ABSOLUTE RETURN TRUST LTD.

ABSOLUTE RETURN TRUST LTD.

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Company Overview
Absolute Return Trust Ltd. is engaged as a closed-ended investment company. It is a publicly quoted firm with registered business headquarters located in Guernsey, in the UK. The company is structured as a fund of hedge funds. Absolute Return Trust was incorporated in January of 2005. Its common shares are listed on the London Stock Exchange in February of the same year under the ticker symbol BAR.
The company’s primary objective is to achieve a return of three month Sterling LIBOR plus five percent over a rolling five year period, coupled with low volatility. Absolute Return Trust has investments in a diversified portfolio of hedge funds.
Business Summary
The Company is a closed-ended investment company.
Description and history
The Company is a closed-ended investment company structured as a fund of hedge funds.

The Company’s objective is to achieve a target return of three month Sterling LIBOR plus five per cent. over a rolling five year period, coupled with low volatility. Capital preservation will be a priority.

The Company’s investment policy is to invest in a diversified portfolio of hedge funds. There are no limits to the size of hedge funds in which the Company may invest and these funds may be closed- or open-ended.

The Company will invest in underlying hedge fund assets which are predominantly denominated in US Dollars. The Company will, therefore, have an exposure to changes in the exchange rate between Sterling and the US Dollar which, unhedged, has the potential to have a significant effect on returns. The Directors believe that it is in the best interests of Shareholders that the Company will engage, on a consistent basis, in currency hedging to reduce the risk, as far as possible, of currency fluctuations and the volatility of returns which may result from such currency exposure. This will involve hedging those non-Sterling assets to Sterling through the
use of rolling forward foreign exchange contracts. Currency hedging transactions will only be undertaken in order to mitigate exchange rate exposure and not for speculative purposes.

As an alternative to direct investment in hedge funds, or where hedge funds are closed to new investment, the Company, on the advice of the Manager and Investment Adviser, may invest indirectly through ‘managed accounts’ established with portfolio managers with individual investment discretion. Such investments would be made in the shares of separately established special purpose companies with limited liability. As the managed accounts are structured as separate limited liability companies, the liability of the Company is, in each case, limited to the value of its shareholding in that special purpose company. Not more than 10 per cent. of the Company’s gross assets will, in aggregate, be invested in any single managed account or accounts or with any single portfolio manager.

HISTORY:

The Company was incorporated in Guernsey on 21 January 2005. Its shares are listed on the London Stock Exchange on 23 February 2005.

Business Line
Closed-ended investment company
Subsidiary

Advisor
KPMG CHANNEL ISLANDS LIMITED
IPO date
2/23/2005
US SIC Code
6726
Company Address
Trafalgar Court
Les Banques
City province or state postal code
GY1 3QL, ST PETER PORT
Phone: +44 1481745738
Fax: +44 1481745075
Country address: UNITED KINGDOM
Website url: www.absolute-funds.com