Komfie Manalo, Opalesque Asia:
The $230m Swiss and London-listed fund of hedge funds ALTIN AG reported that it more than accomplished its investment mandate, both in terms of net asset value (NAV) appreciation and especially in terms of share price increase after its NAV rose by 10.17%, ahead of peers and industry benchmarks.
In a statement, ALTIN said that at least two investment decisions taken over the last 18 months added close to 3% to the fund of hedge funds’ 2013 performance. "More importantly, ALTIN's share price rose by +24.65%, fuelled by a partial closing of the discount and, to a lesser extent, by the two capital reductions that were undertaken in 2013," the firm said.
ALTIN’s board also decided to link its capital reduction policy directly to share price performance. "When share price appreciation is satisfactory, the Board considers that indiscriminate capital reductions are not in the best long-term interests of the majority of shareholders and of the company. In the future and so long as the discount does not narrow significantly, capital will be returned to compensate investors when share price performance falls below a 10% to 12% target. Such capital reductions will be conducted exclusively through the repurchase of own shares. The Board will no longer propose capital distributions in the form of tax-free dividends out of the share premium account in future," it said.
Despite a modest incre......................
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