17th Jan 2011 14:58
Investec Structured Products Calculus VCT plc
Interim Management Statement
17 January 2011
Investec Structured Products Calculus VCT plc ("the Company") announces its Interim Management Statement for the period from 1 September 2010 to 30 November 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 Structured Product's award winning expertise in structured products and Calculus Capital's award winning expertise in venture capital.
Investec Structured Products Calculus VCT plc was launched in March 2010, and has raised £4.79 million to date (before expenses).
Headlines
- The unaudited net asset value ("NAV") per Ordinary Share as at 30 November2010 was 97.98 pence (including current period revenue) compared to 94.55pence at 31 August 2010 and 95.00 pence immediately following the close of theinitial fundraising on 30 April 2010.
- The Company launched a top up offer of Ordinary Shares in September 2010, raising £0.92 million (before expenses) before closing in December 2010.
- The Company made a second qualifying venture capital investment during theperiod, investing £299,377 in Lime Technology, a leading provider of renewablebuilding materials to the construction industry.
Since 30 November 2010 the unaudited NAV (including current period revenue) has risen to 101.23 pence as at 31 December 2010.
Investment in Structured Products
As at 30 November 2010, the following investments had been made instructured products. The structured products will achieve their target returnsubject to the Final Index Level of the FTSE 100 being higher than the InitialIndex Level*. The capital is at risk on a one for one basis ("CAR") if theFTSE 100 Index falls more than 50% at any time during the investment term andfails to fully recover at maturity such that the Final Index Level is belowthe Initial Index Level. FTSE 100 Return/ % of Initial Capital Investable Index at Risk Application
Issuer Strike Date Level No. of Units Unit Purchase Price Maturity Date (CAR) Money The Royal Bank 05/05/2010 5342 275,000 £0.96
12/05/2015 162.5% if 6.40%of Scotland FTSE 100plc higher*; CAR if FTSE 100 falls by more than 50%Investec Bank 14/05/2010 5263 500,000 £0.9791 19/11/2015 185% if 11.87%plc FTSE 100 higher*; CAR if FTSE 100 falls by more than 50%Santander 25/05/2010 4941 350,000 £0.9898 18/11/2015 185% if 8.40%Global Banking FTSE 100and Markets higher*;(Abbey CAR ifNational FTSE 100Treasury falls byServices plc) more than 50%Nomura Bank 28/05/2010 5188 350,000 £0.98 20/02/2013 137% if 8.32%International FTSE 100plc higher*; CAR if FTSE 100 falls by more than 50%
Morgan Stanley 10/06/2010 5133 500,000 £1.00 17/12/2012 134% if 12.13% FTSE 100 higher*; CAR if FTSE 100 falls by more than 50%HSBC Bank plc 01/07/2010 4806 500,000 £1.00
06/07/2012 125.1% if 12.13% FTSE 100 higher*; CAR if FTSE 100 falls by more than 50%
\* The Final Index Level is calculated using `averaging', meaning that the average of the closing levels of the FTSE 100 is taken 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 30 November 2010 was £2,442,980, representing 59.25 per cent. of net funds raised.
Qualifying Venture Capital Investment
In November 2010, £299,377 was invested in Lime Technology Limited("Lime"). The investment comprised £49,377 in B shares and £250,000 in 7 percent. long term loan stock, the investment in B ordinary shares representing0.47 per cent. of the share capital of Lime. The total funding round in Limewas £2.58 million, with £1.28 million also being invested by Calculus CapitalEIS Funds.Lime, which was established in 2002, produces renewable low carbonbuilding materials for the construction industry. The company's lead product,Tradical® Hemcrete®, is a negative carbon bio-composite product comprised ofhemp and lime based binder. Through its subsidiary, Hemp Technology, Limecontrols the hemp supply chain from seed to finished wall.
The total amount invested in qualifying venture capital investments as at 30 November 2010 was £549,377 representing 13.32 per cent of net funds raised.
C Share OfferIn September 2010, shareholders approved resolutions enabling theCompany to establish and raise money for a separate fund through the issue ofC ordinary shares of 1 pence each in the capital of the Company ("C Shares").The C Share offer to raise £25 million was launched on 7 January 2011 ("CShare Offer").The C Shares fund will be managed separately from the OrdinaryShares fund, with an investment remit similar to that of the Ordinary Sharesfund, but will include the ability to invest in structured products linked tothe performance of certain global equity indices in addition to the FTSE 100.The target return profile for the C Shares fund will be an annualtarget dividend of 4.5 pence per C Share for the first five years, an interimreturn of 47.5 pence per C Share by 14 March 2017 (which would (including thepayment of annual dividends) return the net 70.0 pence investment) with afurther 45.0 pence per C Share being returned by 14 March 2019 (which wouldachieve a total return of 115 pence per C Share by this date).The C Share Offer will close on 5 April 2011 for the 2010/2011 taxyear and on 30 April 2011 for the 2011/2012 tax year (unless extended),allowing investors to subscribe for C Shares in both the 2010/2011 and2011/2012 tax years. The offer price per C Share is £1.00. The C Share Offeris conditional on receiving applications for, in aggregate, a minimum of £1million. If less than £1 million is applied for by the closing date (as may beextended), the Offer will lapse.
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
vendorRelated Shares:
Calculus Vct