Close UK Index Growth Fund 2012 Inv Obj & Perf Update (3038I)
July 23 2012 - 12:07PM
UK Regulatory
TIDMCSUZ
RNS Number : 3038I
Close UK Index Growth Fund 2012
23 July 2012
FOR IMMEDIATE RELEASE
23 July 2012
Close Assets Funds Limited (the "Company")
Close UK Index Growth Fund 2012 (the "Fund")
The Fund's investment objective is to provide investors with
four times the growth of the FTSE 100 Index (the "Index"), up to a
maximum capital repayment of 164 per cent of the Issue Price, over
the six year period to 22 November 2012, combined with a high level
of capital security, subject to any unforeseen circumstances.
The Zero Dividend Shares will offer full capital protection
unless the Index has closed down more than 50 per cent from its
starting value (i.e. below 3080.15) during the term AND fails to
recover to its starting value of 6,160.30. In this case, the return
on the Zero Dividend Shares will be the same as the return on the
Index. If the Index subsequently recovers and rises above its
starting value, the Zero Dividend Shares will still offer four
times the growth of the Index, again up to a maximum capital
repayment of 164 per cent of the Issue Price. The Issue Price was
148.64p per Zero Dividend Share and there are 35,625,000 Zero
Dividend Shares in issue.
The official closing level of the Index as at 29 June 2012 was
5,571.15 . If the Index closed at this level on 22 November 2012
and the Index had not closed down more than 50 per cent from its
starting value during the term (i.e. below 3080.15), the redemption
price (ending share price) would be 148.64 pence .
Payoff Profile
The table below illustrates how the redemption value of the Zero
Dividend Shares might vary for different ending levels of the
Index.
Redemption Proceeds
Final FTSE 100 Index* If FTSE 100 Index If FTSE 100 Index
never closed below 3080.15
closes below 3080.15
2000 N/A 48.25
2250 N/A 54.28
2500 N/A 60.32
2750 N/A 66.35
3000 N/A 72.38
3250 148.64 78.41
3500 148.64 84.45
3750 148.64 90.48
4000 148.64 96.51
4250 148.64 102.54
4500 148.64 108.57
4750 148.64 114.61
5000 148.64 120.64
5250 148.64 126.67
5500 148.64 132.7
5750 148.64 138.73
6000 148.64 144.77
6250 157.29 157.29
6500 181.42 181.42
6750 205.55 205.55
7000 229.68 229.68
7250 243.76 243.76
7500 or over 243.76 243.76
* As at 22 November 2012
On any day from 22 November 2006 to 22 November 2012
The final return is subject to there being no counterparty
default or any other unforeseen circumstances.
As at 29 June 2012 the investments held by the Company for the
account of the Fund were:
NOMINAL
DEBT SECURITIES PORTFOLIO HOLDINGS
GBP
Abbey National Treasury Services Plc EMTN 6
December 2012 8,800,000
Britannia Building Society EMTN 6 December
2012 8,800,000
Caisse Centrale du Credit Immobilier de France
EMTN
6 December 2012 8,800,000
Irish Life & Permanent Plc EMTN 6 December
2012 8,800,000
Royal Bank of Scotland Plc EMTN 6 December
2012 8,953,000
SNS Bank NV EMTN 6 December 2012 8,800,000
TOTAL
GBP
52,953,000
The Company has also sold for the account of the Fund a Put
option with a notional amount of GBP52,953,000. The performance of
the Put option is linked to the performance of the Index. At an
Index value of 6,160.30 or above at the close of business on 22
November 2012, or if the Index has never closed below 3,080.15
during the calculation period from 22 November 2006 to 22 November
2012 (the "Calculation Period"), the Put option will be worth
GBPNil at maturity. If the Index has closed below 3,080.15 over the
Calculation Period and the Index is still below 6,160.30 at 22
November 2012, the Put option will be worth at maturity a
percentage of the notional value, being GBP52,953,000, equivalent
to the percentage fall in the level of the Index over the
Calculation Period. As at the date of this announcement the Index
has not closed below 3,080.15 during the Calculation Period.
Capital at Risk Products ("CARPs")
The Company has been advised that the Company is a CARP as
defined by the Financial Services Authority (FSA). Investors should
refer to the FSA factsheet, which is available at
www.moneymadeclear.fsa.gov.uk/products/investments/types/pooled/structured_products.html
The return of capital invested at the end of the investment
period is not guaranteed and therefore the investor may get back
less than was originally invested. Investors should not enter into
the transaction unless they are prepared to lose some or all of the
money they have invested.
They should satisfy themselves that the Zero Dividend Shares are
suitable for them in the light of their circumstances and financial
position, and if in any doubt they should seek professional advice.
Investors may only achieve the rate of return advertised over a set
period and the return may depend on specific conditions being
met.
This data has been provided by Close Investments Limited. Close
Investments Limited may source data from third party data providers
such as, but not limited to, Bloomberg. Close Investments Limited
accepts no responsibility or liability for the accuracy of data
sourced from such third parties. All data in this document has been
procured and may have been acted upon by Close Investments Limited
for its own purpose. The results are being made available to you
for information purposes only and incidentally. This data is
provided purely for information purposes only and should not be
relied upon.
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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