RNS Number:5606Z
Close UK Index Growth Fund 2006
08 June 2004
CLOSE ASSETS FUNDS LIMITED
PRELIMINARY ANNOUNCEMENT OF ANNUAL RESULTS
The directors announce the statement of results for the year ended 31 March 2004
as follows:-
ABOUT THE COMPANY
Close Assets Funds Limited is a Guernsey incorporated, closed ended, umbrella
investment company. Its issued share capital comprises two Management Shares
issued for administrative reasons, 50.5 million Zero Dividend Shares of the
Close UK Index Growth Fund 2006 and 24.5 million US Shares of the Close US Index
Growth Fund 2007. The Company has an unlimited life but the Zero Dividend Shares
will be redeemed on 15 November 2006 and the US Shares will be redeemed on 19
March 2007.
INVESTMENT OBJECTIVE AND POLICY
- CLOSE UK INDEX GROWTH FUND 2006
The investment objective of the Close UK Index Growth Fund 2006 is to provide
holders of Zero Dividend Shares with a maximum predetermined capital growth of
8.25% per annum over the period to the redemption date on 15 November 2006 by
investing in a portfolio of debt securities whose performance is based on the
performance of the FTSE 100 Index. The Zero Dividend Shares were issued on 15
November 2001 at a price of 100p, and have a maximum final capital entitlement
on the redemption date on 15 November 2006 of 148.64p provided that the FTSE 100
Index does not fall by 20% or more over the intervening period. If over that
period the FTSE 100 Index were to fall in excess of 20% then for each 1% fall in
excess of that 20% a holder's final entitlement will be reduced by approximately
4.955p. Accordingly, if over that period the FTSE 100 Index were to fall by 50%
or more then a holder would receive no final capital entitlement whatsoever. No
dividends are paid on the Zero Dividend Shares.
The Close UK Index Growth Fund 2006 is fully invested in nine Medium Term Notes
issued by Approved Financial Institutions with a capital repayment at maturity
linked to the performance of the FTSE 100 Index over the anticipated life of
this fund. At the time of writing all these notes carried an investment grade
credit rating.
INVESTMENT OBJECTIVE AND POLICY
- CLOSE US INDEX GROWTH FUND 2007
The investment objective of the Close US Index Growth Fund 2007 is to provide
holders of US Shares with a maximum predetermined capital growth of 8.1% per
annum over the period to the redemption date by investing in a portfolio of debt
securities whose performance is based on the performance of the S&P 500 Index.
The US Shares were issued on 18 March 2002 at a price of 100p, and have a
maximum final capital entitlement of 147.61p on 19 March 2007 provided that the
S&P 500 Index does not fall by 20 per cent or more over the intervening period.
If over that period the S&P 500 Index were to fall in excess of 20% then for
each 1% fall in excess of that 20% a holder's final entitlement will be reduced
by approximately 4.92p. Accordingly, if over that period the S&P 500 Index were
to fall by 50% or more then a holder would receive no final capital entitlement
whatsoever. No dividends are paid on the US Shares.
The US Shares are Sterling denominated and will not incur any currency risk
associated with the Sterling / US Dollar exchange rate. The Close US Index
Growth Fund 2007 is fully invested in six Medium Term Notes issued by Approved
Financial Institutions with a capital repayment at maturity linked to the
performance of the S & P 500 Index over the anticipated life of this fund. At
the time of writing, all these notes carried an investment grade credit rating.
CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2004
- CLOSE UK INDEX GROWTH FUND 2006
At launch, the net proceeds derived from the issue of Zero Dividend Shares of
the Fund were invested in a portfolio of debt securities at a price based on the
level of the FTSE 100 Index at the close of business on 15 November 2001, namely
5240.7. On 31 March 2004 the FTSE 100 Index closed at 4385.7, a fall of 16.3%
since launch and an increase of 21.4% over the reporting period.
Over the same periods, the total market value of the Fund rose by 5.0% and 78.0%
respectively. As at the reporting date the Zero Dividend Shares of the Fund were
trading at a 0.3% premium to net asset value.
As the Fund's investment portfolio is based upon the FTSE 100 Index, it is
possible to show the potential capital entitlements available to holders of Zero
Dividend Shares based on the level of the FTSE 100 Index on the Fund's
winding-up date of 15 November 2006. These figures are for illustrative purposes
only and do not represent forecasts or take into account any unforeseen
circumstances.
As at 15 November 2006: Final FTSE
100 Index Level Net Asset Value
2620.4 0p
3149.2 50p
3678.1 100p
4192.6 148.6p
4385.7* 148.6p
* FTSE 100 Index level at the end of the reporting period.
Since the financial year end, the FTSE 100 Index has traded in a relatively
tight range, rising 1.1% to 4435.4 (as at 3 June 2004). This period has seen
markets focus on expected interest rate increases and rising oil prices. The
focus on interest rates has led to the situation where seemingly positive
economic news tends to be greeted with dismay by the markets. This was well
highlighted when recent US Nonfarm Payrolls data proved much stronger than
expected, fuelling speculation that US interest rates would rise sooner than
previously forecast and pushing the FTSE 100 Index down by over 100 points.
Oil prices rose dramatically over the period as the risk premium increased due
to the fear of potential supply side shortages caused by terrorist attacks.
Brent crude rose from $31 to nearly $40 before dropping back to around $36 as
OPEC announced it would increase supply to avoid destabilising the economic
recovery.
CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2004
- CLOSE US INDEX GROWTH FUND 2007
At launch, the net proceeds derived from the issue of US Shares of the Fund were
invested in a portfolio of debt securities at a price based on the level of the
S & P 500 Index at the close of business on 18 March 2002, namely 1166.16. On 31
March 2004 the S & P 500 Index closed at 1126.21, a fall of 3.4% since launch
and an increase of 32.8% over the reporting period.
Over the same periods, the total market value of the Fund rose by 6.0% and 78.2%
respectively. As at the reporting date the US Shares of the Fund were trading at
a 2.9% discount to net asset value.
As the Fund's investment portfolio is based upon the S&P 500 Index, it is
possible to show the potential capital entitlements available to holders of US
Shares based on the level of the S & P 500 Index on the Fund's winding-up date
of 19 March 2007. These figures are for illustrative purposes only and do not
represent forecasts or take into account any unforeseen circumstances.
As at 19 March 2007: Final S&P 500
Index Level Net Asset Value
583.1 0p
701.6 50p
820.1 100p
932.9 147.6p
1126.21* 147.6p
* S&P 500 Index level at the end of the reporting period
Since the financial year end, the S&P 500 Index has traded in a relatively tight
range, falling 0.8% to 1116.64 (as at 3 June 2004). This period has seen markets
focus on expected interest rate increases and rising oil prices. The focus on
interest rates has led to the situation where seemingly positive economic news
tends to be greeted with dismay by the markets. This was well highlighted when
recent US Nonfarm Payrolls data proved much stronger than expected, fuelling
speculation that US interest rates would rise sooner than previously forecast
and pushing the S&P 500 Index down by up to 30 points.
Oil prices rose dramatically over the period as the risk premium increased due
to the fear of potential supply side shortages caused by terrorist attacks.
Brent crude rose from $31 to nearly $40 before dropping back to around $36 as
OPEC announced it would increase supply to avoid destabilising the economic
recovery.
Richard de la Rue
Chairman
STATEMENT OF OPERATIONS
for the year ended 31 March 2004
FUND 2006 FUND 2007 TOTAL
GBP GBP GBP
Operating expenses (354,273) (159,512) (513,785)
Net movement in unrealised
appreciation on
investments 17,598,857 8,570,100 26,168,957
Gain before financing costs and 17,244,584 8,410,588 25,655,172
taxation
Gain on ordinary activities before 17,244,584 8,410,588 25,655,172
taxation
Net gain for the year 17,244,584 8,410,588 25,655,172
Net loss brought forward (12,607,750) (5,168,366) (17,776,116)
Net gain carried forward 4,636,834 3,242,222 7,879,056
Pence Pence
Gain per share for the year 34.15 34.33
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.
STATEMENT OF OPERATIONS
for the period from 15 November 2001 to 31 March 2003
FUND 2006 FUND 2007 TOTAL
GBP GBP GBP
Operating expenses (866,148) (389,591) (1,255,739)
Net movement in unrealised
depreciation on
investments (11,741,602) (4,778,775) (16,520,377)
Loss before financing costs and (12,607,750) (5,168,366) (17,776,116)
taxation
Loss on ordinary activities before (12,607,750) (5,168,366) (17,776,116)
taxation
Net loss for the period (12,607,750) (5,168,366) (17,776,116)
Net loss brought forward - - -
Net loss carried forward (12,607,750) (5,168,366) (17,776,116)
Pence Pence
Loss per share for the period (24.97) (21.10)
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.
BALANCE SHEET
as at 31 March 2004
MANAGEMENT
FUND 2006 FUND 2007 FUND TOTAL
GBP GBP GBP GBP
FIXED ASSETS
Financial assets at 51,936,058 26,290,225 - 78,226,283
valuation
CURRENT ASSETS
Debtors 13,072 6,752 2 19,826
Cash at bank 1,205,722 537,897 - 1,743,619
1,218,794 544,649 2 1,763,445
CURRENT LIABILITIES
Creditors - due within (290,517) (72,652) - (363,169)
one year
NET CURRENT ASSETS 928,277 471,997 2 1,400,276
NET ASSETS 52,864,335 26,762,222 2 79,626,559
SHAREHOLDERS' FUNDS
Share capital 5,050 2,450 2 7,502
Share premium 48,222,451 23,517,550 - 71,740,001
48,227,501 23,520,000 2 71,747,503
Retained earnings 4,636,834 3,242,222 - 7,879,056
52,864,335 26,762,222 2 79,626,559
SHARES IN ISSUE 50,500,000 24,500,000 2
Pence Pence
NAV PER SHARE 104.68 109.23
BALANCE SHEET
as at 31 March 2003
MANAGEMENT
FUND 2006 FUND 2007 FUND TOTAL
GBP GBP GBP GBP
FIXED ASSETS
Financial assets at 34,337,201 17,720,125 - 52,057,326
valuation
CURRENT ASSETS
Debtors 10,721 5,771 2 16,494
Cash at bank 1,461,330 676,002 - 2,137,332
1,472,051 681,773 2 2,153,826
CURRENT LIABILITIES
Creditors - due within (189,501) (50,264) - (239,765)
one year
NET CURRENT ASSETS 1,282,550 631,509 2 1,914,061
NET ASSETS 35,619,751 18,351,634 2 53,971,387
SHAREHOLDERS' FUNDS
Share capital 5,050 2,450 2 7,502
Share premium 48,222,451 23,517,550 - 71,740,001
48,227,501 23,520,000 2 71,747,503
Retained earnings (12,607,750) (5,168,366) - (17,776,116)
35,619,751 18,351,634 2 53,971,387
SHARES IN ISSUE 50,500,000 24,500,000 2
Pence Pence
NAV PER SHARE 70.53 74.90
STATEMENT OF CASH FLOW
for the year ended 31 March 2004
FUND 2006 FUND 2007 TOTAL
GBP GBP GBP
OPERATING ACTIVITIES
Bank interest received 47,800 21,733 69,533
Expenses paid (303,408) (159,838) (463,246)
Net cash outflow from operating (255,608) (138,105) (393,713)
activities
DECREASE IN CASH AND CASH
EQUIVALENTS (255,608) (138,105) (393,713)
Opening cash balance 1,461,330 676,002 2,137,332
Closing cash balance 1,205,722 537,897 1,743,619
CASH MOVEMENT (255,608) (138,105) (393,713)
STATEMENT OF CASH FLOW
for the period from 15 November 2001 to 31 March 2003
FUND 2006 FUND 2007 TOTAL
GBP GBP GBP
OPERATING ACTIVITIES
Bank interest received 86,895 28,159 115,054
Expenses paid (774,263) (373,257) (1,147,520)
Net cash outflow from operating (687,368) (345,098) (1,032,466)
activities
INVESTING ACTIVITIES
Purchase of investments (46,078,803) (22,498,900) (68,577,703)
NET CASH OUTFLOW FROM INVESTING
ACTIVITIES (46,078,803) (22,498,900) (68,577,703)
FINANCING ACTIVITIES
Proceeds of issue of shares 50,500,000 24,500,000 75,000,000
Formation expenses paid (2,272,499) (980,000) (3,252,499)
NET CASH INFLOW FROM FINANCING
ACTIVITIES 48,227,501 23,520,000 71,747,501
INCREASE IN CASH AND
CASH EQUIVALENTS 1,461,330 676,002 2,137,332
Opening cash balance - - -
Closing cash balance 1,461,330 676,002 2,137,332
CASH MOVEMENT 1,461,330 676,002 2,137,332
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2004
MANAGEMENT
FUND 2006 FUND 2007 FUND TOTAL
GBP GBP GBP GBP
Opening balance 35,619,751 18,351,634 2 53,971,387
Gain for the year 17,244,584 8,410,588 - 25,655,172
Closing balance 52,864,335 26,762,222 2 79,626,559
STATEMENT OF CHANGES IN EQUITY
for the period from 15 November 2001 to 31 March 2003
MANAGEMENT
FUND 2006 FUND 2007 FUND TOTAL
GBP GBP GBP GBP
Opening balance - - - -
Share capital issued 5,050 2,450 2 7,502
Share premium at 50,494,950 24,497,550 - 74,992,500
issue
Write off of initial (2,272,499) (980,000) - (3,252,499)
costs
Loss for the period (12,607,750) (5,168,366) - (17,776,116)
Closing balance 35,619,751 18,351,634 2 53,971,387
This preliminary announcement and the report and financial statements for the
year ended 31 March 2004 have been prepared on the same basis as set out in the
prior year's audited financial statements.
For further information contact:
John R Le Prevost, for Company Secretary. Tel: Guernsey 01481 722260
For Close Assets Funds Limited
Anson Fund Managers Limited - Company Secretary
8 June 2004
This information is provided by RNS
The company news service from the London Stock Exchange
END
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