RCS - Alpha Growth PLC - Alpha Alternative Assets Fund Update

Alpha GrowthAnnouncement

Wed 08:15

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RNS Number : 3009L  Alpha Growth PLC  04 June 2025

 

 

REACH: non-regulatory announcement

Alpha Growth plc

("Alpha" or the "Company")

Alpha Alternative Assets Fund Update ("AAAF")

Alpha Growth Plc, a leading financial services company in the life
insurance-linked asset/wealth management business, is pleased to provide the
following update for its group company, Alpha Growth Management LLC.

 

Alpha Growth Management LLC, a specialist in esoteric and longevity-based
investments, announces a performance and strategy update for the Alpha
Alternative Assets Fund (Nasdaq: I Shares - AAACX and A Shares - AACAX) since
the firm assumed management in September 2022.

 

Strategic Transition and Investment Focus

In September 2022, Alpha Growth Management LLC took over as investment adviser
for AAAF, implementing a new strategy centered on longevity and esoteric
assets. The fund now targets structured settlement receivables, legal finance,
life settlements, royalties, and other unconventional assets designed to
deliver low correlation to traditional markets and offer unique risk premiums.
This approach leverages Alpha Growth's extensive expertise in sourcing and
managing assets that are typically inaccessible to most investors with limited
quarterly liquidity through the interval fund structure.

 

Performance Overview: September 2022 - May 2025

·   Trailing twelve months (1 year) as of 5/31/2025: AAAF continued its
positive momentum, posting a 7.44% net return.

·   2024: AAAF continued its positive momentum, posting a 5.85% return
year-to-date as of December 31, 2024. This performance outpaced its benchmark,
which returned 3.60% during the same period.

·   2023: The fund achieved a positive annual return of 1.99% for the full
year 2023, marking a turnaround from prior declines and reflecting early
benefits of the revised investment approach.

·    2022 (Post-Transition Partial Year): Following the management change,
AAAF returned -1.24% for the period ending September 30, 2022, outperforming
the Bloomberg Barclays Global Aggregate Index, which returned -5.14% in the
same period.

 

Key Differentiators and Portfolio Construction

·   Dual-Strategy Approach: AAAF employs a dual-sleeve structure, balancing
illiquid longevity assets with a liquid sleeve to manage cash flow and provide
quarterly repurchase offers.

·  Diversification and Risk Management: The fund's portfolio is constructed
to minimize correlation with traditional equity and bond markets, offering
investors potential refuge from broader market volatility.

·    Quarterly Liquidity: As an interval fund, AAAF provides quarterly
repurchase offers, allowing investors periodic access to liquidity while
maintaining exposure to less liquid, potential higher-yielding assets.

 

Industry Context

AAAF's recent performance demonstrates the potential of alternative strategies
to deliver value in a challenging and evolving investment environment. The
fund's focus on longevity and esoteric assets positions it within the interval
fund landscape, providing access to asset classes traditionally reserved for
institutional investors.

 

About Alpha Growth Management LLC

Alpha Growth Management LLC is a US-registered investment adviser specializing
in alternative investment strategies, with a focus on esoteric and longevity
assets. The firm is committed to delivering innovative portfolio solutions
that provide diversification and enhanced return opportunities for investors.

 

For more information on Alpha Alternative Assets Fund, please visit
https://funds.alphagrowthmgt.com/ (https://funds.alphagrowthmgt.com/)

 

 Alpha Growth plc                        +44 (0) 20 3959 8600
 Gobind Sahney, Executive Chairman       info@algwplc.com (mailto:info@algwplc.com)
                                         ir@algwplc.com (mailto:ir@algwplc.com)

 UK Investor Relations - Mark Treharne

 

 

About Alpha Growth plc

 

Specialist in Longevity Assets

 

Alpha Growth plc is a financial advisory business providing specialist
consultancy, advisory, and supplementary services to institutional and
qualified investors globally in the multi-billion dollar market of longevity
assets and insurance linked asset and wealth management. Building on its
well-established network, the Alpha Growth group has a unique position in the
insurance and asset services and investment business, as a listed entity with
global reach. The group's strategy is to expand its advisory and business
services via acquisitions and joint ventures in the UK and the US to attain
commercial scale and provide holistic solutions to alternative institutional
investors who are in need of specialized skills and unique access to deploy
their financial resource in longevity assets.

 

Longevity Assets and Non-correlation

 

As a longevity asset, it is non-correlated to the real estate, equity capital
and commodity markets.  Its value is a function of time because as time
passes the value gets closer to the face value of the policy. Hence creating a
steady increase in the net asset value of the investment. This makes it highly
attractive to investors wishing to counteract volatility within an investment
portfolio and add yield.

 

Note: The Company only advises on and manages Longevity Assets that originate
in the USA where the structured and life settlement market is highly
regulated.

 

Important Disclosures

 

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION TO PURCHASE ANY SECURITY.
INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES
AND EXPENSES OF THE ALPHA ALTERNATIVE ASSETS FUND.

 

IMPORTANT RISK INFORMATION Investing in esoteric assets involves unique risks,
distinct from those associated with traditional asset classes. These risks may
include, but are not limited to, liquidity risk, market risk, regulatory risk,
and valuation risk. Investors should be aware that the value of esoteric
assets may fluctuate, and there is a possibility of partial or total loss of
investment. Investors should be aware that these assets may not align with
traditional risk models, leading to increased volatility and heightened
sensitivity to external factors. Before engaging in esoteric asset
investments, it is advisable for investors to thoroughly understand the
associated risks, seek professional guidance, and stay informed about market
developments. Due diligence is crucial, as thorough research and expert advice
are essential to navigating the complexities associated with esoteric assets.
Past performance is not indicative of future results, and the unique
characteristics of esoteric assets require careful consideration and a
well-informed investment strategy.

Investing in the Fund's shares involves risks, including the following: The
Fund's shares have limited pricing or performance history. Shares of the Fund
will not be listed on any securities exchange, which makes them inherently
illiquid. There is no secondary market for the Fund's shares, and it is not
anticipated that a secondary market will develop. The shares of the Fund are
not redeemable. Although the Fund will offer to repurchase at least 5% of
outstanding shares on a quarterly basis in accordance with the Fund's
repurchase policy, the Fund will not be required to repurchase shares at a
shareholder's option nor will shares be exchangeable for units, interests or
shares of any security. The Fund is not required to extend, and shareholders
should not expect the Fund's Board of Trustees to authorize, repurchase offers
in excess of 5% of outstanding shares. Regardless of how the Fund performs, an
investor may not be able to sell or otherwise liquidate his or her shares
whenever such investor would prefer and, except to the extent permitted under
the quarterly repurchase offer, will be unable to reduce his or her exposure
on any market downturn. If and to the extent that a public trading market ever
develops, shares of closed-end investment companies, such as the Fund, may
have a tendency to trade frequently at a discount from their NAV per share and
initial offering prices. An investment in the Fund's shares is not suitable
for investors who cannot tolerate risk of loss or who require liquidity, other
than liquidity provided through the Fund's repurchase policy. Alternative
investments are highly speculative and involve a great degree of risk and are
not suitable for all investors. Full loss of principal is possible. The fund
may engage in the use of leverage and other speculative investment practices,
such as short sales, options, derivatives, futures and illiquid investments
that may increase the risk of investment loss. Investment return and principal
value will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than original cost.

 

IMPORTANT DEFINITIONS: Esoteric Assets: Esoteric Assets refer to debts or
other financial instruments with a complex structure that is properly
understood by only a few people with specialized knowledge.

Litigation Finance, also known as third-party litigation funding, is a
financial arrangement where a third party provides capital to a plaintiff or
defendant in a lawsuit, in exchange for a share of any resulting settlement or
judgment.

Correlation refers to the degree to which the price of a particular asset or
investment moves to the overall stock market.

A Life Settlement is the sale of an existing life insurance policy to a third
party for a lump-sum payment, typically more than the policy's cash surrender
value but less than the death benefit. The buyer becomes the new policy owner
and beneficiary.

Structured Settlements are legal settlements paid out as an annuity rather
than in a lump sum, usually with certain tax advantages for the recipient and
savings for the payer.

A Royalty Deal is an agreement where someone receives a payment, typically a
percentage of revenue or a fixed amount per unit, for the use of their
property, intellectual property, or assets.

SPE or Special Purpose Entity, is a legal entity (often a limited company)
created to fulfill specific or temporary objectives, often used to isolate
financial risks or manage specific asset.

Non-Bid: A contract awarded or executed without seeking bids or proposals from
any other potential bidder or offerer.

Non Flow: Unlike equities that may pay out no cash flows to investors, or
variable-income securities, where payments can change based on some underlying
measure, such as short-term interest rates, the payments of a fixed-income
security are known in advance and remain fixed throughout.

Non-Market:: Not relating to or influenced by the demand of people to buy
certain things or the supply of things to be purchased.

Non-Auctioned: Do not participate in a formal auction for the securities but
instead accept the market price set by other participants.

Non-Brokered:: A company sells the security directly to investors. By doing
this, the company can forgo the fees and hassle of hiring a broker (often an
investment bank) and maintains more control over the selling process.

Alpha: Alpha is used in finance as a measure of performance, indicating when a
strategy, trader, or portfolio manager has managed to beat the market return
or other benchmark over some period.

 

DIVERSIFICATION DOES NOT GUARANTEE AGAINST A LOSS.

BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND'S INVESTMENT
OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE
PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED FROM ALPHAGROWTHMGT.COM. PLEASE
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.

 

Distributed by ALPS DISTRIBUTORS INC.

 

AAA00000155

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