Q Q /31/16 8/31/16 YTD

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1 September 20, 2016 Dear Investor: For the month of August, the ASA Tax Advantaged Relative Value Fund L.P. (the Fund ) recorded a net after tax return of 0.60%. All of our strategies performed nicely for the month. The Net Asset Value (NAV) of the Fund was approximately $11.7 million as of September 1, Enclosed please find your Limited Partner Statement for August 2016 issued by Alternative Strategy Advisers LLC ( ASA ) in its capacity as administrator of the Fund. The following is a comprehensive review of the markets and strategies in which the Fund participates. Index and Fund Return Summary: Return Recap Q Q /31/16 8/31/16 YTD Treasury 20 Yr % -1.62% 8.47% 6.77% 2.44% -0.97% 17.49% Municipal 22 Yr % 4.52% 2.24% 4.51% -0.10% 0.24% 6.99% Barclay's Muni Inter Aa3 Plus GO 14.08% 4.26% 2.37% 4.54% -0.41% 0.00% 6.58% Treasury 5-10 Yr 6.43% 1.83% 4.08% 2.29% 0.21% -0.51% 6.15% Municipal 8-12 Yr 8.72% 3.76% 1.90% 2.52% 0.07% -0.07% 4.47% Barclay's Puerto Rico Index 6.42% % 0.51% 7.81% 1.10% 2.15% 11.90% CSFB Fixed Income Arbitrage HF Index 4.37% 0.59% -1.22% 1.02% 1.08% 0.00% 0.87% TARV Returns Net of Fees After Taxes 4.46% 1.10% -2.11% 3.86% -0.34% 0.60% 1.94% Strategy Review: Although municipal new issue supply increased dramatically in August, municipal bond yields held steady. Continued inflows into municipal funds supported bond prices. This strong demand for municipal bonds drove profits in all Fund strategies. Liquidity The increased new issue supply provided many opportunities to buy cheap new issues and trade them out quickly at a profit. We managed to turnover $5 million in new issues for the month. Structure We have sold most of our zero coupon structures and are now looking for new opportunities in shorter-duration, callable structures. These are more defensive investments at a time when we feel caution is warranted. Basis Strong inflows into municipal funds continued to support municipal bond prices for the month while Treasury bond prices (hedges) fell. We anticipate both new issue supply and retail demand will decline in September and October, because fewer municipal bonds mature and there are less reinvestment proceeds to recycle back into the market.

2 Credit President Obama named the members of the Fiscal Oversight Board that will manage Puerto Rico s finances for the next five years as dictated by the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). We believe this is a good sign and, so far, the markets agree. Portfolio Summary: Our strategy allocations were largely unchanged for the month. Historically, low absolute municipal rates have encouraged more new issue supply and less retail interest. Therefore, it is reasonable to anticipate the basis may widen in the fourth quarter. Our game plan is to continue reducing our basis exposure and gather cash to capture better opportunities toward year-end. TARV Strategy Allocation % Strategy Jan % Feb % Mar % Apr % May % June % July % Aug % Cash Liquidity Basis Structure Credit Total Municipal Supply: As expected, municipal refunding volume and total volume picked up substantially in August. With rates still low, we anticipate refunding volume will continue at a brisk pace in the third quarter. As mentioned in previous letters, we see fewer reinvestment proceeds from maturing bonds in the third quarter. In total, net supply should be a slight headwind for the next few months. Tax Exempt Supply Ref Spd (bpts) Change January February March April May June July August Total *Source - Thompson Reuters and Bond Buyer

3 Source: Siebert, Cisneros Shank and ASA Research Municipal Demand: Strong flows into municipal bond mutual funds continued in August. The trend continues to be out of low-yielding money market funds and into higher-yielding funds with longer-duration and/or more credit exposure. New municipal money market regulations go into effect October 14. It appears that more and more management companies are simply closing their money market funds as a result. Given near-zero interest rates, most companies have waived their management fees for years. Additionally, the new regulations will require additional reporting and administration, thus increasing costs and making money market funds a losing proposition. Another $15 billion flowed out of municipal money market funds in August and only $165 billion remain. This is the smallest pool of tax-exempt money fund assets in recorded history. Municipal Credit/Structure/Tax: Puerto Rico Update: On August 31, President Obama named the members of the Fiscal Oversight Board, which will oversee Puerto Rico s finances for the next five years. Our initial read is that the Board will treat creditors fairly and the market seems to have a similar take. Both COFINA and GO bonds continue trading higher.

4 These are the members of the Board with brief resumes: Republicans Carlos Garcia - Former President of the GDB under the Fortuno administration. He was instrumental in promoting and producing on-time financial audits and in downsizing the public sector. He is a founder of Boston Capital and is a big proponent of privatization. Jose Carrion Carrion is the brother-in-law of the current resident commissioner, Pedro Pierluisi. He is a bankruptcy professional who believes that Puerto Rico's worker's health and worker's comp systems have made the workforce less competitive. Further, he believes the economy needs structural changes. He has also been an advocate for creditors in bankruptcy. Andrew Biggs Biggs is an expert on state pension funding. He will likely prioritize pension funding over bondholders. Nonetheless, he has a history of reducing public benefits to match private benefits. Public sector workers in PR earn 2.2 times what the average private sector worker earns, so he will likely attack these excessive benefits before requiring haircuts from bondholders. David Skeel - Skeel is a professor at the University of Pennsylvania and an advocate of the "rule of law". He believes that bankruptcy laws are biased against creditors and that the "rule of law" took a beating in the Detroit bankruptcy. Democrats Arthur Gonzalez A. Gonzales is the former chief judge of the U.S. Bankruptcy Court for the Southern District of NY and is well versed in the capital markets. He has ruled on many bankruptcy cases including Enron, Worldcom, and Chrysler. He has supported redistributing revenues that are subject to bondholder liens, which is not good for dedicated revenue bonds like COFINA. Jose Gonzalez J. Gonzales is the current CEO of the Federal Home Loan Bank in New York. He has a long history of supporting full municipal loan repayment and has close ties to the banking community. He is a Democrat that has historically been creditor friendly. Ana Matosantos - Matosantos is a former senior advisor on budget policy to both California Governors Schwarzenegger and Brown. She is a governance watchdog who works to eliminate government waste and fraud. She will likely favor debtors over creditors. ASA Activity: As always, we appreciate your continued support and thank you for the opportunity to serve as your investment manager. The investment environment remains devoid of outsized opportunities. Hence, we continue to churn out acceptable after tax returns while staying liquid for much higher returns to come. Please feel free to call any of us here at ASA if you or others you know have questions about the Fund or would like to discuss current opportunities and our investment management services. Best Regards, /s/ Randy Jacobus Managing Member ASA Tax Advantaged Advisors LLC

5 Privacy Policy Notice Under rules of the Commodity Futures Trading Commission, financial institutions like Alternative Strategy Advisers LLC (ASA) and its affiliated entities * are required to provide privacy policy notices to their clients. We believe that protecting the privacy of your nonpublic personal information is of the utmost importance, and we are committed to maintaining the privacy of your nonpublic personal information in our possession. As required by the rules, we are providing you with the following information. We collect nonpublic personal information about you from the following sources: Information we receive from you on managed account agreements or fund subscription documents and related forms (for example, name, address, Social Security number, birth date, assets, income, and investment experience); and Information about your transactions with us (for example, account activity and balances). We do not disclose any nonpublic personal information about our customers or former customers to anyone other than in connection with the administration, processing and servicing of customer accounts or to our accountants, attorneys and auditors or as otherwise permitted or required by law. We restrict access to nonpublic personal information about you to our personnel who need to know that information in order to provide products or services to you. We maintain physical, electronic and procedural controls in keeping with federal standards to safeguard your nonpublic personal information. * Affiliated entities include ASA Tax Advantaged Relative Value Fund L.P., ASA Tax Advantaged Advisors LLC, ASA Municipal Convergence Fund L.P., ASA Convergence Partners LLC, Enhanced Municipal Managers LLC, ASA Managed Account Managers LLC, Transitional Funding Partners L.P., TF Managers LLC, and Occum Partners LLC.