RNS Number:3490Y
Close Enhanced Commodities Fund Ld
14 June 2007
CLOSE ENHANCED COMMODITIES FUND LIMITED
PRELIMINARY ANNOUNCEMENT OF ANNUAL RESULTS
The Directors announce the statement of results for the year ended 28 February
2007 as follows:-
ABOUT THE COMPANY
Close Enhanced Commodities Fund Limited is a Guernsey incorporated, closed-ended
investment company. With the exception of two Management Shares issued for
administrative reasons, the Company's issued share capital comprises 35,300,000
Participating Shares (the "Shares") the performance of which is designed to
provide a geared exposure to any increase in the prices of a notional portfolio
of certain industrial and precious metals and energy related commodities (the
"Commodity Portfolio").
Pursuant to the initial placing and offer for subscription, 33,700,000 Shares
were issued at a price of 100p each on 23 February 2005. Your Board in
conjunction with the Company's Manager were successful in raising further
capital for the Company by the subsequent issue of 1,600,000 Shares at a price
of 105.5 pence each on 19 May 2005. All 35,300,000 Shares in issue now rank pari
passu, have been admitted to the Official List of the United Kingdom Listing
Authority and are capable of being dealt in on the London Stock Exchange. The
Company has an unlimited life but the Shares will be redeemed on or around 24
February 2010 (the "Redemption Date").
INVESTMENT OBJECTIVE AND POLICY
The investment objective of the Company is to provide shareholders on the
Redemption Date with a capital payment which will comprise a capital amount of
100p per Share and a growth amount per Share equal to two times any percentage
increase in the End Value of the Commodity Portfolio relative to its Start
Value, such amount being expressed in pence and rounded down to the next whole
penny (the "Final Capital Entitlement"). If the End Value is lower than the
Start Value, the Shares are designed to repay the full capital amount of 100p
per Share on the Redemption Date. The final return is subject to there being no
counterparty default or any other unforeseen circumstances.
The Final Capital Entitlement per Share in Sterling is designed to be determined
by applying to the initial issue price of #1 per Share the performance of the
Commodity Portfolio as valued and measured using US Dollar values over the
calculation period from 22 February 2005 (the "Start Date") to 22 February 2010
(the "End Date"). The Commodity Portfolio is a notional portfolio of
commodities comprising, by value on the Start Date, one third oil, one third
gold and one third industrial metals (equally weighted between aluminium, copper
and zinc). See page 9 for the opening values.
The US Dollar prices used in order to calculate the value of the Commodity
Portfolio on any date are: in respect of oil, the official closing price of the
NYMEX Exchange crude oil future contract next to expire in US Dollars per
barrel; in respect of gold, the afternoon fixing price for gold as determined by
the London Gold Market Fixing in US Dollars per Troy Ounce; and in respect of
the industrial metals, the official London Metal Exchange Cash Price in US
Dollars per metric tonne.
As at the End Date, the final value of the Commodity Portfolio will be
calculated by reference to the US Dollar aggregate daily value of each
constituent of the Commodity Portfolio over a calculation period of one year
ending on the End Date.
In accordance with the Company's investment policy, the net proceeds derived by
the Company from the issue of Shares have been invested in a portfolio of debt
securities at prices relative to the value of the Commodity Portfolio on 22
February 2005.
As both the Shares and the debt securities are Sterling-denominated,
Shareholders will not be exposed to direct currency risk. However, each of the
commodities is priced in US Dollars. Accordingly, in the event that the US
Dollar strengthens in value, this may cause a reduction in the prices of the
commodities and could result in a reduction in the Final Capital Entitlement.
CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2007
At launch, and at the placing on 19 May 2005, the net proceeds derived from the
issue of Shares of the Company were invested in a portfolio of debt securities
based on a notional portfolio of commodities. On 28 February 2007, the
Commodity Portfolio had risen 55.3% since launch and 18.8% over the reporting
period. Over the same periods, the total market value of the Company's shares
rose by 54.0% and 20.3% respectively.
I am pleased to report that subsequent to the end of the financial year, the
underlying commodities have continued to rise. As at 8 June 2007 the Commodity
Portfolio had risen 3.5% since the financial year end. The performance of the
individual commodities was quite diverse over this period with oil rising 4.8%
and gold falling 1.3%; the price of industrial metals varied with copper the
best, rising 21.8%, and aluminium falling 8.1% whilst zinc gained 4.0%.
Your Company's shares have also performed extremely well, rising by 8.8% from
the financial year end to 8 June 2007.
Nicholas Falla
Chairman
STATEMENT OF OPERATIONS
for the year ended 31 March 2007
1 Mar 2006 Incorporation
to 28 Feb 2007 to 28 Feb 2006
GBP GBP
Net movement in unrealised appreciation on 14,279,533 17,288,544
investments
Operating expenses (340,321) (667,140)
Net gain for the year attributable to 13,939,212 16,621,404
shareholders
Pence Pence
Earnings per share for the year - Basic and 39.49 47.58
Diluted
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 EARNINGS PER SHARE FOR INVESTMENT PURPOSES TO EARNINGS PER
SHARE PER THE FINANCIAL STATEMENTS:
Pence Pence
Earnings per share for investment purposes 40.45 49.48
Adjustment to include expenses on an accruals basis (0.96) (1.90)
Earnings per share per the financial statements 39.49 47.58
In accordance with International Financial Reporting Standards, expenses should
be attributed to the period to which they relate.
The earnings per share for investment purposes represents the earnings 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.
NET ASSET STATEMENT
as at 28 February 2007
28 Feb 2007 28 Feb 2006
GBP GBP
FIXED ASSETS
Unquoted financial assets designated at fair value
through
profit or loss 64,660,827 50,381,294
CURRENT ASSETS
Debtors 489,584 648,751
Cash at bank 812,318 1,001,051
1,301,902 1,649,802
CURRENT LIABILITIES
Creditors - due within one year 14,111 21,690
NET CURRENT ASSETS 1,287,791 1,628,112
TOTAL ASSETS LESS CURRENT LIABILITIES 65,948,618 52,009,406
Non-current liabilities excluding net assets
attributable to shareholders - -
NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS 65,948,618 52,009,406
SHARES IN ISSUE 35,300,000 35,300,000
Pence Pence
NAV PER SHARE 186.82 147.34
RECONCILIATION OF NAV PER SHARE FOR INVESTMENT PURPOSES TO NAV PER SHARE PER THE
FINANCIAL STATEMENTS:
Pence Pence
NAV per share for investment purposes 183.17 142.72
Adjustment to include expenses on an accruals basis 3.65 4.62
NAV per share per the financial statements 186.82 147.34
In accordance with International Financial Reporting Standards, 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.
STATEMENT OF CASH FLOWS
for the year ended 28 February 2007
1 Mar 2006 Incorporation
to 28 Feb 2007 to 28 Feb 2006
GBP GBP
Operating activities
Net gain for the year attributable to 13,939,212 16,621,404
shareholders
Less: Unrealised (appreciation) on (14,279,533) (17,288,544)
investments
Add: Amortisation of debt issue costs 159,497 159,553
Less: (Decrease) / Increase in accrued (7,579) 21,690
expenses
Less: (Increase) in prepayments and accrued
income
excluding debt issue costs (330) (12,074)
Net cash outflow from operating activities (188,733) (497,971)
Investing activities
Purchase of financial assets - (33,092,750)
Net cash inflow / (outflow) from investing - (33,092,750)
activities
Financing activities
Proceeds of issue of shares - 35,388,002
Costs of issue of shares - (796,230)
Net cash inflow from financing activities - 34,591,772
Cash at beginning of year 1,001,051 -
(Decrease) / increase in cash and cash (188,733) 1,001,051
equivalents
Cash at end of year 812,318 1,001,051
Interest income in the year of #41,663 was received. Interest income has been
netted off against operating expenses.
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO SHAREHOLDERS
for the year ended 28 February 2007
1 Mar 2006 Incorporation
to 28 Feb 2007 to 28 Feb 2006
GBP GBP
Opening balance 52,009,406 -
Share capital issued - 3,532
Share premium at issue - 35,384,470
Net gain for the year attributable to 13,939,212 16,621,404
shareholders
Closing balance as at 28 February 2007 65,948,618 52,009,406
Under IAS 32, the Participating Shares are classified as debt and the Management
Shares are classified as equity.
For further information contact:
Anson Fund Managers Limited
Company Secretary
Tel: 01481 722260
14 June 2007
END OF ANNOUNCEMENT
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