Sydney - Monday - August 18: (RWE Australian Business News) -...

Sydney - Monday - August 18: (RWE Australian Business News) -
Everest Babcock & Brown Alternative Investment Trust (ASX:EBI) incurred
a net loss of $41.22m in the six months ended June 30, compared with a
net profit of $43.52m for the first half of last year.
Total investment loss was $31.19m, against investment income of
$49.09m.
Basic loss per unit was 22.92c, versus earnings of 44.55c.
Final distribution was reduced from 23.8c to 6.5c, payable on
August 29 to unitholders registered June 30.
Total payout for the year is 6.5c, down from 67.2c.
Net tangible assets (ex-distibution) per unit were $3.79, down
from $4.07.

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Chief executive Mr Jeremy Reid said, "The first six months of
2008 have been characterised by volatile and difficult investing
conditions.
"As at 30 June, the major stockmarket indices had reached new
lows and were close to posting the 20pc declines (from the previous
high) that technically marks the beginning of a bear market.
"For the six-month period under review, the S&P 500 declined
11.9pc and the MSCI World fell 12.8pc. In the same period, EBI managed
to restrict its loss to a 5.2pc decline in NTA.
"While this six-month decline is a disappointment, EBI's loss is
less than half of those posted by the major stock indices and EBI's NTA
performance since inception remains superior to both of these equity
benchmarks.
"Over the past months we have continued to de-risk the portfolio
by reducing leverage (42.8pc loan-tovalue ratio at 31 December 2007 and
40.6pc loan-to-value ratio at 30 June 2008) and favouring investments in
more conservative strategies and investment managers.
"EBI now has considerable capacity to pursue capital management
initiatives or invest in new opportunities.
"EBI's leverage facilities are not due to be refinanced until
May 2010 and the costs of US dollar denominated leverage have materially
decreased due to falling US interest rates.
"The investment portfolio is well diversified with the largest
investment representing under 8pc of the portfolio."