CED Close Enhanced

 

TIDMCED TIDMCED 
 
RNS Number : 4894M 
Close Enhanced Commodities Fund Ld 
29 January 2009 
 

FOR IMMEDIATE RELEASE 
 
 
29 January 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. 
 
 
Based on the values of the commodities as at 28 January 2009, and assuming these 
values were to remain unchanged through to the end of the life of the Company, 
the Final Capital Entitlement per Share on the Redemption Date would be 
approximately 147 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 118 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. 
 
 
 
 
 
 
+-----------------------+--------------------+-------------------+ 
| Commodity             |    Start Value     |      As at        | 
|                       |                    |  28 January 2009  | 
+-----------------------+--------------------+-------------------+ 
| Oil                   |             $51.15 |            $42.16 | 
+-----------------------+--------------------+-------------------+ 
| Gold                  |            $432.85 |           $895.25 | 
+-----------------------+--------------------+-------------------+ 
| Aluminium             |          $1,972.00 |         $1,332.00 | 
+-----------------------+--------------------+-------------------+ 
| Copper                |          $3,367.00 |         $3,295.00 | 
+-----------------------+--------------------+-------------------+ 
| Zinc                  |          $1,383.00 |         $1,121.00 | 
+-----------------------+--------------------+-------------------+ 
| Commodity Portfolio   |            100.00% |           123.80% | 
+-----------------------+--------------------+-------------------+ 
 
 
Payoff Profile 
 
 
The tables below illustrate how the Final Capital Entitlement of the Shares 
might vary for different ending levels of the Commodity Portfolio (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 value of the Commodity Portfolio over the 
one year period ending on 22 February 2010. 
 
 
 
 
The monthly factsheet is available on the website www.closeinvestments.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 
 
 STRBLMFTMMITBML 
 

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