ALTIN: 2013 Results and Annual Report; +24.65% [1] share price performance in 2013; +10.37%[2] NAV performance in 2013; Positive outlook for 2014: share price is up +4% YTD[3] , NAV is up +2.76% YTD[4] Donnerstag, 27. März 2014 - 18:51
ALTIN: 2013 Results and Annual Report
- +24.65% [1] share price performance in 2013
- +10.37%[2] NAV performance in 2013
- Positive outlook for 2014: share price is up +4% YTD[3], NAV is up +2.76% YTD[4]
Baar, 27 March 2014 – ALTIN AG (SIX: ALTN, LSE: AIA), the Swiss alternative investment company, published its 2013 audited annual results today[5]. As market conditions improved in 2013, ALTIN progressively increased its market exposure and recorded a share price rise of +24.65%[1] and an NAV increase of +10.37%[2] in 2013. This positive trend has continued in 2014 (share price +4% YTD[3], NAV +2.76% YTD[4]. As announced on 15 January 2014, the Board of Directors has linked further share buybacks to share price performance, with a clear commitment to conduct further buybacks should the shares fail to achieve a 10% to 12% return over the calendar year. The Company has also announced that it will no longer pay a dividend out of tax-free reserves, which will improve the long-term value of its capital structure.
2013 annual results
2013 was a good year for hedge funds and ALTIN’s NAV increased by +10.37% in 2013 (including dividend), compared to the HFRX index and the HFRI FoF index, which were up by +6.72% and +8.72% respectively. A stronger performance of the share price (+24.65% in 2013) meant the discount of the SIX share price to NAV narrowed from 32.64% at the end of 2012 to 23.93% at the end of 2013. As the market environment improved significantly, ALTIN's portfolio profile also changed rather substantially during the course of the year, as the allocation to Protection Strategies was reduced and risk levels were raised. Weightings to risk-seeking strategies were increased and investments in more aggressive uncorrelated strategies were also implemented, in order to balance the equity beta and allow for less correlated returns. There was also a measured shift towards less liquid strategies to take full advantage of ALTIN’s stable and permanent capital base. This favourable trend has continued during the first months of 2014 with a YTD NAV performance of +2.76%[4] and the share price rising by +4%[3] leading to a further narrowing of the discount. The positive NAV performance of January (+0.68%) in a difficult month is also noteworthy. The discount of share price (SIX) to NAV stood at 20.58% as of 26 March 2014.
ALTIN AG | ALTIN AG | HFRI FoF | |
YTD as at 28 February 2014 | +2.76% | +4.00% | +1.29% |
2013 | +10.37% | +24.65% | +8.72% |
Cumulative since Dec. 1996 | +191.90% | +140.31% | +135.60% |
Annualized since Dec. 1996 | +6.47% | +5.27% | +5.14% |
No dividend distribution in 2014
As announced on 15 January 2014, the Board has concluded that distributing dividends out of tax-free reserves is not in the best long-term interests of investors. Consequently, the Company does not intend to distribute capital in the form of a tax-free dividend/repayment of nominal value in 2014. Capital reductions will be limited to years when the share price increase fails to meet the 10%-12% range which, whilst a high discount prevails, the Board of Directors deems to be an appropriate return target in all but the most adverse market environments. Eventual capital reductions would be conducted exclusively through the repurchase of own shares, either via the issuance of put options or via second line buybacks. By boosting NAV and in the case of repurchases via put options, transferring intrinsic value to shareholders, these capital reductions should prove an effective compensatory measure in case of disappointing share price performance, whilst avoiding to undermine the Company’s capital base.
No changes in the Board of Directors
No new Board members will be proposed at the AGM and shareholders will be invited to re-elect the current directors.
[1] Based on SIX share price performance as at 31 December 2013
[2] 2013 audited NAV performance including dividend (CHF 2.35)
[3] SIX share price performance as at 28.02.2014
[4] NAV performance as at 28.02.2013 (final, YTD)
[5] The annual report is available on the company’s web site www.altin.ch ("About ALTIN / Reports & Publications", "Annual Reports" page) or by using the following link:
https://www.altin.ch/n/CNTP_452710_EN.
For further information, please contact:
Tony Morrongiello - Chief Executive Officer José Galeano - Investor Relations Manager Tel. +41 (0)41 760 62 60 | Kinlan Communications David Hothersall Tel. +44 (0)20 7638 3435 |
