Interim Management Statement

    RNS Number : 3899I
  New Star RBC Hedge250 IDX (3X GBP)
  18 November 2008
   

    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)

    Interim Management Statement for the quarter ended 30 September 2008

    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 2008 the Company had total assets of US$116.7m (30 June 2008:  US$241.6m).

    Performance 

                                            1X                         3X
                                    $       EUR       £        $       EUR      £
 Net Asset Value per share at     1.0543   1.0464   1.0538   1.1485   1.1370  1.1464
 30 June 2008

 Net Asset Value per share at     0.8650   0.8573   0.8738   0.5318   0.5187  0.5352
 30 September 2008 *

 % decrease                       -18.0%   -18.1%   -17.1%   -53.7%   -54.4%  -53.3%

 Share price at 30 June 2008      1.0200   1.0200   1.0400   0.9450   0.9400  0.9600

 Share price at 30 September      0.9100   0.9000   0.9275   0.6725   0.6600  0.6750
 2008

 % decrease                      - 10.8%  - 10.8%  - 10.8%  - 28.8%  - 29.8%  -29.7%

    * Based on the unaudited net assets of the Company at 30 September 2008. 
      

    Composition of RBC Hedge 250 Index

 Strategy                     Strategy weight  No of funds  Quarterly return

 Equity long / short                   36.36%           90           -10.41%

 Multi-strategy                        17.57%           42           -17.66%

 Credit                                13.15%           33           -14.75%

 Merger & special situations           10.87%           28           -12.11%

 Macro                                  8.16%           20           -10.54%

 Managed futures                        5.95%           16            -2.66%

 Fixed income arbitrage                 3.50%           11            -5.27%

 Equity market neutral                  2.36%        6                -5.94%

 Convertible arbitrage                  2.07%            9           -23.74%

 Total                                100.00%          255           -12.26%


    Source: RBC Capital markets, data at 30 September 2008, sourced on 17 November 2008.

    Share Capital

    There have been the following changes to the issued share capital during the quarter ended 30 September 2009.

                                                    No of shares  No of shares
 Total shares in issue at 30 June 2008                             191,935,272
 Net reduction in shares as a result of                - 456,155
 conversions between share classes
 Shares redeemed following the 30 June 2008         - 49,726,739
 redemption day
 Shares repurchased in the quarter                  - 15,996,504
 Total shares in issue at 30 September 2008                        125,755,874

    The net cash outflow from changes to the issued share capital in the quarter to 30 September 2008 was US$72.9m (excluding costs).
      
    Annual General Meeting

    The Company held its Annual General Meeting on 13 November 2008. All of the resolutions proposed at the meeting, including the renewal
of the share buy back authority, were duly passed.

    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:

 Alex Duncan, New Star Asset Management Limited      Tel: + 44 (0)20 7225 9290

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




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