Alternative Investment Strategies Ltd (AIS) is issuing up to $100m as new redeemable ordinary shares...
Alternative Investment Strategies Ltd (AIS) is issuing up to $100m as new redeemable ordinary shares which will allow investors to cash in every six months at net asset value less 3% to cover sales costs.
AIS, an investment trust which invests in hedge funds, has a track record going back to December 1996 when it was launched with the objective of achieving superior returns with low volatility through investment in a diverse portfolio of hedge funds.
The 'C' share issue aims to double its current asset size. Alan Djanogly, lead manager of the trust, said: "Once the proceeds of the issue have been substantially invested, these 'C' shares will convert into redeemable ordinary shares. This will be done on the basis of the conversion ratio, which will reflect the proportion which the company's net assets attributable to each 'C' share bears to the net assets attributable to each existing ordinary share at the calculation time."
The net proceeds of the issue will be managed as a separate pool until they have been 75% invested in accordance with the company's investment policy, or, if earlier, until 30 November 2001, at which point the 'C' shares will convert into redeemable ordinary shares.
The redeemable ordinary shares will have identical rights to the ordinary shares, with the exception that new shareholders can sell them back to the trust on a semi-annual basis at a redemption price equivalent to 3% discount to the most recent NAV.
Following completion of the issue, Djanogly said the company intends to manage its existing assets and the new assets acquired under the issue, in accordance with its existing investment policy.
The offer for subscription closes down on 18 May and dealings in the 'C' shares are expected to start on 24 May. Firm commitments to subscribe under the placing have been received to the value of £15m.
Minimum investment under the offer for subscription is £1,000. These amounts are expected to be converted into US dollars two days before dealings start and the number of 'C' shares will be determined on that date.
Since its launch in December 1996 to 31 March 2001, the ordinary share NAV of AIS is 70.89%, almost 50% higher than its benchmark, the MSCI World index, which over the same period was 33.87%, according to the group.
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