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Half-year Report

18th May 2017 07:00

RNS Number : 4719F

Henderson Alternative Strat Tst PLC

18 May 2017

HENDERSON ALTERNATIVE STRATEGIES TRUST PLC

Unaudited Results for the half-year ended 31 March 2017

This announcement contains regulated information

INVESTMENT OBJECTIVE

The Company exploits global opportunities to provide long-term growth to shareholders via a diversified, international, multi-strategy portfolio which also offers access to specialist funds including hedge and private equity. The Company aims to outperform the FTSE World Total Return Index on a total return basis in Sterling terms.

	Half-year ended		Year ended
Performance	(Unaudited)	(Unaudited)	(Audited)
	31 March 2017	31 March 2016	30 September 2016
Net asset value (NAV) per ordinary share	324.7p	266.6p	308.7p
Total return per ordinary share	21.21p	(5.74)p	36.35p
Share price per ordinary share	284.0p	210.0p	249.1p

Market capitalisation	£109.8m	£98.0m	£107.1m
Discount	12.5%	14.5%	19.3%
Ordinary shares in issue	38,678,638	42,976,264	42,976,264

Total Return Performance to 31 March 2017 (including dividends reinvested and excluding transaction costs)
	6 months %	1 year %	3 years %	5 years %	10 years %
NAV1	6.9	24.1	15.8	1.4	-12.9
Share price2	16.6	38.3	24.5	4.5	-24.9
Benchmark3	12.9	32.9	57.9	99.6	149.5
FTSE Developed/EM 75/25 Composite4	12.6	33.6	55.7	86.5	146.4

1. Net asset value total return per ordinary share with income reinvested for 6 months, 1, 3 and 5 years and capital NAV plus income reinvested for 10 years

2. Share price total return using mid-market share price

3. FTSE World Total Return Index in Sterling terms

4. FTSE Developed Total Return Index (75%) / FTSE Emerging Markets Total Return Index (25%) - a composite index introduced as an additional informal performance measure

Sources: Morningstar Direct, Datastream, Henderson, Association of Investment Companies ('AIC')

INTERIM MANAGEMENT REPORT

CHAIRMAN'S STATEMENT

Performance

I am pleased to report that your Company continued to perform well during the half-year to 31 March 2017, delivering a share price total return of 16.6%. This compared with an increase of 12.9% in the Company's benchmark, the FTSE World Total Return Index (in Sterling). In addition, the Company's share price total return compared favourably with the 9.6% average weighted share price total return of its peer group in the AIC's Flexible Investment Sector. The Company also produced a solid six-month NAV total return of 6.9%, with each of its five investment categories making a positive contribution.

Share Price Discount

Importantly, the Company's share price discount to NAV per share narrowed significantly during the half-year from 19.3% to 12.5%. The Board believes that this reflected growing investor confidence in the quality and performance of the Company's restructured investment portfolio together with the impact of Henderson's marketing of the Company's shares to both professional and retail investors.

Second 10% Tender Offer

In January 2017 the Company completed a second tender offer for up to 10% of its ordinary shares at a discount of 5% to NAV less tender costs. The tender offer was oversubscribed and resulted in the return of almost £13.0 million of cash to participating shareholders. Although the Board has no current plans for a further tender offer, it will continue to consider the use of additional discount control measures as and when appropriate.

Outlook

As 2017 progresses, we are seeing global financial markets at their highest levels for some time, and these will continue to face significant political and macro-economic uncertainties. In such an environment the Board believes that the Company's investment strategy provides investors with a valuable source of diversification through exposure to a well-managed, good-quality portfolio of alternative asset and specialist funds, which is capable of delivering attractive long-term returns.

The Company's performance has improved significantly over the last year or so and the Company ranks well against its peers in its comparable sector over this period. The Board and Henderson are focused not only on the short term but also particularly on delivering good and sustained long-term performance, on a relative and absolute basis. Shareholders will have the opportunity to make their views known about the Company, and its potential returns, at the coming triennial continuation vote scheduled to take place at the Company's AGM in January 2018.

I look forward to reporting on further progress at the Company's financial year end.

Richard Gubbins

Chairman

18 May 2017

FUND MANAGERS' REPORT

Overview

The half-year to 31 March 2017 saw world stock markets rise against an improving global macro-economic backdrop. The surprise victory of President Trump in November was quickly interpreted by investors as beneficial to the US economy; also initial concerns regarding the threat to global growth posed by increased US protectionism receded as equity markets chose to focus more on the positive aspects of "Trumponomics". Global fixed income valuations also remained high with yields at historic lows despite several years of loose central bank monetary policy apparently moving towards their conclusion.

There are, however, significant risks which could threaten the elevated valuations across the world's mainstream financial markets. These include the threat of significantly increased political instability in the Eurozone, question marks over the sustainability of current levels of growth in China, the tapering of Quantitative Easing leading to a rising interest rate environment and the on-going military engagement in parts of the Middle East.

Given this environment, some investors are understandably keen to seek alternative sources of return to mainstream financial markets. We believe that the Company is well-positioned to offer such diversification through its differentiated investment proposition focused on good-quality alternative and specialist asset funds which the Company's investors are unlikely to own directly themselves.

Performance

The Company's investment portfolio performed well during the half-year to 31 March 2017, generating a NAV total return of 6.9%. When annualised, this was comfortably above our NAV total return target for the Company of 8.0% per annum over the long term. All five of the Company's investment categories, Specialist Sector, Specialist Geography, Private Equity, Hedge and Property, made positive contributions and reflected the improved quality of the Company's investments. Returns would probably have been slightly higher had it not been necessary to build a large cash position between October and December in order to fund the second 10% tender offer.

The Company's share price total return of 16.6% was driven by NAV growth and significant discount narrowing from 19.3% to 12.5%, the latter reflecting increased interest in the Company's shares arising from improved performance and Henderson's on-going marketing efforts.

At this time last year the Company's Board observed that, with Henderson's restructuring of the Company's investment portfolio largely complete, the Company had to begin to deliver improved performance. We believe that the Company's 12-month performance to 31 March 2017 shows that the Company is now heading in the right direction, having produced share price and NAV total returns of 38.3% and 24.1% respectively.

Portfolio Activity

We now have a high-conviction portfolio of approximately 30 core longer-term holdings. In future, shareholders may expect relatively low levels of stock turnover within the portfolio. We may, however, at any given time also hold a modest number of tactical shorter-term investments.

In selecting new core holdings we are mindful of the need to maintain the Company's differentiated investment proposition by continuing to focus on niche, complex or hard-to-access investments, with the proviso that they must always be of satisfactory quality.

During the half-year we made three new core investments. First, we invested £4.0 million in Sagil Latin American Opportunities Fund ("Sagil"), a long/short fund investing mainly in Latin American equity instruments. We monitored Sagil for over a year before investing. The fund has an outstanding long-term track record in all market conditions and has delivered equity-like returns but with significantly lower volatility. Second, we invested £4.2 million in the Helium Selection Fund, a fund focused predominantly on merger arbitrage in Europe and the US. Third, we invested £2.0 million in Safeguard Scientifics Inc., a long-established US-listed private equity vehicle with direct investments in a portfolio of healthcare, financial services and digital media companies seeking to exploit new technologies in their sectors.

These purchases were funded mainly by taking partial profits on some of the strongest recent performers in the Company's portfolio, particularly listed credit and private equity funds.

Outlook

The Company's restructured investment portfolio is robust, well-diversified and, we believe, contains multiple NAV growth opportunities. We are therefore confident that the Company is now positioned to complete its rehabilitation as a genuinely differentiated investment proposition with the ability to generate attractive long-term equity-like returns.

Our marketing activities during the first three months of 2017 included presenting the Company to some 40 investment organisations which are either existing or potential shareholders. It was again evident from these meetings that the Company provides a useful "one-stop-shop" for certain types of professional investor seeking exposure to alternative and specialist funds, especially at a time of elevated valuations in mainstream financial markets. We also believe that the Company can play a useful diversifying role for retail investors. Accordingly, Henderson's dedicated investment trust marketing team is currently exploring ways to raise the Company's profile in the retail investor market. Overall, we therefore believe that there is considerable scope to add new investors to the Company's shareholder register over the coming months.

Ian Barrass and James de Bunsen

Fund Managers

18 May 2017

Principal risks and uncertainties

The principal risks and uncertainties facing the Company are market related and include market price, foreign exchange, interest rate, liquidity and credit risk. The Company may also be affected by economic and political conditions.

Information on these risks is given in the Annual Report for the year ended 30 September 2016. In the view of the Board these principal risks and uncertainties are applicable to the remaining six months of the financial year as they were to the six months under review.

Statement of Directors' Responsibilities

The Directors confirm that, to the best of their knowledge:

a) the financial statements for the half-year ended 31 March 2017 have been prepared in accordance with FRS 104 Interim Financial Reporting;

b) the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c) the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

For and on behalf of the Board

Richard Gubbins

Chairman

18 May 2017

INVESTMENT PORTFOLIO		Market Value	Portfolio
Investments	Focus	£'000	%
BlackRock European Hedge Fund Limited3	Hedge	6,831	5.7
CEIBA Investments Limited4	Property	6,509	5.4
Riverstone Energy Limited2	Private Equity	5,440	4.5
Mantra Secondary Opportunities4	Private Equity	5,319	4.4
Majedie Asset Management Tortoise Fund3	Hedge	5,206	4.3
Schroder GAIA Indus Pacifichoice Asia Fund3	Hedge	5,192	4.2
Baring Vostok Investments Limited core1	Private Equity	4,572	3.8
Polar Capital Global Financials Trust plc2	Specialist Sector	4,420	3.7
Sagil Latin America Opportunities Fund3	Hedge	4,262	3.5
Helium Selection Fund3	Hedge	4,259	3.5
Ten largest		52,010	43.0
Genesis Emerging Markets Fund Limited2	Specialist Geography	4,227	3.5
Eurovestech plc1	Private Equity	4,100	3.4
Summit Germany Limited2	Property	3,988	3.3
NB Distressed Debt Investment Fund Limited - Global Shares2	Specialist Sector	3,852	3.2
Harbourvest Global Private Equity Limited2	Private Equity	3,769	3.1
Toro Limited2	Specialist Sector	3,720	3.1
Voya Prime Rate Trust Fund2	Specialist Sector	3,553	2.9
Worldwide Healthcare Trust Plc2	Specialist Sector	3,516	2.9
Biotech Growth Trust plc2	Specialist Sector	3,184	2.6
Tetragon Financial Group Limited2	Specialist Sector	2,876	2.4
Twenty largest		88,795	73.4
Chenavari Capital Solutions Limited2	Specialist Sector	2,772	2.3
Princess Private Equity Holding Limited2	Private Equity	2,757	2.3
Oryx International Growth Fund Limited2	Specialist Sector	2,740	2.3
Ashmore SICAV Emerging Markets Short Duration Fund3	Specialist Geography	2,733	2.3
Axiom European Financial Debt Fund Limited2	Specialist Sector	2,565	2.1
Blackstone/GSO Loan Financing Limited2	Specialist Sector	2,473	2.0
Standard Life Private Equity Trust Plc2	Private Equity	2,459	2.0
Renewable Energy and Infrastructure Fund II4	Specialist Sector	2,433	2.0
Safeguard Scientifics,Inc2	Private Equity	1,937	1.6
Century Capital Partners IV L.P.4	Private Equity	1,708	1.4
Thirty largest		113,372	93.7
ASM Asian Recovery Fund4	Hedge	1,561	1.3
NB Distressed Debt Investment Fund Limited - Extended Life Shares2	Specialist Sector	1,343	1.1
Amber Trust SCA4	Private Equity	1,264	1.0
Firebird Republics Fund SPV4	Specialist Geography	1,086	0.9
EF Realisation Co Limited2	Specialist Sector	971	0.8
Acheron Portfolio Corporation (A Shares)1	Specialist Sector	618	0.5
Zouk Solar Opportunities Limited4	Specialist Sector	485	0.4
Value Catalyst Fund Limited4	Specialist Sector	96	0.1
Armadillo Investments Limited4	Liquidation	70	0.1
Baring Vostok Investments Limited cell1	Private Equity	14	0.0
Forty largest		120,880	99.9
Total Investments		120,883	100.0

1. Listed on minor market (includes: Luxembourg Stock Exchange, Channel Islands Stock Exchange, ISDX and LMMX)

2. Listed on major market (includes: London Stock Exchange (full listing and AIM) and Euronext)

3. Unlisted investment - with redemption rights

4. Unlisted investment - without redemption rights

Investment by geography on a look-through basis					Investment by sector on a look-through basis
	31 March					31 March
	2017		2016			2017	2016
	%		%			%	%
Western Europe	33		32		Miscellaneous	16	12
North America	32		27		Property	15	15
BRICS	11		8		Technology and Media	12	12
Japan, Australia, New Zealand	6		7		Financial Services and Banks	11	8
Frontier	5		4		Healthcare and Education	10	6
Miscellaneous	4		1		Personal Goods and Retail	10	9
Cash	4		16		Oil and Gas	8	3
Eastern Europe	3		4		Industrial Goods and Services	4	6
Asia Emerging	2		1		Cash	4	16
	100		100		Utilities and Telecoms	4	4
					Infrastructure and Transport	3	5
					Insurance	2	2
					Basic Resources	1	1
					Food and Beverage	-	1
						100	100



Value of investment by vehicle type					Value of investment by classification
		31 March				31 March
		2017		2016		2017	2016
Category of Listing		%		%	Investment Focus	%	%
Listed - major exchange		52		59	Specialist Sector	34	32
Listed - minor exchange		8		8	Private Equity	28	30
Unlisted - with redemption rights		24		17	Hedge	22	14
Unlisted - without redemption rights		16		16	Property	9	10
		100		100	Specialist Geography	7	14
						100	100

Condensed Income Statement
	(Unaudited)			(Unaudited)			(Audited)
	Half-year ended			Half-year ended			Year ended
	31 March 2017			31 March 2016			30 September 2016
	Revenue	Capital		Revenue	Capital		Revenue	Capital
	return	return	Total	return	return	Total	return	return	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Investment income	1,706	-	1,706	1,364	-	1,364	3,685	-	3,685
Exchange differences	-	(44)	(44)	-	(40)	(40)	-	254	254
Gains/(losses) on investments held at fair value through profit or loss	-	7,807	7,807	-	(3,195)	(3,195)	-	12,977	12,977
Total income/(loss)	1,706	7,763	9,469	1,364	(3,235)	(1,871)	3,685	13,231	16,916
Expenses (Note 2)
Management fees	(46)	(416)	(462)	(41)	(368)	(409)	(85)	(766)	(851)
Other expenses	(203)	-	(203)	(174)	-	(174)	(354)	-	(354)
Net return/(loss) before interest and taxation	1,457	7,347	8,804	1,149	(3,603)	(2,454)	3,246	12,465	15,711

Finance costs	-	(1)	(1)	-	(3)	(3)	(7)	(66)	(73)
Net return/(loss) on ordinary activities before taxation	1,457	7,346	8,803	1,149	(3,606)	(2,457)	3,239	12,399	15,638
Taxation	(10)	-	(10)	(10)	-	(10)	(16)	-	(16)
Net return/(loss) on ordinary activities after taxation	1,447	7,346	8,793	1,139	(3,606)	(2,467)	3,223	12,399	15,622

Return/(loss) per ordinary share (Note 3)	3.49p	17.72p	21.21p	2.65p	(8.39p)	(5.74p)	7.50p	28.85p	36.35p

The total columns of this statement represent the Income Statement of the Company, prepared in accordance with FRS 104. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies.
All revenue and capital returns in the above statement derive from continuing operations.
No operations were acquired or discontinued during the half-year ended 31 March 2017. The Company has no recognised gains or losses other than those recognised in the Income Statement and the Statement of Changes in Equity.

The accompanying notes are an integral part of these condensed financial statements.

Condensed Statement of Changes in Equity
	(Unaudited)
	Half-year ended 31 March 2017
				Capital	Other
	Share	Share		redemption	capital	Revenue
	capital	premium		reserve	reserves	reserve	Total
	£'000	£'000		£'000	£'000	£'000	£'000
Balance at 1 October 2016	10,744	10,966		7,709	99,507	3,722	132,648
Return attributable to shareholders	-	-		-	7,346	1,447	8,793
Shares bought back - Tender Offer	(1,074)	-		1,074	(13,120)	-	(13,120)
Ordinary dividends (Note 4)	-	-		-	-	(2,750)	(2,750)
Balance at 31 March 2017	9,670	10,966		8,783	93,733	2,419	125,571

	(Unaudited)
	Half-year ended 31 March 2016
				Capital	Other
	Share	Share		redemption	capital	Revenue
	capital	premium		reserve	reserves	reserve	Total
	£'000	£'000		£'000	£'000	£'000	£'000
Balance at 1 October 2015	10,744	10,966		7,709	87,108	1,917	118,444
Return attributable to shareholders	-	-		-	(3,606)	1,139	(2,467)
Ordinary dividends (Note 4)	-	-		-	-	(1,418)	(1,418)
Balance at 31 March 2016	10,744	10,966		7,709	83,502	1,638	114,559

	(Audited)
	Year ended 30 September 2016
				Capital	Other
	Share		Share	redemption	capital	Revenue
	capital		premium	reserve	reserves	reserve	Total
	£'000		£'000	£'000	£'000	£'000	£'000
Balance at 1 October 2015	10,744		10,966	7,709	87,108	1,917	118,444
Return attributable to shareholders	-		-	-	12,399	3,223	15,622
Ordinary dividends (Note 4)	-		-	-	-	(1,418)	(1,418)
Balance at 30 September 2016	10,744		10,966	7,709	99,507	3,722	132,648

The accompanying notes are an integral part of these condensed financial statements.

Condensed Statement of Financial Position
		(Unaudited)	(Unaudited)	(Audited)
		Half-year ended	Half-year ended	Year ended
		31 March 2017	31 March 2016	30 September 2016
		£'000	£'000	£'000
	Fixed assets
	Investments held at fair value through profit or loss (Note 8)	120,883	104,208	111,935

	Current assets
	Investments held at fair value through profit or loss (Note 7)	4,313	4,511	22,868
	Debtors	677	717	689
	Cash at bank	162	3,878	-
	Cash held as CFD and futures margin deposit	-	2,859	-
	Unrealised gains on future contracts		178
	Total current assets	5,152	12,143	23,557

	Creditors: amounts falling due within one year	464	1,792	2,844

	Net current assets	4,688	10,351	20,713

	Total assets less current liabilities	125,571	114,559	132,648

	Equity attributable to equity shareholders:
	Called up share capital (Note 5)	9,670	10,744	10,744
	Share premium	10,966	10,966	10,966
	Capital redemption reserve	8,783	7,709	7,709
	Capital reserves	93,733	83,502	99,507
	Revenue reserve	2,419	1,638	3,722
	Total equity shareholders' funds	125,571	114,559	132,648


	Net asset value per ordinary share (pence) (Note 6)	324.65	266.56	308.66

	The accompanying notes are an integral part of these condensed financial statements.

Condensed Cash Flow Statement
	(Unaudited)	(Unaudited)	(Audited)
	Half-year ended 31 March 2017	Half-year ended 31 March 2016	Year ended 30 September 2016
	£'000	£'000	£'000
Cash flows from operating activities
Net return on ordinary activities before taxation	8,803	(2,457)	15,638
Add back: finance costs	1	3	73
Losses/(gains) on investments held at fair value through profit or loss	(7,807)	3,195	(12,977)
Unrealised gains on future contracts	-	(178)	-
Withholding tax on dividends deducted at source	(10)	(10)	(16)
Increase in prepayments and accrued income	(384)	(90)	(47)
Increase / (decrease) in accruals and deferred income	130	164	(190)
Exchange movements : cash and cash equivalents	1	(26)	(6)
Net cash inflow from operating activities	734	601	2,475

Cash flows from investing activities
Purchases of investments held at fair value through profit or loss	(23,715)	(19,762)	(43,465)
Sales of investments held at fair value through profit or loss	20,461	21,897	55,434
Purchases of current asset investments held at fair value through profit or loss	(17,187)	(17,053)	(51,612)
Sales of current asset investments held at fair value through profit or loss	35,743	19,537	35,739
Net cash inflow/(outflow) from investing activities	15,302	4,619	(3,904)

Cash flows from financing activities
Share buybacks	(13,120)	-	-
Equity dividends paid	(2,750)	(1,418)	(1,418)
Interest paid	(1)	(3)	(73)

Net cash outflow from financing activities	(15,871)	(1,421)	(1,491)

Net increase/(decrease) in cash and equivalents	165	3,799	(2,920)
Cash and cash equivalents at beginning of period	(2)	2,912	2,912
Exchange movements	(1)	26	6
Cash and cash equivalents at end of period	162	6,737	(2)

Comprising:
Cash held / (overdrawn) at bank	162	3,878	(2)
Cash held as CFD and futures margin deposits	-	2,859	-
	162	6,737	(2)

The accompanying notes are an integral part of the condensed financial statements.

Notes

The accompanying Notes are an integral part of the condensed financial statements.

Accounting Policies

The condensed financial statements have been prepared in accordance with FRS 104, Interim Financial Reporting, issued in March 2015, the revised reporting standard for Half-Year reporting that was issued following the introduction of FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, which is effective for periods commencing on or after 1 January 2015 and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts", issued by the Association of Investment Companies in November 2014 and updated in January 2017 with consequential amendments.

The Company has early adopted the amendments to FRS 102 in respect of fair value hierarchy disclosures issued in March 2016.

The condensed set of financial statements has been neither audited nor reviewed by the Company's auditors.

Expenses and Management Fees

Henderson Investment Funds Limited ('Henderson') receives a management fee of 0.7% per annum, payable quarterly in arrears based on the level of net chargeable assets at the relevant quarter end. Management fees are allocated 90% to capital and 10% to revenue.

Return/(loss) per Ordinary Share

The return/loss per ordinary share figure is based on the following figures:

(Unaudited)

Half-year ended

31 March 2017

£'000

(Unaudited)

Half-year ended

31 March 2016

£'000

(Audited)

Year ended

30 September 2016

£'000

Net revenue profit

1,447

1,139

3,223

Net capital return/ (loss)

7,346

(3,606)

12,399

Total return/ (loss)

8,793

(2,467)

15,622

Weighted average number of

ordinary shares in issue during

the period

41,465,011

42,976,264

Pence

Revenue profit per ordinary share

3.49

2.65

7.50

Capital return/ (loss) per ordinary share

17.72

(8.39)

28.85

Total return/(loss) per ordinary share

22.21

(5.74)

36.35

Dividends

The Company has not declared an interim dividend (2016: nil).

The final dividend of 3.8p and a special dividend of 2.6p per ordinary share, paid on 3 February 2017, in respect of the year ended 30 September 2016, have been recognised as a distribution in the period.

Called up Share Capital

At 31 March 2017 there were 38,678,638 ordinary shares in issue (31 March 2016: 42,976,264; 30 September 2016: 42,976,264). During the half-year ended 31 March 2017 there were 4,297,626 ordinary shares bought back pursuant to the 10% Tender offer (half-year ended 31 March 2016: nil; year ended 30 September 2016: nil).

The cost of the cancelled shares, including stamp duty, amounted to £12,952,000 (half-year ended 31 March 2016: £nil; year ended 30 September 2016: £nil) and a further £168,000 of costs were incurred in connection with the tender offer. The total cost of £13,120,000 has been charged to the capital reserve.

Net Asset Value per Ordinary Share

The net asset value per ordinary share is based on the net assets attributable to the equity shareholders of £125,184,000 (31 March 2016: £114,559,000; 30 September 2016: £132,648,000) and on 38,678,638 (31 March 2016: 42,976,264; 30 September 2016: 42,976,264) ordinary shares, being the number of ordinary shares (excluding treasury shares) in issue at the period end.

Current asset investments

The Company has a holding in Deutsche Global Liquidity Managed Platinum Fund, a money market fund which is viewed as a readily disposable store of value and which is used to invest cash balances that would otherwise be placed on short term deposit. At the half-year this holding had a value of £4,313,000 (31 March 2016: £4,511,000; year ended 30 September 2016: £22,868,000). As FRS 102 states that an investment normally qualifies as a cash equivalent only when it has a short-term maturity of, say, three months or less from the date of acquisition, the money market fund has been classified as a current asset investment instead of a cash equivalent within the Statement of Financial Position, Cash Flow Statement and tabulation of Investments held at Fair Value Through Profit or Loss.

Investments held at Fair Value Through Profit or Loss

The table below analyses fair value measurements for investments held at fair value through profit or loss. These fair value measurements are categorised into different levels in the fair value hierarchy based on valuation techniques used and are defined as follows under FRS 102:

Level 1: valued using quoted prices in active markets for identical assets.

Level 2: valued by reference to valuation techniques using observable inputs other than quoted prices included in level 1.

Level 3: valued by reference to valuation techniques using inputs that are not based on observable market data.

The Company's application of these levels is explained in the Company's Annual Report for the year ended 30 September 2016.

31 March 2017 (unaudited)	Level 1	Level 2	Level 3	Total
	£'000	£'000	£'000	£'000
Investments	59,008	41,341	20,534	120,883
Current asset investments	4,313	-	-	4,313
Total	63,321	41,341	20,534	125,196

31 March 2016 (unaudited)	Level 1	Level 2	Level 3	Total
	£'000	£'000	£'000	£'000
Investments	60,309	26,603	17,296	104,208
CFDs	-	(117)	-	(117)
Futures	-	178	-	178
Current asset investments	4,511	-	-	4,511
Total	64,820	26,664	17,296	108,780

30 September 2016 (audited)	Level 1	Level 2	Level 3	Total
	£'000	£'000	£'000	£'000
Investments	59,910	32,257	19,768	111,935
Current asset investments	22,868	-	-	22,868
Total	82,778	32,257	19,768	134,803

There have been no transfers between the levels of the fair value hierarchy during the period.

The valuation techniques used by the Company are explained in the accounting policies note in the Company's Annual Report for the year ended 30 September 2016.

Transaction Costs

Purchase transaction costs for the half-year ended 31 March 2017 were £32,000 (half-year ended 31 March 2016: £16,000; year ended 30 September 2016: £40,000). These comprise mainly stamp duty and commission. Sale transaction costs for the half-year ended 31 March 2017 were £15,000 (half-year ended 31 March 2016: £8,000; year ended 30 September 2016: £34,000).

10.

Comparative Information

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half-years ended 31 March 2017 and 31 March 2016 has not been audited.

The information for the year ended 30 September 2016 has been extracted from the statutory accounts for that year, which have been filed with the Registrar of Companies. The report of the auditors on those accounts was unqualified and contained no statement under either section 498(2) or section 498(3) of the Companies Act 2006.

11.

Related Party Transactions

With the exception of the relationship between the Company and its Directors, the provision of services by Henderson is the only related party arrangement currently in place as defined in the Listing Rules. Other than fees payable by the Company in the ordinary course of business, there have been no material transactions with the Company's related parties affecting the financial position or performance, of the Company during the period under review.

12.

Going Concern

Having considered the Company's investment objective, risk management and capital management policies, the nature of the portfolio and expenditure projections, the Directors believe that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Board has determined that it is appropriate for the financial statements to be prepared on a going concern basis.

13.

General information

Company Status

The Company is an investment trust company, registered in Scotland with company registration number SC015905.

The SEDOL/ISIN number is GB0001216000.

The London Stock Exchange (TIDM) Code is HAST.

The Company's Legal Entity Identifier (LEI) is 213800J6LLOCA3CUDF69.

The Company's Global Intermediary Identification Number (GIIN) is AEFUI2.99999.SL.826.

Directors, Secretary and Registered Office

The Directors of the Company are Richard Gubbins (Chairman), Graham Oldroyd (Audit Committee Chairman), Graham Fuller (Senior Independent Director) and Jamie Korner.

The Corporate Secretary is Henderson Secretarial Services Limited.

The registered office is Leven House, 10 Lochside Place, Edinburgh Park, Edinburgh EH12 9DF.

The correspondence address is Henderson Global Investors, 201 Bishopsgate, London EC2M 3AE.

Website

Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersonalternativestrategies.com

14.

Half-Year Report

The Half-Year Report will shortly be available in typed format on the Company's website. An abbreviated version, the Half-Year Update, will be circulated to shareholders in May and will be available on the website thereafter. Both the Half-Year Report and the Half-Year Update will be available from the Corporate Secretary at the Company's correspondence address: 201 Bishopsgate, London EC2M 3AE.

For further information please contact:

Ian Barrass

Fund Manager

Henderson Alternative Strategies Trust plc

Telephone: 020 7818 2964

James de Bunsen

Fund Manager

Henderson Alternative Strategies Trust plc Telephone: 020 7818 3869

Richard Gubbins

Chairman

Henderson Alternative Strategies Trust plc

Telephone: 07818 454 175

Sarah Gibbons-Cook

Investor Relations and PR Manager

Henderson Investment Funds Limited

Telephone: 020 7818 3198

James de Sausmarez

Director and Head of Investment Trusts

Henderson Investment Funds Limited

Tel: 020 7818 3349

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR QDLFFDEFFBBF

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