2nd Jul 2010 10:52
BlackRock Absolute Return Strategies Ltd
June 2010
Company Update - Liquidity Profile
The Board of Directors is providing shareholders with an estimate of the current liquidity profile of the Company's portfolio.
The table below sets forth the Company's current estimate of the earliest possible redemption date schedule for the Company's portfolio. The liquidity analysis assumes the following: (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 holding for which redemption is possible, and taking into consideration gates and lock-ups, as applicable, it is assumed that redemption notices are placed today and proceeds will be received in the normal course following the applicable redemption date, or in the case of gates, redemption dates; (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 Proceeds 30 September 2010 64.47% 31 December 2010 72.43% 31 March 2011 76.56% 30 June 2011 80.73% 30 September 2011 83.39% 31 December 2011 85.96%
The above liquidity schedule is based on the Company's portfolio investments and related net asset values as of 1 June 2010, 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 received following the relevant redemption date in accordance with the underlying fund's stated terms, generally within 60 days, although where liquidity is constrained, receipt might be further delayed. Other factors, including future events, may affect the availability, amount or timing of receipt of proceeds. Any cash proceeds received may be used for a variety of purposes, as deemed necessary or appropriate by the Board of Directors and/or Investment Manager, including the funding of investments, meeting the Company's hedging and other obligations and share buy backs or redemptions.
Important Information
AN INVESTMENT IN THE COMPANY IS SPECULATIVE AND INCLUDES A HIGH DEGREE OF RISK, INCLUDING THE RISK OF A TOTAL LOSS OF CAPITAL. THE COMPANY AND/OR ITS UNDERLYING INVESTMENTS MAY BE ILLIQUID AND SUBJECT TO SIGNIFICANT RESTRICTIONS ON TRANSFER, AND INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE RISKS ASSOCIATED WITH SUCH INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. ALL INVESTORS SHOULD CAREFULLY REVIEW THE CONFIDENTIAL PRIVATE OFFERING MEMORANDUM AND GOVERNING DOCUMENTS FOR THE COMPANYY PRIOR TO MAKING AN INVESTMENT DECISION. ANY INVESTMENT DECISION WITH RESPECT TO THE COMPANYY MUST BE BASED SOLELY ON THE DEFINITIVE AND FINAL VERSION OF THE FUND'S CONFIDENTIAL PRIVATE OFFERING MEMORANDUM, GOVERNING DOCUMENTS AND SUBSCRIPTION AGREEMENT. THERE IS NO ASSURANCE THE COMPANYY WILL ACHIEVE ITS OBJECTIVES.
This document is provided for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities described herein in the United States or in any other jurisdiction, nor shall it, by the fact of its distribution, form the basis of, or be relied upon, in connection with any contract therefore. This communication is being issued by the BlackRock Alternative Advisors business unit of BlackRock, Inc. ("BAA") for informational purposes only relating to BARS (as defined below). Potential investors are urged to conduct further due diligence prior to, and to consult a professional advisor regarding the possible economic, tax, legal or other consequences of, entering into any investments or transactions described herein. All investments risk the loss of capital and the value of shares may go up as well as down. There is no guarantee or assurance that an investment in the Company will achieve its investment objective. An investment in the Company is speculative and should form only part of a complete investment program, and an investor must be able to bear the loss of its entire investment. Shares are suitable only for sophisticated investors and may involve a high degree of risk.
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.
BlackRock Absolute Return Strategies Ltd (ticker symbols BARS, BARE and BARU) ("BARS" or the "Company") is a closed-ended LSE listed multi-manager investment fund organized as a Jersey, Channel Islands company, which began operations on 1 May 2008. BARS seeks to generate a total annualized return of 6% above the annual yield for 3-Month LIBOR, with an 8% annualized standard deviation. No assurances can be given that the Company's objectives will be met.
No person has been authorised to give any information or make any representation not contained in this communication and if given or made any such information or representation may not be relied upon as having been authorised by BlackRock.
Certain Risk Factors
Past results are not necessarily indicative of future results. Historically, funds of funds and hedge funds have produced gains and losses due to changes within the equity, interest rate, credit, currency, commodity and related derivative markets. Additionally, gains and losses are impacted to varying degrees by investment acumen, market volatility, corporate activity, securities selections, regulatory oversight, trading volume and money flows. These elements and/or their rate of change may not be present in the future, and thus future performance may be impacted. Any investment in a fund involves a high degree of risk. Investments in funds of funds and hedge funds can be highly illiquid.
The performance of funds of hedge funds will depend on the performance of the underlying fund investments. There can be no assurance that a multi-manager approach will be successful or diversified, or that the collective performance of underlying fund investments will be profitable. Underlying fund managers may be subject to limited regulation (or may not be registered with any regulatory body), may experience potential conflicts of interest with respect to their management of allocated Company assets and from time to time, vis- -vis other underlying managers, may take opposing positions with respect to particular securities or investments. The Company will rely on information provided to it by the underlying fund managers and there may be limited ability to confirm or verify such information.
Underlying fund managers may implement a variety of investment strategies and techniques, including short selling, leverage, hedging (such as derivatives, swaps, forwards, futures and options) and securities lending. Underlying fund managers may invest in a wide array of investments, including non-US investments, non-US currencies, distressed assets, illiquid investments (such as those subject to legal or regulatory restrictions on transfer), and commodities and futures, each of which may have diverse associated risks, including counterparty risk, credit risk and liquidity risk.
The secondary market for investments in the Company or its underlying fund investments is a recent development and as such may exhibit illiquidity, wide or non-existent bid-offer spreads, and brokerage charges. In addition, there may be restrictions on transferring fund investments. A fund may be leveraged, which may increase the risk of investment loss, and its performance may be volatile. Funds of funds and hedge funds may involve complex tax structures; therefore, there may be delays in distributing important tax information. Funds of funds and hedge funds are not subject to the same regulatory requirements as SEC registered funds or mutual funds and are not required to provide periodic pricing or valuation information to investors. The Company and its underlying fund investments may have significant fees and expenses that would reduce returns.
This performance information is an estimate that is subject to change and based in part on estimates received from the underlying funds' administrator or investment advisor, in some cases using assumptions that may be complex and susceptible to significant uncertainty, and may prove incorrect. Estimated valuations are particularly susceptible to inaccuracies during periods of market volatility or uncertainty, and additional information may become available subsequently which materially alters assumptions or other inputs to the estimates. This may result in a material change to the Company's estimated reported net asset value and performance estimate. Should the net asset value materially change, the Company will retroactively revise all capital transactions of impacted investors as appropriate.
Minor variances in column, row and sectional totals are the result of rounding and have been allowed to maintain the integrity of the underlying financial data. Information relating to the Company's performance and its underlying managers' qualifications, strategy exposure or portfolio composition was prepared by BAA based on information believed to be reliable; however, no assurance of its completeness or accuracy can be made. In some cases, the Company's underlying managers may manage more than one investment program. The performance information presented herein relates only to the described investment program. BlackRock also advises other portfolios whose historical risk/return characteristics may be significantly different.
The Company is not an Authorized Person under the Financial Services and Markets Act 2000 and accordingly is not registered with the United Kingdoms' Financial Services Authority. The Company will therefore only be suitable for professional or experienced investors, or those who have taken financial advice. Regulatory requirements which may be deemed necessary for the protection of retail or inexperienced investors do not apply to listed funds. By investing in the Company, you will be deemed to be acknowledging that you are a professional or experienced investor, or have taken appropriate professional advice and accepted the reduced requirements accordingly. You are wholly responsible for ensuring that all aspects of the Company are acceptable to you. Investment in listed fund may involve special risks that could lead to a loss of all of a substantial portion of such investment. Unless you fully understand and accept the nature of this fund and the potential risks inherent in this fund, you should not invest in the Company. Further information in relation to the regulatory treatment of listed funds domiciled in Jersey may be found on the website of the Jersey Financial Services Commission and www.jersyfsc.org.
Opinions and estimates offered herein constitute the judgment of BlackRock and are subject to change. All opinions and estimates are based on assumptions, all of which are difficult to predict and many of which are beyond the control of BlackRock. In addition, any calculations used to generate the estimates were not prepared with a view towards public disclosure or compliance with any published guidelines. In preparing this document, BlackRock has relied upon and assumed, without independent verification, the accuracy and completeness of information provided by third parties. BlackRock believes that the information provided herein is reliable; however, it does not warrant its accuracy or completeness.
This is an original unpublished work protected under copyright laws of the United States and other countries. All Rights Reserved. Should publication occur, then the following notice shall apply: © 2010 by BlackRock. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of BlackRock.
Any dispute, action or other proceeding concerning thus document shall be adjucated within the exclusive jurisdiction of the courts of England. All material contained in this document (including in this disclaimer) shall be governed by and construed in accordance with the laws of England and Wales.
Enquiries:
Kerry Higgins (Company Secretariat) - BlackRock 020 7743 1089 Jonathan Ruck Keene - BlackRock
020 7743 3000Will Rogers - Cenkos 020 7397 1920Chris Lunn - Cenkos 020 7397 1912
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