Interim Results
July 28 2005 - 6:31AM
UK Regulatory
RNS Number:4144P
Defined Capital Return Fund Ltd
28 July 2005
The Defined Capital Return Fund Limited
Preliminary announcement of the unaudited results for the period ended 30 April
2005
Chairman's Statement
Incorporation
The Company is a closed-ended investment company incorporated in Jersey on 17
August 2004. Admission to the official list of the UK Listing Authority and
dealing in shares commenced on 1 November 2004. The Company has a fixed life
expiring on or about 30 October 2009.
Investment objective and policy
The investment objective of the Company is to provide Shareholders with a
defined capital payment per share of 136.49 pence ("Defined Capital Return") at
the winding-up date. This return will be contingent on the level of the FTSE 100
at the end of the life of the Company. Provided that the FTSE 100 on the
winding-up date is not below 85% per cent of its level on the start date of
4,615.40 ("Start Value"), Shareholders will receive the Defined Capital Return
on or soon after 2 November 2009.
The Company has and will continue throughout its life to be invested in a
portfolio of at least 6 medium term floating rate notes ("Bonds") which pay
interest gross. The interest received from these Bonds is used to meet ongoing
costs and to fund payments due under the FTSE Transaction which it has entered
into with UBS AG ("FTSE Transaction Counterparty"). Under the FTSE Transaction,
the Company swaps periodic amounts based on the interest return received by it
in respect of the Bonds with the FTSE Transaction Counterparty. In addition,
under the FTSE Transaction, the FTSE Transaction Counterparty is (provided that
the final FTSE level is not below the break-even level) obliged to pay an amount
which, together with the principle amounts payable on redemption of the Bonds,
is intended to provide the final capital entitlement. If however, the final FTSE
level is below the break-even level, no payment is due from the FTSE Transaction
Counterparty under the FTSE Transaction and, instead the Company is obliged to
pay an amount to the FTSE Transaction Counterparty, which amount is intended to
be funded from the principal amounts payable on redemption of the Bonds.
The final capital entitlement is only payable at the winding-up date. If at the
winding-up date the final FTSE level is at least equal to 85% of the Start Value
then the final capital entitlement will be equal to the Defined Capital Return.
If the final FTSE level is below 85 per cent of the Start Value, the final
capital entitlement will be reduced on a straight line basis from the Defined
Capital Return down to zero when the final FTSE level is less than or equal to
25 per cent of the Start Value.
As at 30 April 2005, the FTSE stood at 4,801.70 and the index cover was 1.223959
times, this representing the extent to which the FTSE was higher than the level
required for Defined Capital Return to be paid.
The accrued entitlement as at that date was 103.09 pence per share.
No dividends have been proposed as the shares carry no rights to dividends.
Ian Ling
Chairman
The Defined Capital Return Fund Limited
Balance Sheet (Unaudited)
As at 30 April 2005
2005
#
Non-current assets
Securities (at fair value through the profit and loss account) 27,827,200
Current assets
Cash and cash equivalents 348,859
Other receivables 1,183
Prepayments 746,620
Fair value of derivative financial instruments 318,746
Total assets 29,242,608
Equity and Liabilities
Equity
Issued capital 28,000,100
Retained earnings 1,236,808
Total Equity 29,236,908
Current liabilities
Other payables 5,700
Total liabilities 5,700
Total equity and liabilities 29,242,608
Net asset value per participating share 1.044
The Defined Capital Return Fund Limited
Income Statement (Unaudited)
For the period 17 August 2004 to 30 April 2005
2005
#
Revenue
Interest income 673,412
Gain on derivative financial instruments 1,368,746
Total revenue 2,042,158
Expenditure
Loss on securities (at fair value through the profit and loss 177,418
account)
Management fee 55,540
Administration fees and expenses 15,849
Custodian fees 3,392
Audit fees 5,700
Formation costs 225,899
Interest on total return swap 309,581
General expenses 11,971
Total expenditure 805,350
Net profit 1,236,808
Basic and diluted earnings per participating share 0.0442
Statement of Changes in Equity (Unaudited)
For the period 17 August 2004 to 30 April 2005
Issued Retained
capital earnings Total
# # #
Issued during the period 28,000,100 - 28,000,100
Net profit for the year - 1,236,808 1,236,808
At 30 April 2005 28,000,100 1,236,808 29,236,908
The Defined Capital Return Fund Limited
Cash Flow Statement (Unaudited)
For the period 17 August 2004 to 30 April 2005
2005
#
Cash flows from operating activities
Profit for the period 1,236,808
Adjustments for:
Interest income (673,412)
Net realised loss on sale of investments 4,618
Net change in unrealised loss on the fair valuation of investments 172,800
Net change in unrealised gain on the derivative financial instruments (1,368,746)
Operating result before working capital changes (627,932)
Increase in trade and other receivables (746,620)
Increase in trade and other payables 5,700
(1,368,852)
Interest income 667,144
Deposit interest received 5,875
Net cash generated from operations (695,833)
Cash flows from investing activities
Payment for purchases of investments (28,000,000)
Proceeds from derivative financial instruments 1,050,000
Proceeds from sale of investments 2,312,726
Net cash used in investing activities (24,637,274)
Cash flows from financing activities
Amounts received on issue of shares 25,681,966
Net cash from financing activities 25,681,966
Net increase in cash and cash equivalents 348,859
Cash and cash equivalents at beginning of period -
Cash and cash equivalents at end of period 348,859
Cash and cash equivalents made up of:
Cash at bank 348,859
The interim report will be sent to all registered shareholders and copies may be
obtained from the Registered Office, Standard Bank House, 47-49 La Motte Street,
St Helier, Jersey. JE4 8XR
By order of the Board
Standard Bank Fund Administration Jersey Limited, Secretary
All enquiries
Richard Pavry
Jupiter Asset Management Limited
Tel: 020 7412 0703
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KVLBLEDBEBBQ
Defined Capital Return Fund (LSE:DCR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Defined Capital Return Fund (LSE:DCR)
Historical Stock Chart
From Jul 2023 to Jul 2024
