Information  X 
Enter a valid email address

Close Fd MngmtPortII (JAC)

  Print      Mail a friend

Thursday 25 August, 2011

Close Fd MngmtPortII

Update on the Company's Holdings

RNS Number : 0346N
Close Fund Mngmt Portfolios II PCC
25 August 2011
 



Close Fund Management Portfolios II PCC Limited (the "Company")

 

Japanese Accelerated Return Fund II (the "Cell")

 

Update on the Company's Holdings

 

25 August 2011

 

The Company wishes to update Shareholders on the status of certain issuers of Debt Securities held by the Company.  As Shareholders are aware, in order to fulfil the investment objective for the Cell, the Company for the account of the Cell holds seven Debt Securities, including one issued by Glitnir banki hf.  This Debt security has a nominal value of £7,100,000 and accounts for approximately 15 per cent of the total nominal value of the Cell's Debt Securities.

 

In the event of a default by an issuer of a Debt Security purchased by the Company on behalf of the Cell, the Cell will rank as an unsecured creditor in respect of sums due from the issuer of that Debt Security.  In such event, the Cell may (in respect of that Debt Security) receive a lesser amount of money than the amount due pursuant to the terms of the Debt Security, may actually receive the money at a different time than would otherwise have been the case and/or the amount received may be zero.  Any losses will be borne by the Cell and returns to Shareholders would be significantly adversely affected.

 

The Company on behalf of the Cell submitted a claim to Glitnir banki hf for £12,780,000 in respect of the Debt Security, such amount being equal to the maximum redemption proceeds of £1.80 per £1 nominal.  The Winding-Up Board of Glitnir banki hf has written to the Company to advise it accepts ISK 1,301,990,264 of  the claim, being equal to approximately £6.9 million (such amount being equal to 97 pence per £1 nominal) based on exchange rates as at close of business 24 August 2011.  The Winding-Up Committee of Kaupthing Bank hf has previously advised that it accepts ISK 1,356,668,000, being equal to approximately £7.2 million (such amount being equal to £1.01 per £1 nominal) based on exchange rates as at close of business 24 August 2011, in respect of the claim submitted to it.

 

Shareholders should be aware that it is likely that Glitnir banki hf and Kaupthing Bank hf may not pay the Company on account of the Cell the full amounts accepted or, indeed, anything at all.  Whilst recovery rates from issuers that default vary and in this case are currently unknown, the worst case scenario would see the Company receive nothing from Glitnir banki hf and Kaupthing Bank hf at the maturity of the relevant Debt Securities.  The amounts claimed or accepted should not be considered forecasts of the amounts which will be due from Glitnir banki hf or Kaupthing Bank hf on the maturity of the relevant Debt Securities, nor are they a reflection of the net asset value per Cell Share.  The redemption proceeds per Cell Share per the Company's investment objective for the Cell will not be known until after the end of the life of the Cell when the closing value of the Nikkei 225 Index on theEnd Date is known and may not be the amounts claimed or accepted.

 

Any claims which are paid may be paid before or after the end of the life of the Cell and in the case of early payment it may not be possible to reinvest  the proceeds in Debt securities which replicate the investment characteristics of the original Debt Securities.  Any claims which are paid may be paid in currencies other than Sterling and/or in forms other than cash.  Any payments received by the Company on account of the Cell may therefore be subject to currency fluctuations and/or other market movements.

 

For further information contact:

 

Anson Fund Managers Limited

 

Secretary

 

Tel: 01481 722260


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

a d v e r t i s e m e n t