
 
 
 
 
Based on the cash and cash equivalents held at 31 March 2009, a movement of 1% 
in market interest rates would impact the Company's annual income by 
approximately US$540,000 per annum (2008 - US$280,000 per annum). 
 
 
iv) Other price risk 
Other price risk is the risk that the value of the investees' 
financial investments will fluctuate as a result of changes in market 
prices, other than those arising from currency risk or interest rate risk 
whether caused by factors specific to an individual investment, its issuer 
or any factor affecting financial investments traded in the market. 
 
 
As the Company's investments are carried at fair value with fair value changes 
recognised in the Income Statement, all changes in market conditions will 
directly affect the overall NAV. 
 
 
The investments are valued based on the latest available unaudited price of such 
shares or interests as determined by the administrator or general partner of the 
investees. Furthermore, valuations received from the administrator or general 
partner of the investees may be estimates and such values can generally be used 
to calculate the NAV of the Company. Such estimates provided by the 
administrators or general partner of the investees may be subject to 
subsequent revisions which may not be restated for the purpose of the Company's 
final month-end NAV. 
 
 
Currency, interest rate and other price risk are managed by the Company's 
Investment Manager as part of the integrated market price risk management 
processes. 
 
 
c) Credit risk 
The Company takes on exposure to credit risk, which is the risk that a 
counterparty will be unable to pay amounts in full when due. The Investment 
Manager has adopted procedures to reduce credit risk related to the Company's 
dealings with counterparties. Before transacting with any counterparty, the 
Investment Manager or its affiliates evaluate both creditworthiness and 
reputation by conducting a credit analysis of the party, its business and its 
reputation. The credit risk of approved counterparties is then monitored on an 
ongoing basis, including periodic reviews of financial statements and interim 
financial reports as needed. Impairment provisions are provided for losses, if 
any, that have been incurred by the balance sheet date. 
 
 
At 31 March 2009 and 2008, the following financial assets were exposed to 
counterparty credit risk: investments, cash and cash equivalents, due from 
brokers and other receivables. The carrying amounts of financial assets best 
represent the maximum credit risk exposure at the year end date. There were no 
significant concentrations of credit risk at 31 March 2009 or 31 March 2008. 
 
 
The Company enters into foreign currency contracts with counterparties whose 
credit ratings are all investment graded. Ratings for securities, as rated 
primarily by Moody's, that subject the Company to credit risk at 31 March 2009 
and 31 March 2009 are noted below: 
 
 
+--------------------------------------------+--------+--------+--------+--------+ 
| Credit ratings for short-term notes        |      2009       |      2008       | 
+--------------------------------------------+-----------------+-----------------+ 
|                                            | Rating |   % of | Rating |   % of | 
|                                            |        |    NAV |        |    NAV | 
+--------------------------------------------+--------+--------+--------+--------+ 
|              BNP Paribas Group             |    Aa1 |  10.72 |    Aa1 |   5.65 | 
+--------------------------------------------+--------+--------+--------+--------+ 
|              Deutsche Bank                 |    Aa1 |   3.41 |      - |      - | 
+--------------------------------------------+--------+--------+--------+--------+ 
|              Bank of Scotland              |     A1 |   2.84 |    Aa3 |   4.00 | 
+--------------------------------------------+--------+--------+--------+--------+ 
|              Royal Bank of Canada          |    Aaa |   3.98 |    Aaa |   0.75 | 
+--------------------------------------------+--------+--------+--------+--------+ 
|              Royal Bank of Scotland        |     A1 |   9.30 |      - |      - | 
|              International                 |        |        |        |        | 
+--------------------------------------------+--------+--------+--------+--------+ 
 
 
 
 
d) Liquidity risk 
The Company's financial instruments include investments in unlisted securities, 
which are not traded in an organised public market and may generally be 
illiquid. This illiquidity is considered as part of the investment valuations, 
however as a result, should the Company be required to dispose of such 
investments in a short time-frame, an action that is not consistent with the 
Company's investment objective, the Company may have difficulty liquidating 
quickly its investments in these instruments at an amount close to fair value in 
order to respond to its liquidity requirements or to specific events. 
 
 
The Company's outstanding commitments are detailed in Note 11. When an 
over-commitment approach is followed, the aggregate amount of capital committed 
by the Company to investments at any given time may exceed the aggregate amount 
of cash that the Company has available for immediate investment, so there is a 
risk that the Company might not be able to meet capital calls when they fall 
due. To manage this risk, the Company holds an appropriate amount of its assets 
in cash and cash equivalents together with a selection of readily realisable 
investments. 
 
 
In planning the Company's commitments, the Investment Manager takes into account 
expected cash flows to and from the portfolio of fund interests and, from time 
to time, may use borrowings to meet draw downs; these expected cash flows are 
monitored against actual draw downs and distributions on a monthly basis to 
assess the level of additional commitments that can be made and how much cash 
needs to be kept on hand. The Directors have resolved that the Company may 
borrow up to 25% of its NAV for short-term or long-term purposes. As at 31 March 
2009, the Company does 
not have a loan facility in place. 
 
 
The table below sets forth the liquidity risk of the Company as at 31 March 2009 
and 31 March 2008. All liabilities represent amounts falling due within twelve 
months. Amounts due within twelve months equal their carrying balances. 
+------------------------------------+-----------------------+----------------+ 
|                                    |   Less than one year  |  Less than one | 
|                                    |                  2009 |           year | 
|                                    |                   US$ |          2008  | 
|                                    |                       |            US$ | 
+------------------------------------+-----------------------+----------------+ 
| Financial Liabilities              |                       |                | 
+------------------------------------+-----------------------+----------------+ 
| Trade and other payables           |               509,856 |      2,123,835 | 
+------------------------------------+-----------------------+----------------+ 
|                                    |                       |                | 
+------------------------------------+-----------------------+----------------+ 
 
 
Based on communications with General Partners and the Investment Manager's best 
estimates, the outstanding commitments are expected to be drawn down with the 
following maturity profile: 
 
 
+------------------------------------+-----------------------+----------------+ 
|                                    |              2009 US$ |       2008 US$ | 
+------------------------------------+-----------------------+----------------+ 
| Maturity                           |                       |                | 
+------------------------------------+-----------------------+----------------+ 
| Less than 3 months                 |            13 million |     10 million | 
+------------------------------------+-----------------------+----------------+ 
| 3 - 6 months                       |            13 million |     11 million | 
+------------------------------------+-----------------------+----------------+ 
| 6 - 12 months                      |            24 million |     25 million | 
+------------------------------------+-----------------------+----------------+ 
| 1 - 2 years                        |            41 million |     50 million | 
+------------------------------------+-----------------------+----------------+ 
| Greater than 2 years               |            42 million |     64 million | 
+------------------------------------+-----------------------+----------------+ 
|                                    |           133 million |    160 million | 
+------------------------------------+-----------------------+----------------+ 
 
 
 
 
10.  Share capital and share premium 
+------------------------------------------------+-------------+--------------+ 
|                                                |        2009 |         2008 | 
+------------------------------------------------+-------------+--------------+ 
|                                                |         US$ |          US$ | 
+------------------------------------------------+-------------+--------------+ 
| Share capital                                  |             |              | 
+------------------------------------------------+-------------+--------------+ 
| Management shares                              |             |              | 
+------------------------------------------------+-------------+--------------+ 
| Authorised: 10,000 shares of GBP1.00 each      |             |              | 
+------------------------------------------------+-------------+--------------+ 
| 2 Management Shares of GBP1.00 each            |           4 |            4 | 
+------------------------------------------------+-------------+--------------+ 
|                                                |           4 |            4 | 
+------------------------------------------------+-------------+--------------+ 
|                                                |             |              | 
+------------------------------------------------+-------------+--------------+ 
| Share premium issued and fully paid            |             |              | 
+------------------------------------------------+-------------+--------------+ 
| 92,142,177 / 130,142,311 Sterling Shares of no | 184,415,481 |  257,440,749 | 
| par value                                      |             |              | 
+------------------------------------------------+-------------+--------------+ 
| 76,116,060 / 1,785,000 U.S. Dollar Shares of   | 74,343,615  |    1,746,031 | 
| no par value                                   |             |              | 
+------------------------------------------------+-------------+--------------+ 
|                                                | 258,759,096 |  259,186,780 | 
+------------------------------------------------+-------------+--------------+ 
 
 
+------------------------------------------------+--------------+--------------+ 
| Ordinary shares                                |              |              | 
+------------------------------------------------+--------------+--------------+ 
| Authorised: unlimited number of shares of no   |              |              | 
| par value                                      |              |              | 
+------------------------------------------------+--------------+--------------+ 
|                                                |              |              | 
+------------------------------------------------+--------------+--------------+ 
| Issued and fully paid                          |              |              | 
+------------------------------------------------+--------------+--------------+ 
| Balance as at 1 April 2008                     | 259,186,780  |            - | 
+------------------------------------------------+--------------+--------------+ 
| Sterling Shares of no par value                |            - |  263,392,652 | 
+------------------------------------------------+--------------+--------------+ 
| U.S. Dollar Shares of no par value             |            - |    1,785,000 | 
+------------------------------------------------+--------------+--------------+ 
| Costs of Share issue                           |            - |  (5,789,235) | 
+------------------------------------------------+--------------+--------------+ 
| 260,000 / 125,000 Sterling Shares repurchased  |    (427,684) |    (201,637) | 
+------------------------------------------------+--------------+--------------+ 
| Balance as at 31 March 2009                    | 258,759,096  |  259,186,780 | 
+------------------------------------------------+--------------+--------------+ 
 
 
 
 
On 28 May 2008, certain holders of Shares in the Company owning Sterling Shares 
elected to switch into U.S. Dollar Shares on the basis of the NAV of the 
Company's Shares as at 30 April 2008. As a result of the switch, 32,055,469 
Sterling Shares were converted into 64,203,142 U.S. Dollar Shares. 
 
 
On 25 November 2008, on the basis of the NAV of the Company's Shares as at 31 
October 2008, 5,671,846 Sterling Shares were converted into 10,332,275 U.S. 
Dollar Shares and 204,357 U.S. Dollar Shares were converted into 112,181 
Sterling Shares. 
 
 
During the year, the Company repurchased 260,000 of its Sterling Shares for 
US$427,684. 
 
 
The authorised share capital of the Company on incorporation was GBP10,000 
divided into 10,000 shares of GBP1.00 each. On 31 May 2007, a special resolution 
was passed by the Company to increase the share capital to an unlimited number 
of participating shares of no par value ("Shares"), which, upon issue, the 
Directors were able to designate as Sterling Shares, U.S. Dollar Shares or 
otherwise as determined by the Directors at the time of issue, and 
10,000 Management Shares of GBP1.00 each. 
 
 
The Shares were issued on 4 July 2007 as a result of the Company announcing the 
placing and offer for subscription of its Shares on 6 June 2007. 
The rights attaching to the Shares are as follows: 
a) On 30 April and 31 October of each year a shareholder may elect to convert 
some or all of their Shares of one currency class into Shares of another 
currency class. 
b) Subject to any restrictions set out in the Company's Articles of Association, 
each U.S. Dollar Share carries one vote per share and each Sterling Share 
carries 2.0194 votes per share at a general meeting. 
c) The capital and assets of the Company shall on a winding-up be divided 
(following payment to the holders of Management Shares of sums up to the nominal 
value paid up thereon) amongst the holders of Shares on the basis of the capital 
and assets attributable to the respective classes of Shares at the date of 
winding-up and amongst the holders of Shares of a particular class pro rata 
according to their holdings of Shares in that class. 
 
 
11.Commitments 
The table below summarises commitments to the underlying investments of the 
Company. 
 
 
+---------------------------------+--------------+--------------+--------------+--------------+ 
|                                 |              |        Total |              |  Outstanding | 
|                                 |              |  Commitments |              |  Commitments | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
|                                 |     Currency |          US$ |     Currency |          US$ | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| AIG Brazil Special Situations   |              |   10,000,000 |              |    7,854,864 | 
| II L.P.                         |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Coller International Partners V |              |   15,000,000 |              |    8,716,816 | 
| L.P.                            |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| DFJ Athena L.P.                 |              |   10,000,000 |              |    5,875,000 | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Goldman Sachs Capital Partners  |              |   15,000,000 |              |    8,811,694 | 
| VI L.P.                         |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Greenpark International         |  EUR14,600,000 |   19,384,476 |   EUR4,153,909 |    5,515,161 | 
| Investors III L.P.              |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| HIG Bayside Debt & LBO Fund II  |              |   15,000,000 |              |   12,725,000 | 
| L.P.                            |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| LimeTree Emerging               |              |    5,000,000 |              |    4,667,811 | 
| Beachfront Land Investment Fund |              |              |              |              | 
| II L.P.                         |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| MatlinPatterson Global          |              |   10,000,000 |              |    4,588,946 | 
| Opportunities Partners III L.P. |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Oaktree OCM Opportunities Fund  |              |   15,000,000 |              |    4,500,000 | 
| VIIb L.P.                       |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Pine Brook Capital Partners     |              |   10,000,000 |              |    7,719,032 | 
| L.P.                            |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Resonant Music I L.P.           |              |    5,453,000 |              |    3,592,614 | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Rho Ventures VI L.P.            |              |   10,000,000 |              |    8,600,000 | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Silver Lake Partners II L.P.    |              |   15,000,000 |              |   11,877,475 | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| SVG Strategic Recovery Fund II  | GBP7,500,000 |   10,750,068 | GBP2,618,906 |    3,753,789 | 
| L.P.                            |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Tenaya Capital V L.P.*          |              |   12,500,000 |              |    9,274,956 | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Terra Firma Capital Partners    |  EUR15,000,000 |   19,915,558 |   EUR6,860,226 |    9,108,349 | 
| III L.P.                        |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Thoma Bravo Fund IX L.P.        |              |   10,000,000 |              |    8,450,000 | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| Thomas H. Lee Parallel Fund VI  |              |   15,000,000 |              |    7,158,227 | 
| L.P.                            |              |              |              |              | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
| At 31 March 2009                |              |  223,003,102 |              |  132,789,734 | 
+---------------------------------+--------------+--------------+--------------+--------------+ 
*Formerly Lehman Brothers Venture Partners V L.P. 
 
 
12. Net Asset Value ("NAV") 
The NAV of each Sterling Share is determined by dividing the net assets of the 
Company attributable to the Sterling Shares of GBP83,020,376 (US$118,993,105) by 
92,142,177 (2008 - GBP128,126,987 (US$254,654,739) by 130,017,311), being the 
number of Sterling Shares in issue at the year end. 
 
 
The NAV of each U.S. Dollar Share is determined by dividing the net assets of 
the Company attributable to the U.S. Dollar Shares of $57,113,198 by 76,116,060 
(2008 - US$1,746,162 by 1,785,000), being the number of U.S. Dollar Shares in 
issue at the year end. 
 
 
13. Controlling party 
In the opinion of the Directors on the basis of shareholdings advised to them, 
the Company has no immediate or ultimate controlling party. 
14. Revenue reserves 
 
 
+-------------------------------------------+-----------------+----------------+ 
|                                           |            2009 |           2008 | 
|                                           |             US$ |            US$ | 
+-------------------------------------------+-----------------+----------------+ 
| Opening revenue reserves                  |     (2,785,879) |      (517,518) | 
+-------------------------------------------+-----------------+----------------+ 
| Change in net assets from operations      |    (79,866,918) |    (2,268,361) | 
+-------------------------------------------+-----------------+----------------+ 
| Closing revenue reserves                  |    (82,652,797) |    (2,785,879) | 
+-------------------------------------------+-----------------+----------------+ 
|                                           |                 |                | 
+-------------------------------------------+-----------------+----------------+ 
| Revenue reserves attributable to          |               - | -              | 
| Management shares                         |                 |                | 
+-------------------------------------------+-----------------+----------------+ 
| Revenue reserves attributable to Sterling |    (65,422,380) |    (2,786,010) | 
| Shares                                    |                 |                | 
+-------------------------------------------+-----------------+----------------+ 
| Revenue reserves attributable to U.S.     |    (17,230,417) |            131 | 
| Dollar shares                             |                 |                | 
+-------------------------------------------+-----------------+----------------+ 
|                                           |    (82,652,797) |    (2,785,879) | 
+-------------------------------------------+-----------------+----------------+ 
 
 
15. Business segments and geographical analysis 
For management purposes the Company has one sole principal activity and that is 
to make investments. The investment objective of the Company is to generate 
long-term capital gains by investing in a diversified portfolio of private 
equity funds, hedge funds and other specialty funds. As this is the primary and 
sole business activity, the results disclosed in the Balance Sheet and Income 
Statement are sufficient to satisfy the primary segmental reporting requirements 
of IAS 14. 
 
 
The geographical allocation of Investments at the year-end was as follows: 
 
 
+-------------------------------------------+------------------+----------------+ 
|                                           |             2009 |           2008 | 
+-------------------------------------------+------------------+----------------+ 
| North America                             |              60% |            31% | 
+-------------------------------------------+------------------+----------------+ 
| Global                                    |              22% |            26% | 
+-------------------------------------------+------------------+----------------+ 
| Europe                                    |              15% |            39% | 
+-------------------------------------------+------------------+----------------+ 
| Asia & Other                              |               3% |             4% | 
+-------------------------------------------+------------------+----------------+ 
 
 
 
 
 
 
16. Event after reporting year - share conversion 
On 22 May 2009, on the basis of the Net Asset Values of the Company's Shares at 
30 April 2009, certain shareholders in the Company owning Sterling Shares 
elected to switch into U.S. Dollar Shares; certain shareholders owning U.S 
Dollar Shares elected to switch to Sterling Shares. As a result of the switch, 
1,429,183 Sterling Shares were converted into 2,461,821 U.S. Dollar Shares and 
4,005 U.S. Dollar Shares were converted into 2,325 Sterling Shares. 
 
 
 
 
[ends] 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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