Interim Management Statement

    RNS Number : 9296H
  Allianz Dresdr 2 Endw Policy TstPLC
  11 November 2008
   

    Allianz Dresdner Second Endowment Policy Trust PLC

    Interim Management Statement

    For the quarter ending 30th September 2008

    This interim management statement relates to the quarter from 1st July 2008 to 30th September 2008 and contains information for that
period unless otherwise stated. This statement is produced to provide information in accordance with DTR Rule 4.3. 


    Investment objective

    The Company's objective is to invest in mid-term with-profits endowment policies to provide capital growth over its planned life to 31st
December 2009.

    Basis of valuation

    The valuation of the Company's endowment policy portfolio comprises estimates of mid-market price based on the Company's Investment
Advisers' own bid pricing information, with a floor of 100% of estimated surrender value in each case. This has resulted in an aggregate
valuation of the endowment policy portfolio of 102.0% of estimated surrender value, compared to 103.0% last quarter.

    Projected final net asset values

    The Company publishes projected final net asset values on a regular basis. These projections have been based both on current bonus rate
levels and, in order to give a measure of the sensitivity of the projected final net asset value to changes in bonus rates on 150%,120%,100%
and 80% of current bonus rates and no further bonuses. Projected final net asset values as at 30th September 2008 are:

    Projected final net asset values at 31st December 2009: 

    Assuming 150% of current bonus rates:        177.0p
    Assuming 120% of current bonus rates:        167.4p
    Assuming 100% of current bonus rates:        161.0p
    Assuming 80% of current bonus rates:          154.7p
    Assuming no further bonuses:                        130.1p

    Projected final net asset values are calculated using the principal bases and assumptions set out in the Annual Financial Report which,
inter alia, assume no further death claims, or demutualisation benefits are received and no further purchases or disposals of policies are
made. They have been calculated after deduction of estimated future expenses. Interest rates over the Company's life are assumed to be
consistent with the shape of the swap yield curve at 30th September 2008. These illustrations are given to provide an indication of the
sensitivity of the projected final net asset value to bonus rate changes. They should not be taken as forecasts of any particular degree of
change in bonus rate levels. 




    Portfolio

    Twenty largest holdings by life office at 30th September 2008

 Life Office                                    Value of Policies
                                         £'000s    % of total investment
                                                 
 Standard Life                            8,369                     28.2
 Legal & General                          3,253                     11.0
 Prudential (Scottish Amicable)           2,439                      8.2
 Scottish Widows                          1,772                      6.0
 Prudential                               1,526                      5.2
 AVIVA (Norwich Union)                    1,500                      5.1
 Scottish Life                            1,275                      4.3
 Clerical Medical                         1,157                      3.9
 Scottish Provident                       1,130                      3.8
 Friends Provident                          365                      1.2
 Colonial Mutual                            349                      1.2
 Gresham Life                               251                      0.8
 Royal & Sun Alliance (Royal Life)          228                      0.8
 AVIVA (Provident Mutual)                   212                      0.7
 Sun Life of Canada                         196                      0.6
 Scottish Equitable                         124                      0.4
 Pearl Assurance                            120                      0.4
 AXA (Sun Life)                             114                      0.4
 Britannic Assurance                        108                      0.4
 NFU Mutual                                 106                      0.4
 Total of twenty largest holdings        24,594                     83.0
 Others                                   1,469                      5.0
 Total holdings of endowment policies    26,063                     88.0
                                                 
 Fixed Interest Holdings                         
 Abbey 5.375%  30/12/09                     500                      1.7
 UK Govt 5.75% 07/12/09                   3,064                     10.3
                                          3,564                     12.0
                                                 
 TOTAL OF INVESTED FUNDS                 29,627                    100.0

                          


    Material events and transactions

    No dividends were paid during the quarter.

    There were no changes to the Company's share capital over the period.

    A settlement has been reached between the Company and the Managers, RCM (UK) Limited following the European Court of Justice ruling in
the VAT case brought by JP Morgan Claverhouse Trust plc in conjunction with the AIC on 28th June 2007. On 29th October 2008 £81,786 was paid
to the Company in relation to the 2006 Pool and £77,749 in relation to the 2009 Pool.

    Since the date of the latest valuation there have been substantial falls in global markets, which are likely to have an impact on future
valuations.


    Financial Performance  to 30th September 2008
                                                                               % change
                                                              3m       6m      1yr      3yr      5yrs    
    Share price                                     -7.69    -4.17    -0.75    17.86     32.66
    Net Asset Value                           -2.00     -2.08    -0.70    20.32    30.73
    Benchmark*                                -12.00   -12.33  -21.19     -0.53    42.47

    Source: Datastream
    Total return with net dividends reinvested and net of fees.
    * FTSE 100 Total Return

    Financial position at 30th September 2008

                                                     30th September             
    Net assets                              £30,734,461                    
    Share price                             132p                    
    Net asset value1                    155.7p                    
    Discount2                               15.2%                
    Gearing3                                  0%                 

    1 Net asset values    are calculated and announced quarterly.                    
    2 The discount is the difference between the share price and the NAV (debt at book value) per share expressed 
   as a percentage of the NAV per share.
    3 Actual gearing - net of cash and fixed interest.

    Company Information

    Launch date                          1998
    EPIC                                       ADRK
    Year end                                31 December
    Report and Accounts         Final posted March, Interim posted August
    AGM                                      April
Price Information                 Financial Times, The Daily Telegraph,  www.allianzgi.co.uk


    Investor information

    Further up to date information, including Net Asset Values and share prices, and the latest available factsheets and portfolio
information, is provided on the Managers' website, which can be accessed via www.allianzgi.co.uk .  Investor Services can be contacted on
020 7065 1407 and information can also be obtained from the Managers' helpline on 0800 317 573.

    By order of the Board
    Allianz Dresdner Second Endowment Policy Trust PLC

    155 Bishopsgate
    London EC2M 3AD

    11 November 2008

This information is provided by RNS
The company news service from the London Stock Exchange
 
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