RNS Number:5117K
Dresdner RCM 2 Endwt Policy Tst PLC
29 April 2003
For immediate release 29th April 2003
DRESDNER RCM SECOND ENDOWMENT POLICY TRUST plc
Six months to 31st March 2003
Investment Review - 2006 Pool
The net asset value has fallen from 195.7p per 2006 share at 30th September 2002
to 160.8p per 2006 share at 31st March 2003, a decrease of 17.8%.
The 2006 Pool currently has investments in policies valued at #38.8 million from
a total of 53 with-profits funds. During the six month period the 2006 Pool
received proceeds of policy maturities amounting to #0.83 million. The average
annualised return on these policies was 7.8%, excluding benefits arising from
demutualisation.
Investment Review - 2009 Pool
The net asset value has fallen from 142.8p per 2009 share at 30th September 2002
to 117.2p per 2009 share at 31st March 2003, a decrease of 17.9%.
The 2009 Pool currently has investments in policies valued at #27.4 million from
a total of 58 with-profits funds. During the six month period the 2009 Pool
received proceeds of policy maturities amounting to #0.74 million. The average
annualised return on these policies was 6.2%, excluding benefits arising from
demutualisation.
The lower net asset values for both 2006 and 2009 shares at 31st March 2003
reflect the severe reductions in bonus rates declared over the period. This
trend of declining bonus rates accelerated over the course of 2002 and the first
quarter of 2003, mainly due to the weakness of global equity markets.
Following the disposal of a number of policies, #1.05m of borrowings for each
Pool has been repaid since 30th September 2002. Proceeds were also used to
repurchase 45,000 2006 shares and 110,000 2009 shares over the period under
review.
A significant proportion of shareholders' assets is now made up of guaranteed
benefits - the total of sums assured and reversionary bonuses declared to date.
Projected final net asset values based on the value of guaranteed benefit
accrued to date, after estimated costs and based on current interest rates, are
125.1p and 100.9p for the 2006 and 2009 shares respectively. These figures
assume no further bonuses, reversionary or terminal, from 31st March 2003 and
take into account future premium commitments, expenses and interest costs.
Projected final net asset values
The Company publishes projected final net asset values on a regular basis. These
projections are based on possible future bonus rate levels, which will reflect,
inter alia, the investment returns earned by the underlying with-profits funds.
Projected final net asset values as at 31st March 2003 are given in the table
below.
100% Current Bonus 80% Current Bonus 50% Current Bonus 0% Current Bonus
Rates Rates Rates Rates
Projected final net asset
value at 30th September
2006 (2006 Pool) 205.1 189.3 166.3 125.1
Projected final net asset
value at 31st December 2009
(2009 Pool) 190.8 171.9 145.5 100.9
Projected final net asset values are calculated using the principal bases and
assumptions set out in the Annual Report which, inter alia, assume no further
changes in life office bonus rates other than those stated above, current
gearing levels and interest rates, no further demutualisation receipts and no
further purchases of policies. These illustrations are given to provide an
indication of the sensitivity of the projected final net asset value to bonus
rate changes. They should not be taken as forecasts of particular degree of
change in rate levels.
Earnings and dividend
The Company is managed with the objective of providing returns to investors
entirely in the form of capital growth. The continuing deficit on the Revenue
Account is consistent with this objective. Consequently, no dividend will be
payable on either class of share.
Status
The Company operates as an approved investment trust within the meaning of
Section 842 of the Income and Corporation Taxes Act 1988. Such approval has been
granted for the year ended 30th September 2002 and is expected to be granted for
the current accounting year. The Company is not a close company.
10 Fenchurch Street By Order of the Board
London EC3M 3LB P W I Ingram
Company Secretary
RESULTS - 2006 POOL
STATEMENT OF TOTAL RETURN
Six months ended 31st March 2003
*Revenue Capital Total
#'000s #'000s #'000s
Net losses on investments - (6,405) (6,405)
Income from fixed asset investments 50 - 50
Other income 15 - 15
Management and advisory fees (308) - (308)
Expenses of administration (52) - (52)
Return on ordinary activities
before finance costs and taxation (295) (6,405) (6,700)
Finance costs of borrowings (323) - (323)
Return on ordinary activities before taxation (618) (6,405) (7,023)
Taxation - - -
Transfer from reserves (618) (6,405) (7,023)
Return per 2006 Share (3.07)p (31.87)p (34.94)p
*The revenue column of this statement is the profit and loss account of the 2006 Pool.
NET ASSET STATEMENT #'000s
as at 31st March 2003
Valuation of Investments 40,329
Net Current Liabilities (4,100)
36,229
Medium Term Loan (3,950)
Total Net Assets 32,279
Called up Share Capital 1,004
Share Premium Account -
Capital Redemption Reserve 4
Capital Reserves :Realised 9,382
:Unrealised 13,269
Special Reserve 19,128
Revenue Reserve (10,508)
Shareholders' Funds 32,279
Net asset value per 2006 Share 160.8p
The net asset value is based on 20,073,064 2006 Shares in issue.
Calculations of net asset value are based on recent open market transactions at auction, or surrender
values in certain cases.
RESULTS - 2009 POOL
STATEMENT OF TOTAL RETURN
Six months ended 31st March 2003
*Revenue Capital Total
#'000s #'000s #'000s
Net losses on investments - (4,764) (4,764)
Income from fixed asset investments 43 - 43
Other income 12 - 12
Management and advisory fees (225) - (225)
Expenses of administration (37) - (37)
Return on ordinary activities
before finance costs and taxation (207) (4,764) (4,971)
Finance costs of borrowings (141) - (141)
Return on ordinary activities before taxation (348) (4,764) (5,112)
Taxation - - -
Transfer from reserves (348) (4,764) (5,112)
Return per 2009 Share (1.76)p (24.08)p (25.84)p
*The revenue column of this statement is the profit and loss account of the 2009 Pool.
NET ASSET STATEMENT #'000s
as at 31st March 2003
Valuation of Investments 28,602
Net Current Assets 182
28,784
Medium Term Loan (5,650)
Total Net Assets 23,134
Called up Share Capital 197
Share Premium Account 18,925
Capital Redemption Reserve 3
Capital Reserves :Realised 3,879
:Unrealised 4,384
Revenue Reserve (4,254)
Shareholders' Funds 23,134
Net asset value per 2009 Share 117.2p
The net asset value is based on 19,745,000 2009 Shares in issue.
Calculations of net asset value are based on recent open market transactions at auction, or surrender
values in certain cases.
RESULTS - CONSOLIDATED
STATEMENT OF TOTAL RETURN
Six months ended 31st March 2003
*Revenue Capital Total
#'000s #'000s #'000s
Net losses on investments - (11,169) (11,169)
Income from fixed asset investments 93 - 93
Other income 27 - 27
Management and advisory fees (533) - (533)
Expenses of administration (89) - (89)
Return on ordinary activities
before finance costs and taxation (502) (11,169) (11,671)
Finance costs of borrowings (464) - (464)
Return on ordinary activities before taxation (966) (11,169) (12,135)
Taxation - - -
Transfer from reserves (966) (11,169) (12,135)
*The revenue column of this statement is the profit and loss account of the Company.
NET ASSET STATEMENT #'000s
As at 31st March 2003
Valuation of Investments 68,931
Net Current Liabilities (3,918)
65,013
Medium Term Loan (9,600)
Total Net Assets 55,413
Called up Share Capital 1,201
Share Premium Account 18,925
Capital Redemption Reserve 7
Capital Realised :Realised 13,261
:Unrealised 17,653
Special Reserve 19,128
Revenue Reserve (14,762)
Shareholders' Funds 55,413
RESULTS - 2006 POOL
STATEMENT OF TOTAL RETURN
Six months ended 31st March 2002
*Revenue Capital Total
#'000s #'000s #'000s
Net losses on investments - (1,262) (1,262)
Income from fixed asset investments 45 - 45
Other income 1 - 1
Management and advisory fees (355) - (355)
Expenses of administration (67) - (67)
Return on ordinary activities (376) (1,262) (1,638)
before finance costs and taxation
Finance costs of borrowings (294) - (294)
Return on ordinary activities before taxation (670) (1,262) (1,932)
Taxation - - -
Transfer from reserves (670) (1,262) (1,932)
Return per 2006 Share (3.32)p (6.26)p (9.58)p
*The revenue column of this statement is the profit and loss account of the 2006 Pool.
NET ASSET STATEMENT #'000s
As at 31st March 2002
Valuation of Investments 50,057
Net Current Liabilities (116)
49,941
Medium Term Loan (9,500)
Total Net Assets 40,441
Called up Share Capital 1,008
Share Premium Account -
Capital Realised :Realised 7,553
:Unrealised 21,817
Special Reserve 19,258
Revenue Reserve (9,195)
Shareholders' Funds 40,441
Net asset value per 2006 Share 200.5p
The net asset value is based on 20,168,064 2006 Shares in issue.
Calculations of net asset value are based on recent open market transactions at auction, or surrender values
in certain cases.
RESULTS - 2009 POOL
STATEMENT OF TOTAL RETURN
Six months ended 31st March 2002
*Revenue Capital Total
#'000s #'000s #'000s
Net losses on investments - (570) (570)
Income from fixed asset investments 38 - 38
Other income - - -
Management and advisory fees (269) - (269)
Expenses of administration (50) - (50)
Return on ordinary activities (281) (570) (851)
before finance costs and taxation
Finance costs of borrowings (175) - (175)
Return on ordinary activities before taxation (456) (570) (1,026)
Taxation - - -
Transfer from reserves (456) (570) (1,026)
Return per 2009 Share (2.28)p (2.85)p (5.13)p
*The revenue column of this statement is the profit and loss account of the 2009 Pool.
NET ASSET STATEMENT #'000s
As at 31st March 2002
Valuation of Investments 38,029
Net Current Liabilities (254)
37,775
Medium Term Loan (7,350)
Total Net Assets 30,425
Called up Share Capital 200
Share Premium Account 18,925
Capital Reserves :Realised 2,753
:Unrealised 12,005
Revenue Reserve (3,458)
Shareholders' Funds 30,425
Net asset value per 2009 Share 152.1p
The net asset value is based on 20,000,000 2009 Shares in issue.
Calculations of net asset value are based on recent open market transactions at auction, or surrender
values in certain cases.
RESULTS - CONSOLIDATED
STATEMENT OF TOTAL RETURN
Six months ended 31st March 2002
*Revenue Capital Total
#'000s #'000s #'000s
Net losses on investments - (1,832) (1,832)
Income from fixed asset investments 83 - 83
Other income 1 - 1
Management and advisory fees (624) - (624)
Expenses of administration (117) - (117)
Return on ordinary activities
before finance costs and taxation (657) (1,832) (2,489)
Finance costs of borrowings (469) - (469)
Return on ordinary activities before taxation (1,126) (1,832) (2,958)
Taxation - - -
Transfer from reserves (1,126) (1,832) (2,958)
*The revenue column of this statement is the profit and loss account of the Company.
NET ASSET STATEMENT #'000s
As at 31st March 2002
Valuation of Investments 88,086
Net Current Liabilities (370)
87,716
Medium Term Loan (16,850)
Total Net Assets 70,866
Called up Share Capital 1,208
Share Premium Account 18,925
Capital Realised :Realised 10,306
:Unrealised 33,822
Special Reserve 19,258
Revenue Reserve (12,653)
Shareholders' Funds 70,866
RESULTS - 2006 POOL
STATEMENT OF TOTAL RETURN
Year ended 30th September 2002
*Revenue Capital Total
#'000s #'000s #'000s
Net losses on investments - (1,576) (1,576)
Income from fixed asset investments 117 - 117
Other income 4 - 4
Management and advisory fees (703) - (703)
Expenses of administration (147) - (147)
Return on ordinary activities
before finance costs and taxation (729) (1,576) (2,305)
Finance costs of borrowings (637) - (637)
Return on ordinary activities before taxation (1,366) (1,576) (2,942)
Taxation - - -
Transfer (from) to reserves (1,366) (1,576) (2,942)
Return per 2006 Share (6.77)p (7.81)p (14.58)p
*The revenue column of this statement is the profit and loss account of the 2006 Pool.
NET ASSET STATEMENT #'000s
as at 30th September 2002
Valuation of Investments 47,609
Net Current Assets 996
48,605
Medium Term Loan (9,237)
Total Net Assets 39,368
Called up Share Capital 1,006
Share Premium Account -
Capital Redemption Reserve 2
Capital Reserves :Realised 8,790
:Unrealised 20,266
Special Reserve 19,195
Revenue Reserve (9,891)
Shareholders' Funds 39,368
Net asset value per 2006 Share 195.7p
The net asset value is based on 20,118,064 2006 Shares in issue.
Calculations of net asset value are based on recent open market transactions at auction, or
surrender values in certain cases.
RESULTS - 2009 POOL
STATEMENT OF TOTAL RETURN
Year ended 30th September 2002
*Revenue Capital Total
#'000s #'000s #'000s
Net losses on investments - (2,052) (2,052)
Income from fixed asset investments 88 - 88
Other income 1 - 1
Management and advisory fees (536) - (536)
Expenses of administration (111) - (111)
Return on ordinary activities
before finance costs and taxation (558) (2,052) (2,610)
Finance costs of borrowings (345) - (345)
Return on ordinary activities before taxation (903) (2,052) (2,955)
Taxation - - -
Transfer from reserves (903) (2,052) (2,955)
Return per 2009 Share (4.51)p (10.27)p (14.78)p
*The revenue column of this statement is the profit and loss account of the 2009 Pool.
NET ASSET STATEMENT #'000s
As at 30th September 2002
Valuation of Investments 33,839
Net Current Assets 1,206
35,045
Medium Term Loan (6,700)
Total Net Assets 28,345
Called up Share Capital 199
Share Premium Account 18,925
Capital Redemption Reserve 1
Capital Reserves :Realised 3,693
:Unrealised 9,432
Revenue Reserve (3,904)
Shareholders' Funds 28,345
Net asset value per 2009 Share 142.8p
The net asset value is based on 19,855,000 2009 Shares in issue.
Calculations of net asset value are based on recent open market transactions at
auction, or surrender values in certain cases.
RESULTS - CONSOLIDATED
STATEMENT OF TOTAL RETURN
Year ended 30th September 2002
*Revenue Capital Total
#'000s #'000s #'000s
Net losses on investments - (3,628) (3,628)
Income from fixed asset investments 204 - 204
Other income 6 - 6
Management and advisory fees (1,238) - (1,238)
Expenses of administration (258) - (258)
Return on ordinary activities
before finance costs and taxation (1,286) (3,628) (4,914)
Finance costs of borrowings (983) - (983)
Return on ordinary activities before taxation (2,269) (3,628) (5,897)
Taxation - - -
Transfer from reserves (2,269) (3,628) (5,897)
*The revenue column of this statement is the profit and loss account of the Company.
NET ASSET STATEMENT #'000s
As at 30th September 2002
Valuation of Investments 81,448
Net Current Assets 2,203
83,651
Medium Term Loan (15,937)
Total Net Assets 67,714
Called up Share Capital 1,204
Share Premium Account 18,925
Capital Redemption Reserve 4
Capital Realised :Realised 12,483
:Unrealised 29,698
Special Reserve 19,195
Revenue Reserve (13,795)
Shareholders' Funds 67,714
CASH FLOW STATEMENT - 2006 POOL
Six Months to Six Months to Year to
March March September
2003 2002 2002
#'000s #'000s #'000s
Net cash outflow from operating activities (247) (606) (967)
Servicing of Finance
Interest paid (135) (234) (400)
Taxation
Income tax repaid - 1 3
Investing activities
Acquisition of investments (569) (619) (1,205)
Receipts on demutualisations - 604 603
Disposal of investments 1,767 1,135 3,533
Net cash inflow from financial investment 1,198 1,120 2,931
Net cash inflow before financing 816 281 1,567
Financing
Decrease in medium term loans (1,050) (500) (1,000)
Purchase of Ordinary Shares for cancellation (67) - (63)
Net cash outflow from financing (1,117) (500) (1,063)
(Decrease) increase in cash (301) (219) 504
CASH FLOW STATEMENT - 2009 POOL
Six Months to Six Months to Year to
March March September
2003 2002 2002
#'000s #'000s #'000s
Net cash outflow from operating activities (245) (91) (344)
Servicing of Finance
Interest paid (136) (174) (348)
Taxation
Income tax repaid - - 2
Investing activities
Acquisition of investments (492) (540) (1,067)
Receipts on demutualisations - 254 254
Disposal of investments 1,786 640 3,054
Net cash inflow from financial investment 1,294 354 2,241
Net cash inflow before financing 913 89 1,551
Financing
Decrease in medium term loans (1,050) (200) (850)
Purchase of Ordinary Shares for cancellation (98) - (152)
Net cash outflow from financing (1,148) (200) (1,002)
(Decrease) increase in cash (235) (111) 549
CASH FLOW STATEMENT - CONSOLIDATED
Six Months to Six Months to Year to
March March September
2003 2002 2002
#'000s #'000s #'000s
Net cash outflow from operating activities (492) (697) (1,311)
Servicing of Finance
Interest paid (271) (408) (748)
Taxation
Income tax repaid - 1 5
Investing activities
Acquisition of investments (1,061) (1,159) (2,272)
Receipts on demutualisations - 858 857
Disposal of investments 3,553 1,775 6,587
Net cash inflow from financial investment 2,492 1,474 5,172
Net cash inflow before financing 1,729 370 3,118
Financing
Decrease in medium term loans (2,100) (700) 1,850
Purchase of Ordinary Shares for cancellation (165) - (215)
Net cash outflow from financing (2,265) (700) (2,065)
(Decrease) increase in cash (536) (330) 1,053
This interim statement has been neither audited nor reviewed by the Company's
auditors.
The interim statement has been prepared using the same accounting policies as
those adopted in the annual accounts for the year ended 30th September 2002.
The non-statutory accounts for the year to 30th September 2002 are an extract
from the latest published accounts of the Company which have been delivered to
the Registrar of Companies. The auditors' opinion on those accounts was
unqualified and did not contain a statement under Section 237(2) or (3) of the
Companies Act 1985.
The Interim Report will be sent to shareholders and made available to the public
at the Registered Office of the Company, 10 Fenchurch Street, London EC3M 3LB.
2006 POOL
TWENTY LARGEST HOLDINGS BY LIFE OFFICE
AS AT 31ST MARCH 2003
Life Office Value of Policies % of Total
Investments
#'000s
Standard Life 10,906 27.0
AVIVA (Norwich Union) 4,947 12.3
Legal & General 3,644 9.0
Prudential 2,652 6.6
Scottish Provident 1,902 4.7
Prudential (Scottish Amicable) 1,588 3.9
Scottish Widows 1,561 3.9
Friends Provident 990 2.5
Clerical Medical 907 2.2
Scottish Life 679 1.7
AXA Equity & Law 652 1.6
Royal & Sun Alliance (Royal Life) 651 1.6
Scottish Mutual 539 1.3
AVIVA (Commercial Union) 539 1.3
Guardian 512 1.3
Colonial Mutual 499 1.2
Alba Life (Crusader) 474 1.2
London Life 359 0.9
Friends Provident (London & Manchester) 350 0.9
AXA Sun Life 305 0.8
Total of twenty largest holdings 34,656 85.9
Holdings in other offices 4,140 10.3
Total holdings of endowment policies 38,796 96.2
#,000s %
Listed Equity Holdings
Friends Provident 79 0.2
Fixed Interest Holdings HoldingsOLDINGS
EIB 6.125% 07/12/2005 953 2.4
EIB 7.625% 07/12/2006 501 1.2
1,454 3.6
TOTAL OF INVESTED FUNDS 40,329 100.0
2009 POOL
TWENTY LARGEST HOLDINGS BY LIFE OFFICE
AS AT 31ST MARCH 2003
Life Office Value of Policies
% of Total
Investments
#'000s
Standard Life 7,140 25.0
Legal & General 4,293 15.0
Prudential (Scottish Amicable) 2,253 7.9
Scottish Widows 1,870 6.5
AVIVA (Norwich Union) 1,840 6.4
Friends Provident 1,137 4.0
Scottish Life 1,061 3.7
Prudential 975 3.4
Clerical Medical 803 2.8
Scottish Provident 774 2.7
Colonial Mutual 505 1.8
Royal & Sun Alliance (Royal Life) 336 1.2
AVIVA (Commercial Union) 329 1.1
National Mutual 320 1.1
Gresham Life 275 1.0
NPI 219 0.8
Sun Life of Canada 186 0.7
AVIVA (Provident Mutual) 176 0.6
Guardian 171 0.6
AXA Sun Life 159 0.5
Total of twenty largest holdings 24,822 86.8
Holdings in other offices 2,560 9.0
Total holdings of endowment policies 27,382 95.8
AS AT
#'000s %
Listed Equity Holdings
Friends Provident 97 0.3
Fixed Interest Holdings
Abbey 5.375% 30/12/09 528 1.8
Finland 10.125% 22/06/08 595 2.1
1,123 3.9
TOTAL OF INVESTED FUNDS 28,602 100.0
Principal bases and assumptions used in projecting the final net asset value.
1) The final net asset values for the 2006 Pool and the 2009 Pool have been
calculated as at 30th September 2006 and 31st December 2009 respectively, on the
basis that all policies are held to maturity and no death claims or
demutualisation benefits arise and no further material purchases of policies are
made.
2) The latest reversionary and terminal bonus rates declared at 31st March 2003
continue to apply until maturity or are reduced by 20%, 50% or 100%.
3) The estimated mid-market gross redemption yields as at 31st March 2003, for
policies of differing remaining terms, are assumed to remain unchanged.
4) Annual expenses are assumed to be in line with recent experience, and future
annual inflation is assumed to be 3%. Interest rates over the Company's life are
assumed to be consistent with the shape of the yield curve at 31st March 2003.
5) No further shares are issued or repurchased.
For further information, please contact
Simon White, Allianz Dresdner Asset Management (UK) Ltd
Tel: 020 7475 2700
DRSEPT.Interim2003.1-17
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEUFLUSDSEDL