Update on Continuation Proposals

RNS Number : 8126L

BlueCrest AllBlue Fund Ltd

14 January 2016

 



BlueCrest AllBlue Fund Limited (the "Company")

14 January 2016

Update on Continuation Proposals

Further to the Company's announcement on 9 December 2015, the Board is pleased to announce that, having completed its review of manager proposals received by the Company and consulted with its major shareholders, it proposes to recommend the replacement of its existing management arrangements with a mandate given to J.P. Morgan Asset Management ("JPMAM") group⁽¹⁾. The proposed appointment is subject to, amongst other things, detailed due diligence which is being performed on behalf of the Company and finalisation of engagement terms. In addition, the proposed appointment will be subject to shareholder approval as part of the re-organisation proposals (the "Proposals") to be put forward in due course.

As part of the Proposals, it is intended that the Company will invest substantially all of its assets (net of the cash exit opportunity described below) in the Highbridge Multi-Strategy Fund ("HMSF"). HMSF is a global multi-strategy hedge fund, managed by Highbridge Capital Management ("HCM"), focused on relative value strategies with idiosyncratic sources of return that invests in 12 distinct strategies across Fundamental Equity, Quantitative Equity, Event Driven Equity, Capital Structure Arbitrage, Convertible & Volatility Arbitrage, Fundamental Credit and Macro.  Since its inception (1 January 1993) HMSF has achieved 10.76% annualised net returns, 6.89% annualised volatility and low beta relative to equity and credit indices.⁽²⁾

The JPMAM group is the largest manager of closed-end investment companies in the UK with 23 investment companies under its management and £9.2bn of assets under management⁽³⁾. HCM was founded in 1992 as one of the industry's first multi-strategy hedge fund managers.  Today, it is a global alternative investment manager with $29 billion in AUM⁽⁴⁾. HCM maintains a staff of over 380 employees, including ~150 investment professionals and has offices in London, New York and Hong Kong.⁽⁴⁾  HCM established a strategic partnership with JPMAM in 2004.  All investment, capital allocation and risk management decisions for HMSF are independent of JPMAM.

It is currently intended to put forward the Proposals by the end of January/early February. As previously announced, the Proposals will provide shareholders with an opportunity to receive a full cash exit at NAV less costs (the "Cash Exit"), representing the net realisation proceeds from the AllBlue Limited redemptions, as soon as practicable following receipt by the Company. Proceeds of AllBlue Limited assets not capable of immediate realisation will subsequently be invested into HMSF with the exception of those proceeds due to shareholders pursuant to the Cash Exit.

Following implementation of the Proposals, it is intended to introduce a quarterly redemption facility, for up to 20% of the prevailing net asset value of the Company at NAV less costs, which may be implemented at the Board's discretion in each quarterly period. It is intended that net redemption proceeds would be paid to shareholders as soon as practicable following receipt by the Company.

A further announcement in relation to the Proposals will be made in due course.

For further information contact:

JTC (Guernsey) Limited, Secretary

Tel:  [phone]

Jefferies International Limited

Gary Gould/ Alex Collins

Tel:  + 44 (0) 20 7029 8000

Dexion Capital Plc

Robin Bowie/ Katie Standley

Tel:  [phone]

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

There can be no assurance that the Company's or HMSF's return objectives will be realized or that the Company or HMSF will not experience losses.

(1) The brand name for the Asset Management business of J.P. Morgan Chase & Co.

(2) As of 30 November 2015 net of all applicable fees and expenses.  Returns are estimated and unaudited for 2015.

(3)  As of 31 December 2015.

(4)  As of 1 December 2015.

 

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