INVESTEC STRUCTURED PRODUCTS CALCULUS VCT PLC
INTERIM MANAGEMENT STATEMENT
15 January 2014
Investec Structured Products Calculus VCT plc ("the Company") announces its
Interim Management Statement for the period from 1 September 2013 to 30
November 2013. This Statement also includes relevant financial information
between the end of the period to the date of this Statement.
The Company is a tax efficient listed company which aims to achieve a regular
tax free dividend stream together with capital growth for private investors.
The Company brings together Investec Structured Product's award winning
expertise in Structured Products and Calculus Capital's award winning expertise
in venture capital.
HEADLINES
* The unaudited net asset value ("NAV") per ordinary share as at 30 November
2013 was 94.08 pence. Taking into account dividends paid to date, the year
to date total return at the period end was 109.83 pence.
* The unaudited NAV per C share as at 30 November 2013 was 89.87 pence.
Taking into account dividends paid to date, the year to date total return
at the period end was 98.87 pence.
The total returns are stated before the inclusion of VCT tax reliefs which are
intended to mitigate the higher risk of investing in smaller companies and the
constraints imposed by VCT legislation. The income tax reliefs applicable at
the time of subscription were 30 per cent. VCT dividends are tax free.
INVESTMENT IN STRUCTURED PRODUCTS
In line with the Company's strategy set out in the original offer documents, a
large percentage of the initial cash raised has been used to build a portfolio
of Structured Products. The portfolio of Structured Products was constructed
with different issuers and differing maturity periods to minimise risk and
create a diversified portfolio.
The majority of the portfolio of Structured Products has now reached full term,
and the longer term products form the basis of the remaining portfolio. All
products are performing well currently due to the strong performance of the
FTSE 100.
The strong performance of the FTSE 100 has supported valuations in the
Structured Products portfolio, and the FTSE 100 has increased to sit
comfortably above all of the product's strike levels. As at 29 November 2013,
the FTSE 100 was 6,650.57. Over the past three months, swap rates have
increased and volatility has decreased slightly over the past few months.
Values of the Structured Product portfolio look strong, with the highest strike
value at 5,341.93 in the Ordinary Share Fund and 5,584.51 in the C Share Fund.
No new investments were made in Structured Products during the period.
The Structured Products will achieve their target return subject to the Final
Index Level of the FTSE 100 being higher than the Initial Index Level. The
capital is at risk on a one-for-one basis ("CAR") if the FTSE 100 Index falls
more than 50 per cent. any time during the investment term and fails to fully
recover at maturity such that the Final Index Level is below the Initial Index
Level. As at 30 November 2013, the following investments had been made in
Structured Products:
Ordinary Share Fund:
Issuer Strike FTSE 100 Notional Purchase Price as Maturity Return/Capital
Date Initial Investment Price at 30 Date/ at Risk (CAR)
Index November Date
Level 2013 Sold
The Royal 05/05/ 5,341.93 £275,000 £0.96 £1.5130 12/05/ 162.5% if FTSE
Bank of 2010 2015 100 higher*;
Scotland CAR if FTSE 100
plc falls more than
50%
Investec 14/05/ 5,262.85 £500,000 £0.98 £1.6437 19/11/ 185% if FTSE
Bank plc 2010 2015 100 higher*;
CAR if FTSE 100
falls more than
50%
Abbey 25/05/ 4,940.68 £350,000 £0.99 £1.6916 18/11/ 185% if FTSE
National 2010 2015 100 higher*;
Treasury CAR if FTSE 100
Services falls more than
50%
Matured/sold
HSBC Bank 01/07/ 4,805.75 £500,000 £1.00 Returned 06/07/ 125.1% if FTSE
plc 2010 £1.2510 2012 100 higher*;
CAR if FTSE
100 falls more
than 50%
The Royal 18/03/ 5,718.13 £50,000 £1.00 Returned 19/03/ Autocallable
Bank of 2011 £1.1050 2012 10.5% p.a.;
Scotland CAR if FTSE
plc 100 falls more
than 50%
Nomura 28/05/ 5,188.43 £350,000 £0.98 Sold at 30/03/ 137% if FTSE
Bank 2010 £1.2625 2012 100 higher*;
International CAR if FTSE
100 falls more
than 50%
Morgan 10/06/ 5,132.50 £500,000 £1.00 Sold at 31/10/ 134% if FTSE
Stanley 2010 £1.3224 2012 100 higher*;
International CAR if FTSE
100 falls more
than 50%
Abbey 03/08/ 5,584.51 £50,000 £1.00 Sold at 21/06/ 126% if FTSE
National 2011 £1.1900 2013 100 higher*;
Treasury CAR if FTSE
Services 100 falls more
than 50%
C Share Fund:
Issuer Strike FTSE 100 Notional Purchase Price as Maturity Return/ Capital
Date Initial Investment Price at 30 Date/ at Risk (CAR)
Index November Date
Level 2013 Sold
Investec 05/08/ 5,246.99 £328,000 £1.00 £1.4819 10/03/ 182% if FTSE
Bank plc 2011 2017 100 higher*;
CAR if FTSE 100
falls more than
50%
Abbey 03/08/ 5,584.51 £200,000 £1.00 £1.2488 05/02/ 126% if FTSE
National 2011 2014 100 higher*;
Treasury CAR if FTSE 100
Services falls more than
50%
Matured
The Royal 18/03/ 5,718.13 £200,000 £1.00 Returned 19/03/ Autocallable
Bank of 2011 £1.1050 2012 10.5% p.a.;
Scotland CAR if FTSE
plc 100 falls more
than 50%
Nomura 28/05/ 5,188.43 £350,000 £1.2625 Returned 20/02/ 137% if FTSE
Bank 2010 £1.3700 2013 100 higher*;
International CAR if FTSE
100 falls more
than 50%
* The Final Index Level is calculated using 'averaging', meaning that the
average of the closing levels of the FTSE 100 is taken on each Business Day
over the last 2-6 months of the Structured Product plan term (the length of the
averaging period differs for each plan). The use of averaging to calculate the
return can reduce adverse effects of a falling market or sudden market falls
shortly before maturity. Equally, it can reduce the benefits of an increasing
market or sudden market rises shortly before maturity.
The total current valuation of the amount invested in Structured Products in
the Ordinary Share Fund as at 30 November 2013 was £1,830,010.
The total current valuation of the amount invested in Structured Products in
the C Share Fund as at 30 November 2013 was £735,829.
VENTURE CAPITAL INVESTMENTS
In November 2013, the Company made an investment in Money Dashboard, a free
web-based application which empowers consumers to take control of their
finances. The £127,000 investment was in the form of equity and was made on
behalf of the C Share Fund. The investment will be used to expand the user base
and to fund ongoing development of the technology platform, supporting rapid
growth in revenues over future years.
The Venture Capital Investments at 30 November 2013 are shown below.
ORDINARY SHARE FUND
Sector Cost Valuation % of total
portfolio
Terrain Energy Limited Energy
Ordinary equity £100,000 £139,786
Total £100,000 £139,786 3.13%
Lime Technology Limited Low carbon
building
material
Ordinary equity £57,386 £7,684
Loan stock £250,000 £250,000
Total £307,386 £257,684 5.77%
MicroEnergy Generation Alternative
Services Limited energy
Ordinary equity £150,000 £150,000
Loan stock £150,000 £150,000
Total £300,000 £300,000 6.72%
Heritage House Limited Digital
media
Ordinary equity £22,065 £0
Loan stock £76,827 £0
Deferred shares £26,196 £0
Total £125,088 £0 0.00%
Human Race Group Limited Sports
Ordinary equity £100,000 £86,793
Loan stock £200,000 £200,000
Total £300,000 £286,793 6.43%
Secure Electrans Limited E-commerce
security
Ordinary equity £100,000 £45,600
Loan stock £12,000 £12,000
Total £112,000 £57,600 1.29%
Metropolitan Safe Safe
Custody Limited depositary
services
Ordinary equity £90,000 £129,609
Loan stock £100,000 £100,000
Total £190,000 £229,609 5.14%
Brigantes Energy Limited Energy
Ordinary equity £125,000 £209,750
Total £125,000 £209,750 4.70%
Corfe Energy Limited Energy
Ordinary equity £75,000 £127,950
Total £75,000 £127,950 2.87%
Dryden Human Capital Human
Group Limited Resources
Ordinary equity £100,035 £20,674
Total £100,035 £20,674 0.46%
AnTech Limited Oil
Services
Ordinary equity £120,000 £120,000
Loan stock £150,000 £150,000
Total £270,000 £270,000 6.05%
Hampshire Cosmetics Cosmetics
Limited
Ordinary equity £100,000 £126,718
Loan stock £150,000 £150,000
Total £250,000 £276,718 6.20%
Tollan Energy Limited Energy
Ordinary equity £150,000 £150,000
Loan stock £210,000 £210,000
Total £360,000 £360,000 8.07%
Venn Life Sciences Clinical
Holdings plc Research
Ordinary equity £120,033 £96,024
Total £120,033 £96,024 2.15%
C SHARE FUND
Sector Cost Valuation % of total
portfolio
Terrain Energy Limited Energy
Ordinary equity £49,999 £64,895
Loan stock £45,000 £45,000
Total £94,999 £109,895 7.04%
Heritage House Limited Digital
Media
Ordinary equity £11,033 £0
Loan stock £38,413 £0
Deferred shares £13,098 £0
Total £62,544 £0 0.00%
Human Race Group Sports
Limited
Ordinary equity £50,000 £43,396
Loan stock £100,000 £100,000
Total £150,000 £143,396 9.18%
Secure Electrans E-commerce
Limited security
Ordinary equity £50,000 £22,800
Loan stock £25,000 £25,000
Total £75,000 £47,800 3.06%
Metropolitan Safe Safe
Custody Limited depositary
services
Ordinary equity £40,000 £57,604
Loan stock £50,000 £50,000
Total £90,000 £107,604 6.89%
Horizon Discovery Biotechnology
Limited
Ordinary equity £50,000 £50,000
Total £50,000 £50,000 3.20%
Pico's Limited t/a Leisure
Benito's Hat
Ordinary equity £50,004 £50,004
Total £50,004 £50,004 3.20%
Venn Life Sciences Clinical
Holdings plc research
Ordinary equity £80,000 £64,000
Total £80,000 £64,000 4.10%
Scancell Holdings Plc Biotech
Ordinary equity £100,039 £124,472
Total £100,039 £124,472 7.97%
The One Place Capital Technology
Limited t/a Money
Dashboard
Ordinary equity £127,000 £127,000
Total £127,000 £127,000 8.13%
Events after the period end
In December 2013, the Company invested £150,000 in Hampshire Cosmetics in the
form of £100,000 loan notes and £50,000 equity. This investment was made on
behalf of the C Share Fund and is a follow-on investment to the £250,000
Ordinary Share Fund investment in Hampshire Cosmetics in December 2012. The
original investment was part of a turnaround led by an experienced management
buy-in team. This has progressed well to date, with an improvement in revenue
and profitability. The new capital will help the business continue this through
expanding into new, higher margin, product areas.
Other than as described in the paragraphs above, the Board is not aware of any
events during the period from 30 November 2013 to the date of this Statement
which would have a material impact on the financial position of the Company.
For further information, please contact:
Gary Dale (Investec Structured Products) 020 7597 4065
John Glencross (Calculus Capital Limited) 020 7493 4940