Inv Obj & Perf Update
09 September 2009 - 7:57PM
UK Regulatory
TIDMCED
RNS Number : 7617Y
Close Enhanced Commodities Fund Ld
09 September 2009
FOR IMMEDIATE RELEASE
9 September 2009
Close Enhanced Commodities Fund Limited (the "Company")
In order to fulfil its investment objective the Company purchased six Debt
Securities, including one issued by Glitnir Banki HF. This Debt Security
accounts for approximately 19 per cent of the total nominal value of the
Company's Debt Securities. In the event of a default by an issuer of a Debt
Security purchased by the Company, the Company will rank as an unsecured
creditor in respect of sums due from the issuer of such Debt Security. In such
event, the Company 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 the amount received may be zero. Any losses will be borne by
the Company and returns to Shareholders would be significantly adversely
affected.
Following the Icelandic authorities' decision to place Glitnir Banki HF in
receivership, the Board of the Company considers it likely that it may not pay
in full on its obligation. Whilst recovery rates from issuers that default vary,
and in this case are currently unknown, the worst case scenario would see the
Company receive nothing from Glitnir Banki HF at the maturity of the Debt
Security.
Potential capital entitlements available to shareholders are based on the
percentage increase in the End Value+ of the Commodity Portfolio relative to its
Start Value.The End Value+ will be the average daily value of the Commodity
Portfolio over the one year Calculation Period ending on 22 February 2010.
+-------------------+---------------+-------------------+-------------------+
| Commodity | Start Value | Average daily | As at |
| | | values over the | 2 September |
| | | Calculation | 2009 +: |
| | | Period to 2 | |
| | |September 2009 +: | |
+-------------------+---------------+-------------------+-------------------+
| Oil | $51.15 | $59.88 | $68.05 |
+-------------------+---------------+-------------------+-------------------+
| Gold | $432.85 | $930.95 | $964.75 |
+-------------------+---------------+-------------------+-------------------+
| Aluminium | $1972.00 | $1,557.96 | $1,792.50 |
+-------------------+---------------+-------------------+-------------------+
| Copper | $3367.00 | $4,809.92 | $6,080.00 |
+-------------------+---------------+-------------------+-------------------+
| Zinc | $1383.00 | $1,492.92 | $1,794.50 |
+-------------------+---------------+-------------------+-------------------+
| Commodity | 100.00% | 147.4% | 163.2% |
| Portfolio | | | |
+-------------------+---------------+-------------------+-------------------+
Based on the average daily value of the Commodity Portfolio over the Calculation
Period to 2 September 2009, and assuming the End Value+ of the Commodity
Portfolio is the same, the Final Capital Entitlement per Share on the Redemption
Date would be approximately 194 pence+ subject to there being no counterparty
default or any unforeseen circumstances, and in the event of Glitnir Banki HF
defaulting and having a zero recovery rate and there being no insolvency of any
other issuer of Debt Securities held by the Company or any other event of
default or any unforeseen circumstances, the Final Capital Entitlement per Share
on the Redemption Date would be approximately 157 pence+.
Based on the value of the Commodity Portfolio as at 2 September 2009, and
assuming the End Value+ of the Commodity Portfolio is the same, the Final
Capital Entitlement per Share on the Redemption Date would be approximately 226
pence+ subject to there being no counterparty default or any unforeseen
circumstances, and in the event of Glitnir Banki HF defaulting and having a zero
recovery rate and there being no insolvency of any other issuer of Debt
Securities held by the Company or any other event of default or any unforeseen
circumstances, the Final Capital Entitlement per Share on the Redemption Date
would be approximately 183 pence+.
This is not a forecast nor is it a reflection of the net asset value per Share
and takes no account of any unforeseen circumstances and is provided for
informational purposes only and should not be relied upon for investment
decisions.
Payoff Profile
The tables below illustrate how the Final Capital Entitlement of the Shares
might vary for different End Values of the Commodity Portfolio relative to its
Start Value (1) subject to there being no counterparty default or any unforeseen
circumstances, and (2) on the assumption of zero recovery in the event of
default of the Debt Security issued by Glitnir Banki HF and there being no
insolvency of any other issuer of Debt Securities held by the Company or any
other event of default or any unforeseen circumstances.
+----------------------------+--------------------+--------------------+
| Percentage change in End | Final Capital | Final Capital |
| Value+ of the Commodity | Entitlement (1) | Entitlement (2) |
| Portfolio relative to its | | |
| Start Value | | |
+----------------------------+--------------------+--------------------+
| -100% | 100 | 80 |
+----------------------------+--------------------+--------------------+
| -80% | 100 | 80 |
+----------------------------+--------------------+--------------------+
| -60% | 100 | 80 |
+----------------------------+--------------------+--------------------+
| -40% | 100 | 80 |
+----------------------------+--------------------+--------------------+
| -20% | 100 | 80 |
+----------------------------+--------------------+--------------------+
| 0% | 100 | 80 |
+----------------------------+--------------------+--------------------+
| 20% | 140 | 113 |
+----------------------------+--------------------+--------------------+
| 40% | 180 | 145 |
+----------------------------+--------------------+--------------------+
| 60% | 220 | 177 |
+----------------------------+--------------------+--------------------+
| 80% | 260 | 210 |
+----------------------------+--------------------+--------------------+
| 100% | 300 | 242 |
+----------------------------+--------------------+--------------------+
(1) Subject to there being no counterparty default or any unforeseen
circumstances
(2) The table contemplates default and zero recovery in respect of the Debt
Security issued by Glitnir Banki HF. The Final Capital Entitlement set out in
this table is an example only and not a forecast of actual payments and is
subject to there being no insolvency of any other issuer of Debt Securities held
by the Company or any other event of default or any unforeseen circumstances.
The attention of shareholders is drawn to the section headed "Risk Factors" in
the Prospectus.
+ The End Value will be the average daily value of the Commodity Portfolio over
the one year Calculation Period ending on 22 February 2010.
As at 2 September 2009 the Company held the following investments:
+----------------------------------------------------------+------------+
| DEBT SECURITIES PORTFOLIO | NOMINAL |
+----------------------------------------------------------+------------+
| | HOLDINGS |
+----------------------------------------------------------+------------+
| | |
+----------------------------------------------------------+------------+
| Barclays Bank Plc EMTN 24 February 2010 | 6,740,000 |
+----------------------------------------------------------+------------+
| | |
+----------------------------------------------------------+------------+
| BNP Paribas EMTN 24 February 2010 | 1,600,000 |
+----------------------------------------------------------+------------+
| | |
+----------------------------------------------------------+------------+
| Glitnir Banki HF EMTN 24 February 2010 * | 6,740,000 |
+----------------------------------------------------------+------------+
| | |
+----------------------------------------------------------+------------+
| Irish Life & Permanent Plc EMTN 24 February 2010 | 6,740,000 |
+----------------------------------------------------------+------------+
| | |
+----------------------------------------------------------+------------+
| KBC Bank NV EMTN 24 February 2010 | 6,740,000 |
+----------------------------------------------------------+------------+
| | |
+----------------------------------------------------------+------------+
| SNS Bank NV EMTN 24 February 2010 | 6,740,000 |
+----------------------------------------------------------+------------+
+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.
The monthly factsheet is available on the website www.closeam.com.
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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