SHARE

20 September 2023

          As SCB Asset Management Company Limited (SCBAM) previously announced on the closure of SCBADAGIO and SCBMBOND and returned the sale proceeds from the Mirror Fund after deduction of expenses to the unitholders.

          SCBAM would like to further update on the Side Pockets – July and August 2023 report of H2O Adagio SP SR and H2O MultiBonds SP I (the Master Funds of SCBADAGIO and SCBMBOND respectively) as follows:

Monthly comments:

July report:

          H2O AM actively works with its financial and legal advisors with the aim of enabling the reimbursement of the Side Pocket funds.

          H2O AM remains fully committed to liquidating the Side Pocket funds in the interest of unitholders. It was decided to temporarily suspend the publication of the estimated NAV for the Side Pocket funds as of end May and June 2023. Until further notice, please note that latest estimated NAV for SP funds remain those dated 28th of February 2023. It is reminded that the valuation uncertainty that led to the demerger of the funds remains. Only the liquidation will allow for an exact valuation.

August report:

          In March, we informed you of the suspension of estimated valuations for the segregated (“SP”) funds. The latest estimated valuations were published on 28 February 2023.

          An initial reimbursement phase for unitholders took place in January 2023 for the following six funds: H2O Adagio SP, H2O Moderato SP, H2O MultiBonds SP, H2O Allegro SP, H2O MultiEquities SP and H2O MultiStrategies SP, as a result of the partial reimbursement at the end of December 2022 of the First Super Senior Secured Note (FSSSN), held by several funds. Discussions are still ongoing and further information will be provided at a later date.

          We have decided to publish new estimated valuations and, due to the absence of further significant reimbursements, these estimated valuations have been reduced. The reduction varies due to the disparities in holdings of financial instruments within the SP funds. It is important to remember that the valuation uncertainty, which led to the segregation of the SP funds, remains and that any valuation is an estimate.

          We continue to work closely with our legal and financial advisers to achieve the full disposal of the assets making up the SP funds and, consequently, their liquidation. Our commitment to achieving this goal remains unchanged, as do our efforts to treat unitholders equally. Finally, we would like to emphasise that the segregated assets have no impact on the management of the FCP funds.

Source: Side Pockets – July and August 2023 report from H2O Asset Management. 

Please be informed accordingly.
SCB Asset Management Company Limited