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19 Jul 2010 17:51
Investec Structured Products Calculus VCT plc Interim Management Statement 19 July 2010
The Investec Structured Products Calculus VCT plc ("the Company") announces its Interim Management Statement for the period from incorporation to 31 May 2010. This Statement also includes relevant financial information between the end of the period to the date of this Statement.
The Company is a tax efficient listed company which aims to achieve a regular tax free dividend stream together with capital growth for private investors.
The Company brings together Investec's award winning expertise in structured products and Calculus Capital's award winning expertise in venture capital.
The Company's offer for subscription closed on 30 April 2010 and a total of £3.87m (before expenses) was raised. The initial investment strategy has been successfully undertaken and details of the investments made to date are listed below.
Headlines
* The Company launched its issue of Ordinary Shares on 3 March 2010. £2,984,016 was raised net of expenses in respect of the tax year 2009/10 and £754,025 was raised net of expenses for the tax year 2010/11. The total amount raised net of expenses was £3,738,041. * The total number of Ordinary Shares in issue (and, therefore, the total number of voting rights in the Company) at 31 May 2010 was 3,867,917. * The unaudited net asset value ("NAV") per Ordinary Share as at 31 May 2010 was 94.07 pence. * The Company made its first investments in structured products through Investec Structured Products.
The Company did not make any Qualifying Venture Capital Investments during the period but has subsequently completed its first investment.
Investment in Structured Products
As at 31 May 2010, the following investments had been made in structuredproducts. The structured products will achieve their target return subject tothe Final Index Level of the FTSE 100 being higher than the Initial Index Level*.The capital is at risk on a one for one basis ("CAR") if the FTSE 100 Indexfalls by 50% or more at any time during the investment term and fails torecover. Issuer Strike FTSE No. of Unit Maturity Return/ % of Date 100 Units Purchase Date Capital Investable Initial Price at Risk Application Index (CAR) Money Level Royal Bank 05/05/2010 5342 275,000 £0.96 12/05/2016 162.5% if 7.06% of Scotland FTSE 100 higher*; CAR if FTSE 100 falls by 50% Investec 14/05/2010 5263 500,000 £0.9791 19/11/2010 185% if 13.10% Bank plc FTSE 100 higher*; CAR if FTSE 100 falls by 50% Abbey 25/05/2010 4941 350,000 £0.9898 18/11/2015 185% if 9.27% National FTSE 100 Treasury higher*; Services CAR if FTSE 100 falls by 50% Nomura Bank 28/05/2010 5188 350,000 £0.98 20/02/2013 137% if 9.18% International FTSE 100 higher*; CAR if FTSE 100 falls by 50%
Subsequent to the end of the period under review, the following additional investments were made in structured products.
Issuer Strike FTSE No. Of Unit Maturity Return/ % of Date 100 Units Purchase Date Capital Investable Initial Price at Risk Application Index (CAR) Money Level Morgan 10/06/2010 5133 500,000 £1.00 17/12/2012 134% if 13.38% Stanley FTSE 100 International higher*; CAR if FTSE 100 falls by 50% HSBC Bank plc 01/07/2010 4806 500,000 £1.00 06/07/2012 125.1% if 13.38% FTSE 100 higher*; CAR if FTSE 100 falls by 50%
\* The Final Index Level is calculated using 'averaging', meaning that we take the average of the closing levels of the FTSE 100 on each Business Day over the last 2 - 6 months of the structured product plan term (the length of the averaging period differs for each plan).
The use of averaging to calculate the return can reduce adverse effects of a falling market or sudden market falls shortly before maturity. Equally, it can reduce the benefits of an increasing market or sudden market rises shortly before maturity.
The total amount invested in structured products as at 31 May 2010 was £1,442,980 representing 38.60% of net funds raised. The total amount invested in structured products including those made subsequent to the period is £2,442,980 as at today's date, representing 65.35% of net funds raised.
Qualifying Venture Capital Investment
Subsequent to the end of the period under review, £250,000 was invested in Terrain Energy Limited ("Terrain"). Terrain was established in October 2009 to develop a portfolio of onshore oil and gas production and development interests in areas of low political risk, with the current focus being the UK. The balanced portfolio of licences includes currently oil producing, scheduled for near term production and exploration or rejuvenation projects. Terrain currently has interests in four licences, two of which are in production, one on test production and one on which a drill or drop decision will be made in 2011.
The investment comprised 44,642 ordinary shares in Terrain at £1.12 per share (representing a total investment in ordinary shares of £50,000) and £200,000 in 7% long term loan stock with a maturity of five years and one day. The investment in ordinary shares represents 2.1% of the enlarged ordinary share capital of Terrain. The total funding round in Terrain was £750,000 with the remainder invested as ordinary shares at £1.12 per share by Calculus Capital on behalf of Calculus Capital EIS Fund 10.
Fundraising Proposals
The Board intends to seek shareholder approval for a further offering of Ordinary Shares which will rank pari passu with the Ordinary Shares currently in issue, as well as an offering of C Shares which will be managed as a separate fund to the Ordinary Shares. Assuming shareholder approval is forthcoming, the Ordinary Share offering is expected to be launched in September 2010 and the C Share offering is expected to be launched in December 2010. A circular to shareholders convening a general meeting to seek such approvals will be sent out to shareholders shortly. Further details in relation to the offers will be given nearer to the time.
Other than as discussed above, the Board is not aware of any significant events or transactions which have occurred in the period from incorporation and the date of this Statement and which have a material impact on the financial position of the Company.
For further information, please contact:
Gary Dale (Investec Structured Products) 020 7597 4065
John Glencross (Calculus Capital Limited) 020 7493 4940
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