HXU Newstar Rbc 1X$

    RNS Number : 3225B
  New Star RBC Hedge250 IDX (1X GBP)
  14 August 2008
   

    HEDGE ETS
    New Star RBC Hedge 250 Index Exchange Traded Securities
    PCC Limited
    (A closed-ended investment company incorporated in Guernsey with registered number 45501 under the provisions of The Companies
(Guernsey) Laws 1994 to 1996 and The Protected Cell Companies Ordinance 1997 to 1998, as amended)

    14 August 2008

    REDEMPTION FACILITY

    Redemption Day

    The Company's Articles of Association incorporate provisions to enable Shareholders, at the Directors' discretion, to redeem up to 100
per cent of their Shares for cash as at the first business day in January or July in each year or up to 50 per cent of their Shares for cash
in April or October in each year. The Directors intend to make quarterly decisions on whether to operate the redemption facility and have
decided to operate the facility at 1 January 2009 (the "Redemption Day") on the following basis.

    Redemption Price

    Such redemptions will be effected at the most recent net asset value ("NAV") per Share of the relevant class prior to the Redemption Day
(being the NAV per share as at 31 December 2008), less direct costs. No redemption fee is expected to be payable.

    Notice Period and Procedure

    Each Shareholder may request the redemption of up to 100 per cent of his holding of Shares by giving not less that 120 days' notice to
the Company in advance of the Redemption Day, in the form of a redemption request submitted to the following address:

    Capita Registrars Limited
    The Registry
    34 Beckenham Road
    Beckenham
    Kent BR3 4TH

    From UK: 0870 162 3100
    From Overseas: + 44 208 639 2157

    To be valid, the redemption request and, where relevant, the appropriate share certificate, must be received by the Company's Receiving
Agent no later than 5.00 p.m. (London time) on 3 September 2008. In addition, in the case of the Shares held in uncertificated form, the
relevant USE instruction must be submitted no later than 5.00 p.m. on 3 September 2008.

    Relevant Member Account ID's in relation to redemption requests submitted through Crest are as follows:

    1X US$ Redeemable Preference Shares - 1XUSDRED
    1X Euro Redeemable Preference Shares - 1XEURRED
    1X Sterling Redeemable Preference Shares - 1XSTERED
    3X US$ Redeemable Preference Shares - 3XUSDRED
    3X Euro Redeemable Preference Shares - 3XEURRED
    3X Sterling Redeemable Preference Shares - 3XSTERED

    Shareholders should note that the Directors are entitled to suspend the processing of redemptions at any time, including circumstances
where a limit is placed on the Company in respect of the aggregate reductions that it may make under the swaps it has entered into with the
Royal Bank of Canada (the "Swaps"), as more particularly described in the Securities Note published by the Company dated 19 October 2007.

    Settlement

    Full redemption proceeds will normally be dispatched to Shareholders within 15 days after the publication of the RBC Hedge 250 Index
level prevailing on the Redemption Day (which is expected to be on or about the 45th day after 31 December 2008). Where payments under the
Swaps are delayed or withheld or the Company is unable to liquidate its other investments in an orderly manner, the Company may take longer
to pay the redemption proceeds or scale back redemptions pro rata amongst redeeming Shareholders.

    UK Taxation

    Persons who are resident in the UK and dispose of a "material interest" in a collective investment scheme (within the meaning of section
236 of the Financial Services and Markets Act 2000, as applied by section 57 of the Finance Act 2007) which has at any time been a
"non-qualifying offshore fund" (i.e. one in respect of which certification as a "distributing fund" has not been obtained from HM Revenue &
Customs) are subject to income tax rather than capital gains tax in respect of any gains arising on the disposal of such an interest.

    The Directors have been advised that, on the basis that the Company is not considered to be a collective investment scheme, it would not
be an offshore fund.  However, section 57 of the Finance Act 2007 may have the effect that the Company should thereafter be regarded as an
offshore fund and that any interest in the Company acquired on or after 19 July 2007 (being the day on which the Finance Act 2007 came into
effect) would fall to be treated as a "material interest". Consequently, the Directors intend to seek certification of each Sterling Share
class in the Company as having distributing fund status with a view to ensuring that on a disposal of Sterling Shares (by way of redemption,
transfer or otherwise) UK resident Shareholders are subject to capital gains tax rather than income tax. It cannot be guaranteed, however,
that the conditions necessary to obtain distributing fund status will always be met.

    The United Kingdom Government in its Budget on 12 March 2008 confirmed proposals for a new framework for the taxation of investments in
offshore funds to replace the present distributing funds regime which would operate by reference to whether a fund opts into a reporting
regime ("reporting funds") or not ("non-reporting funds"). Under the proposals, investors in reporting funds would be subject to tax on the
share of the reporting fund's income attributable to their holding in the fund, whether or not distributed, but any gains on disposal of
their holding would be subject to capital gains tax. HM Revenue & Customs would be able to approve a fund (or a class of shares in a fund)
in advance as a reporting fund. Investors in non-reporting funds would not be subject to tax on income retained by the non-reporting fund
but any gains on disposal of their holding would be subject to tax as offshore income gains. The new regime will be enacted under
regulations made pursuant to the Finance Act 2008 and will have effect on a date to be appointed by Treasury order.


    Expected Timetable

 Latest date for receipt of redemption request         5.00 p.m. on 3
 and submission of relevant USE instruction or         September 2008
 share certificate (as appropriate)

 Redemption Day                                        1 January 2009

 Redemption proceeds dispatched                          2 March 2009



    Enquiries

    Alison Bilham, HSBC Securities Services (Guernsey) Limited
    Tel: + 44 (0)1481 707213



This information is provided by RNS
The company news service from the London Stock Exchange
 
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