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BAF, BLUE SKY ALTERNATIVES ACCESS FUND LIMITED
nipper
post Posted: Jun 30 2020, 11:27 AM
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light. tunnel?
QUOTE
Regrettably, there has been a delay against the indicative timetable for the completion of long-form legal documentation referenced on 28 February 2020. This is partly due to impacts of COVID-19 on the parties ' ability to progress the work.

However, it is also partly due to differences of understanding between BAF and BSAAF that emerged in relation to one aspect of the non-binding term sheet signed in February 2020, being the details of the treatment of different categories of fee rebates on the transition of management services away from BSAAF.
b*stds.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: oilleak  
 
nipper
post Posted: Apr 14 2020, 03:06 PM
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... while investment markets are suffering the adverse impacts of the pandemic, at the end of March, over 57% of your Alternatives Fund’s portfolio is in cash (25.4%) and Water Fund investments (32.1% on an aggregated basis). This is serving you well in the current crisis. The Agricultural and Water investments within the portfolio (approximately 42% of the overall portfolio) have felt little to no impact to date, with Water having a strong month. Demand for farm produce has not fallen, and all of the export channels remain open.

The portfolio also has a number of unhedged investments across the broader portfolio, in particular investments into the US (esVolta, Cove). These were insulated to a degree by the 13% or so fall in the Australian dollar over the last quarter (6% fall in March). However, there are certainly significant negative impacts in the other parts of the portfolio, and the portfolio managers and the Board have been taking action to mark down carrying values as a result.

Following the asset review, the Board confirms that the pre-tax NTA of the Alternatives Fund decreased by 1.94 cents per share, or 1.73%, to $1.1033 per share in March. The decrease was the result of a combination of manager valuation adjustments as well as additional provisions introduced by the Board. The Growth Capital and Venture Capital portfolios (comprising 26% of the overall portfolio) were most significantly impacted, with investments adjusted anywhere between 0% and 37% downward. The expected outlook remains wide-ranging from severe to neutral and in some instances positive. Healthcare and consumer staple exposures are obvious examples of sectors that have held up comparatively well.


Shareholders seem to be offloading still. Was mid-60's prior to this Ann, but has lifted to 73c. Wilson hasn't managed to stop the outflow (Covid cashing out a likely contributor, as the buybacks offer a liquidity that may not be found elsewhere)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: oilleak  
 
nipper
post Posted: Feb 28 2020, 05:58 PM
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Wilson Asset Management secures Blue Sky Alternatives management rights

Blue Sky Alternatives Access Fund Limited (ASX: BAF) has today announced the key commercial terms to effect the transition of its management to Wilson Asset Management, terminating the existing management services agreement between BAF and Blue Sky Alternative Access Fund Management Pty Ltd.

The BAF Board said it "believes new management under Wilson Asset Management will provide BAF shareholders with the opportunity to gain access to a portfolio of alternative assets within an attractive structure managed by an experienced and specialised investment manager." We are excited to engage with BAF shareholders and look forward to providing retail investors with exposure to exciting alternative asset opportunities.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: oilleak  
 
nipper
post Posted: Feb 17 2020, 02:16 PM
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The negotiations with Wilson Asset Management, KordaMentha, Oaktree and other stakeholders, continue as we work with our legal advisers to settle the final terms of the manager transition. The other stakeholders referred to include the management teams created out of the former Blue Sky Group that are now partly owned by Oaktree; namely Argyle Group, January Capital and Fortitude Investment Partners.

We hope to be in a position to advise of meaningful new developments shortly.
lawyers field day



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jan 16 2020, 03:03 PM
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Interview by Alan Kohler with BAF head

https://omny.fm/shows/ceo-interviews/michae...ves-access-fund

It's 26 minutes long. Yes it's complex unwinding the prior setups and the complexity is challenging, yes the Wilson tie-up still looking a goer, yes the existing/ remaining assets are fundamentally solid but the lack of transparency is part of the sub NTA pricing issue.

Expect a name change, and a desire to employ the 30% cash now sitting there. Will have a new emphasis on Alternatives under a new team, no firesales, likely to let existing assets run, and to move into private debt and infrastructure. And remove the discount to NTA (somehow).




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Nov 13 2019, 05:05 PM
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QUOTE
Shareholders of BAF have been waiting for a year for news on its future management plans after negotiations with an entity owned by Pinnacle Investment Management and Andrew Champion collapsed. The LIC had warned mid-month that fresh negotiations to appoint a new manager were "incomplete" and that other options such as an orderly wind down of the portfolio were under consideration.

Mr Wilson told the meeting that his aim was to get the business to a $1 billion firm, saying "I see no reason" why that wouldn't be possible. [He] acknowledged that a shift into the alternatives space would be a new avenue for Wilson Asset Management but appeared undaunted by the task.

"There is enormous demand for the alternative space in Australia," he said. "Our plan is to get Blue Sky trading at true value – to get the share price to reflect the NTA [net tangible assets]." Blue Sky's LIC trades at a 22 per cent discount to NTA.

Mr Wilson takes the view that the long process to appoint a manager has "tightened up the share register and all the stale bulls and non-believers have gone". He said on the sidelines of the annual meeting that WAM planned to charge a 1 per cent management fee for a five-year agreement, and would not charge a performance fee.

https://www.afr.com/markets/equity-markets/...20191113-p53a3t



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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nipper
post Posted: Nov 13 2019, 11:09 AM
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Following an extensive process, BSAAF, BAF’s current manager and BAF have reached a consensus on key commercial terms (on a without prejudice and without admissions basis) to facilitate a consensual transition of BAF’s management rights to Wilson Asset qManagement. This consensus is not final and remains subject to further negotiation and conditions




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 21 2019, 11:23 AM
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QUOTE
Following the appointment by Oaktree Capital Management L.P of KordaMentha as receivers and managers to Blue Sky Alternative Investments Limited (BLA) on 20 May 2019, your Board have been engaged with KordaMentha and Oaktree to discuss the impact the receivership of BLA has on the appointment of a replacement manager to BAF.

Consideration continues to be given to a range of possible options, including termination of the exclusive management services agreement between BAF and its manager BSAAF Management Pty Limited, other possible actions under the MSA and an orderly wind-down of BAF and return of capital to BAF shareholders.

As part of those considerations of possible options, discussions have been ongoing between BAF and BSAAF on a without prejudice basis. BSAAF’s interests in these discussions have been represented by KordaMentha in their capacity as receivers and managers of BLA. Oaktree has also been directly involved in these discussions.

Since 20 May 2019, the Chairman of BAF, as well as Oaktree and KordaMentha, have received a number of approaches from organisations interested in becoming BAF’s investment manager. We continue to believe that it is in the best interests of all BAF shareholders for an orderly replacement manager transition to occur. In pursuit of this objective, BAF, KordaMentha and Oaktree are exploring, on a without prejudice basis, a new replacement manager process under which KordaMentha will issue a request for proposal seeking proposals from five pre-selected candidates to replace BSAAF as manager of BAF.

In addition to any alternate proposals that may be submitted, the proposal from Wilson Asset Management International Pty Limited remains current and this proposal has automatically been included in the process.

The selected candidates will be given a short period to submit proposals and following that period BAF will select one preferred replacement manager candidate to enter into a short period of exclusive due diligence.
- still "stubbornly" around 80c and well off that aspired NTA. For good reason, I think; going to be a long drawn out process.... and I'd be suspicious of Oaktree all along the way.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: mullokintyre  
 
nipper
post Posted: Jul 15 2019, 10:26 AM
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A bit of double talk, or valuation disconnect, going on here ?
QUOTE
The pre-tax NTA of the Alternatives Fund increased by 2.1 cents per share, or 1.9%, to $1.1343 per share in June. The growth in NTA was largely driven by an increase in carrying values of several assets across the portfolio.

During the month, the Alternatives Fund continued its on-market share buy-back program and acquired an additional 315,147 shares at an average price of $0.7222 representing a 36% discount to June’s pre-tax NTA. The buyback will recommence following lodgement of this report.

The Board would like to acknowledge the significant work undertaken by the manager to strengthen and improve the valuation process including the appointment of a new valuer, streamlining processes and increasing the transparency of the valuation process supporting the individual asset values. The Board has every confidence that these changes will enhance the robustness of the Company’s financial statements.
- Investors happy to get out, at a big discount. Those buying would have the opposite view.

Currently trading around 77c.

Truth lies in the middle, or is it just an illiquidity / visibility discount?




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 12 2019, 10:04 AM
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QUOTE
During June, the directors of BAF invited GVF portfolio manager, Miles Staude, to join the BAF Board. Miles is looking forward to working with the existing BAF directors in their efforts to ultimately see the substantial underlying value within the company realised for the benefit of all shareholders.

- GVF hold 10,868,143 ordinary shares in BAF, according to the Initial Directors notice
(and saw something about the Student Housing holding likely to be sorted out in an acceptable manner, in next few months)




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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