Notice to Optionholders

The following instructions should be read in conjunction with the Option Terms available here. Capitalised terms have the same meaning as defined in Section 1.1 of the Option Terms.

If you are the holder of an Option to acquire a Share in the Company you have until 5:00pm (AEST) on 16 December 2015 to exercise some or all of your Options. The Options are exercisable at $0.9827 per Option and must be exercised in multiples of 500 Options, unless you are exercising all Options held by you.

How to exercise your Options

Should you wish to exercise some or all of your Options, please complete the following steps:

  1. Send the Company (Attention: Company Secretary, Blue Sky Alternatives Access Fund Limited, PO Box 15515, Brisbane QLD 4002) your completed Exercise Notice (available here), specifying the number of Options being exercised and Shares to be issued;
  2. at the same time, submit payment of the Exercise Price for the options to the Company by bank cheque or electronic funds transfer to the following bank account:

Bank: Westpac
Name: Blue Sky Trust Account
BSB: 034 001
Account No.: 263 641
Reference: BAF – holding name

At the Company’s discretion, Options may be deemed to have been exercised on the last day of the month in which the application is lodged with the Company. In the event the application for an exercise of Options is received after 1 December 2015 but before 31 December 2015, the Options will be deemed to have been exercised on the Expiry Date.

After receiving an application for exercise of Options and payment by an Optionholder of the Exercise Price, the Company must within 15 Business Days after the deemed exercise date, issue the Optionholder the number of fully paid ordinary shares in the capital of the Company specified in the application.

Overview

The Blue Sky Alternatives Access Fund Limited (‘The Alternatives Fund’) is a listed investment company mandated to invest in a diversified portfolio of alternative assets managed by a wholly owned subsidiary of Blue Sky Alternative Investments Limited (‘Blue Sky’).

The Alternatives Fund provides investors with the opportunity to access an actively managed portfolio of alternative assets and gain exposure to the investment experience, expertise and track record of Blue Sky.

The Alternatives Fund’s objective is to achieve long-term pre-tax returns (net of fees) that are higher than the hurdle rate (which is a fixed rate of 8.0% per annum), through capital growth and dividends by investing in a portfolio of alternatives.


Why Alternatives?

Alternatives refer to a range of asset classes that display different risk return characteristics to traditional asset classes such as cash, listed equities and bonds. Examples of asset classes that are commonly referred to as ‘alternative asset classes’ include Real Assets, Private Equity, Private Real Estate and Hedge Funds.

Alternative assets have the potential to help investors enhance the risk/return characteristics of their portfolios.

Globally, institutional investors allocate an average of 24%1 of their portfolios to alternative assets. Examples of institutional investors that allocate a significant proportion of their portfolios to alternative assets include:

  • Future Fund - 39%2
  • Harvard Management Company – 42%
  • CalPers – 21%

In Australia, Alternatives are projected to become Australia’s largest asset class 2021 with international equities in second place.3

  1. Source: Global Pension Assets Study 2016, Willis Towers Watson (February 2016).
  2. Includes assets identified by the Future Fund as either alternative assets, private equity, infrastructure and timberland and property as at 31 December 2015.
  3. Rainmaker Information (Rainmaker Roundup - September 2015, Edition 72 (December 2015).

Why Invest?

The Alternatives Fund is the only directly managed and diversified alternatives-focused listed investment company (LIC) on the ASX.

The Alternatives Fund allows investors to:

  • secure a distinctive opportunity to gain exposure to a diversified portfolio of alternative assets;
  • diversify their existing portfolio and potentially reduce overall volatility in their investment portfolio, through the low correlation of alternative assets to traditional asset classes such as listed equities and bonds;
  • access an investment manager with a strong track record in investing in alternative assets;
  • take advantage of higher liquidity than what is typical for a direct investment in unlisted alternative assets, given the Alternatives Fund is a listed public company;
  • be aligned with the manager of the fund, due to the manager’s absolute return performance fee structure;
  • obtain an investment in alternative assets with a relatively low fee structure (compared with most unlisted alternative asset funds); and
  • have the benefit of oversight from a Board with strong experience in capital markets, corporate governance and investment.

Blue Sky has a track record of generating returns to investors across its funds of 16.4% per annum (net of fees, since inception).


Key Offer Statistics

Securities offered Fully paid Shares with one Option for every one Share allotted
Issue Price under the General Offer $1.00
Issue Price under the Broker Firm Offer, comprising a Subscription Price of 98.35 cents per Share, payable to the Company, and a Service Fee of 1.65 cents per Share (inclusive of GST), payable to your Broker (if you consent to the payment of the Service Fee) $1.00
Issue Price under the Priority Offer, comprising:
  • (i) solely the Subscription Price if no valid claim is submitted by a Broker; or
  • (ii) where a valid claim is submitted by your Broker, a Subscription Price of 98.35 cents per Share payable to the Company and a Service Fee of 1.65 cents per Share (inclusive of GST) payable to your Broker (if you consent to the payment of the Service Fee)
$1.00
Minimum number of Securities available under the Offer 50,000,000 Shares
50,000,000 Options
Gross proceeds from the Offer (before exercise of any Options) based on the Minimum Subscription(1) $50,000,000
Maximum number of Securities available under the Offer(2) 101,677,682 Shares
101,677,682 Options
Gross proceeds from the Offer (before exercise of any Options but after payment of the Service Fee) based on the Maximum Subscription $100,000,000
Excercise price per Option $1.00
Unaudited NAV backing per Share(3) based on the Minimum Subscription being received (based on the unaudited statements of financial position set out in Section 7) $0.9794
Unaudited NAV backing per Share(3) based on the Maximum Subscription being received (based on the unaudited statements of financial position set out in Section 7) $0.9818
  1. Calculated on the assumption that 100% of the Offer is raised under the General Offer and no Service Fee is payable.
  2. Calculated on the assumption that 100% of the Applicants are eligible to pay, and consent to the payment of, the Service Fee.
  3. Calculated before the exercise of any Options and on the assumption that Applicants for 50% of the Offer are eligible to pay, and consent to the payment of, the Service Fee.

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Board of Directors


Andrew Champion

Chairman

Andrew Champion has 20 years’ experience in corporate advice and finance and has been responsible for private equity and alternative assets coverage for two leading investment banks out of London and Sydney. He also has extensive experience in leading M&A and debt and equity funding for SME’s in Australia.

Having joined Blue Sky in January 2013, Andrew runs Blue Sky’s Sydney office and is head of Blue Sky’s capital market activities.

Andrew holds a Bachelor of Commerce and Bachelor of Laws and has been a member of Institute of Chartered Accountants in Australia and New Zealand since 1994. Andrew is a member of the Remuneration and Nomination Committee of the Company.


Paul Masi

Independent non-executive director

Paul Masi has over 30 years of experience in financial services and investment banking.

Paul was appointed to the board of Shaw Stockbroking in July 2012 as an independent non‑executive director. Prior to that appointment Paul was chief executive officer of Austock Group Ltd from March 2010 to May 2012. Prior to joining Austock Paul was at Merrill Lynch which he joined in October 2000 as head of Australian sales before being promoted to co country head in 2002. In 2003, Paul transferred to Hong Kong to become head of equities and equity trading Asia Pacific for Merrill Lynch and in 2006 he returned to Australia as chief executive officer.

Paul holds a Bachelor of Economics from Macquarie University and has completed the AGSM Accelerated Management Program. Paul is a non-executive director of the Cerebral Palsy Alliance and the Girls and Boys Brigade.


Philip Hennessy

Independent non-executive director

Philip Hennessy stood down as Queensland chairman of KPMG in February 2013 after 12 years in the role and retired from the partnership in July 2013.

Over the past 30 years Philip has been involved in corporate insolvency and reconstruction across a variety of industries including construction, real estate, mining, manufacturing, professional services, hospitality, tourism, agriculture and financial services.

He has served as a chairman and director on a number of government owned corporations focussed on water storage, treatment and transport services to industrial and mining customers and for household use, and also involving the construction of pipelines, dams and other infrastructure. Philip has also been a director of various not-for-profit organisations serving intellectually disabled women, children with chronic health issues, hospitals and education.

Philip is currently an independent company director and adviser to public, private and not for profit organisations.


Michael Cottier

Independent Non-executive director

Michael Cottier has a more than twenty year track record of senior leadership, and extensive Board experience in the superannuation and funds management industry, with a focus on audit and risk management and investment process.

Michael has served in the past as CFO of QIC Limited, one of Australia’s leading investment managers, and CFO of QSuper Group, one of Australia’s leading superannuation funds with more than 550,000 members and over $65 billion in funds under management.

Michael currently serves as an independent non-executive Director and Chairman of the Board Audit Risk and Compliance Committee of BT Super, part of the BT Financial Group, and is a non-executive Director of a number of other prominent for-profit and not-for-profit Boards.


Laz Siapantas

Non-independent executive director

Laz Siapantas joined the Blue Sky Group in December 2013 establishing the Melbourne office and since that time has been responsible for building Blue Sky's presence across the Victorian and South Australian markets.

Laz is an executive director and sits on the board of Blue Sky Alternatives Access Fund Limited (ASX:BAF). Since its initial public offering in June 2014, Laz has played a pivotal role in the growth of the Alternatives Fund business through his deep experience in private capital markets and in particular, in alternative assets.

With more than 12 years’ experience in the financial services industry, Laz’s main focus has been on distribution and capital raising for domestic and international asset managers spread across alternative investments, equities, currencies and bonds. Laz has extensive experience in dealing with boutique and private wealth businesses, multi-managers, private banks, foreign investment banks, high net worth and family office investors. Prior to his involvement in funds management, Laz held compliance, investment committee and investment advisory roles for a privately owned Australian investment business.


Lachlan McMurdo

Non-independent executive director

Lachlan is an Investment Director in the private equity division of Blue Sky Alternative Investments Limited, where he is responsible for originating and executing private equity transactions as well as working with the management teams of investee businesses to deliver investor returns.

Lachlan holds directorships on a number of Blue Sky Private Equity businesses and since joining Blue Sky has led investments into several private equity portfolio companies, including Origo Education, Wild Breads and THR!VE. Lachlan also led the successful sale of Viking Rentals to Bayfront Capital in 2015.

Contact

Company

Blue Sky Alternatives Access Fund Limited
Suite 1808, Level 18 Australia Square
264-278 George Street
Sydney NSW 2000
Ph: (07) 3270 7500
Email: investorservices@blueskyalternativesfund.com.au
blueskyfunds.com.au/alternativesfund

Share Registry

Link Market Services
Level 15
324 Queen Street
Brisbane QLD 4000
www.linkmarketservices.com.au

Auditor

Ernst & Young
Level 51, 111 Eagle Street
Brisbane QLD 4000
www.ey.com.au

ASX Announcements

ASX:BAF Announcements Date Download
ASX:BAF Announcements Date Download
Net Tangible Asset Backing 13 April 2017
Appendix 3B 21 March 2017
Update - Dividend/Distribution - BAF 14 March 2017
Net Tangible Asset Backing 14 March 2017
Initial Director's Interest Notice 20 February 2017
Changes to Board of Directors 20 February 2017
Net Tangible Asset Backing 14 February 2017
Dividend/Distribution - BAF 10 February 2017
Appendix 4D and Interim Financial Report 10 February 2017
Net Tangible Asset Backing 13 January 2017
Net Tangible Asset Backing 13 December 2016
Sale of BLA shareholding to professional investor groups 02 December 2016
Appendix 3B 25 November 2016
Final Director's Interest Notice 24 November 2016
Results of 2016 AGM 18 November 2016
2016 AGM - Presentation 18 November 2016
Change of Director's Interest Notice 17 November 2016
Change of Director's Interest Notice 17 November 2016
Change of Director's Interest Notice 17 November 2016
Net Tangible Asset Backing 14 November 2016
Appendix 3B 11 November 2016
Completion of Entitlement Offer 11 November 2016
Offer to raise up to approximately $47 million 09 November 2016
Despatch of Entitlement Offer Prospectus 25 October 2016
Investor Presentation 18 October 2016
Letter to Ineligible Shareholders 18 October 2016
Letter to Eligible Shareholders 18 October 2016
Appendix 3B 18 October 2016
Entitlement Offer Prospectus 18 October 2016
Offer to raise up to approximately $47 million 18 October 2016
Annual Report 14 October 2016
Notice of Meeting and Proxy Form 14 October 2016
Chairman's Letter 14 October 2016
Becoming a substantial holder from MGP 13 October 2016
Net Tangible Asset Backing 13 October 2016
Appendix 3B 11 October 2016
Initial Director's Interest Notice 30 September 2016
Changes to Board of Directors 30 September 2016
Notification of AGM Date 22 September 2016
Net Tangible Asset Backing 14 September 2016
Update - Dividend/Distribution - BAF 13 September 2016
Appendix 4G and Corporate Governance Statement 19 August 2016
Dividend/Distribution - BAF 19 August 2016
Appendix 4E and FY16 Annual Financial Report 19 August 2016
Net Tangible Asset Backing 12 August 2016
Investor Webinar & Portfolio Update 22 July 2016
Net Tangible Asset Backing 19 July 2016
Net Tangible Asset Backing 14 July 2016
Blue Sky Alternatives Access Fund Investor Webinar 06 July 2016
Net Tangible Asset Backing 14 June 2016
Guidance in relation to dividend intentions 26 May 2016
Net Tangible Asset Backing 13 May 2016
Resignation of Joint Company Secretary 26 April 2016
Net Tangible Asset Backing 13 April 2016
Initial Director's Interest Notice 22 March 2016
Final Director's Interest Notice 22 March 2016
Changes to Board of Directors 22 March 2016
Net Tangible Asset Backing 14 March 2016
Appendix 4D and Interim Financial Report 19 February 2016
Net Tangible Asset Backing 12 February 2016
Updated Investment Valuation Policy 27 January 2016
Net Tangible Asset Backing 14 January 2016
Disclosure Document 18 December 2015
Disclosure Document 18 December 2015
Appendix 3B 18 December 2015
Change of Director's Interest Notice 16 December 2015
Change of Director's Interest Notice 16 December 2015
Ceasing to be a substantial holder from BLA 16 December 2015
Change in substantial holding from BLA 16 December 2015
Appendix 3B 16 December 2015
Appendix 3B 14 December 2015
Appendix 3B 14 December 2015
Net Tangible Asset Backing 14 December 2015
Appendix 3B 11 December 2015
Appendix 3B 10 December 2015
Appendix 3B 08 December 2015
Appendix 3B 07 December 2015
Appendix 3B 25 November 2015
Results of Meeting 19 November 2015
2015 AGM - Presentation 19 November 2015
Letter to Option Holders 18 November 2015
Appendix 3B 17 November 2015
Blue Sky Alternatives Access Fund Investor Webinar 16 November 2015
Net Tangible Asset Backing 13 November 2015
Appendix 3B 09 November 2015
Appendix 3B 06 November 2015
Update - Dividend/Distribution - BAF 03 November 2015
Appendix 3B 02 November 2015
Appendix 3B 29 October 2015
Appendix 3B 28 October 2015
Appendix 3B 28 October 2015
Appendix 3B 26 October 2015
Appendix 3B 23 October 2015
Change of Director's Interest Notice 22 October 2015
Appendix 3B 22 October 2015
Change of Director's Interest Notice 21 October 2015
Appendix 3B 21 October 2015
Annual Report 19 October 2015
Notice of Annual General Meeting/Proxy Form 19 October 2015
Chairman's Letter 19 October 2015
Appendix 3B 16 October 2015
Appendix 3B 15 October 2015
Appendix 3B 14 October 2015
Net Tangible Asset Backing 14 October 2015
Appendix 3B 09 October 2015
Appendix 3B 08 October 2015
Appendix 3B 06 October 2015
Appendix 3B 02 October 2015
Letter to Option Holders 01 October 2015
Appendix 3B 30 September 2015
Blue Sky Alternatives Access Fund Investor Webinar 29 September 2015
Appendix 3B 25 September 2015
Appendix 3B 21 September 2015
Appendix 3B 16 September 2015
Letter to shareholders - Dividend Reinvestment Plan 16 September 2015
Investor Presentation 14 September 2015
Net Tangible Asset Backing 14 September 2015
Appendix 3B 07 September 2015
Dividend Reinvestment Plan 24 August 2015
Appendix 4G and Corporate Governance Statement 24 August 2015
Dividend/Distribution - BAF 24 August 2015
Appendix 4E and FY15 Annual Financial Report 24 August 2015
Appendix 3B 21 August 2015
Net Tangible Asset Backing 14 August 2015
Appointment of Company Secretary 15 July 2015
Net Tangible Asset Backing 14 July 2015
Net Tangible Asset Backing 12 June 2015
Appendix 3B 01 June 2015
Appendix 3B 27 May 2015
Further allocation to the Blue Sky Water Fund 27 May 2015
Appendix 3B 22 May 2015
Completion of Entitlement Offer to raise $20,131,934 21 May 2015
Net Tangible Asset Backing 14 May 2015
Change of Director's Interest Notice 12 May 2015
Change of Director's Interest Notice 12 May 2015
Appendix 3B 08 May 2015
Entitlement Offer 06 May 2015
Notice to Option Holders 23 April 2015
Appendix 3B 20 April 2015
Completion of despatch of Entitlement Offer documents 20 April 2015
Entitlement Offer - Notice to Option Holders 13 April 2015
Entitlement Offer - Notice to Shareholders 13 April 2015
Entitlement Offer - Notice to Ineligible Shareholders 13 April 2015
Appendix 3B 13 April 2015
Cleansing Notice under s708AA(2)(f) 13 April 2015
Entitlement Offer Information Booklet 13 April 2015
Entitlement Offer to raise up to approximately $20 million 13 April 2015
Net Tangible Asset Backing 10 April 2015
Net Tangible Asset Backing 13 March 2015
Half Yearly Report and Accounts 23 February 2015
Net Tangible Asset Backing 13 February 2015
Net Tangible Asset Backing 14 January 2015
Net Tangible Asset Backing 12 December 2014
Results of Annual General Meeting 21 November 2014
2014 AGM - Presentation 21 November 2014
Net Tangible Asset Backing 13 November 2014
Letter to shareholders - replacement proxy form 28 October 2014
Annual Report 21 October 2014
Notice of Annual General Meeting/Chairman's Letter 21 October 2014
Notice of AGM/Proxy Form 21 October 2014
Net Tangible Asset Backing 14 October 2014
Net Tangible Asset Backing 12 September 2014
Appendix 4E and FY14 Annual Financial Report 27 August 2014
Net Tangible Asset Backing 13 August 2014
Replacement Appendix 3B 08 August 2014
Appendix 3B 07 August 2014
Investor Presentation 28 July 2014
Net Tangible Asset Backing 14 July 2014
Initial Director's Interest Notice 16 June 2014
Initial Director's Interest Notice 16 June 2014
Initial Director's Interest Notice 16 June 2014
Initial Director's Interest Notice 16 June 2014
Notice of initial substantial holder from BLA 16 June 2014
Initial Director's Interest Notice 16 June 2014
ASX Market Release - Admission to Official List 13 June 2014
Pre-quotation disclosure 13 June 2014
Securities Trading Policy 13 June 2014
Top 20 Holders - Options 13 June 2014
Top 20 Holders - Shares 13 June 2014
Distribution Schedule - Options 13 June 2014
Distribution Schedule - Shares 13 June 2014
Constitution 13 June 2014
Appendix 1A and Information Form and Checklist 13 June 2014
ASX Market Release - Pre-Quotation Disclosure 13 June 2014
ASX Notice - Admission and Quotation 13 June 2014
Prospectus 13 June 2014

News & Articles

Articles
Articles
Taking the alternative route

Money Management - With equities, bonds, and cash going through a rough patch due to market volatility and a low interest rate environment, Jassmyn Goh finds out whether investors are dipping their toes back into alternative investments. The markets saw bouts of volatility in 2015, and although industry experts do not expect a repeat of the volatility levels seen during the Global Financial Crisis (GFC), they still expect frequent small market movements of a few per cent this year, rather than large one day falls.

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Blue Sky’s liquid alternative

It seems each month the LIC space becomes more congested. Right now the flavour of the month is small cap investors with a number just listing and a few more in the pipeline. As the LIC market place gets more crowded it will be those who offer something different and give investors access to something previously inaccessible that will stand out. Blue Sky Alternatives Access Fund Limited (BAF) is doing just that.

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Blue Sky Alternatives Access Fund raises $20 million

Blue Sky Alternatives Access Fund Limited (ASX: BAF) has successfully completed a $20 million capital raise through a one for three non-renounceable entitlement offer. The funds raised will be used to build on the listed investment company’s actively managed portfolio of alternative assets across private equity and venture capital, water and agriculture, hedge funds and private real estate.

Download Article
Blue Sky alternative fund targets $20 million

Listed investment company Blue Sky Alternatives Access Fund is raising up to $20 million through a 1-for-3 non-renounceable rights issue. The shares will be issued at $1 each, or a 9.4 per cent discount to the volume-weighted average price over the last 10 days to Friday.

Download Article
Entitlement Offer to raise up to approximately $20 million

Blue Sky Alternatives Access Fund Limited (ASX:BAF) (Alternatives Fund) today announced that it will raise up to approximately $20 million through a 1 for 3 non-renounceable entitlement offer (Entitlement Offer) of fully paid ordinary shares in the Alternatives Fund (New Shares). The issue price for the Entitlement Offer will be $1.00 per New Share (Issue Price). The Issue Price represents a 9.4% discount to the ten day volume weighted average price (VWAP) of the Company’s Shares traded on the ASX over the ten days up to and including 10 April 2015.

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How to get exposure to private equity

How can normal retail financial mortals get access to private equity investment in a worthwhile way? It’s more complex than buying into other asset classes, such as listed equities, but there are ways to get on board. There are only two private ­equity funds listed: The old ING Private Equity Access fund was rebranded in 2013 as IPE, and is being wound down but may ­provide a very good yield in the ­interim. The other is the Blue Sky Alternatives Access Fund, a listed investment company that is small, earning $863,000 net in the December half of 2014, but as with its name it’s not pessimistic. The LIC’s stock price has run hard this year, up from 95c at the start of January to $1.10 now, so they must be doing something right.

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An unhealthy obsession with fees

Industry super funds are marketing low fees as the ‘be all and end all’. The Financial System Inquiry has kept that momentum going by pushing for lower fees on superannuation. While fees are an important contributor to overall portfolio returns (which should be the objective for most investors, after all), low fees are just one element in the long-term performance of a super account.

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Ultra high net worths seize on alternative investment protection

IT is no secret that the key conversation in Australian ultra high net worth wealth advisory at the ­moment is based around what’s known as “alternative investments”. This should not come as a ­surprise considering the particularly precarious international backdrop. Australia’s global private banks and wealth advisory firms are working closely with family offices and UHNW individuals on a wide array of alternative asset ­allocations in a direct effort to ­ensure meaningful returns, come what may, this year.

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Alternative point of view

Although the start of the new year may seem much like a continuation of the past one, those paid the big bucks to monitor the heartbeat of the market believe a new rhythm can be detected. Joseph Amato, president and CIO of Neuberger Berman, puts it this way: "In 2015, we see central banks and growth rates of the major developed economies moving in different directions. Although the long-term trend for global growth appears positive, we anticipate variable market performance as investors come to terms with new economic realities across global markets."

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The alternative way to diversify your portfolio

It happens in art, fashion, music, literature, so why not investment? Eventually, the "alternative" becomes mainstream. Alternative investments are those that are not the traditional building blocks of a portfolio, being shares, cash, bonds and property. As they have different returns streams from mainstream investments, such as equities and bonds, where payments in the form of coupons or dividends can generally be expected every six months, alternatives can diversify a portfolio.

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More Advisers Break Down Portfolio Fees

Financial advisers are approaching the costs of managing portfolios on a more granular level, rather than considering what a client may be paying in total.

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BLICs that target unlisted assets

THE growing popularity of listed investment companies has been underpinned by two new offerings which tap investor appetite for alternative unlisted assets.

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