Key Takeaways
- • Alternative Investment Trust (ASX:AIQ) declared a quarterly cash distribution of A$0.035345 per unit, which the trust says is entirely a return of capital and not paid from taxable income.
- • The payout is consistent with the trust's stated target of 10 per cent a year of adjusted NTA: four payments of A$0.035345 total about A$0.1414, almost exactly 10 per cent of the A$1.4138 adjusted NTA per unit.
- • At 30 September 2026, net tangible assets were A$92.193 million, or A$1.5540 per unit, across 59,328,072 units, with the WSS Master Fund the largest holding at A$54.6 million.
- • The trust is managed by Warana Capital Pty Limited, with One Managed Investment Funds Limited as Responsible Entity; fees are a 1.5 per cent management fee plus GST and a 20 per cent performance fee above an 8 per cent hurdle.
- • Valuations depend heavily on the manager's estimates of recoveries from secondary fund positions, and the payout depends on sufficient cash reserves.
Summary
Alternative Investment Trust (ASX:AIQ) has declared a quarterly cash distribution of A$0.035345 per unit, an announcement dated 23 October 2026 covering the quarter ended 30 September 2026. The trust states that the entire payment is a return of capital. Units trade ex-distribution from 28 October, the record date is 29 October, and payment is due on 16 November. The trust has no distribution reinvestment plan and pays no franking credits.
AIQ is an ASX-quoted unit trust, not a company. According to its September 2026 factsheet, One Managed Investment Funds Limited is the Responsible Entity and Warana Capital Pty Limited is the investment manager. Warana was appointed on 9 October 2017, and the current strategy recommenced on 12 February 2018. The ASX describes the trust as investing in international absolute return funds, with selected direct investments in subordinated debt and equity co-investments.
At 30 September 2026, net tangible assets (NTA) were A$92.193 million, or A$1.5540 per unit, across 59,328,072 units. The largest holding was the WSS Master Fund at A$54.6 million. Warana's 2019, 2021 and 2023 funds together accounted for about A$27.1 million, with smaller positions in King Street vehicles, legacy funds, hedging and A$3.8 million of net cash. Warana also publishes an adjusted NTA of A$1.4138 per unit, or A$83.9 million in total. The adjusted figure is lower because some secondary funds were bought at discounts; it is the lower of the manager's value and discounted projected recovery cash flows. The adjusted measure is indicative, unaudited and not reviewed by a third party.
The factsheet states a target distribution of 10 per cent a year of adjusted NTA, paid quarterly and subject to sufficient cash reserves. Four payments of A$0.035345 total about A$0.1414, almost exactly 10 per cent of A$1.4138, so the latest declaration is consistent with that stated policy. Because the distribution is classified as a return of capital, it is not paid from taxable income. The factsheet says the trust has more than A$400 million of accumulated tax losses and over A$20 million of capital losses, measured at the end of the 2024 tax year, which may reduce taxable income under certain conditions. In September the trust bought back 32,940 units at an average of A$1.39, below both reported NTA measures.
Costs are material for a fund of funds. The factsheet lists a management fee of 1.5 per cent plus GST and a performance fee of 20 per cent plus GST on outperformance above an 8 per cent annual hurdle, calculated on adjusted NTA. Underlying funds charge their own fees. Key risks include valuations that rest heavily on the manager's estimates of recoveries from secondary funds, the possibility that illiquid holdings are marked down, and foreign currency exposure: the Australian dollar fell 3.1 per cent against the US dollar in September to 0.6949, and the trust put the post-hedging currency impact at positive 0.6 per cent. A distribution paid from capital also depends on cash reserves, so a sustained gap between payouts and cash generation would erode the asset base.
AIQ is an ASX-quoted unit trust, not a company. According to its September 2026 factsheet, One Managed Investment Funds Limited is the Responsible Entity and Warana Capital Pty Limited is the investment manager. Warana was appointed on 9 October 2017, and the current strategy recommenced on 12 February 2018. The ASX describes the trust as investing in international absolute return funds, with selected direct investments in subordinated debt and equity co-investments.
At 30 September 2026, net tangible assets (NTA) were A$92.193 million, or A$1.5540 per unit, across 59,328,072 units. The largest holding was the WSS Master Fund at A$54.6 million. Warana's 2019, 2021 and 2023 funds together accounted for about A$27.1 million, with smaller positions in King Street vehicles, legacy funds, hedging and A$3.8 million of net cash. Warana also publishes an adjusted NTA of A$1.4138 per unit, or A$83.9 million in total. The adjusted figure is lower because some secondary funds were bought at discounts; it is the lower of the manager's value and discounted projected recovery cash flows. The adjusted measure is indicative, unaudited and not reviewed by a third party.
The factsheet states a target distribution of 10 per cent a year of adjusted NTA, paid quarterly and subject to sufficient cash reserves. Four payments of A$0.035345 total about A$0.1414, almost exactly 10 per cent of A$1.4138, so the latest declaration is consistent with that stated policy. Because the distribution is classified as a return of capital, it is not paid from taxable income. The factsheet says the trust has more than A$400 million of accumulated tax losses and over A$20 million of capital losses, measured at the end of the 2024 tax year, which may reduce taxable income under certain conditions. In September the trust bought back 32,940 units at an average of A$1.39, below both reported NTA measures.
Costs are material for a fund of funds. The factsheet lists a management fee of 1.5 per cent plus GST and a performance fee of 20 per cent plus GST on outperformance above an 8 per cent annual hurdle, calculated on adjusted NTA. Underlying funds charge their own fees. Key risks include valuations that rest heavily on the manager's estimates of recoveries from secondary funds, the possibility that illiquid holdings are marked down, and foreign currency exposure: the Australian dollar fell 3.1 per cent against the US dollar in September to 0.6949, and the trust put the post-hedging currency impact at positive 0.6 per cent. A distribution paid from capital also depends on cash reserves, so a sustained gap between payouts and cash generation would erode the asset base.
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