Redemption Facility

 

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RNS Number : 8998L 
New Star RBC Hedge250 IDX (1X GBP) 
19 January 2009 
 

HEDGE ETS 
New Star RBC Hedge 250 Index Exchange Traded Securities 
PCC Limited 
(A closed-ended investment company incorporated in Guernsey with registered 
number 45501 under the provisions of The Companies (Guernsey) Laws 1994 to 1996 
and The Protected Cell Companies Ordinance 1997 to 1998, as amended) 
 
 
19 January 2009 
 
 
REDEMPTION FACILITY 
 
 
Redemption Day 
 
 
The Company's Articles of Association incorporate provisions to enable 
Shareholders, at the Directors' discretion, to redeem: 
 
 
  *  up to 50% of their Shares for cash as at the first business day in January, 
  April, July or October in each year by giving not less than 90 days notice to 
  the Company in advance of the Redemption Day; and 
 
 
 
  *  up to 100% of their Shares for cash as at the first business day in January or 
  July in each year by giving not less than 120 days notice to the Company in 
  advance of the Redemption Day. 
 
 
 
The Directors intend to make quarterly decisions on whether to operate the 
redemption facility and have decided to operate the facility in respect of the 
1X Shares at 1 July 2009 (the "Redemption Day"). 
 
 
On 14 January 2009 the Company announced its intention to compulsorily redeem 
the 3X Shares at Net Asset Value per Share on 1 April 2009. Accordingly, the 3X 
Shares will not be eligible for the 1 July 2009 redemption. 
 
 
Redemption Price 
 
 
Redemptions will be effected at the most recent net asset value ("NAV") per 
Share of the relevant class prior to the Redemption Day (being the NAV per share 
as at 30 June 2009), less direct costs. No redemption fee is expected to be 
payable. 
 
 
Notice Period for redeeming up to 50% of a holding of Shares 
 
 
A Shareholder may request the redemption of up to 50% of their holding in a 
particular Share class by giving not less than 90 days' notice to the Company in 
advance of the Redemption Day, in the form of a redemption request submitted to 
the Company's Receiving Agent. 
 
 
To be valid, the redemption request and, where relevant, the appropriate share 
certificate, must be received by the Company's Receiving Agent no later than 
5.00 p.m. (London time) on 2 April 2009. In the case of the Shares held in 
uncertificated form, the relevant USE instruction must be submitted no later 
than 5.00 p.m. on 2 April 2009. 
 
 
Notice Period for redeeming in excess of 50% of a holding of Shares 
 
 
A Shareholder may request the redemption of in excess of 50% of their holding in 
a particular Share class by giving not less than 120 days' notice to the Company 
in advance of the Redemption Day, in the form of a redemption request submitted 
to the Company's Receiving Agent. 
 
 
To be valid, the redemption request and, where relevant, the appropriate share 
certificate, must be received by the Company's Receiving Agent no later than 
5.00 p.m. (London time) on 3 March 2009. In the case of the Shares held in 
uncertificated form, the relevant USE instruction must be submitted no later 
than 5.00 p.m. on 3 March 2009. 
 
 
Procedure 
 
 
Redemption requests and, where relevant, the appropriate share certificate must 
be submitted to the following address: 
 
 
Capita Registrars Limited 
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TH 
 
 
From UK: 0870 162 3100 
From Overseas: + 44 208 639 2157 
 
 
Relevant Member Account ID's in relation to redemption requests submitted 
through Crest are as follows: 
 
 
1X US$ Redeemable Preference Shares - 1XUSDRED 
1X Euro Redeemable Preference Shares - 1XEURRED 
1X Sterling Redeemable Preference Shares - 1XSTERED 
 
 
Shareholders should note that the Directors are entitled to suspend the 
processing of redemptions at any time, including circumstances where a limit is 
placed on the Company in respect of the aggregate reductions that it may make 
under the swaps it has entered into with the Royal Bank of Canada (the "Swaps"), 
as more particularly described in the Securities Note published by the Company 
dated 19 October 2007 ("Securities Note"). 
 
 
Settlement 
 
 
Full redemption proceeds will normally be dispatched to Shareholders within 15 
days after the publication of the RBC Hedge 250 Index level prevailing on the 
Redemption Day (which is expected to be on or about the 45th day after 30 June 
2009). Where payments under the Swaps are delayed or withheld or the Company is 
unable to liquidate its other investments in an orderly manner, the Company may 
take longer to pay the redemption proceeds or scale back redemptions pro rata 
amongst redeeming Shareholders. 
 
 
UK Taxation 
 
 
Persons who are resident in the UK and dispose of a "material interest" in an 
offshore fund that constitutes a collective investment scheme (within the 
meaning of section 236 of the Financial Services and Markets Act 2000, as 
applied by section 57 of the Finance Act 2007) which has at any time been a 
"non-qualifying offshore fund" (i.e. one in respect of which certification as a 
"distributing fund" has not been obtained from HM Revenue & Customs) are subject 
to income tax rather than capital gains tax in respect of any gains arising on 
the disposal of such an interest. 
 
 
The Directors have been advised that section 57 of the Finance Act 2007 may have 
the effect that the Company should be regarded as an offshore fund and that any 
interest in the Company acquired on or after 19 July 2007 (being the day on 
which the Finance Act 2007 came into effect) would fall to be treated as a 
"material interest". Consequently, the Directors intend to seek certification of 
each Sterling Share class in the Company as having distributing fund status in 
respect of each accounting period with a view to ensuring that on a disposal of 
Sterling Shares (by way of redemption, transfer or otherwise) UK resident 
Shareholders are subject to capital gains tax rather than income tax. It cannot 
be guaranteed, however, that the conditions necessary to obtain distributing 
fund status will always be met. 
 
 
The United Kingdom Government in its Budget on 12 March 2008 confirmed proposals 
for a new framework for the taxation of investments in offshore funds to replace 
the present distributing funds regime which would operate by reference to 
whether a fund opts into a reporting regime ("reporting funds") or not 
("non-reporting funds"). Under the proposals, investors in reporting funds would 
be subject to tax on the share of the reporting fund's income attributable to 
their holding in the fund, whether or not distributed, but any gains on disposal 
of their holding would be subject to capital gains tax. HM Revenue & Customs 
would be able to approve a fund (or a class of shares in a fund) in advance as a 
reporting fund. Investors in non-reporting funds would not be subject to tax on 
income retained by the non-reporting fund but any gains on disposal of their 
holding would be subject to tax as offshore income gains. 
 
 
 
 
Expected Timetable 
 
 
+-----------------------------------------+------------------------------+ 
| Latest date for receipt of redemption   |    5.00 p.m. on 3 March 2009 | 
| request and submission of relevant USE  |                              | 
| instruction or share certificate (as    |                              | 
| appropriate) for shareholders redeeming |                              | 
| in excess of 50% of their holding in a  |                              | 
| particular share class                  |                              | 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
| Latest date for receipt of redemption   |    5.00 p.m. on 2 April 2009 | 
| request and submission of relevant USE  |                              | 
| instruction or share certificate (as    |                              | 
| appropriate) for shareholders redeeming |                              | 
| up to 50% of their holding in a         |                              | 
| particular share class                  |                              | 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
| Redemption Day                          |                  1 July 2009 | 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
| Redemption proceeds dispatched          |             1 September 2009 | 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
 
Enquiries 
 
 
Alison Bilham, HSBC Securities Services (Guernsey) Limited 
Tel: + 44 (0)1481 707213 
 
 
Notes 
 
 
The information in this announcement should be read in conjunction with the full 
text of the Securities Note. Capitalised terms used in this announcement shall, 
unless the context otherwise requires, bear the meaning given to them in the 
Securities Note. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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