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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Close Ast.UK.Zd | LSE:CSUZ | London | Ordinary Share | GG00B1GJ9885 | ZERO DIV SHS CLOSE UK IDX GWTH FD 2012 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 148.125 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMCSUZ
RNS Number : 6694S
Close UK Index Growth Fund 2012
23 November 2011
Close Assets Funds Limited
Half-Yearly Financial Report
for the period ended 30 September 2011 (Unaudited)
Close Assets Funds Limited (the "Company")
ABOUT THE COMPANY
Close Assets Funds Limited is a Guernsey incorporated, closed ended, umbrella investment company. As at 23 November 2011, being the latest practicable date prior to the publication of this report, its issued share capital comprises two Management Shares issued for administrative reasons, 35,625,000 Zero Dividend Shares ("Shares") of the Close UK Index Growth Fund 2012 (the "Fund") and 39,375,000 Nominal Shares. The Company has an unlimited life but the Shares are due to be redeemed in December 2012.
Investment Objective and Policy - Close UK Index Growth Fund 2012 (the "Fund")
The investment objective of the Fund is to provide shareholders with a geared capped exposure to the performance of the FTSE 100 Index (the "Index").
If shareholders hold their Shares to December 2012 (the "Redemption Date"), and the End Value of the Index is higher than the Start Value of 6,160.30, the Shares are designed to pay to shareholders, on the Redemption Date, the Final Capital Entitlement, which represents a return equal to four times the percentage increase in the Index capped at 64 per cent. of the Issue Price of GBP1.4864 per Share.
The Final Capital Entitlement will comprise:
a) a Capital Amount of GBP1.4864 per Share; and
b) a Growth Amount per Share equal to four times any increase in the End Value of the Index relative to its Start Value, such percentage being applied to the Issue Price of GBP1.4864 per Share, subject to the maximum increase of 64 per cent. of the Issue Price.
If shareholders hold their Shares until the Redemption Date and the End Value is lower than the Start Value, the Shares are designed to repay the Issue Price of GBP1.4864 per Share on the Redemption Date provided that the value of the Index had not fallen below 3,080.15, being 50 per cent. of the Start Value at close of business on any Index Business Day between the Start Date of 22 November 2006 and the End Date of 22 November 2012 (both dates inclusive).
Close Assets Funds Limited (the "Company")
ABOUT THE COMPANY (continued)
If shareholders hold their Shares until the Redemption Date and if the value of the Index has fallen below 3,080.15, being 50 per cent. of the Start Value, at close of business on any Index Business Day between the Start Date and the End Date (an "Index Barrier Breach") and the End Value is not at least equal to the Start Value, investors will be repaid on the Redemption Date the Issue Price as reduced by the same percentage by which the End Value is less than the Start Value. As at 30 September 2011 and as at the date of this report the level of theIndex had not fallen below 3,080.15.
In accordance with the Company's investment policy for the Fund, the net proceeds derived by the issue of Shares and the sale of a Put Option to J.P Morgan Chase Bank N.A. with a maturity date of 22 November 2012 (the "Put Option") have been invested in a portfolio of debt securities containing embedded derivatives related to the Index (the "Debt Securities") at prices relative to the value of the Index on the Start Date of 6,160.30.
The Debt Securities were issued by financial institutions, selected by the Manager, that, at the date of issue of the relevant debt security, had a rating of at least A- or A3, as determined by Standard & Poor's Ratings Group ("S&P") and/or Moody's Investor Services Inc. ("Moodys") respectively and was either (a) a credit institution as defined in Article 1 of the Council Directive of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions (No. 2000/12/EC), other than an institution referred to in Article 2(3) of that Directive, if authorised by the competent authority of an EU Member State in relation to the credit institution concerned; (b) a bank authorised in a Member State of the European Economic Area; or (c) a bank authorised by a signatory state (other than an EU Member State or a Member State of the European Economic Area) to the Basle Capital Convergence Agreement of July 1988 (Switzerland, Canada, Japan and the US); or (d) an insurance undertaking, insurance holding company or mixed-activity insurance holding company as defined in Article 1 of the Council Directive of 27 October 1998 relating to the supplementary supervision of insurance undertakings in an insurance group (No. 98/78/EC).
To avoid over-dependency on any single issuer, the Company for the account of the Fund acquired six debt securities. It is not anticipated that this portfolio of Debt Securities will be varied prior to the maturity date of the Debt Securities other than in exceptional circumstances.
Close Assets Funds Limited (the "Company")
ABOUT THE COMPANY (continued)
Your attention is drawn to the Schedule of Investments on pages 31 and 32 of this half-yearly financial report, which shows the assets held by the Company for the account of the Fund, and note 12(b) to the financial statements, which refers to the credit risk of the issuers of these assets as at the end of the reporting period and as at the date of this report.
In the event of a default by an issuer of a debt security the Company for the account of the Fund would rank as an unsecured creditor in respect of sums due from the issuer of such debt security. In such event, the Company for the account of the Fund may (in respect of that debt security) receive a lesser amount (if any) and at a different time than the proceeds anticipated at the maturity of the relevant debt security. Any losses would be borne by the Company for the account of the Fund and returns to shareholders would be significantly adversely affected.
The Company has for the account of the Fund also sold a Put Option, the proceeds of which sale were used to increase the amount of money available to finance the acquisition of the Debt Securities. The performance of the Put Option is linked to the performance of the Index. At an Index value of 6,160.30 or above at the close of business on the End Date, or if the Index has never closed below 3,080.15 during the calculation period from the Start Date to the End Date (the "Calculation Period"), the Put Option will be worth GBPNil at maturity. If the Index has closed below 3,080.15 over the Calculation Period and the Index is still below 6,160.30 on the End Date, the Put Option will be worth a percentage of the notional value, being GBP52,953,000, equivalent to the percentage fall in the level of the Index over the Calculation Period, such payment payable to J.P. Morgan Chase Bank N.A. by the Company on behalf of the Fund.
Close Assets Funds Limited (the "Company")
MANAGER'S REPORT
for the period ended 30 September 2011
Investment Performance
At launch, the net proceeds derived from the issue of Shares of the Fund were invested in a portfolio of Debt Securities and options at a price based on the level of the Index at the close of business on the Start Date, namely 6160.3.
On 30 September 2011 the Index closed at 5128.48, a fall of 16.7 per cent. since launch and a fall of 13.2 per cent. over the reporting period. The total market value of the Fund fell by 13.4 per cent. since launch and by 9.5 per cent. over the reporting period. As at the reporting date the Shares of the Fund were trading at a 1.2 per cent. discount to net asset value.
As the Fund's investment portfolio is based upon the Index, it is possible to show the potential final capital entitlements available to holders of Shares based on the closing level of the Index on the End Date. These figures are for illustrative purposes only, subject to there being no counterparty default, and do not represent forecasts or take into account any unforeseen circumstances.
Hot Features
Premium
Final FTSE 100 Index Final Capital Entitlement Final Capital Entitlement
Level if FTSE 100 Index if FTSE 100 Index
never closes below has closed below
3080.15** 3080.15**
4000 148.64 96.51
4250 148.64 102.54
4500 148.64 108.57
4750 148.64 114.61
5000 148.64 120.64
5128.48* 148.64 123.74
5250 148.64 126.67
5500 148.64 132.7
5750 148.64 138.73
6000 148.64 144.77
6250 157.29 157.29
Close Assets Funds Limited (the "Company")
MANAGER'S REPORT (continued)
for the period ended 30 September 2011
Final FTSE 100 Index Final Capital Entitlement Final Capital Entitlement
Level if FTSE 100 Index if FTSE 100 Index
never closes below has closed below
3080.15** 3080.15**
6500 181.42 181.42
6750 205.55 205.55
As at 22 November 2012
* FTSE 100 Index level at the end of the reporting period
** On any day from 22 November 2006 to 22 November 2012
Market Review
The Index fell by 13.2 per cent. over the reporting period as US growth weakened and the European debt crisis worsened threatening a second global recession in three years.
Close Assets Funds Limited (the "Company")
MANAGER'S REPORT (continued)
for the period ended 30 September 2011
The majority of the first three months of the period saw the Index trending lower, albeit from a starting level that many market commentators considered overbought, amid concerns the pace of global economic growth may disappoint. Over the last few days of June a quarter-end rally regained all of the previous losses for the period. These gains proved to be transitory however and the Index fell back in July as economic concerns reasserted themselves.
In early August the Index plummeted precipitously as weak US economic data sparked concerns it may fall into recession. Rating agency S&P's decision to cut the US AAA credit rating by one notch further exacerbated the panic and the continuing worries about the euro debt crisis added to the gloom. In less than two weeks the Index lost over 800 points to fall to its low for the period of 5007.16. Mounting concerns over the likelihood of a sovereign Greek default and the impact on the solvency ratios of European banks then weighed heavily on the Index for the rest of the period as it failed to gain any traction, despite various announcements from European officials that they were on top of the crisis, and closed at 5128.48.
Throughout the period the Bank of England ("BoE") maintained the UK bank base rate at 0.5 per cent., a historic low in the BoE's history. During the period there was no further quantitative easing although the Monetary Policy Committee continued to monitor the situation to see if further quantitative easing was needed.
Over the period the biggest drag on the Index was HSBC (-22 per cent.) whose shares, along with the other banks in the Index tumbled over concerns about the euro debt crisis. The largest boost to the Index was from pharmaceutical company GlaxoSmithKline, whose shares rose 12 per cent. over the period as it was viewed as a good defensive stock with a high dividend yield.
Market Outlook
The outlook for the global economy appears to a large extent dependent on how the euro debt crisis develops. As this is a fast moving crisis whatever is written here will quickly be out of date but it seems likely that a disorderly hard default of Greek sovereign debt would
Close Assets Funds Limited (the "Company")
MANAGER'S REPORT (continued)
for the period ended 30 September 2011
be the worst case outcome that could quickly lead to contagion of other weak sovereigns and a run on European banks. Whilst this scenario can not be ruled out the consequences seem such that the European politicians and bureaucrats charged with resolving the crisis will find a solution.
Until markets are convinced of a lasting solution however firms will be hesitant to invest which is likely to result in anaemic growth in the UK and eurozone. As approximately 40 per cent. of the UK's exports are to Europe this will make the policy of rebalancing the UK economy away from finance more difficult. Weaker than expected growth is also likely to make it harder to reduce the structural deficit as tax revenues disappoint and benefit payments remain high.
In response to the weakening economy the BoE Monetary Policy Committee recently decided to embark on another round of quantitative easing raising the total to GBP275 billion from GBP200 billion. Whilst not confirmed, there is speculation that this is just the first tranche in a new round of quantitative easing which could extend to upwards of GBP500 billion by the time the BoE has finished. It can be expected that equity markets will benefit to some degree from this boost to liquidity.
Close Investments Limited 23 November 2011
Close Assets Funds Limited (the "Company")
INTERIM MANAGEMENT REPORT
for the period ended 30 September 2011
The Company currently holds six debt securities, the issuers of which, as at the date of this report, have credit ratings ranging from Aa3 to Baa1 by Moodys and from A+ to BB by S&P's rating agency.
Of particular interest, the Company holds a debt security issued by Irish Life & Permanent ("IL&P") with a nominal value of GBP8.8m and a fair value, as at the reporting date, of GBP7,203,178. This represented 15.52 per cent. of the value of the Company's net assets as at the reporting date.
Shareholders will be aware of the deteriorating situation in Ireland which has forced the Irish government to request contingency funding from the EU/IMF, leading to its sovereign rating being lowered by S&P to BBB+ and to Baa3 by Moodys. On 31 March 2011, the Central Bank of Ireland published the outcome of its review of capital and funding requirements for the domestic Irish banks, including IL&P. The review identified a gross capital requirement of c.EUR4.0bn for the banking business of IL&P. IL&P announced that it will increase its capital in part through the sale of its life and pensions and investment management businesses. In addition to IL&P's capital raisings, the group has been advised that as it is of systemic importance to the Irish economy, the Irish government will support its further capital requirements as necessary, which will likely be c.EUR2.3bn. Moodys highlighted that the Irish government has indicated that burden sharing with senior unsecured debt holders is not part of this recapitalisation and that the capital increase is a clear credit positive for the banks. As a result of the above factors, in particular the sovereign downgrade IL&P has been further downgraded by S&P to BB and to Ba2 by Moodys.
The Company also holds a debt security issued by SNS Bank N.V ("SNS") with a nominal value of GBP8.8m and a fair value, as at the reporting date, of GBP9,010,925. This represented 19.41 per cent. of the value of the Company's net assets as at the reporting date. On 5 April 2011 Moodys downgraded the long-term senior debt rating of SNS one notch to Baa1 from A3, and assigned a stable outlook. Moodys rating action was triggered by the risks resulting from the wind-down of SNS Property Finance, which the bank placed in run-off in 2009. Moodys commented that "while we believe the bulk of associated credit losses are likely to be behind the bank, we believe that there is still material uncertainty around the ultimate losses and we anticipate continued pressure on the bank's earnings in the short-to-medium term."
Close Assets Funds Limited (the "Company")
INTERIM MANAGEMENT REPORT (continued)
for the period ended 30 September 2011
The Board monitors credit risk and will consider further action if the credit rating of an issuer falls below A- or A3 as ranked by S&P and Moodys respectively. As a result of the rating agencies actions, the Board considered both the sale and the retention of the IL&P debt security and the SNS debt security, acting in the best interests of the Company and its shareholders.
The Board reviewed recent research updates from the ratings agencies and also considered how the Final Capital Entitlement of the Shares might be affected by any sale of the IL&P debt security or the SNS debt security and noted that there could be a significant cost involved, resulting in an irreversible reduction in the possible returns to the Company's shareholders. On the basis of the prevailing facts, the Board therefore concluded that it would not be in the best interests of the Company and shareholders to sell the IL&P debt security and the SNS debt security, but will continue to monitor the situation.
In the event of a default by an issuer of a debt security purchased by the Company, the Company would rank as an unsecured creditor in respect of sums due from the issuer of such debt security. In such event, the Company may (in respect of that debt security) receive a lesser amount (if any) and at a different time than the proceeds anticipated at the maturity of the debt security. Any losses would be borne by the Company and returns to Shareholders would be significantly adversely affected.
This half-yearly financial report has not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.
Responsibility Statement
The Board of directors jointly and severally confirm that, to the best of their knowledge:
(a) The financial statements, prepared in accordance with International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
(b) This Interim Management Report includes or incorporates by reference:
Close Assets Funds Limited (the "Company")
INTERIM MANAGEMENT REPORT (continued)
for the period ended 30 September 2011
a. An indication of important events that have occurred during the first six months of the financial year, and their impact on the financial statements;
b. a description of the principal risks and uncertainties for the remaining six months of the financial year;
c. confirmation that there were no related party transactions in the first six months of the current financial year that have materially affected the financial position or the performance of the Company during that period; and
d. changes in the related parties transactions described in the last annual report that could have a material effect on the financial position or performance of the Company in the first six months of the current financial year.
Richard de la Rue Nicholas Falla Director Director
Close Assets Funds Limited (the "Company")
STATEMENT OF COMPREHENSIVE INCOME (unaudited)
as at 30 September 2011
TOTAL TOTAL
1 Apr to 1 Apr to
30 Sep 2011 30 Sep 2010
Notes GBP GBP
Net movement in unrealised (depreciation)
/ appreciation on investments 5 (5,003,611) 405,878
Net movement in unrealised depreciation
on Put Option (3,408,067) (730,093)
Operating expenses 2 (158,899) (159,388)
------------- ------------
Net loss for the period attributable
to shareholders (8,570,577) (483,603)
Other Comprehensive Income - -
------------- ------------
Total Comprehensive Income (8,570,577) (483,603)
------------- ------------
Pence Pence
Loss per Share for the period
- Basic and Diluted 4 (24.06) (1.36)
In arriving at the results for the financial period, all amounts above relate to continuing operations.
There are no recognised gains or losses for the period other than those disclosed above.
Reconciliation of loss per Share for investment purposes
to loss per Share per the financial statements
Pence Pence
Loss per Share for investment
purposes (23.99) (1.29)
Adjustment for amortisation of
debt issue costs (0.07) (0.07)
Loss per Share per the financial
statements (24.06) (1.36)
In accordance with International Financial Reporting Standards ("IFRS"), expenses should be attributed to the period to which they relate.
The loss per Share for investment purposes represents the loss per Share attributable to shareholders in accordance with the Prospectus, which recognises all expenses of the Company up to and including the date that the Final Capital Entitlement becomes payable.
Close Assets Funds Limited (the "Company")
STATEMENT OF FINANCIAL POSITION (unaudited)
as at 30 September 2011
TOTAL TOTAL
30 Sep 2011 31 Mar 2011
Notes GBP GBP
NON CURRENT ASSETS
Unquoted financial assets designated
as at fair value through profit
or loss 5 52,726,174 57,729,785
CURRENT ASSETS
Receivables 6 70,657 98,785
Cash and cash equivalents 482,491 650,706
------------ ------------
553,148 749,491
CURRENT LIABILITIES
Payables - due within one year 7 179,104 216,548
------------ ------------
NET CURRENT ASSETS 374,044 532,943
TOTAL ASSETS LESS CURRENT LIABILITIES
(excluding net assets attributable
to shareholders) 53,100,218 58,262,728
NON CURRENT LIABILITIES
Payables - due after one year
(excluding net assets attributable
to shareholders) 8 6,680,291 3,272,224
NET ASSETS ATTRIBUTABLE TO
SHAREHOLDERS 46,419,927 54,990,504
------------ ------------
ZERO DIVIDEND SHARES IN ISSUE 35,625,000 35,625,000
Pence Pence
NAV PER ZERO DIVIDEND SHARE 130.30 154.36
Close Assets Funds Limited (the "Company")
STATEMENT OF FINANCIAL POSITION (unaudited)
as at 30 September 2011 (continued)
Reconciliation of NAV per Share for investment purposes to
NAV per Share per the
financial statements:
Pence Pence
NAV per Zero Dividend Share for investment
Purposes 130.13 154.12
Adjustment for debt issue costs 0.17 0.24
NAV per Zero Dividend Share per the
financial
Statements 130.30 154.36
In accordance with IFRS, expenses should be attributed to the period to which they relate.
The NAV per Share for investment purposes represents the NAV per Share attributable to shareholders in accordance with the Prospectus, which recognises all expenses of the Company up to and including the date that the Final Capital Entitlement becomes payable.
The financial statements were approved by the Board of directors and authorised for issue on 23 November 2011 and are signed on its behalf by:
Director Director
Close Assets Funds Limited (the "Company")
STATEMENT OF CASH FLOWS (unaudited)
for the period ended 30 September 2011
TOTAL TOTAL
1 Apr to 1 Apr to
30 Sep 2011 30 Sep 2010
GBP GBP
OPERATING ACTIVITIES
Net loss for the period attributable
to shareholders (8,570,577) (483,603)
Unrealised (appreciation) / depreciation
on
Investments 5,003,611 (405,878)
Unrealised appreciation / (depreciation)
on value of Put Option 3,408,067 730,093
Interest received (1,136) (1,895)
Amortisation of debt issue costs 25,109 25,109
Decrease in accrued expenses (37,444) (15,300)
Decrease in prepayments and accrued
income
excluding debt issue costs 3,019 4,798
------------ ------------
NET CASH OUTFLOW FROM OPERATING
ACTIVITIES (169,351) (146,676)
------------ ------------
INVESTING ACTIVITIES
Interest received 1,136 1,895
------------ ------------
NET CASH INFLOW FROM INVESTING
ACTIVITIES 1,136 1,895
------------ ------------
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 650,706 924,896
Decrease in cash and cash equivalents (168,215) (144,781)
------------ ------------
CASH AND CASH EQUIVALENTS AT
END OF
PERIOD 482,491 780,115
------------ ------------
Close Assets Funds Limited (the "Company")
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS (unaudited)
for the period ended 30 September 2011
TOTAL TOTAL
1 Apr 2010 1 Apr 2010
to to
30 Sep 2011 30 Sep 2010
GBP GBP
Opening balance 54,990,504 50,994,364
Net loss for the period attributable
to Zero
Dividend shareholders (8,570,577) (483,603)
------------ ------------
Closing balance 46,419,927 50,510,761
------------ ------------
Changes in equity for the management fund are included within the balances for Fund, but are not considered material.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011
1. ACCOUNTING POLICIES
The significant accounting policies adopted by the Company are as follows:
(a) Basis of Preparation and Going Concern
The financial statements have been prepared in conformity with IFRS which comprise standards and interpretations approved by the International Accounting Standards Board ("IASB") and International Financial Reporting Interpretations Committee ("IFRIC") and applicable Guernsey law. The financial statements have been prepared on an historical cost basis except for the measurement at fair value of financial instruments.
Changes in accounting policy and disclosure
The following Standards or Interpretations have been adopted in the current period. Their adoption has not had any impact on the amounts reported in these financial statements and is not expected to have any impact on future financial periods.
IFRS 7 Financial Instruments: Disclosures (annual amendments)
IAS 1 Presentation of Financial Statements (annual amendments)
IAS 24 Related Party Disclosures (revised definition)
IAS 34 Interim Financial Reporting (annual amendments)
The following Standards or Interpretations have been issued by the IASB but not yet adopted by the Company:
IFRS 7 Financial Instruments: Disclosures effective for annual periods beginning on or after 1 July 2011.
IFRS 9 Financial Instruments: Classification and Measurement effective for annual periods beginning on or after 1 January 2013.
IFRS 13 Fair Value Measurement effective for annual periods beginning on or after 1 January 2013.
IAS 1 Presentation of Financial Statements effective for annual periods beginning on or after 1 July 2012.
The directors have considered the above and are of the opinion that the above Standards and Interpretations are not expected to have an impact on the Company's financial statements except for the presentation of additional disclosures and changes to the presentational components of the financial statements. These items will be applied in the first financial period for which they are required.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
1. ACCOUNTING POLICIES (continued) (b) Taxation
The Company has been granted exemption under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989 from Guernsey Income Tax, and is charged an annual fee of GBP600.
(c) Expenses
All expenses are accounted for on an accruals basis.
(d) Debt Issue Costs
The debt issue costs incurred amounted to GBP300,760. Because the Zero Dividend Shares of Fund 2012 are redeemable on or around 22 November 2012 (the "End Date") and because the Management Shares are subordinate, they are required to be classified as debt instruments under IAS 32. Consequently, issue costs are required to be amortised over the life of the instrument.
(e) Interest Income
Interest income is accounted for on an accruals basis.
(f) Cash and Cash equivalents
Cash at bank and short term deposits which are held to maturity are carried at cost. Cash and cash equivalents are defined as call deposits, short term deposits and highly liquid investments readily convertible to known amounts of cash and subject to insignificant risk of changes in value. For the purposes of the Statement of Cash Flow, cash and cash equivalents consist of cash and deposits at bank.
(g) Investments
All investments have been designated as financial assets as at "fair value through profit or loss". Investments are initially recognised on the date of purchase at cost, being the fair value of the consideration given, excluding transaction costs associated with the investment. After initial recognition, investments are measured at fair value, with unrealised gains and losses on investments and impairment of investments recognised in the Statement of Comprehensive Income.
Fair value is the amount for which the financial instruments could be exchanged, or a liability settled, between knowledgeable willing parties in an arms length transaction. Fair value also reflects the credit quality of the issuers of the financial instruments.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
1. ACCOUNTING POLICIES (continued) (g) Investments (continued)
Valuations of the investments are based on valuations provided to the Company by Future Value Consultants Limited (the "Calculation Agent"). These valuations are intended to be an indication of the fair value of the Company's investments, including an issuer's credit risk, designed to reflect the best estimation of the price at which they could be sold, even though there is no guarantee that a willing buyer might be found if the Company on behalf of the Fund chose to sell the relevant investment.
The indicative fair values of the investments are based on an approximation of the market level of the investments. As the investments are not traded in an active market, the indicative fair value is determined by using valuation techniques. The Calculation Agent uses a variety of methods and makes assumptions that are based on market conditions existing at the reporting date.
Valuation techniques used may include the use of comparable recent arm's length transactions (where available), discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants.
Models use observable data, to the extent practicable. However, areas such as credit risk, volatilities and correlations require the Calculation Agent to make estimates. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
Different assumptions regarding these factors, combined with different valuation techniques and models used, could lead to different valuations of the financial instruments produced by different parties. As at the reporting date, valuation data provided by J P Morgan Securities Limited, for the Debt Securities only, was GBP3,343,546 (31 Mar 2011: GBP3,027,064) higher than that provided by the Calculation Agent.
Being cognisant of current market conditions, the Company believes that the valuations provided by the Calculation Agent comply with the definition of fair value as defined by IFRS and are more appropriate.
The investments will be derecognised on their Redemption Date. Gains and losses on the sale of investments will be taken to the Statement of Comprehensive Income.
(h) Put Option
The Put Option was initially recognised at the fair value of the consideration received on the date of sale, and included within Payables falling due after more than one year. After initial recognition, the Put Option is measured at fair value with unrealised gains and losses being recognised in the Statement of Comprehensive Income. The Put Option will be derecognised at maturity on the End Date.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
1. ACCOUNTING POLICIES (continued) (i) Trade Date Accounting
All "regular way" purchases and sales of financial assets are recognised on the "trade date", i.e. the date that the entity commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of the asset within the time frame generally established by regulations or convention in the market place.
(j) Segmental Reporting
The directors are of the opinion that the Company is engaged in a single segment of business, being investment business in the United Kingdom.
(k) Going Concern
After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue operational existence for the foreseeable future. The directors believe the Company is well placed to manage its business risks successfully despite the current economic climate. Accordingly, the directors have adopted the going concern basis in preparing the financial information.
2. OPERATING EXPENSES
TOTAL TOTAL
1 Apr to 1 Apr to
30 Sep 2011 30 Sep 2010
GBP GBP
Amortisation of debt issue
costs 25,109 25,109
Investment management fees
(1) 92,922 92,922
Administration fees 12,284 12,284
Directors' remuneration 10,500 10,058
Registration fees 4,641 3,413
Annual fees 14,853 13,427
Directors' and Officers'
insurance 5,850 6,000
Audit fees 5,000 4,500
Printing and stationery 1,381 2,874
Sundry costs 940 1,302
Other operating expenses (13,445) (10,606)
------------ ------------
160,035 161,283
Less: Bank interest income (1,136) (1,895)
------------ ------------
158,899 159,388
------------ ------------
(1) The Manager is entitled to receive a fee from the Company at an annual rate of 0.35% of the Initial Gross Proceeds of Fund.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
3. DIRECTORS' REMUNERATION
The prospectus for the Fund provided that each director would be paid a basic fee of GBP5,000 per annum and an additional fee of GBP3,000 per annum for the Close US Index Growth Fund 2007. Following the maturity of Close US Index Growth Fund 2007 the Board resolved that each director be paid an annual fee of GBP7,000 per annum, such rate to be effective 1 April 2007. In order that there be no risk that the interests of shareholders in Fund might be impacted by this increase in directors' fees, the Manager undertook to increase the amount of its contingent rebate by GBP6,000 per annum and by GBP36,000 in the last financial period preceding the Redemption Date.
4. LOSS PER SHARE
Loss per Share is based on the net loss for the period attributable to shareholders of GBP8,570,577 (Sep 2010: GBP483,603 loss) and on 35,625,000 (Sep 2010: 35,625,000) Shares, being the weighted average number of Shares in issue during the period. There are no dilutive instruments and therefore basic and diluted earnings per Share are identical.
5. INVESTMENTS
TOTAL TOTAL
UNQUOTED FINANCIAL ASSETS 30 Sep 2011 31 Mar 2011
DESIGNATED AS AT FAIR VALUE
THROUGH PROFIT OR LOSS GBP GBP
Opening portfolio cost 52,953,000 52,953,000
Unrealised appreciation on
valuation brought
forward 4,776,785 3,720,196
Unrealised (depreciation) /
appreciation on
valuation for the period (5,003,611) 1,056,589
------------ ------------
Unrealised (depreciation) /
appreciation on
valuation carried forward (226,826) 4,776,785
------------ ------------
Closing valuation 52,726,174 57,729,785
------------ ------------
Valuations of investments are based on valuations provided by the Calculation Agent. The provided valuations are derived from proprietary models based upon well-recognised financial principles and reasonable estimates about relevant future market conditions using suitable inputs from market data such as interest rates, credit default swap spreads and notional Commodity Portfolio levels.
To comply with the definition of fair value as defined by IFRS, the Calculation Agent was engaged to provide valuations of the investments, taking account of the current counterparty credit risk of the issuers of the Debt Securities held by the Company for the account of the Fund. Details of the quantitative effect of using different valuation providers is given in note 1(g).
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
5. INVESTMENTS (continued)
IFRS 7 requires the fair value of investments to be disclosed by the source of inputs, using a three-level hierarchy as detailed below:
Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2);
Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
All Debt Securities held by the Company for the account of the Fund have been classified as Level 2 in accordance with the fair value hierarchy. There have been no transfers between Level 1 and Level 2 of the fair value hierarchy during the period under review.
The Debt Securities in the Fund's portfolio are Sterling-denominated non-coupon and non-interest bearing medium term notes linked to the FTSE 100 Index (the "Index"). They carry a maximum redemption amount of 164% of their principal amount which will be payable provided the Index rises by 16% or more between 22 November 2006 and November 2012 (the "Calculation Period"). For each percentage point rise in the Index up to a maximum of 16% over the Calculation Period the maximum redemption amount will be increased by approximately 4%, subject to a maximum increase of 64%.
In the event that the Index falls over the Calculation Period, the Debt Securities are designed to return 100% of their principal amount.
Valuation data provided by the Calculation Agent to the Company is provided for informational purposes only and does not represent an offer to buy or sell the Debt Securities by the Calculation Agent or any other party. The valuations provided are an indication of market levels and do not imply that they can be sold at that valuation price. They are based on assumptions and data the Calculation Agent considers in its judgement reasonable, but an alternative valuer might arrive at different valuations for the same investments.
6. RECEIVABLES
TOTAL TOTAL
30 Sep 2011 31 Mar 2011
GBP GBP
Prepaid expenditure 9,057 12,150
Prepaid debt issue costs 57,490 82,599
Accrued bank interest receivable 170 96
Sundry debtors 3,940 3,940
------------ ------------
70,657 98,785
------------ ------------
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
7. PAYABLES (amounts falling due within one year)
TOTAL TOTAL
30 Sep 2011 31 Mar 2011
GBP GBP
Accrued administration fees 2,014 2,081
Accrued registration fees 827 944
Accrued audit fees 5,000 10,000
Accrued management fees - 15,741
Other accrued expenses (1) 171,263 187,782
------------ ------------
179,104 216,548
------------ ------------
(1) Consisting of the currently estimated surplus cash remaining in the bank account established in respect of the ongoing, annual and redemption expenses of each Fund after payment of all such budgeted expenses to date, which will be payable to the Manager at the Redemption Date, as set out in the Prospectus of each Fund, together with other accrued expenses of an immaterial amount.
8. PAYABLES (amounts falling due after one year)
TOTAL TOTAL
30 Sep 2011 31 Mar 2011
FINANCIAL LIABILITIES GBP GBP
Fair value of the Put Option 6,680,291 3,272,224
------------ ------------
6,680,291 3,272,224
------------ ------------
The performance of the Put Option is linked to the performance of the Index. At an Index value of 6,160.30 or above at the close of business on the End Date, or if the Index has never closed below 3,080.15 during the Calculation Period the Put Option will be worth GBPNil at maturity. If the Index has closed below 3,080.15 over the Calculation Period and the Index is still below 6,160.30 at the End Date, the Put Option will be worth a percentage of the notional value, being GBP52,953,000, equivalent to the percentage fall in the level of the Index over the Calculation Period.
The Put Option is not exercisable until the maturity date of 22 November 2012.
The Put Option has been classified as Level 2 in accordance with the fair value hierarchy. There have been no transfers between Level 1 and Level 2 of the fair value hierarchy during the period under review.
The fair value of the Put Option is based on the valuation provided by the Calculation Agent. There is no active market regarding the Put Option.
J.P. Morgan Chase Bank N.A., in its capacity as the Put Option counterparty, has security over the financial assets held by the Company for payment of any monies owed upon maturity or termination of the Put Option contract.
The original proceeds from the sale of the Put Option were GBP4,209,763.50.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
9. SHARE CAPITAL
Authorised SHARES GBP
Unclassified Shares of 0.01p each 200,000,000 20,000
Management Shares of GBP1 each 100 100
------------ -------
20,100
-------
Issued Management Nominal FUND 2012
Shares Shares Zero TOTAL
Dividend
Shares
Shares in issue
at 31 March 2011
and 30 September
2011 2 39,375,000 35,625,000 75,000,002
----------- ----------- ----------- -----------
Issued Management Nominal FUND 2012
Shares Shares Zero TOTAL
Dividend
Shares
GBP GBP GBP GBP
Issued share capital
as
at 31 March 2011
and 30 September
2011 2 3,937 3,563 7,502
----------- -------- ---------- ------
Zero Dividend Shares (the Shares") are redeemable on or around 22 November 2012. The Company is closed-ended and therefore shareholders have no right to request the Company to repurchase their Shares or to redeem them prior to the Redemption Date. If the Company is wound up prior to the Redemption Date, shareholders will be entitled to the net asset value of the Shares on the winding up date. No dividends will be paid on the Shares.
Nominal shares are issued for administrative purposes and carry no rights as to dividends or voting.
Management shares are not redeemable, do not carry any right to dividends and in a winding up rank only for a return of the nominal amount paid up thereon after the return of capital on Zero Dividend Shares and Nominal Shares, together with any balance remaining in the Management Fund.
10. SHARE PREMIUM
TOTAL
GBP
Share premium as at 31 March 2011 and
30 September 2011 52,949,438
-----------
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
11. FINANCIAL INSTRUMENTS
The Company's main financial instruments comprise:
(a) Cash and cash equivalents that arise directly from the Company's operations;
(b) Sterling-denominated Debt Securities whose performance is based on the performance of the Index; and
(c) The Company for the account of the Fund has also sold a Put Option, whose performance is based on the performance of the Index. Details of the Put Option contract are shown in Note 8.
12. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The main risks arising from the Company's financial instruments are market price risk, credit risk, liquidity risk and interest rate risk. The Board regularly review and agrees policies for managing each of these risks and these are summarised below:
(a) Market Price Risk
Market price risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Company might suffer through holding market positions in the face of price movements. The Manager actively monitors market prices and reports to the Board as to the appropriateness of the prices used for valuation purposes. A list of investments held by the Company for the account of the Fund is shown in the Schedule of Investments on pages 31 and 32.
Details of the Company's Investment Objective and Policy are shown on pages 1 to 3.
Price sensitivity
The following details the Company's sensitivity to a 10% increase and decrease in the final market prices of its constituent financial assets and liabilities.
The Final Capital Entitlement due on the redemption of the Shares is determined by reference to the performance of the Index over the Calculation Period from the Start Date to the End Date. If at the End Date the Index stands below 6,160.30 (the "Start Value") but has not closed below 3,080.15 during the Calculation Period, the Final Capital Entitlement will be equal to 148.64 pence per Share.
During the period from the Start Date to 30 September 2011 the Index had not closed below 3,080.15. On 30 September 2011, the Index closed at 5,128.48.
If market prices as at 30 September 2011 had been 10% higher (equating to an Index level of 5,641.33) and assuming this value were to remain unchanged until the End Date, the Final Capital Entitlement due would be 148.64 pence per Share. As the Index would need to increase by more than 20.12% from its level at 30 September 2011 for the Final Capital Entitlement due to be more than 148.64 pence per Share, at 30 September 2011 the Company had no material sensitivity to a 10% increase in the level of the Index.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
12. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (a) Market Price Risk (continued)
If market prices as at 30 September 2011 had been 10% lower (equating to an Index level of 4,615.63) and assuming this value were to remain unchanged until the End Date, the Final Capital Entitlement due would be 148.64 pence per Share. As the Index would need to decline by more than 39.94% from its level as at 30 September 2011 for the Final Capital Entitlement due to be less than 148.64 pence per Share, at 30 September 2011 the Company had no material sensitivity to a 10% decrease in the level of the Index.
(b) Credit Risk
Credit risk is the risk that an issuer or counterparty will be unable or unwilling to meet a commitment that it has entered into with the Company. The Board monitors credit risk and will consider further action if the credit rating of an issuer falls below A- or A3 as ranked by Standard and Poor's ("S&P") and Moody's Investor Services Inc ("Moody's") respectively. Credit risks are controlled in the Company because the EMTN's have been purchased from several different issuers.
Investors should be aware that the prospective returns to shareholders mirror returns under the Debt Securities held or entered into by the Company and that any default by an issuer of any such Debt Securities held or entered into by the Company would have a consequential adverse effect on the ability of the Company to pay some or all of the redemption to shareholders. Such a default might for example, arise on the insolvency of an issuer of a debt security.
The following table details the aggregate ratings of the debt instruments in the portfolio, as a percentage of the value of the Company's investments for the account of the Fund as at 30 September 2011 (31 March 2011 for the comparative period) as rated by Moody's:
Rating 23 Nov 2011* 30 Sep 2011 31 Mar 2011 Aaa 0.00% 0.00% 0.00% Aa 0.00% 34.64% 34.88% A 69.25% 34.61% 51.59% Baa 17.09% 17.09% 0.00% Ba 13.66% 13.66% 13.53%
*Based on the value of the Company's investments for the account of the Fund as at 30 September 2011.
Credit risk was mitigated at launch by the Company by purchasing the Debt Securities from six different issuers. At the time of purchase four of the issuers were rated by Moody's at a grade A, with the remaining two issuers rated by Moody's at grade Aa.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
12. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (b) Credit Risk (continued)
The Company's financial assets exposed to credit risk are as follows:
30 Sep 2011 31 Mar 2011
GBP GBP
Unquoted financial assets
designated as at fair value
through profit or loss 52,726,174 57,729,785
Receivables 70,657 98,785
Cash and cash equivalents 482,491 650,706
------------ ------------
53,279,322 58,479,276
------------ ------------
(c) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in realising assets or otherwise raising funds to meet financial commitments. The Company's main financial commitments are its ongoing operating expenses and any cash settlement due to the Put Option Counterparty on the maturity of the Put Option, scheduled to occur on 22 November 2012.
Upon the issue of the shares in November 2006 the Company created a cash reserve (the "Expense Provision") in the amount of 2.1% of the amount raised by the issue of the Shares (the "Initial Gross Proceeds") plus GBP500,000, such amount being estimated in the opinion of the directors upon the advice of the Manager and the Administrator to be sufficient to meet the operating expenses reasonably expected to be incurred over the life of the shares.
At each quarterly Board meeting and at the end of each financial period the directors review the Expense Provision against the expected future expenses (other than the Manager's fee) of the Company. To the extent that the directors consider that the Expense Provision is less than 150% of the expected future expenses of the Company (other than the Manager's fee), the directors may, having first consulted the Manager, at their discretion reduce the amount of investment management fees payable to the Manager (subject to a maximum reduction of 50%) in order to re-establish the 150% cover.
If at any time during the life of the Company, notwithstanding the arrangements summarised above, the Expense Provision is exhausted then, subject to the relevant excess expenses having been agreed by the Manager, the Manager will make good such shortfall from its own resources, subject to a maximum in each of the first five annual financial periods of 0.25% of the Initial Gross Proceeds plus GBP6,000 and in the last financial period preceding the Redemption Date, of a maximum amount of GBP136,000.
Should these expenses exceed this cap the return to shareholders will be adversely impacted. The directors do not anticipate that the expenses will exceed the Expense Provision.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
12. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (c) Liquidity Risk (continued)
The Debt Securities purchased by the Company for the account of the Fund mature on 22 November 2012 (the "Maturity Date") and are due to be redeemed at their notional face value plus four times the performance increase between the Start Date and the End Date in the Index, capped at an amount equal to 64% of the notional face value, so that the aggregate maturity proceeds are expected to be between GBP52,953,000 if the Index closes on the End Date at or below its starting value on the Start Date of 6,160.30 and a maximum of GBP86,842,920 if the Index closes at or above 6,160.30 on the End Date, all subject to counterparty default.
Provided that none of the issuers of the Debt Securities default on their obligation to pay the maturity proceeds on the Maturity Date, the minimum maturity proceeds of GBP52,953,000 due are intended to satisfy the maximum payment due to be made by the Company to the Put Option Counterparty on the maturity of the Put Option of GBP52,953,000.
The directors and the Manager monitor the credit ratings of all issuers of the Debt Securities. In the event of any downgrading in the long-term credit rating of any issuer below A- or A3, as determined by S&Ps and/or Moody's respectively, the Company on behalf of the Fund may in its absolute discretion seek to sell the relevant debt security to third party purchasers and to reinvest the proceeds in the purchase of debt securities of another issuer such that the new Debt Securities will replicate as closely as possible the terms and conditions of the original Debt Securities. If the purchase of such debt securities is not possible, the directors may reinvest such proceeds as they see fit in investments which, in the opinion of the directors, as nearly as is practicable, replicate the investment characteristics of the Debt Securities sold and so that the proceeds are invested, as nearly as is practicable in accordance with the Company's stated investment objective for the Fund.
No assurance can be given that the Company will be able to sell the Debt Securities, for the reasons described above or on a winding-up of the Company, at a favourable price or at all. Even if the Company is able to sell such Debt Securities, the sale of the Debt Securities may result in a lower return than would have been the case if the long-term credit rating of the issuer of the relevant Debt Securities had not been downgraded and the original Debt Securities had been retained and were redeemed on the Maturity Date.
(d) Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial instruments. Except for cash set aside to meet expenses, the Company's assets and liabilities are expected to be held until the Maturity Date.
Interest rate risk is the risk that fluctuations in market interest rate will result in a reduction in deposit interest earned on cash deposits held by the Company. The Company holds cash on fixed deposit, the return on which is subject to fluctuations in market interest rates. All fixed deposits mature within three months.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
12. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (d) Interest Rate Risk (continued)
The weighted average effective interest rate for cash and bank balances as at 30 September 2011 was 0.38% (Mar 2011: 0.53%).
None of the other assets or liabilities of the Company attract or incur interest.
Interest rate sensitivity
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial instruments. Except for cash set aside to meet expenses, the Company's assets and liabilities are expected to be held until the Redemption Date.
If interest rates had been 100 basis points higher and all other variables were held constant, the Company's net assets attributable to shareholders as at 30 September 2011 would have been GBP2,412 greater (Mar 2011: GBP6,507) due to an increase in the amount of interest receivable on the bank balances.
If interest rates had been 100 basis points lower and all other variables were held constant, the Company's net assets attributable for the period ended 30 September 2011 would have been GBP2,412 lower (Mar 2011: GBP6,507) due to a decrease in the amount of interest receivable on the bank balances.
The Company's sensitivity to interest rates is lower in September 2011 than in March 2011 because of a decrease in the amount of cash held.
(e) Currency Risk
As both the Shares and the Debt Securities are Sterling denominated, shareholders investing for Sterling returns will not be exposed to direct currency risk. The value of the underlying securities comprising the Index may be affected by changes in the economic, political or social environment in Europe, as well as globally, including changes in exchange rates.
(f) Capital management
The investment objective of the Company for the Fund is to provide shareholders, on the Redemption Date, with a payment per Share which will comprise a capital amount of 148.64 pence per Share and a growth amount per Share equal to four times any percentage increase in the value of the Index as at the End Date relative to its value as at the Start Date, such amount being expressed in pence and rounded down to the next half pence, subject to a maximum increase of 64% of the issue price of 148.64 pence per Share.
The Company has an unlimited life but the Shares will be redeemed on or around 22 November 2012. Until then the Company has a fixed capital.
Close Assets Funds Limited (the "Company")
NOTES TO THE FINANCIAL STATEMENTS (unaudited)
as at 30 September 2011 (continued)
12. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (g) Collateral
Under the terms of a Pledge Agreement dated 7 December 2006 entered into between the Company on behalf of the Fund and the Put Option Counterparty, the Company on behalf of the Fund has pledged the Debt Securities, and all rights, title and interest therein, and any and all proceeds resulting from the sale or repayment of the Debt Securities as security for the Company's contingent liability under the Put Option sold to the Put Option Counterparty, further details of which are shown at Note 8. The collateral is held by a custodian in a segregated account in Euroclear. Where there is an event of default in respect of the Company under the Put Option, the Put Option Counterparty will be entitled to enforce its security over the Debt Securities.
13. RELATED PARTIES
Anson Fund Managers Limited is the Company's Administrator and Secretary. Anson Registrars Limited is the Company's Registrar, Transfer Agent and Paying Agent and Anson Administration (UK) Limited is the Company's UK Transfer Agent. John R Le Prevost is a director and controller of Anson Fund Managers Limited, Anson Registrars Limited and Anson Administration (UK) Limited. GBP16,925 (Sep 2010: GBP15,697) of costs were incurred by the Company with these related parties in the period, of which GBP2,841 (Mar 2011: GBP3,025) was due to these related parties as at 30 September 2011.
14. ULTIMATE CONTROLLING PARTY
In the opinion of the directors, the Company has no ultimate controlling party
Close Assets Funds Limited (the "Company")
SCHEDULE OF INVESTMENTS (unaudited)
as at 30 September 2011
CLOSE UK INDEX GROWTH FUND 2012 NOMINAL VALUATION TOTAL NET
DEBT SECURITIES PORTFOLIO HOLDINGS GBP ASSETS
Abbey National Treasury Services
Plc
EMTN 6 December 2012 8,800,000 9,113,779 19.63%
Britannia Building Society
EMTN 6 December 2012 8,800,000 9,001,174 19.39%
Caisse Centrale du Credit Immobilier
de France
EMTN 6 December 2012 8,800,000 9,248,064 19.92%
Irish Life & Permanent Plc
EMTN 6 December 2012 8,800,000 7,203,178 15.52%
Royal Bank of Scotland Plc
EMTN 6 December 2012 8,953,000 9,149,154 19.71%
SNS Bank NV
EMTN 6 December 2012 8,800,000 9,010,925 19.41%
----------- ----------
52,726,174 113.59%
----------- ----------
The Company has also sold a Put Option, details of which are shown below:
NOMINAL VALUATION
HOLDING GBP
JP Morgan Chase Bank FTSE 100
Index
Option maturing 22 November
2012 52,953,000 (6,680,291)
------------
Close Assets Funds Limited (the "Company")
SCHEDULE OF INVESTMENTS (unaudited)
as at 31 March 2011
CLOSE UK INDEX GROWTH FUND 2012 NOMINAL VALUATION TOTAL NET
DEBT SECURITIES PORTFOLIO HOLDINGS GBP ASSETS
Abbey National Treasury Services
Plc
EMTN 6 December 2012 8,800,000 9,983,451 18.15%
Britannia Building Society
EMTN 6 December 2012 8,800,000 9,855,873 17.92%
Caisse Centrale du Credit Immobilier
de France
EMTN 6 December 2012 8,800,000 10,045,599 18.27%
Irish Life & Permanent Plc
EMTN 6 December 2012 8,800,000 7,811,558 14.21%
Royal Bank of Scotland Plc
EMTN 6 December 2012 8,953,000 10,148,393 18.45%
SNS Bank NV
EMTN 6 December 2012 8,800,000 9,884,951 17.98%
----------- ----------
57,729,825 104.98%
----------- ----------
The Company has also sold a Put option, details of which are shown below:
NOMINAL VALUATION
HOLDING GBP
JP Morgan Chase Bank FTSE 100
Index
Option maturing 22 November
2012 52,953,000 (3,272,224)
------------
Close Assets Funds Limited (the "Company")
Registered in Guernsey No. 38553
SHAREHOLDER INFORMATION
The Company's Zero Dividend Shares are listed on the London Stock Exchange. Mid-market closing prices are quoted daily in the Financial Times. Company announcements and daily market closing prices of the Company's Zero Dividend Shares are available on Reuters, Bloomberg and on-line on the web. The ISIN of the Company's Shares is GG00B1GJ9885 and the London Stock Exchange mnemonic is CSUZ.
Monthly factsheets are issued by the Manager and can be down-loaded from the Manager's website www.closeam.com
The Annual Financial Report for the year ended 31 March 2012 is intended to be made public and sent to Shareholders in June 2012 together with a Notice of Meeting convening a General Meeting of shareholders.
SHARE DEALING
Shares may be dealt in directly through a stockbroker or professional adviser acting on an investor's behalf. The buying and selling of shares may be settled through CREST.
SHAREHOLDER ENQUIRIES
The Company's Registrar is Anson Registrars Limited in Guernsey and they can be contacted on 01481 711301.
Close Assets Funds Limited (the "Company")
Registered in Guernsey No. 38553
DIRECTORS AND SERVICE PROVIDERS
Directors Richard de la Rue (Chairman)
Nicholas Falla
John Le Prevost
---------------------------- -------------------------------------
Manager Close Investments Limited
(Authorised and Regulated by the
Financial
Services Authority)
10 Exchange Square
Primrose Street
London
England EC2A 2BY
---------------------------- -------------------------------------
Administrator and Secretary Anson Fund Managers Limited
PO Box 405
Anson Place
Mill Court
La Charroterie
St Peter Port
Guernsey GY1 3GF
---------------------------- -------------------------------------
Principal Bankers Royal Bank of Scotland International
Limited
Guernsey Branch
Royal Bank Place
1 Glategny Esplanade
St Peter Port
Guernsey GY1 4BQ
---------------------------- -------------------------------------
Auditor Saffery Champness
La Tonnelle House
Les Banques
St Sampson
Guernsey GY1 3HS
---------------------------- -------------------------------------
Registrar, Transfer Agent Anson Registrars Limited
and Paying Agent PO Box 426
Anson Place
Mill Court
La Charrotterie
St Peter Port
Guernsey GY1 3WX
---------------------------- -------------------------------------
UK Transfer Agent Anson Administration (UK) Limited
3500 Parkway
Whiteley, Fareham
Hampshire
England PO15 7AL
---------------------------- -------------------------------------
Registered Office of the Anson Place
Company
Mill Court
La Charrotterie
St Peter Port
Guernsey GY1 1EJ
---------------------------- -------------------------------------
Corporate Broker Matrix Corporate Capital LLP
One Vine Street, London
England, W1J 1EJ
---------------------------- -------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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