Redemption Facility
January 19 2009 - 12:22PM
UK Regulatory
TIDMH3XS TIDMH3XU TIDMH3XE
RNS Number : 9007L
New Star RBC Hedge250 IDX (3X GBP)
19 January 2009
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) Laws 1994 to 1996
and The Protected Cell Companies Ordinance 1997 to 1998, as amended)
19 January 2009
REDEMPTION FACILITY
Redemption Day
The Company's Articles of Association incorporate provisions to enable
Shareholders, at the Directors' discretion, to redeem:
* up to 50% of their Shares for cash as at the first business day in January,
April, July or October in each year by giving not less than 90 days notice to
the Company in advance of the Redemption Day; and
* up to 100% of their Shares for cash as at the first business day in January or
July in each year by giving not less than 120 days notice to the Company in
advance of the Redemption Day.
The Directors intend to make quarterly decisions on whether to operate the
redemption facility and have decided to operate the facility in respect of the
1X Shares at 1 July 2009 (the "Redemption Day").
On 14 January 2009 the Company announced its intention to compulsorily redeem
the 3X Shares at Net Asset Value per Share on 1 April 2009. Accordingly, the 3X
Shares will not be eligible for the 1 July 2009 redemption.
Redemption Price
Redemptions will be effected at the most recent net asset value ("NAV") per
Share of the relevant class prior to the Redemption Day (being the NAV per share
as at 30 June 2009), less direct costs. No redemption fee is expected to be
payable.
Notice Period for redeeming up to 50% of a holding of Shares
A Shareholder may request the redemption of up to 50% of their holding in a
particular Share class by giving not less than 90 days' notice to the Company in
advance of the Redemption Day, in the form of a redemption request submitted to
the Company's Receiving Agent.
To be valid, the redemption request and, where relevant, the appropriate share
certificate, must be received by the Company's Receiving Agent no later than
5.00 p.m. (London time) on 2 April 2009. In the case of the Shares held in
uncertificated form, the relevant USE instruction must be submitted no later
than 5.00 p.m. on 2 April 2009.
Notice Period for redeeming in excess of 50% of a holding of Shares
A Shareholder may request the redemption of in excess of 50% of their holding in
a particular Share class by giving not less than 120 days' notice to the Company
in advance of the Redemption Day, in the form of a redemption request submitted
to the Company's Receiving Agent.
To be valid, the redemption request and, where relevant, the appropriate share
certificate, must be received by the Company's Receiving Agent no later than
5.00 p.m. (London time) on 3 March 2009. In the case of the Shares held in
uncertificated form, the relevant USE instruction must be submitted no later
than 5.00 p.m. on 3 March 2009.
Procedure
Redemption requests and, where relevant, the appropriate share certificate must
be submitted to the following address:
Capita Registrars Limited
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TH
From UK: 0870 162 3100
From Overseas: + 44 208 639 2157
Relevant Member Account ID's in relation to redemption requests submitted
through Crest are as follows:
1X US$ Redeemable Preference Shares - 1XUSDRED
1X Euro Redeemable Preference Shares - 1XEURRED
1X Sterling Redeemable Preference Shares - 1XSTERED
Shareholders should note that the Directors are entitled to suspend the
processing of redemptions at any time, including circumstances where a limit is
placed on the Company in respect of the aggregate reductions that it may make
under the swaps it has entered into with the Royal Bank of Canada (the "Swaps"),
as more particularly described in the Securities Note published by the Company
dated 19 October 2007 ("Securities Note").
Settlement
Full redemption proceeds will normally be dispatched to Shareholders within 15
days after the publication of the RBC Hedge 250 Index level prevailing on the
Redemption Day (which is expected to be on or about the 45th day after 30 June
2009). Where payments under the Swaps are delayed or withheld or the Company is
unable to liquidate its other investments in an orderly manner, the Company may
take longer to pay the redemption proceeds or scale back redemptions pro rata
amongst redeeming Shareholders.
UK Taxation
Persons who are resident in the UK and dispose of a "material interest" in an
offshore fund that constitutes a collective investment scheme (within the
meaning of section 236 of the Financial Services and Markets Act 2000, as
applied by section 57 of the Finance Act 2007) which has at any time been a
"non-qualifying offshore fund" (i.e. one in respect of which certification as a
"distributing fund" has not been obtained from HM Revenue & Customs) are subject
to income tax rather than capital gains tax in respect of any gains arising on
the disposal of such an interest.
The Directors have been advised that section 57 of the Finance Act 2007 may have
the effect that the Company should be regarded as an offshore fund and that any
interest in the Company acquired on or after 19 July 2007 (being the day on
which the Finance Act 2007 came into effect) would fall to be treated as a
"material interest". Consequently, the Directors intend to seek certification of
each Sterling Share class in the Company as having distributing fund status in
respect of each accounting period with a view to ensuring that on a disposal of
Sterling Shares (by way of redemption, transfer or otherwise) UK resident
Shareholders are subject to capital gains tax rather than income tax. It cannot
be guaranteed, however, that the conditions necessary to obtain distributing
fund status will always be met.
The United Kingdom Government in its Budget on 12 March 2008 confirmed proposals
for a new framework for the taxation of investments in offshore funds to replace
the present distributing funds regime which would operate by reference to
whether a fund opts into a reporting regime ("reporting funds") or not
("non-reporting funds"). Under the proposals, investors in reporting funds would
be subject to tax on the share of the reporting fund's income attributable to
their holding in the fund, whether or not distributed, but any gains on disposal
of their holding would be subject to capital gains tax. HM Revenue & Customs
would be able to approve a fund (or a class of shares in a fund) in advance as a
reporting fund. Investors in non-reporting funds would not be subject to tax on
income retained by the non-reporting fund but any gains on disposal of their
holding would be subject to tax as offshore income gains.
Expected Timetable
+-----------------------------------------+------------------------------+
| Latest date for receipt of redemption | 5.00 p.m. on 3 March 2009 |
| request and submission of relevant USE | |
| instruction or share certificate (as | |
| appropriate) for shareholders redeeming | |
| in excess of 50% of their holding in a | |
| particular share class | |
| | |
+-----------------------------------------+------------------------------+
| Latest date for receipt of redemption | 5.00 p.m. on 2 April 2009 |
| request and submission of relevant USE | |
| instruction or share certificate (as | |
| appropriate) for shareholders redeeming | |
| up to 50% of their holding in a | |
| particular share class | |
| | |
+-----------------------------------------+------------------------------+
| Redemption Day | 1 July 2009 |
| | |
+-----------------------------------------+------------------------------+
| Redemption proceeds dispatched | 1 September 2009 |
| | |
+-----------------------------------------+------------------------------+
Enquiries
Alison Bilham, HSBC Securities Services (Guernsey) Limited
Tel: + 44 (0)1481 707213
Notes
The information in this announcement should be read in conjunction with the full
text of the Securities Note. Capitalised terms used in this announcement shall,
unless the context otherwise requires, bear the meaning given to them in the
Securities Note.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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