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Close UK IndxGrwth12 (CSUZ)

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Tuesday 19 June, 2012

Close UK IndxGrwth12

Inv Obj and Perf Update

RNS Number : 7195F
Close UK Index Growth Fund 2012
19 June 2012
 



FOR IMMEDIATE RELEASE

 

19 June 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 31 May 2012 was 5,320.86.  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 never

closes below 3080.15 †

If FTSE 100 Index

closed 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 31 May 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 £52,953,000.  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 £Nil 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 £52,953,000, 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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