H3XS Newstar Rbc 3X�

RNS Number:8505F
New Star RBC Hedge250 IDX (3X GBP)
17 October 2007

17 October 2007

                                   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) Law 1994 to 1996
      and the Protected Cell Companies Ordinance 1997 to 1998, as amended)

            Fourth Placing and Offer for Subscription of new shares

The Board of New Star RBC Hedge 250 Index Exchange Traded Securities PCC Limited
("Hedge ETS") is pleased to announce it is to make a fourth offering of Hedge
ETS, a London listed daily tradable security, providing access to performance
representative of the hedge fund asset class through investment exposure to the
RBC Hedge 250 Index(R)(the "Index").

The Index is designed to be a representative, investable benchmark of the
performance of the hedge fund asset class.  The Index has the following key
features:
     
*    extensive diversification across over 250 hedge funds and nine distinct 
     strategies;

*    asset-weighted by strategy, approximately equally-weighted initially by 
     hedge fund;
     
*    rules-based construction methodology designed to emphasise inclusiveness 
     and minimise selection bias;
     
*    inclusive selection criteria which results in exposure to hedge funds which 
     may have lock-ups, redemption gates, low liquidity and which are presently 
     closed to investment;

*    total assets under management of the hedge funds in the Index were US$269 
     Billion (31 August 2007, source: RBC Capital Markets), representing
     approximately 18% of industry hedge fund assets under management.

Performance of the Index

Since its inception on 1 July 2005 to 31 August 2007, the Index has closely
tracked returns on hedge funds and outperformed other recognised investable
hedge fund indices.


                                         Annualised return   Volatility
RBC Hedge 250 Index(R)(1)                10.0%               3.8 %                   
Average Non-Investable Index(2)          12.0%               4.0 %
Average Investable Index(3)              7.3%                3.6 %


1 Returns are net of monthly Index fee of 1/12 of 0.95 per cent of the beginning
of month Index level. US$ returns from 1 July 2005 to 31 August 2007, data
sourced on 2 October 2007.  Source: Index returns - RBC Capital Markets,
calculations - Mellon Analytical Services.

2 Average Non-Investable Index does not include any index fees and is an equal
weighting of the HFRI Fund Weighted Composite Index, MSCI Hedge Fund Index and
Credit Suisse/Tremont Hedge Fund Index. US$ returns from 1 July 2005 to 31
August 2007, data sourced on 2 October 2007. Source: Index returns - Bloomberg,
calculations - Mellon Analytical Services.

3 Average Investable Index is net of estimated index fees and is an equal
weighting of the HFRX Global Hedge Fund Index, MSCI Hedge Invest Index and
Credit Suisse/Tremont Investable Hedge Fund Index. US$ returns from 1 July 2005
to 31 August 2007, data sourced on 2 October 2007. Source: Index returns -
Bloomberg, calculations - Mellon Analytical Services.

Hedge ETS

Hedge ETS, launched at the end of November 2006 has raised over US$310 million
in three placings and two smaller "tap" issues. Hedge ETS is a unique security
offering daily liquidity, the ability to redeem shares close to net asset value
and offers 1X (unlevered) shares and 3X exposed shares.

Hedge ETS obtains exposure to the Index through swap contracts with Royal Bank
of Canada and is subject to a management fee.

New shares are being issued under a global placing (outside the US) and a public
offer in the UK of C shares which will convert to ordinary shares on 3 January
2008.  UBS Investment Bank is acting as sponsor to Hedge ETS. Royal Bank of
Canada Investment Management (UK) Ltd and UBS Investment Bank are acting as
placing agents.

Two types of C shares are being offered: 1X shares which offer unleveraged
exposure to the performance of the Index and 3X shares which target three times
exposure to the performance of the Index.  Under the placing, both are available
in Euro, Sterling and US Dollar denomination, with a minimum investment per
placee of EUREuro50,000, GB#40,000 and US$75,000 respectively.

In order to assist in the management of any discount to net asset value, up to
14.99 per cent. of the shares in issue may be purchased in the market.  In
addition, each shareholder will have the opportunity to redeem up to 100 per
cent. of their shares at close to net asset value on the first business day of
January or July in each year, subject to providing at least 120 days prior
notice and the Hedge ETS directors exercising their discretion to offer
redemptions.

Expected timetable
Prospectus published                                  17 October
Placing closes                                        22 November
Trades booked                                         23 November
Settlement of C shares in CREST/Euroclear             28 November
Calculation date                                      30 November
Conversion ratio calculated                           2 January
Dealings in converted ordinary share commence         3 January


Ravi Anand, director at New Star Asset Management, said

"Hedge ETS offers unique access to the performance of the hedge fund asset class
through a well constructed index with the added benefit of daily liquidity.  We
believe that the RBC Hedge 250 Index is the most representative investable
benchmark for hedge fund industry returns.   This fourth offering is in response
to continued demand from investors.  As with the previous offers we expect
interest from institutional investors and wealth managers seeking to benefit
from the portfolio diversification benefits provided by hedge fund returns."

Enquiries:

Ravi Anand, New Star Asset Management         020 7225 9292


Notes to Editors:
     
1.   New Star Asset Management is an asset management group, listed on the
     London Stock Exchange with US$49.2 billion of assets under management (at 
     26 September 2007), including approximately US$2.2 billion in hedge funds 
     (at 28 September 2007).  New Star manages Hedge ETS and undertakes regular 
     due diligence on the Index.  New Star receives an investment management fee 
     of 0.85 per cent. per annum of the net asset value of the 1X shares and 1 
     per cent. per annum of the net asset value of the 3X shares.

2.   There are approximately 9,700 active hedge funds globally with 
     approximately US$1.7 trillion of assets (source: Hedge Fund Association).  
     The average non-investable hedge fund index references over 1,800 hedge 
     funds whereas the average investable hedge fund index references 
     approximately 90 hedge funds (Source: see notes 2 and 3 above).
    
3.   The composition of the RBC Hedge 250 Index at 31 August 2007 was:

     Strategy                           Weight (%)             No. of funds
     Equity Long/Short                  37.4                   92
     Multi-Strategy                     15.8                   40
     Credit                             12.5                   32
     Merger & Special Situations        10.6                   27
     Macro                              8.6                    23
     Managed Futures                    5.7                    15
     Fixed Income Arbitrage             4.6                    14
     Equity Market Neutral              2.6                    7
     Convertible Arbitrage              2.2                    9
     Total                              100.0                  259


     Further information on the Index can be found at www.rbchedge250.com

4.   Hedge ETS is the brand name for shares issued by the 1X and 3X cells of New
     Star RBC Hedge 250 Index Exchange Traded Securities PCC Limited, a Guernsey 
     based investment company which enters into swaps with Royal Bank of Canada 
     to provide exposure to the Index.

5.   Investors should be aware that a liquid secondary market in the shares
     cannot be guaranteed.

Important Information

This announcement and the information contained herein is not for publication,
distribution or release in, or into, directly or indirectly, the United States,
Canada, Australia or Japan or to US persons.  The information contained herein
does not constitute an offer of securities for sale including in the United
States, Australia, Canada or Japan.

This announcement is not a prospectus.  Investors should only acquire securities
on the basis of information contained in the prospectus relating to such
securities as and when published.  In the event of any discrepancy between this
announcement and the prospectus, the prospectus will prevail.  Details of where
copies of the prospectus can be obtained will be announced in due course.

The information contained in this announcement is for background purposes only
and does not purport to be full or complete.  No reliance may be placed for any
purpose on the information contained in this announcement or its accuracy or
completeness.  No representation, warranty or undertaking, express or implied,
is given as to the accuracy or completeness of the information contained in this
announcement by New Star or its directors and no liability is accepted by such
persons for the accuracy or completeness of any such information.

This announcement does not constitute or form part of any offer to issue or
sell, or any solicitation of any offer to subscribe or purchase, any
investments, nor shall it (or the fact of its distribution) form the basis of,
or be relied on in connection with, any contract thereof.

The information about Hedge ETS set out above is included in this announcement
for information purposes only and is not intended to constitute an invitation or
inducement to invest in the fund.  To the extent that such information is deemed
to constitute such an invitation or inducement, it is made solely to and/or is
directed solely at persons who are both (a) intermediate customers or market
counterparties for the purposes of the FSA's Conduct of Business Sourcebook and
(b) of a kind to or at whom such information may lawfully be issued or, as the
case may be, directed under The Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 ("permitted persons").  Persons other than
permitted persons should not rely on the information relating to Hedge ETS
contained in this announcement.

Acquiring investments to which this announcement relates may expose an investor
to a significant risk of losing all of the amount invested.  Persons considering
investing in such investments should consult an authorised person specialising
in advising on such investments. Daily liquidity is not guaranteed.

UBS Investment Bank is acting, solely as sponsor and placing agent, for Hedge
ETS exclusively and no one else in connection with the global offering. UBS
Investment Bank will not be responsible to anyone other than Hedge ETS for
providing protections afforded to clients of UBS Investment Bank or for
providing advice in connection with the global offering, the contents of these
materials or any matter referred to herein.

Royal Bank of Canada Investment Management (UK) Ltd is acting solely as placing
agent for Hedge ETS. Royal Bank of Canada (together with its affiliates, "RBC")
may also act as product provider to New Star and/or Hedge ETS. RBC (i) has not
prepared, and makes no express or implied warranties concerning, the accuracy or
completeness of these materials; and (ii) expressly disclaims any advisory,
fiduciary or similar relationship with any recipient, and any liability
whatsoever for any direct or consequential loss arising from any use of the
information contained herein.

(R)Registered trademark of Royal Bank of Canada, RBC Capital Markets is a
trademark of Royal Bank of Canada.  Used under license.

UNITED STATES

The information contained herein is not for publication or distribution to
persons in the United States of America. The securities referenced in this
document have not been and will not be registered under the Securities Act of
1933 (the "1933 Act"). Such securities may not be sold or transferred to United
States persons unless such sale or transfer is registered under the 1933 Act or
exempt from such registration.


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

Newstar Rbc 3X� (LSE:H3XS)
Historical Stock Chart
From Jun 2024 to Jul 2024

Newstar Rbc 3X� (LSE:H3XS)
Historical Stock Chart
From Jul 2023 to Jul 2024