Investment Objective & Perf Update
November 17 2008 - 9:25AM
UK Regulatory
RNS Number : 3043I
Close European Accelerated Fund Ltd
17 November 2008
FOR IMMEDIATE RELEASE
17 November 2008
Close European Accelerated Fund Limited (the "Company")
In order to fulfil its investment objective, the Company purchased seven Debt Securities, including one issued by Glitnir Banki HF and
one issued by Kaupthing Bank HF. These Debt Securities account for approximately 30 per cent of the total nominal value of the Company's
Debt Securities. In the event of a default by an issuer of a Debt Security purchased by the Company, the Company will 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 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 the amount received may be zero. Any losses will be borne by the Company and
returns to Shareholders would be significantly adversely affected.
Following the Icelandic authorities' decision to place both Glitnir Banki HF and Kaupthing Bank HF in receivership, the Board of the
Company considers it likely that they may not pay in full on their obligations. 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 either institution at the maturity of
the relevant Debt Securities.
If the Dow Jones EuroStoxx 50 Index (the "Index") has closed down more than 50 per cent from its Start Value (i.e. below 1,651.49) on
any Index Business Day between the Start Date and the End Date then an Index Barrier Breach will have occurred. In these circumstances, the
amount which the Company will be required to pay following the Index Barrier Breach will reduce its assets by an amount which reflects the
decline, if any, in the Index between the Start Date and the End Date.
The official closing level of the Dow Jones EuroStoxx 50 Index as at 31 October 2008 was 2,591.76. If the Index closed at this level on
the End Date and an Index Barrier Breach has not occurred, the Final Capital Entitlement would be 100 pence subject to there being no
counterparty default or any unforeseen circumstances, and in the event of both Glitnir Banki HF and Kaupthing Bank HF defaulting and having
a zero recovery rate and there being no insolvency of any other issuer of Debt Securities held by the Company or any other event of default
or any unforeseen circumstances, the Final Capital Entitlement would be approximately 69.5 pence, and if the Index were to fall by
approximately a further 61 per cent to a level of approximately 1,002 as at the End Date, the Final Capital Entitlement of the Shares would
be zero.
Payoff Profile
The tables below illustrate how the Final Capital Entitlement of the Shares might vary for different ending levels of the Dow Jones
EuroStoxx 50 Index (1) subject to there being no counterparty default or any unforeseen circumstances, and (2) on the assumption of zero
recovery in the event of default of the Debt Securities issued by Glitnir Banki HF and Kaupthing Bank HF and there being no insolvency of
any other issuer of Debt Securities held by the Company or any other event of default or any unforeseen circumstances.
If Dow Jones EuroStoxx 50 If Dow Jones EuroStoxx 50
Index never closes below 1,651.49+ Index closed below 1,651.49+
Final EuroStoxx Final Capital Final Capital Final Capital Final Capital
50 Index* Entitlement (1) Entitlement (2) Entitlement (1) Entitlement (2)
0 0.0 0.0
100 3.0 0.0
200 6.0 0.0
300 9.0 0.0
400 12.0 0.0
500 15.0 0.0
600 18.0 0.0
700 21.0 0.0
800 24.0 0.0
900 27.0 0.0
1,000 30.0 0.0
1,100 33.0 2.5
1,200 36.0 5.5
1,300 39.0 9.0
1,400 42.0 12.0
1,500 45.0 15.0
1,600 48.0 18.0
1,700 100.0 69.5 51.0 21.0
1,800 100.0 69.5 54.0 24.0
1,900 100.0 69.5 57.5 27.0
2,000 100.0 69.5 60.5 30.0
2,100 100.0 69.5 63.5 33.0
2,200 100.0 69.5 66.5 36.0
2,300 100.0 69.5 69.5 39.0
2,400 100.0 69.5 72.5 42.0
2,500 100.0 69.5 75.5 45.0
2,600 100.0 69.5 78.5 48.0
2,700 100.0 69.5 81.5 51.0
2,800 100.0 69.5 84.5 54.0
2,900 100.0 69.5 87.5 57.0
3,000 100.0 69.5 90.5 60.0
3,100 100.0 69.5 93.5 63.5
3,200 100.0 69.5 96.5 66.5
3,300 100.0 69.5 99.5 69.5
3,400 114.5 79.5 114.5 79.5
3,500 129.5 90.0 129.5 90.0
3,600 144.5 100.5 144.5 100.5
3,700 160.0 111.5 160.0 111.5
3,800 167.5 116.5 167.5 116.5
3,900 167.5 116.5 167.5 116.5
* As at 26 July 2011
+ On any day from 26 July 2005 to 26 July 2011
(1) Subject to there being no counterparty default or any unforeseen circumstances
(2) The table contemplates default and zero recovery in respect of the Debt Securities issued by Glitnir Banki HF and Kaupthing Bank HF.
The Final Capital Entitlement set out in this table is an example only and not a forecast of actual payments and is subject to there being
no insolvency of any other issuer of Debt Securities held by the Company or any other event of default or any unforeseen circumstances. The
attention of shareholders is drawn to the section headed "Risk Factors" in the Prospectus.
Defined terms in this announcement shall have the meaning assigned to them in the Prospectus.
Capital at Risk Products
The Company has been advised that the Company is a Capital at Risk Product as defined by the Financial Services Authority (FSA).
Investors should refer to the FSA factsheet, which is available at
www.moneymadeclear.fsa.gov.uk/products/investments/types/pooled/structure d_products.html
The return of capital invested at the end of the investment period is not guaranteed and therefore the investor may get back less than
was originally invested. Investors should not enter into a transaction to purchase Shares unless they are prepared to lose some or all of
the money they have invested.
They should satisfy themselves that the Shares are suitable for them in the light of their circumstances and financial position, and if
in any doubt they should seek professional advice. Investors may only achieve the rate of return advertised over a set period and the return
may depend on specific conditions being met.
The monthly factsheet is available on the website www.closeinvestments.com
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
STRILFFSLLLDLIT
Close European Accelerated Fund (LSE:CEAF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Close European Accelerated Fund (LSE:CEAF)
Historical Stock Chart
From Jul 2023 to Jul 2024
