RNS Number:6607F
New Star Absolute Return Fund PCC
12 October 2007
NEW STAR ABSOLUTE RETURN FUND PCC LIMITED
(A closed-ended investment company incorporated in Guernsey with registered
number 45060 under the provisions of The Companies (Guernsey) Law 1994 to 1996
and the Protected Cell Companies Ordinances 1997 to 1998, as amended)
Preliminary Unaudited Statement of Results
for the period ended 30 June 2007
New Star Absolute Return Fund PCC Limited (the "Company") today announces its
preliminary results for the period ended 30 June 2007.
Highlights for the period ended 30 June 2007
* The Company launched in August 2006 raising #24 million
* Shareholders' funds at 30 June 2007 were #25.7 million
* Total return of both Growth Shares and the Income Shares
exceeded Sterling LIBOR
Initial 30 June 2007 % change from
subscription subscription price to 30
June 2007
price
Net Asset Value - Growth Class 100.00p 108.53p 8.53%
Net Asset Value - Income Class 100.00p 105.07p 5.07%
Income Class - Total NAV Return 8.40%
For further information please contact:
Ravi Anand, New Star Asset Management Limited, 020 7225 9292
Information on the Company
The investment objective of New Star Absolute Return Fund PCC Limited (the "
Company") is to provide shareholders with an absolute return in excess of the
Sterling London Interbank Offered Rate ("LIBOR").*
*There can be no guarantee that these or any level of absolute returns can be
achieved at all or on a continuing basis
To achieve this objective, the Company is organised as a feeder fund and it is
intended that all of the Company's assets be invested in New Star Multi Strategy
Master Hedge Fund Limited (the "Master Fund") Sterling Shares.
The Company has two classes of share; Income Shares in the Income Cell and
Growth Shares in the Growth Cell. The Income Shares aim to provide income in the
form of dividends, together with capital growth. The Growth Shares aim to
provide a capital only return.
Investment policy
The Company, through its investment in the Master Fund, seeks to produce
absolute returns through a range of hedge fund strategies. The Master Fund's
portfolio is an actively managed diversified portfolio of predominantly equity
related positions.
By investing in a range of hedge fund strategies, the Investment Manager seeks
to diversify the Master Fund's portfolio by geography, sector and stock. The
Investment Manager actively manages the Master Fund's exposure to particular
markets, sectors and stocks as well as to individual managers and carefully
monitors risks.
Investment Manager's Report
Initial 30 June 2007 % change from subscription
subscription price to
price 30 June 2007
Net Asset Value - Growth Class 100.00p 108.53p 8.53%
Net Asset Value - Income Class 100.00p 105.07p 5.07%
Income Class - Total NAV Return 8.40%
The Company commenced trading on 2 August 2006 with a net asset value per share
of 100.00p (before launch costs of 2.20%). The net asset value of the Growth
Class shares rose 8.53% to 108.53p during the period to 30 June 2007. The net
asset value of the Income shares rose 5.07%. In addition, dividends totalling
3.33p per income share were paid, providing a total return of 8.40% during this
period to 30 June 2007. During the period, Sterling LIBOR deposits returned
5.32%.
Global equities produced healthy returns during the period but the progress was
not uninterrupted, with bouts of increased risk aversion resulting in cash being
withdrawn from volatile securities and placed in "safe haven" assets such as
government bonds. The first occurred in November 2006, when rising oil prices
led investors to fear that the trade-off between economic growth and inflation
was deteriorating. The second correction occurred in late February 2007 and
early March, when US sub-prime mortgage defaults heightened concerns that the US
would experience a significant economic growth slowdown or recession in late
2007 or early 2008. The third period of profit taking occurred in June amid
concerns that increased inflationary pressures would lead to tighter central
bank monetary policies than had been expected.
Generally, however, equities experienced benign conditions, for which there were
four main reasons. First, liquidity was abundant, with the inflation-adjusted
money supply growth in the leading economies remaining above the level of
industrial output growth, freeing cash for financial market investment.
Secondly, corporate profits were buoyant. Thirdly, the takeover market remained
active. Lastly, the US Federal Reserve was inactive, enabling equity investors
to take European and Japanese monetary tightening in their stride although
divergent monetary policies affected currency markets.
Within the Group of Seven (G7) industrial nations in Sterling terms, the German
stock market rose 35.51%, the French market gained 27.01% and in Italy the
market rose 19.30%. The resources-heavy Canadian market gained 18.45% while the
UK rose 17.16%. Japan lagged, however, falling 0.73%, while US equities rose
13.02%. In the developing markets, noteworthy gains were made by Bulgaria, up
91.84%, and Slovenia, up 84.85%, but Sri Lanka gained just 8.27% and Russia rose
9.53%. Among the global sectors, leadership was provided by industrial metals,
up 52.25%, industrial engineering, up 42.97%, and mobile telecommunications, up
42.21%. By contrast, pharmaceuticals fell 0.37% and energy producers rose 9.45%.
The Company invests in the New Star Multi Strategy Master Hedge Fund. This fund
comprises an actively-managed diversified global equity portfolio that seeks to
generate absolute returns through long and short positions and active risk
management. At the period end, this strategy resulted in your Company having a
gross global equity market exposure of 195.7% and a 33.3% net market exposure.
Investment Manager's Report (continued)
Of the underlying strategies within the Master Fund, the UK value/special
situations strategy did best, rising 21.56% in Sterling, its base currency,
while the financials strategy rose 20.74% in US Dollars, its base currency, and
the European strategy rose 16.31% in Euros, its base currency. The weakest
strategy was the Opportunistic strategy, which fell 8.32% in US Dollars, its
base currency.
At the period end, the UK mid-cap strategy had the biggest weighting at 21.4%,
followed by the financials strategy, at 16.1%, the global sector-biased
strategy, at 13.7%, and the UK value/special situations strategy, at 12.9%.
At the period end, it seemed likely that the major economies would experience a
significant economic growth slowdown. Strong growth in the money supply may
cushion this slowdown. There may, however, be a further deterioration in the
trade-off between economic growth and inflation because the slowdown so far has
been insufficient to relieve capacity pressures. Weaker economic conditions may
weaken consumer-facing companies. Capacity utilisation within the G7 has,
however, risen above its long-term average, a trend that should increase
producer purchasing power and lead to greater capital spending.
Reflecting deteriorating economic conditions and the specific problems of the US
housing market, equity and fixed income markets experienced falls during the
summer of 2007 as investors re-evaluated their attitudes to risk. This may
inhibit private equity takeovers and lead to rotation away from cyclical
industries towards more defensive sectors. In such an environment, careful long/
short stock selection will remain important.
During late summer 2007, the Company's performance suffered as a result of
financial market volatility arising from the so-called 'credit crunch'. Whilst
your Company and the Master Fund do not have any direct credit exposure, the
resulting impact on European mid-cap stocks and financial stocks in particular
was quite severe. Two strategies - the newly-launched European Opportunities
strategy and UK mid-cap - did, however, make positive contributions. From 30
June 2007 to 21 September 2007, the NAV total return on the Growth shares and
Income shares was -1.35%.
The Company's un-audited net asset value at 21 September 2007 was 107.06p per
Growth Class share and 102.41p per Income Class share.
Statement of Net Assets
as at 30 June 2007
Income Growth
Cell Cell Total
# # #
Assets:
Investment in New Star Multi Strategy 10,946,769 15,150,449 26,097,218
Master Hedge Fund Limited at fair value
through profit or loss (Cost: #22,655,869)
Cash and cash equivalents 42,071 58,226 100,297
Other receivables and prepayments 3,559 4,926 8,485
Total assets 10,992,399 15,213,601 26,206,000
Liabilities:
Performance fee payable 162,565 222,516 385,081
Management fees payable 13,107 18,137 31,244
Directors' fees payable 15,101 20,900 36,001
Custodian fees payable 3,827 5,296 9,123
Accrued liabilities and other payables 23,176 34,555 57,731
Total liabilities 217,776 301,404 519,180
Net assets: 10,774,623 14,912,197 25,686,820
As at 30 June 2007: Number of shares Net asset value Net asset value per
share (pence)
Income Shares 10,300,000 10,774,623 104.61
Growth Shares 13,800,000 14,912,197 108.06
Statement of Operations
for the period from 29 June 2006 (date of incorporation) to 30 June 2007
Income Growth
Cell Cell Total
# # #
Investment income of the
Company
Interest income 432 597 1,029
Net investment income 432 597 1,029
Investment gain/(loss) from
New Star Multi Strategy Master
Hedge Fund Limited
Net realised gain on
investments 674,837 933,982 1,608,819
Net realised loss on foreign
currency (57,769) (79,952) (137,721)
Net movement in unrealised
gain on investments 861,768 1,167,155 2,028,923
Net investment gain from
New Star Multi Strategy Master
Hedge Fund Limited 1,478,836 2,021,185 3,500,021
Total investment gain 1,479,268 2,021,782 3,501,050
Expenses
Performance fee 203,573 278,829 482,402
Investment management fees 144,476 196,724 341,200
Launch costs 86,652 119,928 206,580
Directors' fees and expenses 39,011 53,991 93,002
Audit fee 5,762 7,974 13,736
Custodian fees 3,841 5,316 9,157
Other expenses 37,602 52,041 89,643
Total expenses 520,917 714,803 1,235,720
Net increase in net assets
resulting from operations 958,351 1,306,979 2,265,330
Statement of Operations
for the period from 29 June 2006 (date of incorporation) to 30 June 2007
(continued)
Income Growth
Cell Cell
Earnings per Cell
Income Share Class #958,351 -
Growth Share Class - #1,306,979
-
Shares in issue at 30 June 2007
Income Share Class 10,300,000 -
Growth Share Class - 13,800,000
Earnings per Share
Income Share Class #0.0930 -
Growth Share Class - #0.0947
Statement of Changes in Equity
for the period from 29 June 2006 (date of incorporation) to 30 June 2007
Income Growth Total
Cell Cell
# # #
Balance at the date of incorporation - - -
Issue of shares during the period 10,300,000 13,800,000 24,100,000
Share issuance costs (140,738) (194,782) (335,520)
Net increase in net assets resulting from operations 958,351 1,306,979 2,265,330
Dividends paid on Income Shares (342,990) - (342,990)
Balance as at 30 June 2007 10,774,623 14,912,197 25,686,820
Statement of Cash Flows
for the period from 29 June 2006 (date of incorporation) to 30 June 2007
Income Growth Total
Cell Cell
# # #
Cash flows from operating activities
Net increase in net assets resulting from operations 958,351 1,306,979 2,265,330
Adjustment for:
- Net investment gain from New Star Multi Strategy (1,478,836) (2,021,185) (3,500,021)
Master Hedge Fund Limited
Adjustments to reconcile net increase in net assets for
the financial period to net cash from operating
activities;
Purchases of investments (9,787,060) (13,570,940) (23,358,000)
Proceeds from sale of investments 319,127 441,676 760,803
Net increase in other receivables and prepayments (3,559) (4,926) (8,485)
Net increase in liabilities 217,776 301,404 519,180
Net cash used in operating activities (9,774,201) (13,546,992) (23,321,193)
Cash flows from financing activities
Issuance of shares during the period 10,300,000 13,800,000 24,100,000
Issuance costs (140,738) (194,782) (335,520)
Dividends paid on Income Shares (342,990) - (342,990)
Net cash provided by financing activities 9,816,272 13,605,218 23,421,490
Net increase in cash and cash equivalents 42,071 58,226 100,297
Cash and cash equivalents at the beginning of the period - - -
Cash and cash equivalents at the end of the period 42,071 58,226 100,297
Supplementary cash flow information:
Interest received 434 600 1,034
Interest paid (1,542) (2,133) (3,675)
Notes
1 Basis of preparation
Statement of compliance
Whilst the financial information in this Preliminary Announcement has been
computed in accordance with International Financial Reporting Standards ("IFRS
"), this announcement does not itself contain sufficient information to comply
with IFRS. The financial statements are presented in Pounds Sterling ("#").
Basis of preparation
The accounting policies used in arriving at the preliminary figures are
consistent with those which will be published in the full financial statements.
The financial statements have been prepared on a historical cost basis, except
for financial instruments classified at fair value through profit or loss that
have been measured at fair value.
2 Summary of significant accounting policies
The significant accounting policies adopted by the Company are as follows:
Use of estimates
The preparation of the financial information in accordance with International
Financial Reporting Standards requires the Directors to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
information and the reported amounts of revenues and expenses during the period.
Actual results could differ from such estimates.
Valuation of investments
The Company's investment in the Master Fund is valued at the latest available
net asset value per share at the period end. Unrealised gains and losses arising
from the Company's investments in the Master Fund are included in the Statement
of Operations. The performance of the Company is directly affected by the
performance of the Master Fund. The significant accounting policies of the
Master Fund are listed in note 2 of the Master Fund's financial statements. The
Master Fund Financial Statements are available upon request from the
Administrator.
3 Dividend policy
Subject to market conditions, the Directors intend to pay dividends to Income
Shareholders in respect of the three month periods ending 31 March, 30 June, 30
September and 31 December. The Company may receive dividends from its holding of
Master Fund Sterling Shares. To the extent that any such Master Fund dividends
attributable to the Income Shares are insufficient to pay dividends on Income
Shares, the Company may use available cash resources, redeem Master Fund
Sterling Shares attributable to the Income Shares or draw down on borrowings to
fund dividend payments. Any such borrowings would be secured on and only have
recourse to assets in the Income Cell and cost of borrowing would only be borne
by assets in the Income Cell. During the period ended 30 June 2007, the Company
paid the following dividends in respect of the Income Shares:
Dividend per share Dividend
#
First Quarterly Dividend 0.83p 85,490
(Paid on 8 November 2006 to shareholders
registered on 3 November 2006)
Second Quarterly Dividend 1.25p 128,750
(Paid on 5 February 2007 to shareholders registered on 26
January 2007)
Third Quarterly Dividend 1.25p 128,750
(Paid on 30 May 2007 to shareholders registered on 27 April
2007)
Total Dividends paid during the period 3.33p 342,990
Fourth Quarterly Dividend 1.25p 128,750
(Paid on 28 August 2007 to shareholders registered on 27
July 2007)
Any dividends received from the Master Fund Sterling Shares attributable to the
Growth Shares will either be reinvested in the Master Fund or held as cash.
4 Related party transactions
Certain of the directors of the Company are also directors, shareholders or
partners of companies or firms who provide services to the Company. Mr. John
Duffield is chairman of New Star Asset Management (Bermuda) Limited and New Star
Asset Management Limited. The Investment Adviser, New Star Asset Management
Limited held 6,595,500 Growth Shares in the Company as at 30 June 2007. Mr. John
Hawkins is a Director of a HSBC plc Group Company, HSBC Investment
(International) Limited.
5 Approval of financial statements
The financial statements are expected to be approved by the Directors on 12
October 2007. This preliminary statement is not the Company's statutory
financial statements. The above results for the period to 30 June 2007 have been
agreed with the auditors and are an abridged version of the Company's full
financial statements. The full financial statements have yet to be published or
filed with the Guernsey Financial Services Commission. It is expected that the
full financial statements will be posted to shareholders in October 2007. The
audit report on the full financial statements for the period ended 30 June 2007
is yet to be signed by the auditors.
6 Subsequent events
In late August 2007 shareholders approved a resolution enabling the conversion
of Income Shares to Growth Shares and vice versa on the first Business Day of
January, April, July and October in each year or such other days as the
Directors may determine.
By Order of the Board
HSBC Securities Services (Guernsey) Limited
12 October 2007
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR MTBFTMMTBBMR
Newstar AB Inc (LSE:NSAI)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Newstar AB Inc (LSE:NSAI)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
