Interim Management Statement

RNS Number:3839H
New Star RBC Hedge250 IDX (3X GBP)
09 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)


9th November 2007


Interim Management Statement for the quarter ended 30 September 2007


Investment Objective

The objective of New Star RBC Hedge 250 Index Exchange Traded Securities PCC
Limited ("Hedge ETS" or the "Company") is to provide access to performance
representative of the hedge fund asset class. The investment policy of the
company is to provide access to such performance through investment exposure to
the RBC Hedge 250 Index (the "Index").

The 1X Cell seeks to achieve its investment objective by entering into a swap
agreement with Royal Bank of Canada designed to provide unleveraged exposure to
the performance of the Index.

The 3X Cell seeks to achieve its investment objective by entering into a swap
agreement with Royal Bank of Canada designed to provide approximately three
times' exposure to the performance of the Index.


Fund size

At 30 September 2007 the Company had total assets of US$320.3m (30 June 2007: of
US$323.0m).


Performance


                                               1X                                  3X
                                    $           Euro           #           $           Euro           Euro
Net Asset Value per share at        1.0543      1.0464      1.0538      1.1485      1.1370      1.1464
30 June 2007
Net Asset Value per share at        1.0444      1.0328      1.0449      1.0896      1.0735      1.0883
30 September 2007 *
% increase                          - 0.9%      - 1.3%      - 0.8%      - 5.1%      - 5.6%     - 5.1%)
Share price at 30 June 2007           1.08        1.08        1.08        1.20        1.20        1.20
Share price at 30 September           1.05        1.04        1.05        1.08        1.07        1.08
2007
% increase                          - 2.8%      - 3.7%      - 2.8%     - 10.0%     - 10.8%      -10.0%



* Based on the unaudited net assets of the Company at 30 September 2007.






Composition of RBC Hedge 250 Index


Strategy                                   Strategy weight         No of funds          Quarterly return


Equity long / short                                 37.68%                  92                     1.52%


Multi-strategy                                      15.95%                  40                    -0.56%


Credit                                              12.58%                  32                    -0.82%


Merger & special situations                         10.50%                  27                    -1.20%


Macro                                                8.14%                  23                    -4.65%


Managed futures                                      5.67%                  15                    -0.98%


Fixed income arbitrage                               4.65%                  13                     4.54%


Equity market neutral                                2.61%                   7                     0.31%


Convertible arbitrage                                2.22%                   9                    -2.30%


Total                                                 100%                 258                    -4.30%





Source: RBC Capital markets, data at 30 September 2007, sourced on 16 October
2007.





Share Capital



There have been the following changes to the issued share capital during the
quarter ended 30 September 2007.


                                                                    No of shares           No of shares
Total number of shares in issue at 30 June 2007                                             251,279,647
Net reduction in shares as a result of conversions                     - 100,945
between share classes
Number of shares repurchased                                         - 4,337,500
Total number of shares in issue at 30 September 2007                                        246,841,202



The net cash outflow from changes to the issued share capital in the quarter to
30 September 2007 was US$3.492m (excluding costs).




Company Information



Further Information on the Company, including fact sheets and the annual report
of the Company can be obtained from the Manager's website at www.newstaram.com









For further information please contact:



Ravi Anand, New Star Asset Management Limited,   020 7225 9292



Alison Bilham, HSBC Securities Services (Guernsey) Limited

Tel: + 44 (0)1481 707213





ENDS




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