Alternative Investment Trust (ASX: AIQ), managed by Warana Capital and administered by One Managed Investment Funds Limited as Responsible Entity, has released its Net Tangible Asset fact sheet for May 2026, revealing an NTA per unit of A$1.4892 and an Adjusted NTA per unit of A$1.4002 as at 31 May 2026. The trust recorded monthly gains of 0.3% and 1.1% on an NTA and Adjusted NTA per unit basis respectively, driven primarily by the WSS Master Fund. The latest company update also confirms the completion of a A$10.2 million Placement and ongoing unit buyback activity, both of which investors in the listed trust will be watching closely.
Key Points
- Company: Alternative Investment Trust (ASX: AIQ), responsible entity One Managed Investment Funds Limited, investment manager Warana Capital Pty Limited
- NTA per unit as at 31 May 2026: A$1.4892; Adjusted NTA per unit: A$1.4002
- Monthly NTA change: +0.3%; Adjusted NTA change: +1.1%
- Total NTA: A$89.528 million across 60,119,506 units on issue
- A$10.2 million placement completed at A$1.38 per unit, as announced on 22 May
- 608,108 units bought back during May at an average cost of A$1.38 per unit
- US$341,000 in total distributions received from underlying funds during the month
- WSS Master Fund, the trust’s largest single holding at A$47.4 million NTA, rose 1.1% in USD terms in May
- Investors should watch for the June 2026 NTA release and any further placement or buyback activity
AIQ’s NTA Reaches A$89.5 Million as at 31 May 2026
Alternative Investment Trust reported a total Net Tangible Asset backing of A$89.528 million as at 31 May 2026, equating to an NTA per unit of A$1.4892. This compares to an NTA per unit of A$1.4842 at 30 April 2026, representing a monthly increase of 0.3%. The trust had 60,119,506 units on issue at the end of the reporting period.
The Adjusted NTA per unit, which reflects Warana Capital’s estimated projected recovery cash flows for Secondary Market fund positions discounted at 10% per annum, stood at A$1.4002 as at 31 May 2026, up from A$1.3848 at the end of April — a monthly improvement of 1.1%. The divergence between the NTA and Adjusted NTA figures reflects the different valuation methodologies applied to secondary market fund holdings, and the company has noted that the Adjusted NTA is the metric it considers most representative of the trust’s underlying economic value for secondary market investments.
WSS Master Fund Drives May Performance With 1.1% USD Return
The primary driver of AIQ’s May performance was the WSS Master Fund, which the trust holds through its Lending Funds category. The WSS Master Fund returned 1.1% in USD terms during May 2026, and is by far the largest single asset in the portfolio, carrying an NTA value of A$47.4 million — accounting for approximately 53% of total trust Assets before rounding adjustments. Both the NTA and Adjusted NTA attributable to the WSS Master Fund are recorded at A$47.4 million, indicating no secondary market discount adjustment is applied to this position.
The WSS Master Fund’s consistent contribution to monthly returns has made it a critical component of AIQ’s overall performance profile. Investors monitoring AIQ will note that movements in the WSS Master Fund carry significant weight for the trust’s reported NTA figures each month, given its dominant position in the portfolio relative to other asset categories.
A$10.2 Million Placement Completed at A$1.38 Per Unit in May
As previously announced on 22 May, AIQ completed a unit placement raising A$10.2 million at a price of A$1.38 per unit. The placement price was described in the fact sheet as being in line with the April Adjusted NTA. This capital raise is among several the trust has conducted since the recommencement of its investment strategy on 12 February 2018, including Rights Issues, unit placements, and distribution reinvestment plans.
The trust has noted that some historical capital raises were conducted at discounts to NTA, which has had a dilutive effect on NTA per unit over time. To provide investors with a clearer picture of underlying performance, AIQ presents both “Diluted” and “Undiluted” return metrics in its fact sheets. The May 2026 placement at A$1.38 per unit, which sits below the current NTA per unit of A$1.4892 but aligns with the Adjusted NTA framework, is consistent with this historical pattern of building trust scale through selective capital raises.
608,108 Units Bought Back at Average A$1.38 Per Unit Under Buyback Policy
Consistent with its stated buyback policy, AIQ repurchased 608,108 units during May 2026 at an average cost of A$1.38 per unit. The trust’s buyback policy is designed to return capital to investors and support the unit price when the trust is trading at a discount to its assessed value. The simultaneous execution of both a placement and a buyback at the same average price of A$1.38 during the same month reflects the trust’s active capital management approach.
The buyback activity is a recurring feature of AIQ’s capital management strategy and is disclosed monthly in the fact sheet. Investors and analysts following the trust may note that the A$1.38 buyback price compares to an NTA per unit of A$1.4892, suggesting units were being acquired at a discount to the reported NTA. This type of accretive buyback — purchasing units below NTA — can theoretically enhance NTA per unit for remaining unitholders over time, all else being equal.
US$341,000 in Distributions Received From Warana and King Street Funds
During May 2026, AIQ received total distributions of US$341,000 from several underlying funds. The largest single distribution came from the Warana 2023 Fund at US$221,000, followed by US$108,000 from the Warana 2021 Fund, and US$11,000 from King Street Special Investments. These distributions represent cash flows returning to the trust from its secondary market fund holdings.
The receipt of distributions from the Warana 2023 Fund is notable given that fund carries the largest NTA value among the Warana series at A$10.9 million NTA (A$7.9 million Adjusted NTA). The Warana 2021 Fund, valued at A$6.6 million NTA and A$4.9 million Adjusted NTA, also contributed meaningfully to May’s distributions. These cash flows support the trust’s Liquidity position, which is reflected in the Net Cash and Cash Equivalents balance of A$11.3 million as at 31 May 2026.
Secondary Market Fund Portfolio Totals A$24.6 Million NTA Across Four Warana Funds
AIQ’s Secondary Market Funds portfolio, comprising investments acquired on the secondary market, totalled A$24.6 million in NTA and A$19.2 million in Adjusted NTA as at 31 May 2026. The portfolio spans four Warana-branded funds across vintage years from 2018 to 2023, as well as positions in King Street Special Investments and Fortress PE Funds.
The largest holding within the secondary market book is the Warana 2023 Fund at A$10.9 million NTA, followed by the Warana 2021 Fund at A$6.6 million and the Warana 2019 Fund at A$3.9 million. The Warana 2018 Fund, the oldest in the series, is carried at A$0.8 million NTA and A$0.3 million Adjusted NTA, reflecting the advanced stage of that fund’s realisation cycle. The material difference between NTA and Adjusted NTA across the secondary market book reflects Warana Capital’s conservative discounting methodology, which applies a 10% per annum discount rate to projected recovery cash flows.
Geographic Allocation Heavily Weighted to North America at 76% of Portfolio
Based on look-through geographic analysis, AIQ’s portfolio is heavily concentrated in North America, which accounts for 76% of the underlying geographic and cash allocation as at 31 May 2026. Europe represents the next largest allocation at 9%, followed by Emerging Markets at 3%, and Other Developed markets at less than 1%. Net Cash (including hedging) accounts for 12% of the allocation.
Warana Capital has noted that the geographic allocation is estimated based on available information and should be considered indicative only. Given the Illiquid and complex nature of the underlying fund holdings — many of which are diversified across multiple geographies — precise geographic attribution can be difficult to calculate with certainty. The North American weighting is consistent with the trust’s investment universe, which focuses on leading international Absolute Return Funds and subordinated Debt and Equity co-investments, many of which are managed by US-based fund managers such as King Street and Fortress.
Currency Hedging Strategy Delivers Positive AUD Impact Despite Weaker US Dollar
The AUD/USD Exchange Rate closed at US$0.7184 at the end of May 2026, representing a monthly movement of -0.3% for the Australian dollar against the US dollar. Despite this currency headwind for an AUD-denominated trust with primarily USD-denominated underlying assets, AIQ’s hedging arrangements resulted in a positive currency impact of 0.6% for the trust in May.
The trust’s currency exposure table shows that AUD/USD hedging covers 95% of the investment portfolio and 83% of total exposures. The investment portfolio itself carries 5% unhedged USD exposure, with the remainder effectively hedged. This active hedging strategy is a key structural feature of AIQ, designed to reduce the impact of AUD/USD Volatility on reported NTA for Australian investors. The positive hedging contribution in May demonstrates how the program can add value during periods of currency movement.
Distribution Policy Targets 10% Per Annum of Adjusted NTA With Significant Tax Loss Buffer
AIQ’s stated distribution policy is to pay out 10% per annum of the trust’s Adjusted NTA, distributed in quarterly instalments, subject to sufficient cash reserves. At the current Adjusted NTA per unit of A$1.4002, this implies an indicative annualised distribution rate of approximately A$0.14 per unit, though the trust did not confirm a specific forward distribution figure in the May fact sheet.
A significant feature of AIQ’s tax position is its accumulated losses. As at the end of the 2024 tax year, the trust held in excess of A$400 million in accumulated tax losses and more than A$20 million in accumulated capital losses. Subject to the satisfaction of relevant legislative conditions, these losses may be available to offset future Taxable Income, potentially reducing the taxable component of distributions to unitholders. The trust has cautioned that the availability and applicability of these losses depends on specific legislative requirements being met.
Primary Market Funds and Alternative Liquidity Fund Round Out the Portfolio
Beyond the dominant WSS Master Fund and secondary market positions, AIQ holds a smaller allocation to Primary Market Funds, comprising the King Street Real Estate Fund at A$0.9 million and Legacy AIQ Funds at A$1.9 million, for a combined total of A$2.8 million in both NTA and Adjusted NTA. These holdings are relatively minor in the context of the overall portfolio but represent the trust’s ongoing exposure to primary market strategies.
The Other Assets category, totalling A$14.7 million in both NTA and Adjusted NTA, includes a A$0.2 million holding in the Alternative Liquidity Fund (listed on the London Stock Exchange under the ticker ALF), net FX hedging value of A$3.2 million, and net cash and cash equivalents of A$11.3 million. The next key milestone for investors will be the release of the June 2026 NTA fact sheet, which is typically published by the 14th of the following month and will be available from both AIQ’s website and via the ASX. The immediate share price impact of the May NTA release was not clear from available public information.