Standard Asset Management
(a division of Standard Americas, Inc. and Standard Bank London Limited)
Standard Asset Selectio...
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Standard Asset Management


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Standard Asset Management

  1. 1. Standard Asset Management (a division of Standard Americas, Inc. and Standard Bank London Limited) Standard Asset Selection Leveraged Fund Limited fact sheet (Standard Global Strategy Leveraged Fund) April 2004 Fund Structure Standard Global Strategy Leveraged Performance A feeder fund that invests solely in the Liberty Ermitage Global Strategy Fund (LEGSF), a fund of funds investing in a broadly diversified portfolio of hedge funds. 2004 2003 Investment Advisor Liberty Ermitage Asset Management Jersey Limited. Liberty Ermitage, an affiliate of Standard Bank January 0.59% Group, has over $2 billion in assets under management with approximately $1.2 billion in alternative investments. February 2.14% Leverage Policy The Fund borrows capital from Standard Bank London Limited on a non-recourse basis to investors, March 0.86% with the objective of effectively doubling its exposure to the LEGSF. April -4.12%* Fund Statistics May Compounded Annual Return: -1.29% June Standard Deviation (annualized): 8.93% Sharpe Ratio: -0.34 July Maximum Drawdown: -4.12% Assets Under Management: $179.6 million *(LEGSF) August September Fund Facts October Investment Minimum: US$25,000 Fund Liquidity: Monthly November Notice Period: One month Domicile: Jersey, Channel Islands December 2.10% Investment Advisor: Liberty Ermitage Asset Management Jersey Limited Annual -0.65%* 2.10% Administrator and Manager: Standard Bank Unit Trusts Jersey Limited Custodian: Standard Bank Jersey Limited St andard Global Strategy Leveraged Fund NAV Auditor: PricewaterhouseCoopers, Channel Islands Comparison Promoter: Standard Americas, Inc. 107.00 Performance Attribution** 105.00 Convertible Arbitrage 14.90% Multi-Strategy 12.11% 103.00 101.00 Credit Arbitrage 5.04% Gold 2.81% 99.00 Commodity Trading Advisor 8.12% Event Driven 1.84% 97.00 Fixed Income 8.20% Volatility Arbitrage 1.42% 95.00 Nov- Dec-03 Jan-04 Feb-04 M ar- Apr-04 Long/Short Equity 11.22% Distressed 1.35% 03 04 Macro 19.54% Cash 12.07% SGSLF CSFB-Tremont HF Index 2.5 t imes 1 M onth Libor Fund of Funds 1.37% Advisor's Review Contact Details: The Standard Global Strategy Leveraged Fund NAV declined by an estimated –4.12% in April 2004 as the month proved Standard Americas, Inc. NY to be a very challenging time for hedge fund investments, with severe reversals in several long-term trends, including interest 320 Park Avenue rates, currencies and commodities, being the dominant features of the month. 19th Floor Fixed Income Arbitrage managers faired well amid significant market volatility. Good employment figures in the US and New York, NY 10022 higher than expected inflation reports had a significant impact on the bond market, which suffered its worst monthly perform- Charles Minnaar ance since June 2003. Another positive contribution came from Convertible managers, who despite seeing volatility sell off Senior Vice President steadily throughout the month, were positive, thanks to activity in Asia and a continued firm underpinning to the credit mar- (212) 407-5056 kets. Charles.Minnaar@ M&A activity was quiet, with manager performance primarily depending on whether they had exposure to one or two issue specific situations, which had a negative impact on performance. Standard Bank London Limited Still, the Investment Advisor feels that the markets are likely to provide some interesting opportunities for relative value Cannon Bridge House , 25 Dowgate Hill strategies in the months ahead. Uncertainties over factors such as the likelihood of China engineering a soft landing, the outlook for US interest rates, the effects of higher oil prices on inflation etc, could well cause significant turmoil across global London EC4R 2SB markets and provide ample trading opportunities for relative value specialists. Tel: +44 (0) 207-815-3083 In directional strategies, Long/Short equity was broadly flat over the month as equity markets declined. The prospect of rate hikes coming in the US sooner than previously anticipated, possibly even by August this year, is likely to weigh upon Standard Bank London Limited, equity markets in the months ahead. Current Long/Short managers tend to have low net exposures to the market and Argentina Representative Office generally add value through their stock picking, so the fund’s effective exposure to equity markets is limited. Torre Alem Plaza CTA and Macro funds had a very difficult month. CTA’s, in particular, were hurt by the sudden collapse in the bond Av. L.N. Alem 855, 22nd floor market on 2nd April, which resulted from a much higher than expected non-farm payroll number in the US. As a group, these Cap. Fed. (C1001AAD) - Buenos Aires funds were long bonds globally and were hurt on these positions as bonds continued to drift lower. The simultaneous rally in Nathalie Bauvin the dollar was also costly, as was the decline in equity markets spurred by interest rate fears. Towards the end of the month, Head of Sales the run of bad news continued as commodities sold off on indications that China was beginning to tighten the availability of Tel: 5411-5031-5566 credit. Macro funds also suffered for the most part with the reversal in trends, but there was more differentiation in the performance of the managers, given their different approaches to the markets. Disclaimer: The Standard Asset Selection Leveraged Fund Limited (the “Fund”) described herein is not offered or sold in the United States and this does not constitute an offer to buy or a solicitation of an offer to buy or sell in any jurisdiction in which an offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation. Offers and solicitations to invest in the Fund shall be made only by the Fund's official Prospectus. The Fund has not been nor will it be registered under the United States Securities Act of 1933; or the Investment Company Act of 1940, as amended. Past performance is no indication of future results. Fund historical performance does not promise the same or similar results in the future. Principal value, share prices and investment returns fluctuate with changes in market conditions. The information contained herein has been compiled from sources believed to be reliable, however Standard Asset Management (“SAM”) does not guarantee its accuracy or completeness. Opinions, forecasts and estimates constitute our judgment as of the date of this report and are subject to change without notice. This report is not a solicitation of an order to buy or sell securities or to provide investment advice or service. SAM or its affiliates may from time to time be long or short in the securities mentioned herein. SAM or its affiliates may act as principal, agent or market maker or provide other services to the issuers of securities mentioned herein. This report is provided for information purposes only and may not be copied or distributed to any other person without the prior written consent of SAM. This document is not intended for the use of private customers in the United Kingdom. This document must not be acted on or relied on by persons who are private customers in the UK. Any investment or investment activity to which this document relates is only available to persons other than private customers and will be engaged in only with such persons. Standard Bank London Limited is authorised and regulated in the United Kingdom by the Financial Services Authority ("FSA") and entered in the FSA's register (register number 124823). Value Added Tax identification number 625861525. Copyright 2003, Standard Bank London Limited, Cannon Bridge House, 25 Dowgate Hill, London EC4R 2SB (SW—AM11). F2004.116. * Estimate ** Based on LEGSF performance gross of fees.