Conversion Facility

RNS Number:3633I
New Star RBC Hedge250 IDX (3X GBP)
23 November 2007

                                   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)



23 November 2007



                              CONVERSION FACILITY



Conversion Day



The Company's Articles of Association incorporate provisions to enable
Shareholders to submit a written request to the Company (a "Conversion Request")
to convert some or all of their Shares in one Currency Class into Shares of any
other Class within the same Cell on the first Business Day of January, April,
July and October in each year or such other days as the Directors may determine
(each a "Conversion Day") by giving at least 5 Business Days notice (a "Share
Conversion").



The next Conversion Day will be 31 December 2007.



Conversion Procedure



A Conversion Request must specify the number and Class of Shares to be converted
from (the "first class") and the Class of Shares into which they are to be
converted (the "new Class"). Once given, a Conversion Request will be
irrevocable without the consent of the Directors.



Share Conversions will be effected by redeeming the Shares of the first Class
and the issue of Shares of the new Class. Shares of the first Class will be
converted into Shares of the new Class by reference to the ratio of the most
recently published NAV per Share of the relevant Share Classes, adjusting for
currency movements (the "Conversion Ratio").



The Board may at any time set a maximum number of Shares of a Class which may be
converted on any Conversion Date and may change such maximum in their absolute
discretion from time to time. If this limit is exceeded, the number of Shares in
a Conversion Request will be reduced pro rata and the request for the conversion
will be deemed not to apply to the balance of the Shares in the Conversion
Request.



The costs of conversions are expected to be minimal and will be borne by the
Company. However, the Directors reserve the right to vary the calculation of the
Conversion Ratio such that Shareholders making Share Conversions will bear the
costs of the conversion.



A Shareholder electing to convert Shares will be unable to deal in those Shares
in the period between submitting a conversion Request and the actual date of
conversion. Under the Articles of Association the Directors have the discretion
to postpone Share Conversions for such period as they see fit.



Shareholders will not be permitted to convert Shares in one Cell for Shares in
another Cell. Conversions will be intra-Cell only due to the complexities of the
swap arrangements employed by the Cells for the purpose of fulfilling the
Company's investment objective.



All Share Conversions will take place in accordance with, and are subject to,
the Articles of Association.



Shares held in uncertificated form



A Conversion Request in respect of Shares held in uncertificated form must be
accompanied by the submission of the relevant USE instruction no later than
5.00pm on 20 December 2007.



Shares held in certificated form



A Conversion Request in respect of Shares held in certificated form must be
accompanied by the relevant share certificate and must arrive at the following
address no later than 5.00pm on 20 December 2007:



Capita Registrars Limited
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TH



Tax consequences



The Directors have been advised that under the current UK tax legislation, a
conversion of Shares of any Class in the Company into Shares of any other Class
or Classes within the same Cell in the Company should not be treated, for the
purposes of UK taxation of chargeable gains, as crystallising either any
disposal of the converted Class of Shares or any acquisition of the other Class
or Classes of Shares. The Shares of the latter Class or Classes should be
treated, for those purposes, as having been acquired for the same consideration,
and at the same time, as the Class of Shares that the Shareholder has chosen to
convert, so that the capital gains tax base cost of the Shares arising from the
conversion would be the same as the base cost of the Shares which the
Shareholder has elected to convert. If any Shareholder is in any doubt as to
their taxation position they are strongly recommended to consult their
professional adviser without delay.





Expected Timetable


Latest date for receipt of Conversion Requests and                          5.00 p.m. on 20 December 2007
submission of the relevant USE instruction or share
certificate (as appropriate)
Conversion Day                                                                           31 December 2007


Expected date that CREST accounts will be debited /                                       15 January 2008
credited pursuant to Share Conversions


Expected date that new Share certificates and any balancing                               15 January 2008
Share certificates will be despatched




Enquiries



Alison Bilham, HSBC Securities Services (Guernsey) Limited
Tel: + 44 (0)1481 707213




                      This information is provided by RNS
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