29th Oct 2012 16:48
BlackRock Absolute Return Strategies Ltd
Company Update - Liquidity Profile - October 2012
The Board of Directors is providing shareholders with an estimate of the current liquidity profile of the portfolio of BlackRock Absolute Return Strategies Ltd (the "Company"). This liquidity profile relates to the availability of funds without taking into consideration issues of portfolio balance. Generally, certain strategies such as Long/Short Equity are more liquid than other strategies, such as Distressed investing. In order to maintain portfolio balance, it may be deemed advisable to effectuate liquidity in a balanced manner rather than the most expeditious manner. This may lead to a slower pace of actualized monetizations as compared to the table below.
The table below sets forth the Company's current estimate of the earliest possible redemption date schedule for the Company's portfolio. It summarises the liquidity of remaining investments as well as taking into account available cash and cash receivables held in the portfolio. The liquidity analysis assumes that: (1) where redemption notices are currently placed, it is assumed redemption proceeds will be received in the normal course following the applicable redemption date; (2) for portfolio holdings for which redemption is possible but redemption notices have not yet been placed due to the balanced manner in which the wind-down is being managed, and taking into consideration lock-ups, fund-level gates that are currently implemented and any investor-level gates, as applicable, it is assumed that redemption notices have been placed at 1st October 2012 and proceeds will be received in the normal course following the applicable redemption date(s); (3) for portfolio holdings that are either in side-pockets, suspended or liquidating, redemption dates are estimated based on the Investment Manager's current understanding of the underlying fund's targeted date(s) for lifting its suspension or paying out proceeds, as applicable. In each case, actual receipt of proceeds will follow the corresponding redemption date.
Date Cumulative Redemption 31st October 2012 39.8% 30th November 2012 39.8% 31st December 2012 63.7% 31st March 2013 66.5% 30th September 2013 72.8% 30th September 2014 82.7%
The above liquidity schedule is based on the Company's portfolio investments and related estimated net asset values as of 1st October 2012(1), and actual or anticipated changes in liquidity (gates, side pockets, suspension or liquidation) that have been communicated to the Investment Manager by the underlying funds.
Actual proceeds would be expected to be received following the relevant redemption date in accordance with the underlying fund's stated terms, generally within 60 days (with the exception of proceeds held back until the completion of the applicable annual audit), although where liquidity is constrained, receipt might be further delayed. Other factors, including future events, may affect the Company's ability to redeem its holdings in accordance with the estimated timeframes set out above, as well as the availability, amount or timing of receipt of redemption proceeds.
The above details of the Company's estimated portfolio liquidity profile are indicative only and should not under any circumstances be considered a prediction, forecast or guarantee of the Company's actual portfolio liquidity profile or an indication as to the timing of distributions to shareholders pursuant to the managed wind-down of the Company's portfolio which was approved by shareholders on 25 August 2011. In addition, there is no guarantee that the Company's assets will be realized at their net asset value, and it is possible that the Company may not be able to realize some of its assets at any value.
Notes:
(1) The above liquidity schedule is based on the estimated US dollar net asset
values communicated to the Investment Manager by the underlying funds. These estimated net asset values do not take into account the potential impact of the Company's currency hedging policy. Currency fluctuations may impact materially the actual redemption proceeds available for distribution to shareholders.
Important Information
This communication relating to the Company is being issued by the BlackRock Alternative Advisors business unit of BlackRock, Inc. ("BAA") for informational purposes only and does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in any jurisdiction and should not be relied upon in connection with any decision to subscribe for or acquire any Shares. In receiving this document and the information contained herein, you will be deemed to have represented and agreed for the benefit of the Company, BAA and its affiliates (together with BAA, "BlackRock") that you are permitted, in accordance with all applicable laws, to receive this document and such information.
In particular, this announcement does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in the United States or to US Persons (as defined in Regulation S under the US Securities Act of 1933, as amended ("US Persons"). Neither this announcement nor any copy of it may be taken, released, published or distributed, directly or indirectly to US Persons or in or into the United States (including its territories and possessions), Canada, Australia or Japan, or any jurisdiction where such action would be unlawful. Accordingly, recipients represent that they are able to receive this announcement without contravention of any applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business. No recipient may distribute, or make available, this announcement (directly or indirectly) to any other person. Recipients of this announcement should inform themselves about and observe any applicable legal requirements in their jurisdictions.
The Shares have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and, accordingly, may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, within the United States or to US Persons. In addition, the Company is not registered under the US Investment Company Act of 1940, as amended (the "Investment Company Act") and shareholders of the Company will not have the protections of that act.
No liability whatsoever (whether in negligence or otherwise) arising directly or indirectly from the use of this announcement is accepted and no representation, warranty or undertaking, express or implied, is or will be made by the Company or BAA or any of their respective directors, officers, employees, advisers, representatives or other agents ("Agents") for any information or any of the opinions contained herein or for any errors, omissions or misstatements. None of BAA nor any of its respective Agents makes or has been authorised to make any representation or warranties (express or implied) in relation to the Company or as to the truth, accuracy or completeness of this announcement, or any other written or oral statement provided. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, estimates or forecasts contained in this announcement and nothing in this announcement is or should be relied on as a promise or representation as to the future.
Other than as required by applicable laws, BlackRock gives no undertaking to update this announcement or any additional information, or to correct any inaccuracies in it which may become apparent and the distribution of this announcement. The information contained in this announcement is given at the date of its publication and is subject to updating, revision and amendment. The contents of this announcement have not been approved by any competent regulatory or supervisory authority.
This announcement includes statements that are, or may be deemed to be, "forward looking statements". These forward looking statements can be identified by the use of forward looking terminology, including the terms "believes", "projects", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could", "should" or "continue" or, in each case, their negative or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding the intentions, beliefs or current expectations of BlackRock. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the BlackRock's ability to control or predict. Forward looking statements are not guarantees of future performance. More detailed information on the potential factors which could affect the financial results of the Company is contained in the Company's public filings and reports.
All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results.
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