AI assistant
WAM ALTERNATIVE ASSETS LIMITED — Net Asset Value 2016
Jul 18, 2016
66067_rns_2016-07-18_bf7b437d-bcfc-429c-920e-955479ef77a0.pdf
Net Asset Value
Open in viewerOpens in your device viewer
==> picture [573 x 82] intentionally omitted <==
14 July 2016
Dear Shareholder
Blue Sky Alternatives Access Fund Limited (ASX:BAF) – Net Tangible Assets (‘NTA’) per share increase for June 2016
BAF is pleased to report its NTA for the month ended 30 June 2016, with a pre-tax NTA increase to $1.1216 per share, a gain of 2.2% for the month.
The Alternatives Fund received capital and profit distributions and fee rebates from two investments which successfully exited during June – Blue Sky’s private equity investment in Readify, a leading Australian IT services business which was acquired by Telstra, and the Alice Street Kedron residential development project. These investments delivered realised IRRs to BAF of 34.3% and 36.3% respectively.
In accordance with the Alternatives Fund’s valuation policy, the holding value of certain investments in the portfolio have been subject to an annual independent review by an external valuer.
The net effect of this year end process, together with our monthly valuation protocol, is as follows:
-
Real Assets ~ increased by 0.2% as gains on land and groundwater assets at Gundaline were partly offset by a 0.5% decline in the Blue Sky Water Fund in June;;
-
Private Equity & Venture Capital ~ increased by 3.4% following gains on the carrying value of the Alternatives Fund’s investments in Readify, Wild Breads, Foundation Early Learning and Origo Education;;
-
Private Real Estate ~ increased by 2.7% in June as the advancement of a number of student accommodation and residential development projects drove uplifts in carrying value;; and
-
Hedge Funds ~ increased by 3.6% as the Dynamic Macro Fund saw gains in June on the back of significant volatility in global markets.
June also saw the declaration of a further 2.5% dividend from the Blue Sky Water Fund (in addition to the 2.5% dividend received in March 2016), alongside the usual periodic yield from the Management Rights Fund IV and Darra Industrial Income Fund. A June quarter distribution from the Blue Sky Hotel Fund has also been declared.
Two new investments were made in June. Firstly, $3.0 million was invested into the Blue Sky Retirement Living Fund which will acquire and develop a multi-stage independent living retirement precinct in Brisbane. A further $1.0 million was deployed into the Blue Sky Livestock Opportunity Fund, which will invest in the livestock value chain.
On Friday 22 July 2016, we will be hosting an Investor Webinar at 10:00am AEST to provide further insights into BAF’s portfolio. Please see ASX:BAF for details on how to register.
Yours faithfully
==> picture [61 x 42] intentionally omitted <==
Andrew Champion Executive Director
Important note
BSAAF Management Pty Ltd ABN 82 168 923 279 has prepared the information in this document. This document has been prepared for the purpose of providing general information only, without taking account of any particular investor’s objectives, financial situation or needs. It is not an offer or invitation for subscription or purchase, or a recommendation of any financial product and is not intended to be relied upon by investors in making an investment decision. Past performance is not a reliable indicator of future performance.
MONTHLY UPDATE JUNE 2016
==> picture [394 x 84] intentionally omitted <==
NET TANGIBLE ASSETS – AS AT 30 JUNE 2016[1]
Net Tangible Assets (NTA) per share (pre-tax) $ 1.1216 Net Tangible Assets (NTA) per share (post-tax) $ 1.0940
- NTA figures in this report are unaudited.
NET TANGIBLE ASSETS – SINCE INCEPTION
==> picture [249 x 149] intentionally omitted <==
----- Start of picture text -----
1.10
3.0 cent fully
1.08 franked dividend
1.06
1.04
1.02
options exercised
1.00
0.98
0.96
0.94
0.92
0.90
16 June 2014
(date of listing)
Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
----- End of picture text -----
FUND PERFORMANCE[3]
| Period | Pre-Tax | Post-Tax |
|---|---|---|
| 1 month | 2.14% | 1.76% |
| 3 months | 3.66% | 3.75% |
| 6 months | 4.79% | 4.62% |
| 12 months | 11.87% | 10.12% |
- Includes NTA growth, dividends and franking credits.
SECTOR WEIGHTINGS
==> picture [151 x 145] intentionally omitted <==
----- Start of picture text -----
Cash
Hedge4.8%
Funds
3.8% Private Equity
and
Venture Capital
22.6%
Private
Real Estate
37.7%
Real Assets
31.1%
----- End of picture text -----
PORTFOLIO VALUATION[2]
==> picture [262 x 264] intentionally omitted <==
----- Start of picture text -----
Current value ($’m) % of Portfolio
PRIVATE EQUITY AND VENTURE CAPITAL
Private Equity $24.52 17.4%
Venture Capital $7.38 5.2%
Subtotal $31.90 22.6%
REAL ASSETS
Water Fund $30.91 22.0%
Other Real Assets $12.81 9.1%
Subtotal $43.72 31.1%
PRIVATE REAL ESTATE
Residential Development $19.51 13.9%
Commercial Asset Management $31.07 22.1%
Residential Asset Management $2.38 1.7%
Subtotal $52.97 37.7%
HEDGE FUNDS
Dynamic Macro $5.40 3.8%
Subtotal $5.40 3.8%
Cash $6.72 4.8%
GRAND TOTAL $140.71 100.0%
----- End of picture text -----
- Figures in this report are unaudited. The current value for each investment in the table above is consistent with the Alternatives Fund’s investment valuation policy, which may be found at blueskyfunds.com.au/alternativesfund. Note that the total value of the investment portfolio will not directly reconcile to the NTA due to the impact of interest revenue, management fees, accrued performance fees, etc.
Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.
ABOUT THE ALTERNATIVES FUND
Blue Sky Alternatives Access Fund Limited (‘Alternatives Fund’) is a listed investment company that invests in a diverse range of alternative assets including:
-
Private equity and venture capital;
-
Real assets;
-
Private real estate; and
-
Hedge funds.
The Alternatives Fund is the only listed investment company on the Australian Securities Exchange (‘ASX’) that allows investors to make a strategic allocation to a diverse portfolio of directly managed alternative assets.
The Alternatives Fund is listed on the ASX under the code BAF.
OBJECTIVES OF THE ALTERNATIVES FUND
The primary objectives of the Alternatives Fund are to:
-
Deliver long term absolute returns to shareholders, comprised of both capital appreciation and a dividend yield (franked to either 100% or the maximum extent possible);
-
Provide investors with access to a diverse range of alternative assets; and
-
Provide investors with the ability to invest in alternative assets through an ASX listed structure that is more readily accessible and liquid than is typical for many alternative assets.
MANAGER OF THE ALTERNATIVES FUND
BSAAF Management Pty Limited (‘Manager’) is the manager of the Alternatives Fund. All investments made by the Manager on behalf of the Alternatives Fund are directly managed by wholly owned subsidiaries of Blue Sky Alternative Investments Limited (ASX:BLA) (‘Blue Sky’).
Blue Sky has in excess of $2.0 billion in assets under management and a nine year track record of generating overall returns to investors in its funds of 16.9% p.a. (net of fees, since inception).[4]
- Overall returns to investors in Blue Sky managed funds are equity weighted to 31 December 2015. For more details, please refer to BLA’s regular ASX announcements on the investment performance of its funds. Please also note that past performance is not a reliable indicator of future performance.
FURTHER INFORMATION
Executive Director: Andrew Champion
Executive Director contact: [email protected] Website: blueskyfunds.com.au/alternativesfund Investor enquiries: [email protected] Phone: +61 7 3270 7500
MONTHLY UPDATE JUNE 2016
==> picture [394 x 87] intentionally omitted <==
INVESTMENT PERFORMANCE
The pre-tax NTA of the Alternatives Fund increased by 2.43 cents per share, or 2.2%, in June to $1.1216. This month, a number of funds were subject to an external valuation review in accordance with the Alternatives Fund’s investment valuation policy. The Alternatives Fund also received capital and profit distributions from two investments which successfully exited during June.
REALISED INVESTMENTS
• Software Services Fund II
The Software Services Fund II held the Alternatives Fund’s private equity investment in Readify Pty Ltd, a leading Australian IT-services company focused on application development and platform deployment in the Microsoft environment.
During June 2016, Readify was sold to Telstra as a result of a trade sale process delivering a 34.3% IRR and 72.1% return on equity, inclusive of franking credits and fee rebates, since investing in June 2014. The exit valuation represented an increase in the holding value of the Alternatives Fund’s units in the Software Services Fund II of 7.3%.
- Alice Street Kedron Trust
The Alternatives Fund received a $1.44 million first and final distribution from the Alice Street Kedron Trust during June, comprising a return of the original $1.0 million capital outlay, a profit distribution and performance fee rebate. The profit component of this distribution is fully franked.
This represents a 36.3% IRR and 68.5% return on equity, net of fees and inclusive of franking credits, since investment in July 2014.
Investing in July 2014, the Alternatives Fund’s capital assisted the Alice Street Kedron Trust to develop a boutique 38 apartment development known as Harvest, in the north Brisbane suburb of Kedron. After reaching construction completion in April 2016, all apartments were successfully settled during June.
JUNE 2016 VALUATION REVIEWS
- Blue Sky Agriculture Fund
The value of the Alternatives Fund’s units in the Agriculture Fund increased by 4.5% in June. The Agriculture Fund holds equity in Gundaline Pty Ltd, the owner and operator of a 14,000 hectare irrigated cropping property east of Hay in regional New South Wales.
During FY16, Gundaline successfully completed 100% of Stage 1 and 60% of Stage 2 of its redevelopment program to convert existing rice bays into irrigated cotton. The valuation in June recognised the increased value of the land redeveloped in FY16 as well as an increase in the value of the property’s water entitlement portfolio.
- Blue Sky Student Accommodation Fund I
The Blue Sky Student Accommodation Fund is developing a purpose-built student accommodation precinct, consisting of a 12 story tower with 286 beds and associated amenity, in the Brisbane suburb of Woolloongabba.
Blue Sky celebrated the official opening of the project (known as The Pad Student Living at Regent Street) during June, in time for the beginning of the second semester of the 2016 academic year. Having reached a key milestone in the project’s development, the Alternatives Fund recorded a 23% increase in the value of its investment in this fund in June.
With the facility now moving into its operating phase, the fund is targeting the commencement of a 10% annual yield in late 2016, which may increase to 14% as occupancy levels normalise and operations mature.
• Blue Sky Student Accommodation Fund III
The Blue Sky Student Accommodation Fund III is developing a 793 bed purpose-built student accommodation facility strategically located on LaTrobe Street in Melbourne’s CBD.
The project has reached key construction milestones during the month and remains on track to commence operations in January 2018. The Alternatives Fund recorded a 16.4% increase in the value of its investment in the Fund in June.
MONTHLY UPDATE JUNE 2016
==> picture [394 x 87] intentionally omitted <==
• Residential Development Investments
-
Five residential development projects achieved valuation uplifts in June. These projects have continued to deliver on sales targets and construction milestones with no adverse changes to the originally forecast returns:
-
Regina Street Greenslopes Trust – this 61 apartment development in South Brisbane (known as Cedar) has achieved a 4.8% uplift in June.
-
37 Regent Street Woolloongabba Trust – this 44 apartment development in South Brisbane (known as Empire) has achieved a 4.0% uplift in June.
-
Logan Road Greenslopes Trust – this 53 apartment development in South Brisbane (known as Stone & Co.) has achieved a 4.1% uplift in June.
-
Grantson Street Windsor Trust – this 65 apartment development in North Brisbane (known as Bastion) has achieved a 7.3% uplift in June.
-
Main Street Kangaroo Point Trust – this 107 apartment development in the Central Brisbane suburb of Kangaroo Point (known as The Establishment) has achieved a 6.3% uplift in June.
• Blue Sky Dynamic Macro Hedge Fund
The value of the Alternatives Fund’s investment in the Dynamic Macro hedge fund increased by 3.6% in June as global markets saw significant volatility on the back of the referendum mandating Great Britain’s exit from the European Union. The Dynamic Macro fund strategy is designed to profit from volatility in listed markets, contributing uncorrelated returns to the portfolio.
NEW INVESTMENTS
- Blue Sky Retirement Living Fund
The Alternatives Fund invested $3.0 million in the Blue Sky Retirement Living Fund which will develop a multi-stage independent living retirement precinct in Brisbane.
The property has an existing development approval and a fully completed building of 34 independent living units. Blue Sky will continue to develop the facility by building a further 215 independent living units as well as a community centre and associated amenity. Blue Sky is undertaking the project in partnership with a group of retirement village operating specialists with deep experience and a strong track record.
It is anticipated that the project will be progressively completed over 5 years.
• Livestock Opportunity Fund
During June, the Alternatives Fund deployed $1.0 million into the Livestock Opportunity Fund which will invest in the livestock value chain. Confidentiality restrictions in force at the time of this report prohibit release of further transaction details. Additional information will be provided in future reports.
DISTRIBUTIONS
June saw the declaration of a further 2.5% dividend from the Blue Sky Water Fund (in addition to the 2.5% interim dividend received in March 2016), alongside the periodic yield from the Management Rights Fund IV and Darra Industrial Income Fund.
A June quarter distribution from the Blue Sky Hotel Fund has also been declared.
==> picture [394 x 87] intentionally omitted <==
MONTHLY UPDATE
JUNE 2016
SUMMARY OF CURRENT INVESTMENTS
==> picture [786 x 28] intentionally omitted <==
----- Start of picture text -----
Amount Date % allocated Anticipated
Fund name invested [5] invested [6] capital Target IRR [7] exit [8] Description
----- End of picture text -----
| PRIVATE EQUITY & VENTURE CAPITAL | ||||||
|---|---|---|---|---|---|---|
| PRIVATE EQUITY | ||||||
| Early Learning Fund | 4,000,000 | Jun-14 | 3.3% | CY17 | Holds equity in Foundation Early Learning Limited, a premium Australian child care operator. | |
| Wild Breads Fund | 2,000,000 | Jun-14 | 1.6% | CY17 - CY18 | Holds equity in Wild Breads Pty Ltd, a leading business in the rapidly growing artisan and specialty bread category in Australia. |
|
| Hospital Pharmacy Services Fund | 3,500,000 | Dec-14 | 2.9% | CY19 - CY20 | Holds equity in Hospital Pharmacy Services Pty Ltd, Australia's largest outsourced hospital and oncology pharmacy business. |
|
| Origo Education Fund | 1,500,000 | Jun-15 | 1.2% | CY19 - CY20 | Holds equity in Origo Education, a rapidly growing Australian business providing digital and print education instructional materials to in the United States of America, Australia, Canada and New Zealand. |
|
| Hotels Fund | 6,000,000 | Jun-15 | 4.9% | CY19 - CY20 | Holds equity in the GM Hotels, a portfolio of three freehold and seven long-term leasehold hotels in South Australia. |
|
| Aquila Fund | 4,000,000 | Dec-15 | 3.3% | CY19 - CY20 | Holds equity in Aquila, an Australian retail business focusing on the men’s footwear and smart casual fashion segment. |
|
| Digital Outdoor Advertising Fund9 | 2,110,595 | Feb-16 | 1.7% | CY20 - CY21 | Holds equity in a US-based business which will construct, own and operate a network of digital billboards in a major US metropolitan market. |
|
| Total Private Equity | 23,110,595 | 19.0% | 25.0% - 30.0% |
-
Total capital deployed to date, inclusive of follow-on investments and net of capital returned.
-
Date of initial investment.
-
These figures represent the Manager’s general expectations as to the returns the relevant asset class can generate over time. These figures are not intended to represent a forecast or guidance and do not take into account the performance to date of the existing portfolio of investments or the Manager’s view on the likely future performance of any one or more specific assets.
-
These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.
-
Confidentiality restrictions in force at the time of this report prohibit release of certain transaction details, including the name of the business invested in. Further information will be provided in future reports.
Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.
==> picture [394 x 87] intentionally omitted <==
MONTHLY UPDATE JUNE 2016
SUMMARY OF CURRENT INVESTMENTS (CONT.)
==> picture [788 x 370] intentionally omitted <==
----- Start of picture text -----
Amount Date % allocated Anticipated
Fund name invested [5] invested [6] capital Target IRR [7] exit [8] Description
VENTURE CAPITAL
A fund to invest in a diversified portfolio of venture capital investments, including Parcel Point/ Fluent Retail,
VC2014 Fund 4,000,000 Jun-14 3.3% CY20
Shoes of Prey, Vinomofo, THR1VE and Eloquii.
Holds equity in Shoes of Prey, a rapidly growing fashion footwear company that has developed a unique platform
Shoes of Prey Fund 1,000,000 Oct-15 0.8% CY20
enabling customised women’s footwear to be manufactured and sold ‘on demand’.
Vinomofo Fund 3,000,000 Dec-15 2.5% CY19 - CY20 Holds equity in Vinomofo, Australia's leading pure-play online wine retailer.
Total Venture Capital 8,000,000 6.6% 30.0%
Total Private Equity & Venture Capital 31,110,595 25.6%
REAL ASSETS
WATER RIGHTS
Invests in a diversified portfolio of agricultural water entitlements, largely in the Southern Murray-Darling
Water Fund 24,000,000 Jun-14 19.8% Open-ended
Basin.
Total Water Rights 24,000,000 19.8% 10.0% - 14.0%
OTHER REAL ASSETS
Holds equity in Gundaline Pty Ltd, the owner and operator of a large-scale irrigated cropping business east of
Agriculture Fund 4,365,000 Jun-14 3.6% CY20
Hay in NSW.
Holds the freehold property and business assets comprising Hillston Citrus, an irrigated citrus orchard near
Agriculture Fund II 4,000,000 Oct-15 3.3% CY22
Hillston in NSW.
Holds equity in Water Utilities Group, which owns and operates a portfolio of high-quality water infrastructure
Water Utilities Australia Fund II 2,500,000 Oct-14 2.1% CY18
assets.
Livestock Opportunity Fund 1,000,000 Jun-16 0.8% CY22 - CY23 To hold equity in the livestock value chain.
Total Other Real Assets 11,865,000 9.8% 15.0%
Total Real Assets 35,865,000 29.5%
----- End of picture text -----
- Total capital deployed to date, inclusive of follow-on investments and net of capital returned.
6. Date of initial investment.
-
These figures represent the Manager’s general expectations as to the returns the relevant asset class can generate over time. These figures are not intended to represent a forecast or guidance and do not take into account the performance to date of the existing portfolio of investments or the Manager’s view on the likely future performance of any one or more specific assets.
-
These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.
Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.
==> picture [394 x 87] intentionally omitted <==
MONTHLY UPDATE
JUNE 2016
SUMMARY OF CURRENT INVESTMENTS (CONT.)
==> picture [787 x 60] intentionally omitted <==
----- Start of picture text -----
Amount Date % allocated Anticipated
Fund name invested [5] invested [6] capital Target IRR [7] exit [8] Description
PRIVATE REAL ESTATE
RESIDENTIAL DEVELOPMENT INVESTMENTS
----- End of picture text -----
| Regina Street Greenslopes Trust | 1,000,000 | Jun-14 | 0.8% | 1H FY17 | A residential development of 61 apartments (29 one bedroom and 32 two bedroom) in the South Brisbane suburb of Greenslopes. |
|---|---|---|---|---|---|
| 37 Regent Street Woolloongabba Trust | 1,000,000 | Jun-14 | 0.8% | 1H FY17 | A residential development of 44 apartments (9 one bedroom and 35 two bedroom) in the South Brisbane suburb of Wolloongabba. |
| Logan Road Greenslopes Trust | 1,000,000 | Aug-14 | 0.8% | 1H FY17 | A residential development of 53 apartments (12 one bedroom, 36 two bedroom and 5 three bedroom) in the South Brisbane suburb of Greenslopes. |
| Main Street Kangaroo Point Trust | 2,000,000 | Aug-14 | 1.6% | 2H FY17 | A residential development of 105 apartments (25 one bedroom, 72 two bedroom and 8 three bedroom) in the Central Brisbane suburb of Kangaroo Point. |
| Grantson Street Windsor Trust | 1,000,000 | Aug-14 | 0.8% | 1H FY17 | A residential development of 65 apartments (2 one bedroom, 49 two bedroom and 14 three bedroom) in the North Brisbane suburb of Windsor. |
| Duke Street Kangaroo Point Trust | 2,000,000 | Sep-14 | 1.6% | 2H FY17 | A residential development of 125 apartments (46 one bedroom, 75 two bedroom and 4 three bedroom) in the Central Brisbane suburb of Kangaroo Point. |
| Flora Street Greenslopes Trust | 1,000,000 | Jun-15 | 0.8% | 1H FY18 | A residential development of 107 apartments (15 one bedroom, 84 two bedroom and 8 three bedroom) in the South Brisbane suburb of Greenslopes. |
| 19 Railway Terrace Milton Trust | 2,000,000 | Sep-15 | 1.6% | 1H FY18 | A residential development of 82 apartments (10 one bedroom, 64 two bedroom and 8 three bedroom) in the Brisbane suburb of Milton. |
| Wellington Road East Brisbane Trust | 2,000,000 | Sep-15 | 1.6% | 1H FY18 | A residential development of 71 apartments (17 one bedroom, 46 two bedroom and 8 three bedroom) in the Brisbane suburb of East Brisbane. |
| Wellington Road East Brisbane Trust II |
1,000,000 | Nov-15 | 0.8% | 2H FY18 | The second stage of the Wellington Road East Brisbane development, consisting of 75 apartments (17 one bedroom, 50 two bedroom and 8 three bedroom). |
| High Street Lutwyche Trust | 1,000,000 | Nov-15 | 0.8% | 2H FY18 | A residential development of 59 apartments (15 one bedroom, 41 two bedroom and 3 three bedroom) in the North Brisbane suburb of Lutwyche. |
-
Total capital deployed to date, inclusive of follow-on investments and net of capital returned.
-
Date of initial investment.
-
These figures represent the Manager’s general expectations as to the returns the relevant asset class can generate over time. These figures are not intended to represent a forecast or guidance and do not take into account the performance to date of the existing portfolio of investments or the Manager’s view on the likely future performance of any one or more specific assets.
-
These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.
-
Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.
==> picture [394 x 87] intentionally omitted <==
MONTHLY UPDATE
JUNE 2016
SUMMARY OF CURRENT INVESTMENTS (CONT.)
| Fund name | Amount invested5 |
Date invested6 |
% allocated capital |
Target IRR7 Anticipated exit8 |
Description |
|---|---|---|---|---|---|
| RESIDENTIAL DEVELOPMENT INVESTMENTS | |||||
| Retirement Living Fund | 3,000,000 | Jun-16 | 2.5% | CY21 | A project to develop a multi-stage independent living retirement precinct in Brisbane. |
| Total Residential Development investments |
18,000,000 | 14.8% | 20.0% - 25.0% | ||
| SOCIAL AND COMMERCIAL ASSET MANAGEMENT INVESTMENTS | |||||
| Darra Industrial Income Fund | 2,000,000 | Dec-14 | 1.6% | CY18 | To hold the freehold title to a 3,479m2single-tenant industrial manufacturing, distribution and offce facility sited on a 7,254m2land holding in the Brisbane suburb of Darra. |
| Student Accommodation Fund | 1,500,000 | Dec-14 | 1.2% | CY20 - CY22 | A project to develop and operate a purpose-built, 286 bed student accommodation precinct in the Brisbane suburb of Woolloongabba, close to several large tertiary education institutions. |
| Student Accommodation Fund II | 5,000,000 | Mar-15 | 4.1% | CY20 - CY22 | A project to develop and operate a purpose-built, 733 bed student accommodation precinct in the Brisbane suburb of South Brisbane, close to several large tertiary education institutions. |
| Student Accommodation Fund III | 6,000,000 | Jun-15 | 4.9% | CY20 - CY22 | A project to develop and operate a purpose-built, 789 bed student accommodation precinct on La Trobe Street in the Melbourne CBD and in close proximity to six university campuses. |
| A project to develop and operate a purpose-built, 415 bed student accommodation precinct on Waymouth | |||||
| Student Accommodation Fund IV | 3,500,000 | Jun-15 | 2.9% | CY20 - CY22 | Street in Adelaide’s West End, close to Uni SA, Adelaide Uni and a new $3b health and biomedical |
| precinct. | |||||
| Student Accommodation Fund V | 3,000,000 | Nov-15 | 2.5% | CY20 - CY22 | A project to develop and operate a purpose-built, 175 bed student accommodation precinct on Peel Street, North Melbourne opposite the University of Melbourne Parkville Campus. |
| Student Accommodation Fun VI | 1,250,000 | May-16 | 1.0% | CY22 | A project to develop and operate a purpose-built, 546 bed student accommodation precinct on in the Brisbane suburb of Toowong, a short distance from the University of Queensland. |
| Cove Property Group 2 Rector Street Trust |
6,974,473 | Feb-16 | 5.7% | CY23 | A project to acquire, reposition and lease up a 26 storey building at 2 Rector Street in the Financial District, Manhattan, New York. |
| Total Social and Commercial Asset Management Investments |
29,224,473 | 24.1% | 13.0% - 18.0% |
-
Total capital deployed to date, inclusive of follow-on investments and net of capital returned.
-
Date of initial investment.
-
These figures represent the Manager’s general expectations as to the returns the relevant asset class can generate over time. These figures are not intended to represent a forecast or guidance and do not take into account the performance to date of the existing portfolio of investments or the Manager’s view on the likely future performance of any one or more specific assets.
-
These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.
-
Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.
==> picture [394 x 87] intentionally omitted <==
MONTHLY UPDATE JUNE 2016
SUMMARY OF CURRENT INVESTMENTS (CONT.)
==> picture [772 x 235] intentionally omitted <==
----- Start of picture text -----
Amount Date % allocated Anticipated
Fund name invested [5] invested [6] capital Target IRR [7] exit [8] Description
RESIDENTIAL ASSET MANAGEMENT INVESTMENTS
Management rights for the 3 tower, 788 apartment ‘Southport Central’ precinct on the Gold Coast, plus
Management Rights Income Fund IV 2,200,000 Oct-14 1.8% CY17 the freehold title to the manager’s office.
Total Residential Asset Management
2,200,000 1.8% 12.0% - 16.0%
investments
Total Private Real Estate 49,424,473 40.7%
HEDGE FUNDS
A portfolio of quantitative trading strategies, diversified across currency, commodity, equity and interest
Alliance Fund (Dynamic Macro) 5,000,000 Dec-15 4.1% Open-ended rate markets, utilising derivatives and short selling in its strategy execution and an econometric method
of allocating risk.
Cash + 6.0% -
Total Hedge Funds 5,000,000 4.1%
10.0%
Total portfolio 121,400,069 100.0%
----- End of picture text -----
-
Total capital deployed to date, inclusive of follow-on investments and net of capital returned.
-
Date of initial investment.
-
These figures represent the Manager’s general expectations as to the returns the relevant asset class can generate over time. These figures are not intended to represent a forecast or guidance and do not take into account the performance to date of the existing portfolio of investments or the Manager’s view on the likely future performance of any one or more specific assets.
-
These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.
Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.
MONTHLY UPDATE JUNE 2016
==> picture [394 x 87] intentionally omitted <==
TIMELINE – EXIT HORIZON FOR ALL INVESTMENTS[8]
==> picture [44 x 599] intentionally omitted <==
| 1H FY17 | Grantson Street Windsor Trust |
|---|---|
| Regina Street Greenslopes Trust | |
| Logan Road Greenslopes Trust | |
| 37 Regent Street Woolloongabba Trust | |
| 2H FY17 | Duke St Kangaroo Point Trust |
| Main Street Kangaroo Point Trust | |
| CY17 | Wild Breads Fund |
| Management Rights Income Fund IV | |
| Early Learning Fund | |
| 1H FY18 | Wellington Road East Brisbane Trust |
| Flora Street Greenslopes Trust | |
| 19 Railway Terrace Milton Trust | |
| 2H FY18 | High Street Lutwyche Trust |
| Wellington Road East Brisbane Trust II | |
| CY18 | Darra Industrial Income Fund |
| Water Utilities Australia Fund II | |
| CY19 | Origo Education Fund |
| Hotel Fund | |
| Hospital Pharmacy Services Fund | |
| Aquila Fund | |
| CY19-20 | Vinomofo Fund |
| CY20 | Student Accommodation Fund |
| VC2014 Fund | |
| Agriculture Fund | |
| Shoes of Prey Fund | |
| CY20 - CY21 | Student Accommodation Fund II |
| Student Accommodation Fund III | |
| Student Accommodation Fund IV | |
| Student Accommodation Fund V | |
| Student Accommodation Fund VI | |
| Digital Outdoor Advertising Fund | |
| CY21 | Retirement Living Fund |
| CY22 | Agriculture Fund II |
| CY23 | Cove Property Group 2 Rector Street Trust |
| Livestock Opportunity Fund | |
| Open-ended | SRA Alliance Fund (Dynamic Macro) |
| Water Fund |
- These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.
Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.