16th Jun 2014 09:25
Alternative Asset Opportunities PCC Limited (the "Company")
16 June 2014
The Board of Alternative Asset Opportunities PCC Limited (the "Company") announces that the net asset value of the US Traded Life Interests Fund at 31 May 2014 was 46.1 pence per share. This represents an increase of 0.9 pence per share from the NAV at 30 April 2014. It is estimated that exchange rate movements during the month had a positive impact of approximately 0.3 pence per share. The Company's borrowings as at 31 May 2014 showed a nil balance. Net cash, taking into account cash balances and capital debtors (being the maturity proceeds from the two policies on two lives announced on 12 May and 23 May 2014), amounted to US$5,654,005.
As advised on 28 May 2014, the Company has received notification of one further policy maturity on one life with a face value of US$350,000, which once certified will add approximately 0.2 pence to the NAV per share. This is not included in the cash balances and capital debtors figure above.
The Company is close to completing the rolling programme begun in April 2013 to update the portfolio valuation using newly-obtained medical records and assessments of Life Expectancy from three independent sources.
It is not practicable to revalue every policy in company's portfolio. This applies to two sub-sections of the portfolio: those with face values of under $600,000, where the costs of regular reviews seem unjustified, and those where it has not been possible to obtain updated medical records. Following discussions with its investment advisers, SL Investment Management, the Board has decided to change the basis of the valuation for these two groups of policies to Valuation Basic Table (VBT), the standard population mortality table in the US. Together these policies have a face value of US$28.2 million, representing 20% of the total portfolio.
The impact of the change in valuation is a write-down at the end of May 2014 of US$0.58 million, being the equivalent of 0.5 pence per share, and is reflected in the NAV at 31 May 2014.
The following table shows the distribution by death benefit of the policies in the portfolio by LE band as at 31 May 2014.
LE band (years) | No. of lives | Total death benefitUS$000 | % of death benefit | Total valuation US$000 | % of valuation |
0 ≤ LE < 1 | 0 | 0 | 0.0 | 0 | 0.0 |
1 ≤ LE < 2 | 0 | 0 | 0.0 | 0 | 0.0 |
2 ≤ LE < 3 | 4 | 8,116 | 5.7 | 4,807 | 9.6 |
3 ≤ LE < 4 | 14 | 21,881 | 15.3 | 10,224 | 20.4 |
4 ≤ LE < 5 | 27 | 53,348 | 37.3 | 18,788 | 37.4 |
5 ≤ LE < 6 | 24 | 38,467 | 26.9 | 12,438 | 24.8 |
6 ≤ LE < 7 | 4 | 9,328 | 6.5 | 1,983 | 4.0 |
7 ≤ LE < 8 | 5 | 10,250 | 7.2 | 1,650 | 3.3 |
LE ≥ 8 | 1 | 1,500 | 1.0 | 305 | 0.6 |
Total | 79 | 142,889 | 100.0 | 50,195 | 100.0 |
Enquiries:
Peter Ingram Company Secretary | Tel: 020 7065 1467 |
Related Shares:
TLI.L