Interim Management Statement

    RNS Number : 8514B
  Defined Capital Return Fund Ltd
  21 August 2008
   
    The Defined Capital Return Fund Limited

    Interim Management Review for the three months ended 31 July 2008

    The Board of The Defined Capital Return Fund Limited (the "Company") is pleased to announce its interim management review for the three
months ended 31 July 2008.  

    Total Net Assets

 31 July 2008    30 April 2008   Increase / (Decrease)
 £33,777,459.57  £34,284,854.53  (1.48)%

    Ordinary Shares in Issue on 31 July 2008

    28,000,000 shares

                                 31 July 2008  30 April 2008  Increase /
                                                              (Decrease)
 Accrued Entitlement per Share   126.26        124.30         1.58%
 under the Defined Capital
 Return (p)
 Net Asset Value per Share (p)   120.63*       122.45*        (1.48)%
 Market Price per Share (p)      121.00        119.50         1.25%
 Premium / (Discount) to NAV     0.30%         (2.41)%        -


    * Unaudited. The Net Asset Value is calculated on the basis of market valuations of the Company's portfolio holdings supplied by UBS
AG.

    Portfolio Holdings on 31 July 2008

 Company                                % of Total Net Assets

 Bayerische Landesbank FRN 30/10/2009   14.76
 Depfa Bank FRN 30/10/2009                8.81
 HBOS Treasury SVS FRN 30/10/2009       14.64
 NIB Capital Bank FRN 30/10/2009        13.52
 Royal Bank of Scotland FRN 30/10/2009  14.70
 Spintab FRN 30/10/2009                 14.70

 Total

    Where "FRN" means Floating Rate Note.

    Investment Objective and Policy

    The investment objective of the Company is to provide ordinary Shareholders with a defined capital
    payment per share of 136.49 pence ("Defined Capital Return") at the winding-up date. This return will be contingent on the level of the
FTSE 100 at the end of the life of the Company. Provided that the FTSE 100 on the winding-up date is not below 85% per cent of its level on
the start date of 4,615.40 ("Start Value"), Shareholders will receive the Defined Capital Return on or soon after 2 November 2009.

    The Company has and will continue throughout its life to be invested in a portfolio of at least 6 medium term floating rate notes
("Bonds") which pay interest gross. The interest received from these Bonds is used to meet ongoing costs and to fund payments due under the
FTSE Transaction which it has entered into with UBS AG ("FTSE Transaction Counterparty"). Under the FTSE Transaction, the Company swaps
periodic amounts based on the interest return received by it in respect of the Bonds with the FTSE Transaction Counterparty. In addition,
under the FTSE Transaction, the FTSE Transaction Counterparty is (provided that the final FTSE level is not below the break-even level)
obliged to pay an amount which, together with the principal amounts payable on redemption of the Bonds, is intended to provide the final
capital entitlement. If, however, the final FTSE level is below the break-even level, no payment is due from the FTSE Transaction
Counterparty under the FTSE Transaction and, instead, the Company is obliged to pay an amount to the FTSE Transaction Counterparty, which amount is intended to be funded from the principal amounts payable on
redemption of the Bonds.

    The final capital entitlement is only payable at the winding-up date. If at the winding-up date the final FTSE level is at least equal
to 85% of the Start Value then the final capital entitlement will be equal to the Defined Capital Return. If the final FTSE level is below
85 per cent of the Start Value, the final capital entitlement will be reduced on a straight line basis from the Defined Capital Return down
to zero when the final FTSE level is less than or equal to 25 per cent of the Start Value.

    As at 31 July 2008, the FTSE stood at 5,411.90 and the index cover was 1.379499 times, this representing the extent to which the FTSE
was higher than the level required for Defined Capital Return to be paid. If the winding-up date had been 31 July 2008, the accrued
entitlement as at that date would have been 126.26 pence per share. 

    Any material change in the investment policy of the Company described above may only be made with the approval of Shareholders by an
ordinary resolution and the separate class approval of Geared Income Shareholders. 

    Exposure to other Investment Companies

    The Company had no exposure to other UK listed investment companies as at 31 July 2008.

    Material Events 

    The Board is not aware of any material events or transactions which have occurred between 31 October 2007 and the date of publication of
this interim management statement which would have a material impact on the financial position of the Company.

    Availability of Accounts and Monthly Fact Sheets

    Copies of the Company's most recent report and Accounts to Shareholders together with monthly fact sheets for the Company are available
for download from www.jupiteronline.co.uk and by post or fax on request from the company secretarial department.

    The Company's Ordinary shares are listed on the London Stock Exchange and the prices are published in the Financial Times under
`Investment Companies'.

    The Net Asset Values of the Company's ordinary shares are calculated monthly and can be viewed on the London Stock Exchange website at
www.londonstockexchange.com (under the heading 'Market News'). 

    Share Identifiers

    ISIN: GB00B02WRN57
    Sedol: 02WRN57
    Ticker: DCR/LON

    For further information, please contact

    Richard Pavry 
    Director of Investment Trusts 
    Jupiter Asset Management Limited
    [e-mail]  
    020 7314 4822

    The Company's Registered office is at Standard Bank House, PO Box 583, 47-49 La Motte Street, St Helier, Jersey JE4 8XR, Channel
Islands. 

    This interim management statement has been prepared solely to provide information to meet the requirements of the UK Listing Authority's
Disclosure and Transparency Rules.

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