Return of Capital

RNS Number : 5920H

BlueCrest AllBlue Fund Ltd

01 December 2015

 



BlueCrest AllBlue Fund Limited (the "Company")

1 December 2015

BLUECREST ALLBLUE FUND LIMITED (the "Company")

BLUECREST NOTIFICATION OF RETURN OF CAPITAL

The Company has today received a notification from BlueCrest Capital Management Limited in relation to the proposed return of capital by AllBlue Limited. The Board will meet with its advisers as soon as practicable to discuss the contents of the notification and the next steps to be taken.  The full text of the notification is set out below.  A further announcement will be released in due course.

"1st December 2015

Dear Investor,

We are writing to inform you of a significant development with respect to the business of BlueCrest Capital Management Limited, acting as general partner to BlueCrest Capital Management LP ("BlueCrest").

Introduction

With effect from 1 December 2015, BlueCrest, the Investment Manager to the BlueCrest suite of funds, and the Board of Directors of each of the relevant BlueCrest funds (or General Partner, where appropriate) have each determined that the BlueCrest funds will embark upon a programme to return the capital managed in these funds to investors (as described in more detail below) and will not accept any further investment subscriptions from third party investors. Following the completion of this process, BlueCrest will become a 'Private Investment Partnership', focussing solely on the management of the assets of its partners and employees.

We would like to thank all of our investors who have supported us over the last 15 years and are pleased that, as we make this decision, all of the current BlueCrest funds are at, or close to, their 'high water mark'.

Recent developments in the industry, including, among other things, downward pressure on fee levels, the increasing cost of hiring the best portfolio management talent and the difficulty in tailoring investment products to meet the individual needs and constraints of a large number of diverse investors, have all significantly reduced industry profitability and flexibility.  These factors have affected BlueCrest along with many other industry participants, and BlueCrest believes that a transition to a Private Investment Partnership model is now appropriate for the business. 

Process

The BlueCrest Capital International ("BCI") suite of funds will divest its investment portfolio in an orderly manner commencing immediately.  All BCI investors will be redeemed/withdrawn in full in respect of the redemption/withdrawal day falling on 4 January 2016. Approximately 75% of redemption proceeds is expected to be paid to investors before the end of January 2016, growing to approximately 90% by the end of Q1 2016, with the remainder as soon as practicable thereafter.

The AllBlue suite of funds will be redeemed from each of its seven underlying holdings with respect to the next applicable redemption day.  All AllBlue investors will also be redeemed/withdrawn in full in respect of the redemption/withdrawal day falling on 4 January 2016. Approximately 75% of redemption proceeds is expected to be paid to investors before the end of January 2016, growing to approximately 90% by the end of Q1 2016, with the remainder as soon as practicable thereafter, although the process by which the AllBlue funds will receive proceeds from their underlying holdings will vary on a fund by fund basis as set out below:

(i)            BCI (as per the process above), BlueCrest Multi Strategy Credit funds ("Credit"), BlueCrest Mercantile funds ("Mercantile") and BlueCrest Quantitative Equity funds ("BQEF") will divest of their investment portfolios in an orderly manner;

(ii)           The BlueTrend 2x suite of funds (managed by Systematica Investments) will return redemption proceeds in early 2016; and

(iii)          The BlueCrest Emerging Markets funds ("Emerging Markets") and BlueCrest Equity Strategies funds ("BESF") will each return redemption proceeds to investors during January 2016 and will continue to be managed by BlueCrest on behalf of its partners and employees.

Third party investors in Emerging Markets and BESF, and all investors in Credit, Mercantile and BQEF will be redeemed with effect from 4 January 2016.

With respect to all funds, in order to effect this process of returning capital to investors, to the extent that any requisite notice periods are not met, these will be waived by each fund's Board of Directors/General Partner. With respect to all funds, investors who have already submitted a redemption/withdrawal notice in respect of the redemption/withdrawal day falling on 1 December 2015 will have their requests processed in the usual manner. With respect to all funds, any investor that has already submitted a redemption/withdrawal request in respect of a redemption/withdrawal day falling after 1 December 2015 will also be redeemed with respect to the 4 January 2016 redemption day and will thereby be treated equally with other investors similarly situated. All subscriptions for all funds that have been submitted in respect of the 1 December 2015 subscription day will be promptly returned in full.

Fees

Monthly investment management fees will cease to be payable to BlueCrest from 1 January 2016.  Performance fees/incentive allocations for the financial year 2015 will, as appropriate, crystallise as at 31 December 2015.   BlueCrest may also receive a performance fee/incentive allocation after this date, upon the completion of the orderly realization of assets, to the extent that the 'high water mark' of an investor's holding has been exceeded.  Such fees/allocations would be determined at the current applicable rates.

Following completion of the divestment programme, each of the relevant BlueCrest funds as referred to above (except for the Emerging Markets and BESF funds, which will continue to be managed by BlueCrest on behalf of its partners and employees) will each propose a liquidation process for its Board's consideration. The costs of the liquidator would be met by BlueCrest.

Once again, we would like to take the opportunity to thank sincerely all of the investors who have entrusted money to the BlueCrest funds over the last 15 years and to wish them well in their future investment endeavours.

For further details in respect of this business transformation, as well as for any questions regarding process and timing, we would ask that you contact your usual representative at BlueCrest.

Yours sincerely,

Michael Platt

For and on behalf of BlueCrest Capital Management Limited, acting as general partner of BlueCrest Capital Management LP, Investment Manager to the BlueCrest Funds. "

For further information contact:

JTC (Guernsey) Limited, Secretary

Tel:  [phone]

 

END

 

 

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