Update on the Company's Holdings (7061E)

TIDMJAC

RNS Number : 7061E

Close Fund Mngmt Portfolios II PCC

11 April 2011

Close Fund Management Portfolios II PCC Limited (the "Company")

Japanese Accelerated Return Fund II (the "Cell")

Update on the Company's Holdings

11 April 2010

As Shareholders are aware, in order to fulfil the investment objective for the Cell, the Company for the account of the Cell holds seven Debt Securities, including one issued by Glitnir Banki hf. This Debt security has a nominal value of GBP7,100,000 and accounts for approximately 15 per cent of the total nominal value of the Cell's Debt Securities.

In the event of a default by an issuer of a Debt Security purchased by the Company on behalf of the Cell, the Cell will rank as an unsecured creditor in respect of sums due from the issuer of that Debt Security. In such event, the Cell may (in respect of that Debt Security) receive a lesser amount of money than the amount due pursuant to the terms of the Debt Security, may actually receive the money at a different time than would otherwise have been the case and/or the amount received may be zero. Any losses will be borne by the Cell and returns to Shareholders would be significantly adversely affected.

The Company submitted a claim to Glitnir Banki hf. for GBP12,780,000 in respect of the Debt Security, such amount being equal to the maximum redemption proceeds of GBP1.80 per GBP1 nominal. The Winding-Up Board of Glitnir Banki hf. has written to the Company to advise it has postponed a decision on the Company's claim until a further creditors' meeting likely to be held on 31 August 2011.

Shareholders should be aware that it is likely that Glitnir Banki hf. may not pay the Company on account of the Cell the full amount claimed or, indeed, anything at all. Whilst recovery rates from issuers that default vary, and in this case are currently unknown, the worst case scenario would see the Cell receive nothing from Glitnir Banki hf. at the maturity of the Debt Security. The amount claimed should not be considered a forecast of the amount which will be due from Glitnir Banki hf. on the maturity of the Debt Security, nor is it a reflection of the net asset value per Cell Share. The redemption proceeds per Cell Share per the Company's investment objective for the Cell will not be known until after the end of the life of the Cell when the closing value of the Nikkei 225 Index on the End Date is known and may not be the amount claimed.

Any claim which is paid may be paid before or after the end of the life of the Cell and in the case of early payment it may not be possible to reinvest the proceeds in a Debt Security which replicates the investment characteristics of the original Debt Security. Any claim which is paid may be paid in currencies other than Sterling and/or in forms other than cash. Any payments received by the Company on account of the Cell may therefore be subject to currency fluctuations and/or other market movements.

For further information contact:

Anson Fund Managers Limited

Secretary

Tel: 01481 722260

E&OE - In transmission

This information is provided by RNS

The company news service from the London Stock Exchange

END

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