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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Cma GL. GBP | LSE:CMAS | London | Ordinary Share | GG00B3YP0R83 | STERLING SHS NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 482.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMCMAE TIDMCMAU TIDMCMAS
RNS Number : 8078R
CMA Global Hedge PCC Ltd
31 August 2010
CMA GLOBAL HEDGE PCC LIMITED
(the "Company")
(Registered Number: 44929)
STOCK EXCHANGE ANNOUNCEMENT
31 August 2010
HALF YEARLY REPORT
The Company has today, in accordance with DTR 6.3.5, released its Half Yearly
Report for the period ending 30th June 2010. The Report is available from the
Company's website www.cmaglobalhedge.com and will shortly be available for
inspection at the UK Listing Authority's Document Viewing Facility, which is
located at:
Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
CHAIRMAN'S STATEMENT
The Directors of CMA Global Hedge PCC Limited announce the following results for
the period ended 30th June 2010:
+--------------------------+--------------+--------------+------------+
| | US Dollar | Euro class | Sterling |
| | class | | class |
+--------------------------+--------------+--------------+------------+
| As at 30 June 2010 | US$ | EUR | GBP |
+--------------------------+--------------+--------------+------------+
| Total net assets | 11,770,775 | 9,805,668 | 6,454,240 |
+--------------------------+--------------+--------------+------------+
| Net Asset Value per | 7.65 | 8.39 | 7.89 |
| share | | | |
+--------------------------+--------------+--------------+------------+
| Total earnings per share | (0.48) | (0.49) | (0.49) |
+--------------------------+--------------+--------------+------------+
| | | | |
+--------------------------+--------------+--------------+------------+
| As at 31 December 2009 | | | |
+--------------------------+--------------+--------------+------------+
| Total net assets | 12,514,802 | 8,932,074 | 6,356,037 |
+--------------------------+--------------+--------------+------------+
| Net Asset Value per | 8.13 | 7.64 | 7.77 |
| share | | | |
+--------------------------+--------------+--------------+------------+
| Total earnings per share | 0.20 | (0.01) | 0.94 |
+--------------------------+--------------+--------------+------------+
| | | | |
+--------------------------+--------------+--------------+------------+
Commenting on the results the Chairman has made the following statement:
I would like to take this opportunity to thank all of our shareholders for their
understanding and support over the last few years and give you an overview of
the Company's progress during the first half of 2010.
Developments and changes in the Company during the year
The first half of 2010 was negative in terms of performance for the USD Class of
the Company while the investment manager continued to raise liquidity across the
portfolio. The Company's USD NAV was negative 5.87% for the period. We are
pleased however that the Company managed to raise cash of around 13m USD or
nearly 35% of the NAV during this period. As the USD appreciated significantly
in this six-month period, particularly versus the EUR, the EUR and GBP un-hedged
classes performed much better than the USD class. The EUR class was positive
9.75% while the GBP class was positive 1.53% for the period.
With regard to leverage, I would like to reiterate that as a result of
aggressive cash raising in the portfolio, leverage was successfully eliminated
in mid-March 2009, 2 months ahead of schedule. The Company had no outstanding
leverage as of mid-March 2009 and this remains the case today.
Future Direction of the Company
On 3 September 2009 the Company's discontinuation vote passed with 88.93% of
shareholders voting in favour. This led the Board to propose two options, at an
EGM held on 15 December 2009, by which Shareholders could realize their
investment in the Company, with Shareholders able to elect for the option which
best suited their circumstances.
As of December 15th, the Company has been operating as a listed run-off vehicle,
with the sole objective of raising cash in the portfolio for future
distributions to shareholders.
I am pleased to report that over 73% of the Company's NAV, at the time of the
EGM in December 2009, has already been distributed in cash to shareholders and
the investment manager has continued to realise assets since this date.
As mentioned above, since the beginning of 2010 the Company has raised
approximately 35% of its NAV in cash. The remaining portfolio is significantly
more illiquid and is expected to take at least 3 years to generate significant
further liquidity. In light of this liquidity outlook, the current size of the
Company and the ongoing fixed costs, the Directors of the Company, following
discussions with its investment manager and its advisors, have decided to
recommend to Shareholders that the Company be placed into liquidation and a
circular will be posted to Shareholders in due course containing further details
and a resolution to wind-up the Company. In addition, the directors have asked
the investment manager to explore the opportunities in the secondary market for
illiquid assets, with a view of generating liquidity at a faster pace for
shareholders.
Chris Fish
Chairman
RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
- the condensed set of financial statements has been prepared in accordance
with International Accounting Standards IAS 34 "Interim Financial Reporting"
("IAS 34");
- the interim management report includes a fair review of the information
required by:
+--+---------------------------------------------------------------------------+
| (a)| DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication |
| | of important events that have occurred during the first six months of the |
| | financial year and their impact on the condensed set of financial |
| | statements; and a description of the principal risks and uncertainties |
| | for the remaining six months of the year; and |
+--+---------------------------------------------------------------------------+
| | |
+--+---------------------------------------------------------------------------+
| (b)| DTR 4.2.8R of the Disclosure and Transparency Rules, being related party |
| | transactions that have taken place in the first six months of the current |
| | financial year and that have materially affected the financial position |
| | or performance of the entity during that period; and any changes in the |
| | related party transactions described in the last annual report that could |
| | do so. |
+--+---------------------------------------------------------------------------+
Signed on behalf of the Board of Directors on 27th August 2010.
Christopher Fish
Emmanuel Gavaudan
Director
Director
CONDENSED UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
For the six month period ended 30 June 2010
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| | | CMA | | Non-cellular | | Company |
| | | Global | | | | |
| | | Hedge 1 | | US$ | | Total |
| | | Cell | | | | US$ |
| | | US$ | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Interest income | | 1,121 | | - | | 1,121 |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Other investment income | | 3,444 | | - | | 3,444 |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Net changes in value of | | (3,957,049) | | - | | (3,957,049) |
| investments and derivative | | | | | | |
| financial instruments | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Net changes in value of Cash | | 2,132,318 | | - | | 2,132,318 |
| Pool and Entitlement Pool | | | | | | |
| liabilities | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Foreign currency gains | | 9,104 | | - | | 9,104 |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Total net investment loss | | (1,811,062) | | - | | (1,811,062) |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Expenses | | (304,685) | | - | | (304,685) |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Loss for the period | | (2,115,747) | | - | | (2,115,747) |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Basic and diluted earnings per | | US$(0.48) | | | | |
| US Dollar Share | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Basic and diluted earnings per | | EUR(0.49) | | | | |
| Euro Share | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
| Basic and diluted earnings per | | GBP(0.49) | | | | |
| Sterling Share | | | | | | |
+--------------------------------+-----+-------------+----------+--------------+----------+-------------+
CONDENSED UNAUDITED STATEMENT OF CHANGES IN EQUITY
For the six month period ended 30 June 2010
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| | | CMA Global Hedge 1 Cell | Non-cellular | | |
+-----------------+----+---------------------------------------------+--------------+----------+---------------+
| | | Share | Retained | Total | Share | | Company |
| | | Premium | Earnings | | Capital | | Total |
| | | | | | | | |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| | | US$ | US$ | US$ | US$ | | US$ |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| Equity at 1 January | 116,478,039 | (80,890,432) | 35,587,607 | 2 | | 35,587,609 |
| 2010 | | | | | | |
+----------------------+--------------+--------------+---------------+--------------+----------+---------------+
| | | | | | | | |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| Loss for the | | - | (2,115,747) | (2,115,747) | - | | (2,115,747) |
| period | | | | | | | |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| | | | | | | | |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| Equity at 30 | | 116,478,039 | (83,006,179) | 33,471,860 | 2 | | 33,471,862 |
| June 2010 | | | | | | | |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| | | | | | | | |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| Equity at 1 January | 336,302,043 | (88,716,669) | 247,585,374 | 2 | | 247,585,376 |
| 2009 | | | | | | |
+----------------------+--------------+--------------+---------------+--------------+----------+---------------+
| | | | | | | | |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| Profit for the | | - | 7,308,627 | 7,308,627 | - | | 7,308,627 |
| period | | | | | | | |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| Redemption of | | (89,354,343) | - | (89,354,343) | - | | (89,354,343) |
| equity shares | | | | | | | |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
| Equity at 30 | | 246,947,700 | (81,408,042) | 165,539,658 | 2 | | 165,539,660 |
| June 2009 | | | | | | | |
+-----------------+----+--------------+--------------+---------------+--------------+----------+---------------+
CONDENSED UNAUDITED STATEMENT OF FINANCIAL POSITION
As at 30 June 2010
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| | | CMA | | Non-cellular | | Company |
| | | Global | | | | |
| | | Hedge 1 | | US$ | | Total |
| | | Cell | | | | US$ |
| | | US$ | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| ASSETS | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| Investments | | 46,187,812 | | - | | 46,187,812 |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| Receivables and prepayments | | 457,998 | | 2 | | 458,000 |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| Cash and cash equivalents | | 17,003,338 | | - | | 17,003,338 |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| TOTAL ASSETS | | 63,649,148 | | 2 | | 63,649,150 |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| EQUITY | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| Called up share capital | | - | | 2 | | 2 |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| Share premium | | 116,478,039 | | - | | 116,478,039 |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| Retained earnings | | (83,006,179) | | - | | (83,006,179) |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| TOTAL EQUITY | | 33,471,860 | | 2 | | 33,471,862 |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| LIABILITIES | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| Payables and accrued | | 30,177,288 | | - | | 30,177,288 |
| expenses | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| TOTAL LIABILITIES | | 30,177,288 | | - | | 30,177,288 |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| TOTAL EQUITY AND | | 63,649,148 | | 2 | | 63,649,150 |
| LIABILITIES | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| Net Asset Value per US | | US$7.65 | | | | |
| Dollar Share | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| Net Asset Value per Euro | | EUR8.39 | | | | |
| Share | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
| Net Asset Value per | | GBP7.89 | | | | |
| Sterling Share | | | | | | |
+-----------------------------+-----+-------------------+----------+--------------+----------+----------------+
CONDENSED UNAUDITED STATEMENT OF CASH FLOWS
For the six month period ended 30 June 2010
+--------------------------------------------+--------------+----------+---------------+
| | |
+--------------------------------------------+-----------------------------------------+
| | CMA Global Hedge 1 Cell |
+--------------------------------------------+-----------------------------------------+
| | and Company |
+--------------------------------------------+-----------------------------------------+
| | | | |
+--------------------------------------------+--------------+----------+---------------+
| | 30 June | | 30 June |
| | 2010 | | 2009 |
| | US$ | | US$ |
+--------------------------------------------+--------------+----------+---------------+
| CASH FLOWS FROM OPERATING ACTIVITIES | | | |
+--------------------------------------------+--------------+----------+---------------+
| (Loss)/profit for the period | (2,115,747) | | 7,308,627 |
+--------------------------------------------+--------------+----------+---------------+
| | | | |
+--------------------------------------------+--------------+----------+---------------+
| Adjustments for: | | | |
+--------------------------------------------+--------------+----------+---------------+
| Net changes in value of investments and | 3,957,049 | | (10,205,909) |
| derivative financial instruments | | | |
+--------------------------------------------+--------------+----------+---------------+
| Net changes in value of Cash Pool and | (2,132,318) | | - |
| Entitlement Pool liabilities | | | |
+--------------------------------------------+--------------+----------+---------------+
| Interest income | (1,121) | | (1,260) |
+--------------------------------------------+--------------+----------+---------------+
| | (292,137) | | (2,898,542) |
+--------------------------------------------+--------------+----------+---------------+
| | | | |
+--------------------------------------------+--------------+----------+---------------+
| Changes in other receivables and payables | 1,739,591 | | 72,878,666 |
+--------------------------------------------+--------------+----------+---------------+
| Purchases of investments | (4,523,179) | | (11,301,165) |
+--------------------------------------------+--------------+----------+---------------+
| Proceeds from sales of investments | 27,378,517 | | 378,716,918 |
+--------------------------------------------+--------------+----------+---------------+
| Realised (losses)/gains on forward foreign | (136) | | 2,173,969 |
| currency contracts | | | |
+--------------------------------------------+--------------+----------+---------------+
| | 24,302,656 | | 439,569,846 |
+--------------------------------------------+--------------+----------+---------------+
| Interest received | 1,884 | | 1,260 |
+--------------------------------------------+--------------+----------+---------------+
| NET CASH GENERATED FROM OPERATING | 24,304,540 | | 439,571,106 |
| ACTIVITIES | | | |
+--------------------------------------------+--------------+----------+---------------+
| | | | |
+--------------------------------------------+--------------+----------+---------------+
| CASH FLOWS FROM FINANCING ACTIVITIES | | | |
+--------------------------------------------+--------------+----------+---------------+
| Loans drawn down | - | | (332,009,385) |
+--------------------------------------------+--------------+----------+---------------+
| Equity shares redeemed | (23,789,035) | | (62,295,863) |
+--------------------------------------------+--------------+----------+---------------+
| | | | |
+--------------------------------------------+--------------+----------+---------------+
| NET CASH USED IN FINANCING ACTIVITIES | (23,789,035) | | (394,305,248) |
+--------------------------------------------+--------------+----------+---------------+
| | | | |
+--------------------------------------------+--------------+----------+---------------+
| Net increase in cash and cash equivalents | 515,505 | | 45,265,858 |
+--------------------------------------------+--------------+----------+---------------+
| Cash and cash equivalents at beginning of | 16,487,833 | | 16,587,005 |
| the period | | | |
+--------------------------------------------+--------------+----------+---------------+
| | | | |
+--------------------------------------------+--------------+----------+---------------+
| Cash and cash equivalents at end of the | 17,003,338 | | 61,852,863 |
| period | | | |
+--------------------------------------------+--------------+----------+---------------+
Notes
THE COMPANY
CMA Global Hedge PCC Limited (the "Company") is a Guernsey, closed-ended,
investment protected cell company listed on the London Stock Exchange
established with one cell, the CMA Global Hedge 1 (the "Cell") on 13 June 2006
to invest in a portfolio of hedge funds, that is managed by C.M. Advisors
Limited, a Bermuda-based exempt company offering investment management and
advisory services to funds of hedge funds as well as hedge fund related
products. The Cell currently has three share classes, a US Dollar Class, a Euro
Class and a Sterling Class.
Following the Extraordinary General Meeting ("EGM") on 17 December 2008, the
Board implemented the following proposals approved at the meeting, in order to
reduce the imbalance between supply and demand for the shares in the market and
thereby seek to reduce the discount to Net Asset Value at which the shares of
the Company have been trading:
- Redemption offers in December 2008 and March 2009 of up to 20 per cent
each of the Company's issued share capital as at the December 2008 Record Date
(15 December 2008) and the March 2009 Record Date (24 March 2009). A redemption
fee is payable to the Investment Manager equal to 4 per cent of the actual
aggregate amount of cash owing to a redeeming shareholder following the
redemption of their shares (the "Actual Cash Proceeds").
- The creation of an on-going Redemption Facility, whereby the Company may
offer, at the discretion of the Directors, to redeem up to 20 per cent of the
Company's issued share capital on a half yearly basis. Redemption fees payable
to the Investment Manager are 4 per cent, 3 per cent, and 2 per cent of the
Actual Cash Proceeds received by redeeming shareholders in 2009, 2010 and 2011
respectively.
The Board of Directors of the Company subsequently resolved on 12 May 2009 to
exercise their discretion to offer shareholders in the Company the opportunity
to participate in a Redemption Facility Offer in June 2009 in respect of up to
20 per cent of the Company's issued share capital as at June 2009 Record Rate
(23 June 2009) with a redemption fee of 4 per cent of each shareholder's Actual
Cash Proceeds payable to the Investment Manager.
Following the Annual General Meeting ("AGM") on 8 July 2009, the Board
communicated its intention to offer its shareholders the opportunity to
determine the future direction of the Company through a vote at an EGM. The
Board considered that the discontinuation of the Company would be in the best
interests of the Company's Shareholders as a whole. At an EGM of the Company
duly convened and held on 3 September 2009, the resolution for the
discontinuation of the Company was passed and approved as an Ordinary Resolution
of the Company. Further to this business development, the Company shares are no
longer offered for subscription to potential and current investments. In
addition, the following wind-down proposals have been passed and approved by the
shareholders at the 15 December 2009 EGM:
- introduction of two options to realise shareholders' investments in the
Company, with shareholders able to elect for the option which best suits their
circumstances (the Redemption Option or the Cash Option);
- amendment of the Company's Investment Objective and Policy in order to
become a listed run-off vehicle;
- amendment of the Company's Articles of Incorporation in a manner
consistent with converting to a listed run-off vehicle and with offering
shareholders the Redemption Option or the Cash Option.
Details of the two options mentioned above follow:
- Redemption Option: to retain an interest in a listed vehicle and receive
realisation distributions (on dates at the Directors' sole discretion) until the
Company is formally wound up, including initial cash distribution as soon as
practicable representing a pro rata share of available cash at the time; or
- Cash Option: to receive a cash payment or cash payments (the "Cash
Distribution") equivalent to the immediately realisable value of the proportion
of the Portfolio attributable to shareholding in the Company.
The approval of these Options caused the division of the Company's portfolio
into a Redemption Pool and a Cash Pool. Net assets attributable to Redemption
Option Shareholders is represented by the total net assets of CMA Global Hedge 1
Cell.
The Company will be managed with the intention of realising all remaining assets
in the portfolio so as to maximise the orderly return of capital to
shareholders.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a) Statement of compliance and basis of preparation
The financial statements are prepared in accordance with International Financial
Reporting Standards ("IFRS") on a non-going concern basis and applicable legal
and regulatory requirements of The Companies (Guernsey) Law, 2008. The financial
statements give a true and fair view and are in compliance with The Companies
(Guernsey) Law, 2008.
The financial statements have been prepared in accordance with the Disclosure
and Transparency Rules of the Financial Services Authority.
As the financial statements have been prepared on a non-going concern basis:
- investments and other net assets are stated at their net realisable
values; and
- a provision for future wind up costs of the Company has been included in
the financial statements.
These condensed unaudited interim financial statements for the six month period
ended 30 June 2010 has been prepared in accordance with IAS 34. The condensed
unaudited interim financial statements should be read in conjunction with the
annual audited financial statements for the year ended 31 December 2009, which
have been prepared in accordance with IFRSs. The accounting polices applied by
the Company in these condensed interim financial statements are the same as
those applied by the Company in its financial statements as at and for the year
ended 31 December 2009.
b) Applicable new standards and interpretations not yet effective
A number of new standards, amendments to standards and interpretations in issue
are not yet effective for the six month period ended 30 June 2010, and have not
been applied in preparing these financial statements. None of these will have
an effect on the financial statements of the Company, with the exception of IFRS
9 "Financial Instruments", published on 12 November 2009 as part of phase 1 of
the IASB's comprehensive project to replace IAS 39.
IFRS 9 deals with classification and measurement of financial assets and its
requirements represent a significant change from the existing requirements in
IAS 39 in respect of financial assets. The standard contains two primary
measurement categories for financial assets: amortised cost and fair value. A
financial asset would be measured at amortised cost if it is held within a
business model whose objective is to hold assets in order to collect contractual
cash flows, and the asset's contractual terms give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal
outstanding. All other financial assets would be measured at fair value. The
standard eliminates the existing IAS 39 categories of held to maturity,
available for sale and loans and receivables.
For an investment in an equity instrument which is not held for trading, the
standard permits an irrevocable election, on initial recognition, on an
individual share-by-share basis, to present all fair value changes from the
investment in other comprehensive income. No amount recognised in other
comprehensive income would ever be reclassified to profit or loss. However,
dividends on such investments are recognised in profit or loss, rather than
other comprehensive income unless they clearly represent a partial recovery of
the cost of the investment. Investments in equity instruments in respect of
which an entity does not elect to present fair value changes in other
comprehensive income would be measured at fair value with changes in fair value
recognised in profit or loss.
The standard requires that derivatives embedded in contracts with a host that is
a financial asset within the scope of the standard are not separated; instead
the hybrid financial instrument is assessed in its entirety as to whether it
should be measured at amortised cost or fair value.
The standard is effective for annual periods beginning on or after 1 January
2013. Earlier application is permitted.
The Company is currently in the process of evaluating the potential effect of
this standard with particular focus on the non-going concern basis of
preparation required for all future financial statements of the Company.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial statements in conformity with IFRS may require
management to make judgments, estimates and assumptions that affect the
application of policies and the reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions are based on the
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making the judgments about carrying value of asset and liabilities that are not
readily apparent from other sources. Actual results may differ from these
estimates. The estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within
the next financial period are addressed below:
If trading volumes or liquidity in the Company's investments are considered by
the Investment Manager to be insufficient to provide evidence of an active
market, the Investment Manager estimates net realisable value/fair value by
reference to other information sources namely index movements or changes in
prices of related funds as required by IAS 39 "Financial Instruments:
Recognition and Measurement". Estimate prices from underlying administrators are
checked by the Investment Manager. However, these estimates may be adjusted when
the final prices become available and are deemed materially different. This
policy also applies to the less liquid investments contained in the Entitlement
Pools, Redemption Pool and Cash Pool.
The Directors do not feel it is appropriate to prepare the financial statements
of the Company on the going concern basis as the Company is formally following
its objective to realise its investments and manage an orderly exit for its
investors. The Directors have considered the costs of break-up and are of the
opinion that a sufficient provision has been made in the valuation of all
investor pools to account for all liquidation costs of the Company.
SIGNIFICANT AGREEMENTS AND RELATED PARTIES
a) The Investment Manager
The Investment Manager was entitled to a fee of 1.00 per cent. per annum of the
total assets of the Company calculated and accrued on a monthly basis and
payable quarterly in arrears. The fee for the period is shown in Note 6 as
"Management fees". The amount outstanding at the period end is US$21,504 (31
December 2009: US$340,120).
In addition, a performance fee of 5 per cent of the amount (if any) by which the
Net Asset Value of the Company at the end of any accounting period (ending on 31
December) exceeded the Net Asset Value at launch or at the start of any such
accounting period (or, if higher, the highest previous Net Asset Value in
respect of which a performance fee was paid) was payable. This performance fee
was therefore subject to a so-called "high watermark" test. The calculation of
the total amount of any performance fee would be adjusted for the repurchase or
issue of shares in any given accounting period. There was no performance fee
payable during six month period ended 30 June 2010 and 30 June 2009.
Following approval by the Shareholders at an EGM dated 15 December 2009, the
management fee payable to the Investment Manager was reduced to 0.25 per cent of
the Company's Net Asset Value. In addition, the requirement for the Company to
pay a performance fee to the Investment Manager was removed.
With the Redemption Offer and Redemption Facility introduced by the Directors,
the Investment Manager will be entitled to receive all redemption fees paid by
the redeeming shareholders in the December 2008 and March 2009 Redemption
Offers, the June 2009 Redemption Facility Offer and any Redemption Facility
Offers introduced by the Company in 2009, 2010 and 2011. The redemption fee
payable by Shareholders for the December 2008 and March 2009 Redemption Offers
will be equivalent to 4 per cent of each shareholder's actual cash proceeds. The
redemption fee payable by Shareholders for the June 2009 Redemption Facility
Offer will be equivalent to 4 per cent of each shareholder's actual cash
proceeds received as a result of the redemption of their shares. For the six
month period ended 30 June 2010, redemption fees of US$296,000 (30 June 2009:
US$nil) were incurred and paid by Shareholders of the December 2008 Redemption
Offer, redemption fees of US$252,000 (30 June 2009: US$nil) were incurred and
paid by Shareholders of the March 2009 Redemption Offer and redemption fees of
US$280,000 (30 June 2009: US$nil) were incurred and paid by Shareholders of the
June 2009 Redemption Offer to the Investment Manager.
The Management Agreement may be terminated by either the Investment Manager or
the Company giving to the other not less than 18 months' notice in writing, such
notice not to expire before the second anniversary of Admission. The Company
shall not serve notice to terminate the agreement on notice unless this course
of action has been unanimously agreed to by the independent Directors.
b) Custodian fees
The Custodian was entitled to an annual fee equivalent to 0.04 per cent per
annum of the Net Asset Value up to US$500 million and 0.03 per cent per annum
where the Net Asset Value exceeds US$500 million. This was subject to a minimum
fee of US$150,000 per annum per Cell of the Company. Effective 1 January 2010,
an annual fee of GBP31,250 will be charged. The fee for the period is shown in
Note 6 as "Custodian fees". The amount outstanding at the period end is US$7,818
(31 December 2009: US$42,472).
c) Directors' fees and expenses
Each of the Directors, (executive and non-executive) is entitled to receive a
fee of GBP20,000 per annum (GBP35,000 for the Chairman). James Lee agreed to
waive his fee during the continuance of his appointment as Director. Markos
Kamchis (known as Marcos Camhis) has agreed to waive his fee during his
appointment as Director. The Chairman of the Audit Committee will receive an
additional GBP5,000 per annum. The aggregate of all Directors fees shall not
exceed GBP150,000. The fee for the period is shown in Note 6 as "Directors' fees
and expenses". The amount outstanding at the period end is US$nil (31 December
2009: US$28,170).
d) Administration fees
The Administrator was entitled to an annual fee equivalent to 0.075 per cent per
annum of the Net Asset Value up to US$600 million and 0.05 per cent per annum
where the Net Asset Value exceeds US$600 million. This was subject to a minimum
fee of US$250,000 per annum. The fee for the period is shown in Note 6 as
"Administration fees". Effective 1 January 2010, an annual fee of GBP62,500 will
be charged. The amount outstanding at the period end is US$22,631 (31 December
2009: US$183,631).
e) Other related party transactions
The Investment Manager, C.M. Advisors Limited, is a wholly owned subsidiary of
EFG International. For its services in connection with the placing, EFG
International received placing fees. EFG International also
holds 161,088 Sterling shares (31 December 2009: 610,399 Sterling shares) in the
Cell at 30 June 2010.
These are not the full statutory accounts. The full condensed unaudited half
yearly account for the period ending 30th June 2010 will be sent to shareholders
and will be for inspection at the registered office: Arnold House, St. Julian's
Avenue, St. Peter Port, Guernsey, GY1 3NF.
For CMA Global Hedge PCC Limited
HSBC Securities Services (Guernsey) Limited, Secretary
31st August 2010
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
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