BTEM’s NAV fell by 2.8% over November in a month where returns in local currency were swamped by a strengthening Pound on growing expectations of a “soft” BREXIT. Against Sterling, the Euro fell by 5.4%, the Norwegian Krone by 5.0%, the Swedish Krona by 4.3%, the Japanese Yen by 10.0%, and the US Dollar by 2.2%. This follows an October in which we had benefitted from Sterling weakness, and a pattern of currency volatility is becoming well established.
Our top position, AP Alternative Assets (AAA), was by far our largest contributor as its sole holding – fixed annuity specialist Athene Insurance – officially launched its IPO and AAA shares rose 16% (in USD) in response to add 89bps to our NAV. AAA is distributing 12.5% of its stake in Athene to AAA shareholders which can then be sold at the IPO.