Redemption Facility

    RNS Number : 8428H
  New Star RBC Hedge250 IDX (3X GBP)
  10 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)

    10 November 2008

    REDEMPTION FACILITY

    Redemption Day

    The Company's Articles of Association incorporate provisions to enable Shareholders, at the Directors' discretion, to redeem:

    *     up to 50 per cent. 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 per cent. 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
at 1 April 2009 (the "Redemption Day") on the following basis.

    Redemption Price

    Such 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 31 March 2009), less direct costs. No redemption fee is expected to be payable.

    Notice Period and Procedure

    Each Shareholder may request the redemption of up to 50 per cent. of his holding of Shares 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 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

    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 31 December 2008. In addition, 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 31 December 2008.

    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
    3X US$ Redeemable Preference Shares - 3XUSDRED
    3X Euro Redeemable Preference Shares - 3XEURRED
    3X Sterling Redeemable Preference Shares - 3XSTERED

    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.

    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 31 March 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 request        5.00 p.m. on 31
 and submission of relevant USE instruction or          December 2008
 share certificate (as appropriate)

 Redemption Day                                          1 April 2009

 Redemption proceeds dispatched                           1 June 2009



    Enquiries

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



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