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16 Jan 2009 15:40
TP70 VCT plc
16 January 2009
Interim Management Statement for the Quarter Ended 31 December 2008
TP70 VCT plc presents its interim management statement for the quarter ended 31 December 2008, which is the company's second interim management statement for the 11 months ended 28 February 2009, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3
Net assets at 31 December 2008 comprised:-
|
Unaudited 31 December 2008 |
Unaudited 30 September 2008 |
Audited 31 March 2008 |
||||
|
£'000 |
% |
£'000 |
% |
£'000 |
% |
|
|
Financial assets at fair value |
25,155 |
97.5 |
27,017 |
97.6 |
29,255 |
98.4 |
|
Net current assets |
635 |
2.5 |
654 |
2.4 |
470 |
1.6 |
|
25,790 |
100.0 |
27,671 |
100.0 |
30,534 |
100.0 |
|
Investment Activity
The financial assets at fair value figure represents the company's exposure both directly and indirectly to GAM Diversity. During calendar year 2008 GAM Diversity disappointingly returned -14.6% in sterling terms. This return outperformed the major hedge fund performance indices and also compares favourably with the decline of 29.9% in the FTSE All-Share index.
Material Events and Transactions
During the quarter no shares were issued and no shares were purchased by the company for cancellation.
In December the board resolved to change the company's balance sheet date to 28 February in order that the company has the maximum period available to make VCT qualifying investments. As a result, the next audited accounts will be those for the 11 months ended 28 February 2009.
As outlined above, in 2008 GAM Diversity succeeded in isolating investors from the worst excesses of asset value collapses and was also creditably resilient amidst well-publicised hedge fund redemptions. However, to ensure that GAM Diversity's redemption conditions remained in line with market practice, GAM Diversity gave notice in December to extend the period required to realise investments from monthly on 45 days' notice to quarterly on 95 days' notice.
£21,527,000 out of financial assets at fair value of £25,155,000 are exposed to GAM Diversity via a derivative transaction with Barclays Capital. Following GAM Diversity's change in redemption terms, Barclays Capital has very recently invoked early termination clauses to terminate the derivative transaction. As matters stand, TP70 will therefore cease to have exposure to GAM Diversity on 31 March 2008. The precise financial implications of termination have yet to be crystallised or agreed. However, the board and Triple Point Investment Management LLP are addressing the termination as a matter of priority, with a view to re-establishing means for exposure to GAM Diversity, as well as investigating the possibility of offering those shareholders who are so disposed the option of extending exposure to GAM Diversity over the next 3 years via GAM Diversity 2.5XL. Further communication will follow in due course.
Further Information
For further information, please contact David Dick or Chris Tottle at Triple Point Investment Management LLP on 0207 201 8989.
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