TIDMBAP TIDMUSH TIDMUSHD TIDMAVT
RNS Number : 8179F
Harewood Structured Investment PCC
20 June 2012
Harewood Structured Investment PCC Limited
Half-yearly Financial Report for the
period ended 30 April 2012 (Unaudited)
Harewood Structured Investment PCC Limited (the "Company")
CONTENTS
About the Company 1
Investment Objective and Policy 10
Net Asset Values 21
Interim Management Report 22
Investment Manager's Report 23
Statement of Comprehensive Income 39
Statement of Financial Position 40
Statement of Changes in Net Assets Attributable
to Holders of Preference Shares 41
Statement of Cash Flows 42
Notes to the Financial Statements 43
Schedule of Investments 68
Directors and Service Providers 71
Shareholder Information 72
Harewood Structured Investment PCC Limited (the "Company")
ABOUT THE COMPANY
Harewood Structured Investment PCC Limited, a closed-ended
protected cell investment company, was incorporated in Guernsey
with limited liability on 27 January 2005 when two Ordinary Shares
were issued for administrative purposes. The Company commenced
business on 18 March 2005.
On 7 December 2005, 46,613,549 BNP Paribas UK High Income
Preference Shares ("UKHI Shares") of the BNP Paribas UK High Income
cell were allotted and issued at an issue price of GBP1 each. On 26
May 2006 a further 30,000,000 UKHI Shares were allotted and issued
at an issue price of 102.47 pence each and on 28 September 2006 a
further 50,000,000 shares were allotted and issued at an issue
price of 104.00 pence each and on 4 June 2007 a further 15,000,000
UKHI Shares were allotted and issued at an issue price of 109.60
pence each. The UKHI Shares had a defined investment life to 8
December 2011 whereupon they were compulsorily redeemed.
On 22 March 2006, 27,506,140 BNP Paribas Energy - Base Metals
(2) Preference Shares ("EBM2 Shares") of the BNP Paribas Energy -
Base Metals (2) cell were allotted and issued at an issue price of
GBP1 each. On 6 July 2006 a further 5,000,000 EBM2 Shares were
allotted and issued at an issue price of 110.44 pence each. The
EMB2 Shares had a defined investment life to 28 March 2012
whereupon they were compulsorily redeemed.
Harewood Structured Investment PCC Limited (the "Company")
ABOUT THE COMPANY (continued)
On 20 April 2006, 25,000,000 BNP Paribas European Shield
Preference Shares ("ES Shares") of the BNP Paribas European Shield
cell were allotted and issued at an issue price of GBP1 each. The
ES Shares had a defined investment life to 3 May 2012 whereupon
they were compulsorily redeemed.
On 19 July 2006, 61,748,923 BNP Paribas Absolute Progression
Preference Shares ("BAP Shares") of the BNP Paribas Absolute
Progression cell were allotted and issued at an issue price of GBP1
each. On 23 January 2007 a further 15,000,000 BAP Shares were
allotted and issued at an issue price of 108.484 pence each. The
BAP Shares have a defined investment life to 26 July 2012 whereupon
they will be subject to compulsory redemption.
On 25 October 2006 77,469,987 Class A Sterling Hedged US High
Income Preference Shares ("Class A USHI Shares") of the US High
Income cell were allotted and issued at a price of GBP1 each. On 4
June 2007 a further 15,000,000 Class A USHI Shares were allotted
and issued at a price of 105.65 pence each. The Class A USHI Shares
have a defined investment life to 26 November 2012, whereupon they
will be subject to compulsory redemption.
On 25 October 2006 43,337,229 Class B Unhedged US High Income
Preference Shares ("Class B USHI Shares") of the US High Income
cell were allotted and issued at a price of $1 each. On 4 June 2007
a further 15,000,000 Class B USHI Shares were allotted and issued
at a price of 105.89 cents each. The Class B USHI Shares have a
defined investment life to 26 November 2012 whereupon they will be
subject to compulsory redemption.
On 21 June 2007, 37,225,896 BNP Paribas Agrinvest Preference
Shares ("Agrinvest Shares") of the BNP Paribas Agrinvest cell were
allotted and issued at an issue price of GBP1 each. The Agrinvest
Shares have a defined investment life to 29 June 2013 whereupon
they will be subject to compulsory redemption.
On 12 March 2008 30,125,000 Enhanced Property Recovery
Preference Shares (the "EPR Shares") of the Enhanced Property
Recovery cell were allotted to applicants pursuant to the initial
placing and offer for subscription of such EPR Shares at an issue
price of GBP1 each.
Harewood Structured Investment PCC Limited (the "Company")
ABOUT THE COMPANY (continued)
The EPR Shares have a defined investment life to 20 March 2014
whereupon they will be subject to compulsory redemption.
On 4 June 2008 34,587,600 Energy - Base Metals (3) Preference
Shares (the "EBMC Shares") of the Energy - Base Metals (3) cell
were allotted to applicants pursuant to the initial placing and
offer for subscription of such EBMC Shares at an issue price of
GBP1 each. On 5 September 2008 a further 15,000,000 EBMC Shares
were allotted to applicants pursuant to an offer for subscription
of such EBMC Shares at an Application Price of 100.03
pence each. The EBMC Shares have a defined investment life to 12
June 2014 whereupon they will be subject to compulsory
redemption.
On 18 March 2009, 24,999,346 Class A Sterling Hedged Enhanced
Income Preference Shares ("Class A EIF Shares") of the Enhanced
Income cell were allotted and issued at an issue price of GBP1
each. On 8 October 2009 a further 15,000,000 Class A EIF Shares
were allotted and issued at a price of 117.86 pence each. The Class
A EIF Shares have a defined investment life to 19 March 2108
whereupon they will be subject to compulsory redemption on circa
*10 May 2108.
*The maturity date of the Class A EIF Shares will be the 24(th)
business day following the relevant record date. As the business
days in 2108 cannot yet be accurately determined, an approximate
date is disclosed.
On 29 May 2009 25,526,009 Class A Sterling Hedged COMAC
Preference Shares ("COM Shares") of the BNP Paribas COMAC cell were
allotted to applicants pursuant to the initial placing and offer
for subscription of such COM Shares at an issue price of GBP1
each.
Harewood Structured Investment PCC Limited (the "Company")
ABOUT THE COMPANY (continued)
The COM Shares have a defined investment life to 1 June 2029
whereupon they will be subject to compulsory redemption on the
fifth business day following 1 June 2029.
On 15 July 2009, 48,500,080 Class A Sterling Hedged US Enhanced
Income Preference Shares ("Class A USEI Shares") of the US Enhanced
Income cell were allotted and issued at an issue price of 100 pence
each. The Class A USEI Shares have a defined investment life to 16
July 2029 whereupon they will be subject to compulsory redemption
on circa *1 September 2029.
On 14 July 2009, 25,079,125 Class B Unhedged US Enhanced Income
Preference Shares ("Class B USEI Shares") of the US Enhanced Income
cell were allotted and issued at a price of 100 cents each. On 8
October 2009 a further 20,000,000 Class B USEI Shares were allotted
and issued at a price of 109.64 cents each. The Class B USEI Shares
have a defined investment life to 16 July 2029 whereupon they will
be subject to compulsory redemption on circa *1 September 2029.
*The maturity date of the Class A USEI Shares and Class B USEI
Shares will be the twenty-fourth business day following the
relevant record date. As the business days in 2029 cannot yet be
accurately determined, an approximate date is disclosed.
On 23 September 2009 49,015,722 UK Enhanced Income Preference
Shares ("UKEI Shares") of the UK Enhanced Income cell were allotted
to applicants pursuant to the initial placing and offer for
subscription of such UKEI Shares at an issue price of GBP1 each.
The UKEI Shares have a defined investment life to 24 September 2029
whereupon they will be subject to compulsory redemption on 8
November 2029.
The Company has an unlimited life but the shares of each cell
have a defined investment term as set out above. Holders of the
Ordinary Shares have the right to receive notice of and to vote at
all meetings of shareholders.
Other than the two Ordinary Shares, all shares in issue are
listed on the Channel Islands Stock Exchange. The two Ordinary
Shares are not listed.
Harewood Structured Investment PCC Limited (the "Company")
ABOUT THE COMPANY (continued)
The Company is managed by its Board of directors who have
appointed THEAM of Paris, France as the Company's external
investment manager of all cells other than BNP Paribas
Agribusiness. Administrative and secretarial support is provided by
Anson Fund Managers Limited in Guernsey. BNP Paribas SA acts as
Distributor and Investment Counterparty to the cells.
Directors and Principal Advisors
John Le Prevost - Director
John Le Prevost is British and resident in Guernsey. He is a
director and controlling shareholder of Anson Group Limited, the
holding company of Anson Fund Managers Limited, the Company's
Administrator and Secretary, and of Anson Registrars Limited, the
Company's registrar, paying agent and receiving agent. Mr Le
Prevost has over thirty years experience in investment and offshore
trusts during which time he was Managing Director of County NatWest
Investment Management (Channel Islands), Royal Bank of Canada's
mutual fund company in Guernsey and Republic National Bank of New
York's international trust company. He is a trustee of the Guernsey
Sailing Trust, a director of a number of companies associated with
Anson Group Limited's business as well as a non-executive director
of many listed investment companies.
Francois-Xavier Foucault - Director
Francois-Xavier Foucault is French and resident in France. As
well as being a director of the Company, he is currently Head of
Transforming Projects, Quality Control and Regulatory affairs for
BNP Paribas SA. He has also held roles in finance, derivatives and
funds at Gen Re Securities, Guaranty City, AXA Investment Managers
and BFT (Credit Agricole).
Youri Siegel - Director
Youri Siegel is French and was resident of France until 1
September 2011 when he moved to take up residence in the United
Kingdom. As well as being a director of the Company, he is
currently the Co-Head of Regulatory Structuring within the Global
Structuring Group of BNP Paribas. He has also held similar roles at
Societe Generale and JPMorgan.
Harewood Structured Investment PCC Limited (the "Company")
ABOUT THE COMPANY (continued)
Trevor Hunt - Director
Trevor Hunt is British and is resident in Jersey. He has
extensive experience in the offshore financial services sector. Mr
Hunt worked for HSBC for over 30 years in various senior management
positions, in particular within the open-ended and closed-ended
offshore funds industry. Mr Hunt retired from HSBC in 2003 and
spent six years as a director of Capita Financial Administrators
(Jersey) Limited and of other Capita entities before leaving in
2009 to join BNP Paribas Securities Services in a senior management
role. On 30 September 2011 Mr Hunt left BNP Paribas in order to
focus on providing non-executive directorship services to a number
of Channel Islands funds and fund management companies. Mr Hunt is
regulated by the Jersey Financial Services Commission for the
provision of services as a non-executive director. Mr Hunt is also
a member of the Jersey Association of Directors and Officers.
On 28 November 2011, Trevor Hunt was appointed as a director of
the Company for an unspecified term of office.
On 20 October 2011 Peter Atkinson resigned as a director of the
Company.
Harewood Structured Investment PCC Limited (the "Company")
ABOUT THE COMPANY (continued)
BNP Paribas SA - Investment Counterparty and Distributor
The Investment Counterparty and Distributor in respect of all
the cells of the Company is BNP Paribas SA. The duty of the
Investment Counterparty, in respect of each individual cell, is
that of the issuer of debt securities or other financial
instruments or the provider of a derivative contract or other
financial instrument. The duties of the Distributor includes, inter
alia, the preparation of literature to promote the Company and
relevant Cell within the United Kingdom and to ensure it complies
with the applicable UK requirements and other applicable laws and
regulatory requirements, promoting within the United Kingdom
investment in the shares of the Company and researching, evaluating
and identifying marketing opportunities for promoting investments
in the share of the Company.
BNP Paribas SA is a company in the BNP Paribas Group (the
"Group"). As of 30 April 2012, the Group had an equity market
capitalisation of EUR42.94 billion. The Group is a leading European
provider of corporate and investment banking products and services
and a leading provider of private banking and asset management
products and services throughout the world. It provides retail
banking and financial services to over 20 million individual
customers throughout the world, in particular in Europe and western
United States of America.
The Group has offices in more than 85 countries. At 31 December
2011, the Group had consolidated assets of EUR1,998.15bn of audited
shareholders' equity (Group share including income for the 2011
fiscal year) of EUR74.6bn. Audited net income, before taxes, non
re-occurring items and amortisation of goodwill, for the year ended
31 December 2011 was EUR13.02bn. Audited net income, Group share,
for the year ended 31 December 2011 was EUR7.84bn.
Harewood Structured Investment PCC Limited (the "Company")
ABOUT THE COMPANY (continued)
THEAM - Investment Manager
The Investment Manager in respect of all cells of the Company,
with the exception of Agribusiness, is THEAM. As a result of a
joint project between BNP Paribas CIB and BNP Paribas Investment
Partners, combining the Sigma Teams from BNP Asset Management with
Harewood Asset Management SAS, Harewood Asset Management SAS was
renamed THEAM on 31 March 2011.
The role of the Investment Manager includes, inter alia, the
making of investment decisions on behalf of the Company in respect
of the assets of the relevant cell and monitoring the investments
which are attributable to that cell.
The Investment Manager is organised as a French Societe Actions
Simplifiee, which is a form of limited liability company with
simplified legal obligations. The purpose of the Investment Manager
is the creation and management of investment funds on behalf of
their investors. The Investment Manager may also provide investment
advisory services. The Investment Manager is a wholly owned
subsidiary of BNP Paribas Investment Partners. The Investment
Manager is regulated by the Autorite des marches financiers under
the French law. As of 1 April 2012 THEAM was responsible for (or
mandated for) the investment of EUR42.2 billion over 860 funds.
BNP Paribas Securities Services, Luxembourg Branch -
Custodian
BNP Paribas Securities Services, Luxembourg Branch have been
appointed by the Company as custodian of the assets of the Company.
The custodian will, amongst carrying out other duties, be
responsible for holding assets for the Company and presenting the
same for redemption and receiving the proceeds of such redemptions
for and on behalf of the Company for the account of the relevant
cell for onward payment to Shareholders upon applicable redemption.
The custodian also holds custody over the collateral accounts of
each cell.
Harewood Structured Investment PCC Limited (the "Company")
ABOUT THE COMPANY (continued)
The custodian is the Luxembourg Branch of BNP Paribas Securities
Services, a fully licensed bank incorporated under French law as a
societe anonyme (public limited company). BNP Paribas Securities
Services, Luxembourg Branch was created on 28 March 2002 and
registered with the Luxembourg Trade and Companies register under
the number of B86.862. As a branch holder French bank, BNP Paribas
Securities Services, Luxembourg Branch is supervised by the Comite
des Etablissements de Credit et des Enterprises d'Investissement
(which depends on the French Central Bank, the Banque de France).
It has been authorised by the Commission de Surveillance du Secteur
Financier, the Luxembourg Commission for the Supervision of the
Financial Sector to act as a credit institution under the terms of
article 30 of the Luxembourg law of 5 April 1993 on the Financial
Sector, as amended from time to time.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY
BNP Paribas UK High Income (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the BNP Paribas UK High Income Preference Shares (herein the
"Shares"), which were issued on 9 December 2005, is to provide
shareholders with a stable stream of quarterly dividend
distributions based on the dividend income of a notional portfolio
of shares selected from the FTSE 100 Index, supplemented by
premiums for notional call options written on those shares. In
addition, a purchase of portfolio insurance in the form of a put
option linked to the FTSE 100 Index, with a term and maturity
matching the term of the shares, aims to reduce the risk of capital
loss.
In accordance with the Company's investment objective for the
Cell in respect of the Shares, the gross proceeds at launch and at
each subsequent issue of Shares were invested in an Index
Derivative Contract (the "Contract") with BNP Paribas, the
Investment Counterparty. Under the terms of the Contract the
Company contracted to receive on each dividend payment date an
amount initially equal to 1.875 pence per Share, which will be
applied by the Company in funding payments of dividends to
shareholders and at redemption an amount equal to the net asset
value of the underlying portfolio.
Full details of the calculation of the investment return, the
Contract and collateral arrangements in favour of the Company for
the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
In accordance with their defined investment life, all Shares
were compulsorily redeemed on 18 December 2011. Harewood Structured
Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY (continued)
BNP Paribas Energy - Base Metals (2) (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the BNP Paribas Energy - Base Metals (2) Preference Shares
(herein the "Shares") is to provide shareholders with a geared
exposure to any increase in the prices of a notional portfolio of
certain energy-related and base metal commodities (the "Commodity
Portfolio") over a six year period. The investment return of the
Shares is not subject to the risk of foreign exchange movements
save to the extent that the value of the commodities comprised in
the Commodity Portfolio, which are priced in US Dollars, may be
affected by fluctuations in value of the US Dollar.
In accordance with the Company's investment objective for the
Cell in respect of the Shares, the net proceeds at launch were
invested in an Index Derivative Contract (the "Contract") with BNP
Paribas, the Investment Counterparty. Under the terms of the
Contract the Company contracted to receive at redemption, on behalf
of the Cell, an amount equalling the funds available for payment of
the investment return.
Full details of the calculation of the investment return, the
Contract and collateral arrangements in favour of the Company for
the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
In accordance with their defined investment life, all Shares
were compulsorily redeemed on 28 March 2012.
BNP Paribas European Shield (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the BNP Paribas European Shield Preference Shares (herein the
"Shares") is to provide shareholders with the opportunity to
participate in the performance of the leading 50 stocks traded on
various European stock exchanges through the Dow Jones Euro
STOXX50(R) Index (the "Index") with the benefit of a geared return
in respect of such performance (not exceeding 71.25 pence per
Share), provided certain conditions are met, but subject to the
risk, in other circumstances, of the aggregate amount payable being
limited to the capital component of 100 pence per Share or a lesser
amount linked to the performance of the Index.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY (continued)
In accordance with the Company's investment objective for the
Cell in respect of the Shares, the net proceeds at launch were
invested in an Index Derivative Contract (the "Contract") with BNP
Paribas, the Investment Counterparty. Under the terms of the
Contract the
Company contracted to receive at redemption, on behalf of the
Cell, an amount equalling the funds available for payment of the
investment return.
Full details of the calculation of the investment return, the
Contract and collateral arrangements in favour of the Company for
the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
In accordance with their defined investment life, all Shares
were compulsorily redeemed on 3 May 2012.
BNP Paribas Absolute Progression (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the BNP Paribas Absolute Progression Preference Shares (herein
the "Shares") is to provide shareholders with an investment
offering a return based on the divergence between stock prices of
very large global companies. The Redemption Amount cannot be less
than the capital amount of 100 pence per Share, and the return is
linked to the performance, determined on an annual basis by
reference to initial values determined on the Strike Date, being 20
July 2006, of a portfolio of shares selected annually from the 50
Shares comprising the Dow Jones Global Titans 50 Index (the
"Index"), being shares which have outperformed the Index. Each
year, the excess (if any) of the average annualised performance of
the Shares comprising such portfolio above a benchmark level of 5%
accrues to holders' Shares and an amount per Share equal to 100
pence multiplied by such accrual is paid to holders of Shares on
the Redemption Date, being 26 July 2012. The objective of the Index
is to represent multi-national companies whose stocks are traded on
major exchanges of countries covered by the Dow Jones Global
Indices benchmark family.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY (continued)
In accordance with the Company's investment objective for the
Cell in respect of the Shares, the net proceeds at launch were
invested in an Index Derivative Contract (the "Contract") with BNP
Paribas, the Investment Counterparty. Under the terms of the
Contract the Company contracted to receive at redemption, on behalf
of the Cell, an amount equalling the funds available for payment of
the investment return.
Full details of the calculation of the investment return, the
Contract and collateral arrangements in favour of the Company for
the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
US High Income (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the US High Income Preference Shares (herein the "Shares"),
which were issued on 26 October 2006, is to provide shareholders
with a stable stream of quarterly dividend distributions based on
the dividend income of a notional portfolio of shares selected from
the S&P 100 Index, supplemented by premiums for notional call
options written on those shares. In addition, a purchase of
portfolio insurance in the form of a put option linked to the
S&P 100 Index, with a term and maturity matching the term of
the shares, aims to reduce the risk of capital loss.
In accordance with the Company's investment objective for the
Cell in respect of the Shares, the gross proceeds at launch and at
the subsequent issue of Shares were invested in an Index Derivative
Contract (the "Contract") with BNP Paribas, the Investment
Counterparty. Under the terms of the Contract the Company
contracted to receive on each dividend payment date an amount equal
to 1.875 pence or cents per Share, which will be applied by the
Company in funding the payment of dividends to shareholders, and at
redemption an amount equal to the net asset value of the underlying
portfolio.
Full details of the calculation of the investment return, the
Contract and collateral arrangements in favour of the Company for
the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY (continued)
BNP Paribas Agrinvest Preference (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the BNP Paribas Agrinvest Shares (herein the "Shares") is to
provide shareholders with the opportunity to participate in the
performance of exchange-traded commodities futures comprised in the
DCI(R) Agriculture BNP Paribas Enhanced Excess Return Index (the
"Index"). The Index is designed to provide a broad yet liquid
representation of large, mid and small commodity futures inside the
Organisation for Economic Cooperation and Development (OECD). The
Index consists of 23 components within the agriculture sector. The
Index is also subject to a forward curve roll optimisation process
through the addition of a quantitative enhancement algorithm.
In accordance with the Company's investment objective for the
Cell in respect of the Shares, the net proceeds at launch were
invested in an Index Derivative Contract (the "Contract") with BNP
Paribas, the Investment Counterparty. Under the terms of the
Contract the Company contracted to receive at redemption, on behalf
of the Cell, an amount equalling the funds available for payment of
the investment return.
Full details of the calculation of the investment return, the
Contract and collateral arrangements in favour of the Company for
the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY (continued)
Enhanced Property Recovery (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the Enhanced Property Recovery Preference Shares (herein the
"Shares") is to provide shareholders with the opportunity to
participate in the performance of shares traded on various European
stock exchanges through the FTSE EPRA European Public Real Estate
Index (the "Index"). The Index is an index designed to track the
performance of listed real estate companies in the Europe. The
Final Redemption Amount will be determined principally by reference
to two values - the first (defined as the "Initial Index Level")
being the level of the Index determined on 13 March 2008, the
second (defined as the "Final Index Level") being the arithmetic
average of the levels of the Index on 13 monthly averaging dates
from and including 13 March 2013 to and including the Maturity
Date.
In accordance with the Company's investment objective for the
Cell in respect of the Shares, the net proceeds at launch were
invested in an Index Derivative Contract (the "Contract") with BNP
Paribas, the Investment Counterparty. Under the terms of the
Contract the Company contracted to receive at redemption, on behalf
of the Cell, an amount equalling the funds available for payment of
the investment return.
Full details of the calculation of the investment return, the
Contract and collateral arrangements in favour of the Company for
the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY (continued)
Energy - Base Metals (3) (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the Energy - Base Metals (3) Preference Shares (herein the
"Shares") is to provide shareholders with a geared exposure to any
increase in the prices of a notional portfolio of certain energy
related and base metal commodities (the "Commodity Portfolio") over
a six-year period. The Commodity Portfolio is a notional portfolio
of commodities comprising 30% crude oil, 20% aluminium, 20% copper,
15% nickel and 15% zinc. The investment return of the Shares is not
subject to the risk of foreign exchange movements save to the
extent that the value of the commodities comprised in the notional
portfolio, which are priced in US dollars, may be affected by the
fluctuations in value of the US dollar.
In accordance with the Company's investment objective for the
Cell in respect of the Shares, the net proceeds at launch were
invested in an Index Derivative Contract (the "Contract") with BNP
Paribas, the Investment Counterparty. Under the terms of the
Contract the Company contracted to receive at redemption, on behalf
of the Cell, an amount equalling the funds available for payment of
the investment return.
Full details of the calculation of the investment return, the
Contract and collateral arrangements in favour of the Company for
the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY (continued)
Enhanced Income (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the Enhanced Income Preference Shares (herein the "Shares") is
to provide shareholders with a stable stream of quarterly dividend
distributions (with a targeted dividend yield of approximately 8%
per annum, subject to increase and decrease in certain
circumstances) and return on capital, such investment objective
being intended to be achieved by reference to an investment
strategy linked to the total return performance of the Dow Jones
Euro STOXX 50(R) Index (herein the "Index") and notional short-term
call options written on the Index.
In accordance with the Company's investment objective for the
Cell, the gross proceeds at launch were invested in an index
derivative contract (the "Contract") with BNP Paribas, the
Counterparty. Under the terms of the Contract the Company
contracted to receive on each dividend payment date an amount
initially equal to 2 pence per Share, which will be applied by the
Company in funding the payment of dividends to shareholders and at
redemption an amount equal to the net asset value of the underlying
portfolio.
Full details of the calculation of the investment return, the
Contract and the collateral arrangements are disclosed in the
Cell's Summary and Securities Note, a copy of which is available
from the Administrator and from the Distributor.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY (continued)
BNP Paribas COMAC (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the Class A Sterling Hedged COMAC Preference Shares (herein the
"Shares") is to provide shareholders with exposure to the
performance of an actively managed long short arbitrage strategy
(the "Strategy") based on a portfolio of 25 commodities through the
BNP PARIBAS COMAC Long-Short Total Return Net of Fees Index (the
"Index"). The Index is denominated in US Dollars and is designed to
track the performance of an actively managed portfolio of 25
commodities selected from the energy, metals and agricultural
sectors, the respective weightings of which are determined in
accordance with an investment strategy based on recommendations
provided by the asset managers which, from time to time, provides
the scores used in the determination of the weightings of the
different commodities comprising
the Index, and a rules-based proprietary methodology designed by
BNP Paribas (the "Index Methodology"). The Strategy is also linked
to notional currency hedging intended to provide a level of
protection against changes in the Sterling / US Dollar exchange
rate.
In accordance with the Company's investment objective for the
Cell, the net proceeds at launch were invested in an index
derivative contract (the "Contract") with BNP Paribas, the
Counterparty. Under the terms of the Contract the Company
contracted to receive at redemption, on behalf of the Cell, an
amount equalling the funds available for payment of the investment
return.
Full details of the calculation of the investment return, the
Contract and the collateral arrangements in favour of the Company
for the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY (continued)
US Enhanced Income (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the US Enhanced Income Preference Shares (herein the "Shares")
is to provide shareholders with a stable stream of quarterly
dividend distributions (with a targeted dividend yield of
approximately 8% per annum, subject to increase and decrease in
certain circumstances) and return on capital, such investment
objective being intended to be achieved by reference to an
investment strategy linked to the total return performance of the
Standard and Poor's 500(R)Index and notional short-term call
options written on such index.
In accordance with the Company's investment objective for the
Cell, the net proceeds at launch and at the subsequent issue of
Shares were invested in an index derivative contract (the
"Contract") with BNP Paribas, the Counterparty. Under the terms of
the Contract the Company contracted to receive on each dividend
payment date an amount initially equal to 2 pence or cents per
Share, which will be applied by the Company in funding the payment
of dividends to shareholders, and at redemption an amount equal to
the net asset value of the underlying portfolio.
Full details of the calculation of the investment return, the
Contract and the collateral arrangements in favour of the Company
for the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT OBJECTIVE AND POLICY (continued)
UK Enhanced Income (herein the "Cell")
The investment objective of the Company for the Cell in respect
of the UK Enhanced Income Preference Shares (herein the "Shares")
is to provide shareholders with a stable stream of quarterly
dividend distributions (with a targeted dividend yield of
approximately 8% per annum, subject to increase and decrease in
certain circumstances) and return on capital, such investment
objective being intended to be achieved by reference to an
investment strategy linked to the total return performance of the
FTSE 100(TM)Index and notional short-term call options written on
such index.
In accordance with the Company's investment objective for the
Cell, the net proceeds at launch were invested in an index
derivative contract (the "Contract") with BNP Paribas, the
Counterparty. Under the terms of the Contract the Company
contracted to receive on each dividend payment date an amount
initially equal to 2 pence per Share, which will be applied by the
Company in funding the payment of dividends to shareholders, and at
redemption an amount equal to the net asset value of the underlying
portfolio.
Full details of the calculation of the investment return, the
Contract and the collateral arrangements in favour of the Company
for the account of the Cell are disclosed in the Cell's Summary and
Securities Note, a copy of which is available from the
Administrator and from the Distributor.
Harewood Structured Investment PCC Limited (the "Company")
NET ASSET VALUES
As at 30 April 2012, being the latest valuation date prior to
the accounting reference date, the calculated net asset value of a
share of each cell in existence at that date was as follows:-
As at As at
30 April 2012 31 Oct 2011
BNP Paribas UK High Income ("UK HI") - 45.73 pence
BNP Paribas Energy - Base Metals (2) - 159.50 pence
("EBM (2)")
BNP Paribas European Shield ("ES") - 74.35 pence
BNP Paribas Absolute Progression ("Abs 127.60 pence 125.08 pence
Pro")
US High Income - Class A ("US HI A") 38.61 pence 51.82 pence
US High Income - Class B ("US HI B") 43.49 US$ cents 55.32 US$ cents
BNP Paribas Agrinvest ("Agrinvest") 115.47 pence 121.90 pence
Enhanced Property Recovery ("EHPR") 64.43 pence 65.07 pence
Energy - Base Metals (3) ("EMB (3)") 101.48 pence 106.30pence
BNP Paribas COMAC ("COM") 68.62 pence 65.83pence
US Enhanced Income - Class A ("US EI 108.82 pence 102.27pence
A")
US Enhanced Income - Class B ("US EI 109.15 US$ 102.17US$ cents
B") cents
UK Enhanced Income ("UKEI") 93.80 pence 92.86 pence
Enhanced Income - Class A ("EIF") 89.97 pence 93.08 pence
Harewood Structured Investment PCC Limited (the "Company")
INTERIM MANAGEMENT REPORT
For the period from 1 November 2011 to 30 April 2012
A description of important events for each cell and the Company
which have occurred during the reporting period and their impact on
the performance of the Company as shown in the financial statements
is given in the Investment Manager's Report on pages 23 to 38 and
is incorporated here by reference. A description of the principal
risks and uncertainties facing the Company is given in note 6 to
the financial statements and is incorporated here by reference. The
principal risks and uncertainties facing the Company to the end of
its financial year are considered to be the same as those which
applied in the first six months of the financial year.
There were no material related party transactions which took
place in the first six months of the financial year.
This half-yearly financial report has not been audited nor
reviewed by auditors pursuant to the Auditing Practices Board
guidance on Review of Interim Financial Information.
Responsibility Statement
The Board of directors jointly and severally confirm that, to
the best of their knowledge:
(a) the financial statements, prepared in accordance with
International Financial Reporting Standards, give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Company; and
(b) This Management Report includes or incorporates by reference:
a. An indication of important events that have occurred during
the first six months of the financial year and their impact on the
financial statements;
b. A description of the principal risks and uncertainties for
the remaining six months of the financial year;
c. Confirmation that there were no material related party
transactions in the first six months of the current financial year
that have materially affected the financial position or the
performance of the Company during that period; and
d. Changes in the related parties transactions described in the
Company's last annual financial report that could have a material
effect on the financial position or performance of the Company in
the first six months of the current financial year.
John R Le Prevost Trevor Hunt
Director Director
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT
On the invitation of the Directors of the Company, the following
commentary is provided by THEAM, the Investment Manager. Their
commentary is provided as a source of useful information for
shareholders of the Company but is not directly attributable to the
Company.
BNP Paribas European Shield
Listing: Channel Islands Stock Exchange
Launch date: 28 April 2006
Issue price at launch: 100 pence
NAV immediately following launch: 100.00 pence
Maturity date: 26 April 2012
ISIN: GB00B12GMC87
SEDOL: B12GMC8
Investment Objective
The BNP Paribas European Shield is a six-year fund returning
171.25p per share at maturity provided that, at maturity, the DJ
Euro Stoxx 50 Index is at or above its initial level of 3,865.42.
This is equivalent to an annualised return of 8.5% on the
application price of 105p. The redemption value per share is
reduced linearly from 171.25p to 100p per share as the index falls
from 100% to 85% of its initial level. The redemption value per
share of 100p is protected unless the index falls by 50% from its
initial level at any point over the six year life. If downside is
triggered and the index fails to recover to 85% of the initial
level, investors will participate in index tracking plus 15p per
share.
The level of the Index recorded at launch and as of 30 April
2012, together with the level of the Index at maturity required to
return a redemption value per share of 171.25 pence, the Index
level which, if breached at any time, results in the potential loss
of capital and the lowest observed level of the Index to date are
set out in the table below.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Index Name Initial Level Value as of Change 85% Barrier 50% Barrier Lowest observed
26-Apr-12 Level Level Index Level
------------------ -------------- ----------------- ------- ----------------- ----------------- ----------------
DJ Euro Stoxx 50 3865.4 2322.6 -39.9% 3285.6 1932.7 1809.9
------------------ -------------- ----------------- ------- ----------------- ----------------- ----------------
Source for Index Price Information: Bloomberg
Investment Performance
Between launch on 28 April 2006 and maturity on the 26 April
2012 the NAV had decreased by 24.9% vs -39.9% for the DJ Euro Stoxx
50 Index.
BNP Paribas Energy-Base Metals (2)
Listing: Channel Islands Stock Exchange
Launch date: 23 March 2006
Issue price at launch: 100 pence
NAV at launch: 100 pence
Maturity date: 22 March 2012
ISIN: GB00B0ZNS989
SEDOL: B0ZNS98
Epic Code: EBMB
Investment Objective
BNP Paribas Energy-Base Metals 2 ("EBMB") was a six-year
investment offering 230% of the upside of the spot prices of a
portfolio of commodities. The portfolio comprised West Texas
Intermediate Oil (30%), Aluminium (20%), Copper (20%), Nickel (15%)
and Zinc (15%). If the portfolio performance was negative over six
years, 100 pence is returned at maturity.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Investment Performance
Between launch on 23 March 2006 and maturity on 22 March 2012
the Basket had risen by 28.97% offering a final payout of
166.63%.
BNP Paribas Absolute Progression
Listing: Channel Islands Stock Exchange
Launch date: 20 July 2006
Issue price at launch: 100 pence
NAV immediately following launch: 100.00 pence
Maturity date: 19 July 2012
ISIN: GB00B17WK500
SEDOL: B17WK500
Investment Objective
This 6-year maturity fund produces absolute returns based on the
divergence, rather than the direction, of stock performance. The
fund focuses on the share components of the Dow Jones Global Titans
Index, an index that includes the world's 50 largest multinational
companies. On each anniversary of launch the fund's portfolio is,
retrospectively, made up of the shares that have beaten the index
over the previous year in equal weightings.
The fund's return for each year equals the amount by which this
portfolio's annualised performance beats the index less a hurdle
rate of 5%.
The level of the Index recorded at launch and as of 30 April
2012 is set out in the table below.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
DJGT Components Strike Current % change Out-performance
Price price at
30-Apr-12
Abbot Labs 46.21 62.06 34.30% -2.17%
AT&T Inc 27.30 32.91 20.55% 20.55%
Chevron Texaco
Corp 65.32 106.56 63.14% 63.14%
Cisco Systems 17.88 20.15 12.70% 12.70%
Coca Cola 43.84 76.32 74.09% 74.09%
CONOCOPHILIPPS 64.43 54.605 -15.25% -15.25%
Exxon Mobil Corp 64.25 86.34 34.38% 34.38%
Hewlett packard 31.80 24.76 -22.14% -22.14%
IBM 75.48 207.08 174.35% 174.35%
Intel Corp 17.15 28.4 65.60% 65.60%
Johnson & Johnson 61.37 65.09 6.06% 6.06%
JP Morgan Chase 42.98 42.98 0.00% 0.00%
Merck 37.30 39.24 5.20% 5.20%
Microsoft 22.85 32.02 40.13% 40.13%
Nestle 39.15 55.6 42.02% 42.02%
Pepsi Cola 62.48 66 5.63% 5.63%
Phillip Morris 41.05 89.51 118.05% 118.05%
Procter & Gamble 56.61 63.64 12.42% 12.42%
Royal Dutch Shell 26.54 26.87 1.24% 1.24%
Samsung Electronics 598,000.00 1390000 132.44% 132.44%
Siemens 64.43 69.97 8.60% 8.60%
Telefonica 13.04 11.01 -15.57% -15.57%
Verizon 30.94 40.38 30.51% 30.51%
Vodafone 113.40 170.5 50.35% 50.35%
Wal-Mart Stores 44.29 58.91 33.01% 33.01%
Portfolio average
--------------------- ----------- ----------- --------- ----------------
Source for Share Price Information: Bloomberg
As of 30 April 2012, the NAV had risen by 27.5% since launch
compared with the HFR Hedge Fund Universe Index, which had
decreased by 4.31% over that period. The average out-performance
has been 35.01%.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Class A Sterling Hedged US High Income Preference Shares and
Class B Unhedged US High Income Preference Shares
Listing: Channel Islands Stock Exchange
Launch date: 26 October 2006
Issue price at launch: 100 pence
NAV immediately following launch: 99 pence class A & $0.99
class B
Maturity date: 19 November 2012
Class A ISIN: GG00B1FP4W69
Class A SEDOL: B1FP4W6
Class B ISIN: GG00B1FP4X76
Class B SEDOL: B1FP4X7
Investment Objective
BNP Paribas US High Income ("USH" for Class A and "USHD" for
Class B) is a six-year investment aiming to provide shareholders
with a stable stream of quarterly dividend distributions based on
the dividend income of a notional portfolio of shares selected from
the S&P 100 Index, supplemented by premiums for notional call
options written on those shares. In addition, a purchase of
portfolio insurance in the form of a put option linked to the
S&P 100 Index, with a term and maturity matching the term of
the Shares, aims to reduce the risk of capital loss.
BNP Paribas US High Income launched on 26 October 2006 with an
initial NAV of 99 pence ($0.99 for class B). On this date (a) the
portfolio of shares was selected and purchased (b) the
corresponding 3-month call options were sold with an average strike
price of 104.3% of the value of the shares (c) the portfolio
insurance was acquired. This takes the form of a six-year put
option on the S&P 100 with a strike level of 645.42.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
The name and weighting of each selected share and its
performance between 21 February 2012 and 30 April 2012 are set out
in the table below.
Stock Strike Price Current Performance Option
at 21-Feb-2012 price at at 30-Apr-12 strike
30-Apr-12 price
------------------------ ---------------- ----------- -------------- --------
Verizon Communications
Inc 38.49 40.38 4.91% 38.49
Abbott Laboratories 56.16 62.06 10.51% 56.16
Pfizer Inc 21.22 22.93 8.06% 21.22
Goldman Sachs Group
Inc The 116.63 115.15 -1.27% 116.63
Entergy Corp 67.48 65.56 -2.85% 67.48
Chevron Corp 108.41 106.56 -1.71% 108.41
International Business
Machines Corp 193.39 207.08 7.08% 193.39
EI du Pont de Nemours
Co 51.6 53.46 3.60% 51.6
Walt Disney Co The 41.57 43.11 3.70% 41.57
Avon Products Inc 19.16 21.6 12.73% 19.16
Microsoft Corp 31.44 32.02 1.84% 31.44
WalMart Stores Inc 60.07 58.91 -1.93% 60.07
Merck Co Inc 38.13 39.24 2.91% 38.13
Exxon Mobil Corp 86.57 86.34 -0.27% 86.57
Johnson Johnson 65.04 65.09 0.08% 65.04
ATT Inc 30.34 32.91 8.47% 30.34
General Electric
Co 19.41 19.58 0.88% 19.41
Intel Corp 27.16 28.4 4.57% 27.16
Home Depot Inc The 46.92 51.79 10.38% 46.92
Occidental Petroleum
Corp 104.41 91.22 -12.63% 104.41
CocaCola Co The 68.82 76.32 10.90% 68.82
Weighted Basket Performance 3.33%
Source for Share Price Information: Bloomberg
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Stock Class A - Class B Class A Class B -
Share portfolio - Share - Weighting Weighting
weighting portfolio at 30-Apr-12 at 30-Apr-12
at Strike weighting
Date at Strike
Date
------------------------- ----------------- ----------- -------------- --------------
ATT Inc 4.19% 4.11% 5.53% 5.53%
Abbott Laboratories 3.13% 3.08% 4.23% 4.22%
Avon Products Inc 1.05% 1.03% 1.45% 1.45%
Chevron Corp 5.26% 5.17% 6.31% 6.31%
CocaCola Co The 4.18% 4.11% 5.66% 5.66%
EI du Pont de Nemours
Co 2.09% 2.05% 2.64% 2.64%
Entergy Corp 1.04% 1.02% 1.24% 1.24%
Exxon Mobil Corp 5.25% 5.15% 6.38% 6.38%
General Electric Co 5.24% 5.14% 6.44% 6.44%
Goldman Sachs Group Inc
The 2.07% 2.03% 2.50% 2.50%
Home Depot IncThe 3.12% 3.06% 4.20% 4.19%
Intel Corp 4.17% 4.09% 5.32% 5.31%
International Business
Machines Corp 5.23% 5.13% 6.83% 6.83%
Johnson Johnson 4.18% 4.10% 5.10% 5.11%
Merck Co Inc 4.17% 4.09% 5.23% 5.23%
Microsoft Corp 5.25% 5.16% 6.52% 6.52%
Occidental Petroleum
Corp 3.13% 3.08% 3.34% 3.34%
Pfizer Inc 4.18% 4.10% 5.51% 5.51%
Verizon Communications
Inc 4.17% 4.09% 5.33% 5.34%
WalMart Stores Inc 5.25% 5.15% 6.28% 6.28%
Walt Disney Co The 3.13% 3.07% 3.96% 3.96%
79.48% 78.01% 100.00% 100.00%
Source for Share Price Information: Bloomberg
Investment Performance
Between launch on 26 October 2006 and close on 30 April 2012 the
respective NAVs for class A and B were down by 21.4% and 16.3% TR
(based on an initial NAV of 100 pence and 100 cents respectively
for class A and class B), compared with the S&P TR Performance,
which had increased by 12.3% over that period. The directors
declared interim dividends of 1.875 pence per Class A Sterling
Hedged US High Income Preference Share according to the following
schedule:
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Announcement Ex-Dividend Pay Date
21-Jan-10 27-Jan-10 01-Mar-10
22-Apr-10 28-Apr-10 01-Jun-10
22-Jul-10 28-Jul-10 31-Aug-10
21-Oct-10 27-Oct-10 29-Nov-10
20-Jan-11 26-Jan-11 28-Jan-11
19-Apr-11 27-Apr-11 31-May-11
22-Jul 11 27-Jul-11 31-Aug-11
20-Oct-11 26-Oct-11 28-Oct-11
19-Jan-12 25-Jan-12 27-Jan-12
The same schedule applies to Class B Unhedged US High Income
Preference Shares.
BNP Paribas Agrinvest
Listing: Channel Islands Stock Exchange
Launch date: 21 June 2007
Issue price at launch: 100 pence
NAV immediately following launch: 100.00 pence
Maturity date: 29 May 2013
ISIN: GB00B1YKCX92
SEDOL: B1YKCX9
Investment Objective
BNP Paribas Agrinvest Shares (herein the "Shares") is a six-year
investment aiming to provide shareholders with the opportunity to
participate in the performance of exchange-traded commodities
futures comprised in the DCI(R) Agriculture BNP Paribas Enhanced
Excess Return Index (the "Index"). The Index is designed to provide
a broad yet liquid representation of large, mid and small commodity
futures inside the Organisation for Economic Cooperation and
Development (OECD).
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
The Index consists of 23 components within the agriculture
sector. The Index is also subject to a forward curve roll
optimisation process through the addition of a
quantitative enhancement algorithm.
Commodity name Value at Start Value as of 30-Apr-12 Change
---------------------------------------------------- --------------- ---------------------- -------
DCI Agriculture BNP Paribas Enhanced Excess Return 1,049.51 1108.4 5.61%
---------------------------------------------------- --------------- ---------------------- -------
Source for Index Price Information: Bloomberg
Investment Performance
Between launch on 21 June 2007 and close on 30 April 2012 the
NAV had increased by 15.4%. Over this period the S&P GSCI
Agriculture & Livestock ER Index had decreased by 13%.
Enhanced Property Recovery
Listing: Channel Islands Stock Exchange
Launch date: 13 March 2008
Issue price at launch: 100 pence
NAV immediately following launch: 100 pence
Maturity date: 13 March 2014
ISIN: GG00B2PWW869
SEDOL: B2PWW86
Investment Overview
The Enhanced Property Recovery Fund allows investors to benefit
from a possible recovery in the listed property market with an
enhanced market timing mechanism. At maturity, if the FTSE EPRA
European Index (Bloomberg code: EPRA Index) (the "Index") finishes
above its initial level, the fund will pay the greater of either
170% or the enhanced performance of the Index. If the Index closes
below the initial level, the Fund will track the Index.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Investment Performance
Between launch on 13 March 2008 and close on 30 April 2012 the
NAV had fallen by 35.74%. Over this period the EPRA Index had
fallen by 35.1%. The Fund's performance is driven primarily by
sensitivity of the NAV to movements in the underlying Index, which
is nearly one for one. The Fund recorded its lowest observation of
760.83 on the 13 March 2009. The enhanced market timing mechanism
of this Fund means that if the Index was to recover to maturity,
this figure would be used as the reference for which to calculate
final performance.
BNP Paribas Energy-Base Metals (3)
Listing: Channel Islands Stock Exchange
Launch date: 5 June 2008
Issue price at launch: 100 pence
NAV at launch: 100 pence
Maturity date: 5 June 2014
ISIN: GG00B2R9LW24
SEDOL: B39TP47
Epic Code: EBMC
Investment Objective
BNP Paribas Energy-Base Metals 3 ("EBMC") is a six-year
investment offering 175% of the upside of the spot prices of a
portfolio of commodities. The portfolio comprises West Texas
Intermediate Oil (30%), Natural Gas (20%), Aluminium (12.5%),
Copper (12.5%), Nickel (12.5%) and Zinc (12.5%). If the portfolio
performance is negative over six years, 100 pence is returned at
maturity.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
The name and weighting of each commodity, the spot prices of
each commodity recorded at launch (the nearest futures price in the
case of oil) and as of 30 April 2012 are set out in the table
below.
Commodity name Value at Start Value as of 30-Apr-12 Change Weight
Aluminium 2858.5 2058 -28% 12.5%
Copper 8006 8529.5 6.5% 12.5%
Nickel 22000 17835 -18.9% 12.5%
West Texas Intermediate 122.3 104.87 -14.3% 30%
Zinc 1948.5 2039.5 4.7% 12.5%
Natural Gas 12.379 2.285 -81.5% 20%
Source for commodity values information: Bloomberg
Investment Performance
Between launch on 5 June 2008 and close on 30 Apr 2012 the NAV
had increased by 1.29% whereas the DJ AIG Commodities Excess Return
Index had fallen by -35.1%.
Class A Sterling Hedged Enhanced Income Preference Shares and
Class B Unhedged Enhanced Income Preference Shares
Listing: Channel Islands Stock Exchange
Launch date: 19 March 2009
Issue price at launch: 101 pence
NAV immediately following launch: 100 pence
Maturity date: 19 March 2018
Class A ISIN: GG00B4W90V35
Class A SEDOL: B4W90V3
Class B ISIN: GG00B4W90W42
Class B SEDOL: B4W90W4
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Investment Overview
The investment objective of the Cell is to provide Shareholders
with a stable stream of quarterly dividend distributions (with a
targeted dividend yield of approximately 8% per annum, subject to
increase and decrease in certain circumstances) and return on
capital based on an investment strategy linked to the performance
of the Dow Jones Euro STOXX 50(R) Index (the "Index") and notional
call options written on the Index (the "Strategy"). Dividend
distributions on the Enhanced Income Preference Shares will be
denominated and paid in GBP in respect of the Class A Shares and in
EUR in respect of the Class B Shares. There are currently no Class
B Shares in issue.
Investment Performance
Between launch on 19 March 2009 and close on 30 April 2012 the
NAV has risen by 13.2% TR. Over this period the DJ EuroStoxx TR
Index had risen by 26.4%. The directors declared interim dividends
as follows:
Announcement Ex-Dividend Pay Date Dividend
24-Jun-09 01-Jul-09 31-Jul-09 2.00%
23-Sep-09 30-Sep-09 30-Oct-09 2.30%
22-Dec-09 30-Dec-09 01-Feb-10 2.40%
24-Mar-10 31-Mar-10 30-Apr-10 2.30%
23-Jun-10 30-Jun-10 30-Jul-10 2.00%
22-Sep-10 29-Sep-10 29-Oct-10 2.00%
22-Dec-10 29-Dec-10 28-Jan-11 2.00%
23-Mar-11 30-Mar-11 29-Apr-11 2.00%
23-Jun-11 29-Jun-11 01-Jul-11 2.00%
22-Sep-11 28-Sep-11 30-Sep-11 1.80%
20-Dec-11 28-Dec-11 30-Dec-11 1.90%
23-Mar-12 28-Mar-12 30-Mar-12 2.00%
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Class A Sterling Hedged COMAC Preference Shares and Class B US
Dollar Unhedged COMAC Preference Shares
Listing: Channel Islands Stock Exchange
Launch date: 1 June 2009
Issue price at launch: 101 pence
NAV immediately following launch: 100 pence
Maturity date: 1 June 2029
Class A ISIN: GG00B3VGTS89
Class A SEDOL: B3VGTS8
Class B ISIN: GG00B3VM1S01
Class B SEDOL: B3VM1S
Investment Overview
The investment objective of the Cell is to provide shareholders
with exposure to the performance of an actively managed long short
arbitrage strategy based on a portfolio of 25 commodities through
the BNP PARIBAS COMAC Long-Short Total Return Net of Fees Index
(the "Index").
The Index is denominated in USD and is designed to track the
performance of an actively managed portfolio of 25 commodities
selected from the energy, metals and agricultural sectors, the
respective weightings of which are determined in accordance with an
investment strategy based on recommendations provided by the COMAC
Adviser and a rules-based proprietary methodology designed by BNP
Paribas (the "Index Methodology").
Investment Performance
Between launch on 1 June 2009 and close on 30 April 2012 the NAV
of Class A had fallen by 31.34%. Over this period the DJ-UBS
Commodity TR Index had decreased by 1.72% There are currently no
Class B Shares in issue.
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Class A Sterling Hedged US Enhanced Income Preference Shares and
Class B Unhedged US Enhanced Income Preference Shares
Listing: Channel Islands Stock Exchange
Launch date: 16 July 2009
Issue price at launch: 101 pence
NAV immediately following launch: 100 pence class A & 100
cents class B
Maturity date: 16 July 2029
Class A ISIN: GG00B4409G28
Class A SEDOL: B4409G2
Class B ISIN: GG00B4409P19
Class B SEDOL: B4409P1
Investment Overview
The Cell's investment objective is to provide Shareholders with
a stable stream of quarterly dividends (with a targeted dividend
yield of approximately 8% per annum, subject to increase and
decrease in certain circumstances) and return on capital, such
investment objective being intended to be achieved by reference to
an investment strategy (the "Strategy") linked to the total return
performance of the Standard and Poor's 500(R) Index (the "Index")
and notional short-term call options written on such index.
Investment Performance
Between launch on 16 July 2009 and close on 30 April 2012 the
NAVs had increased by 34.2% TR and 34.6% TR respectively for class
A and class B (based on an initial NAV of 100 pence for both Share
classes) compared with the S&P TR performance (+57.4%). The
directors declared interim dividends for both Share classes as
follows:
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Announcement Ex-Dividend Pay Date Dividend
23-Oct-09 28-Oct-09 27-Nov-09 2.20%
20-Jan-10 27-Jan-10 26-Feb-10 2.30%
21-Apr-10 28-Apr-10 28-May-10 2.30%
21-Jul-10 28-Jul-10 27-Aug-10 2.00%
20-Oct-10 27-Oct-10 26-Nov-10 2.00%
20-Jan-11 26-Jan-11 25-Feb-11 2.20%
20-Apr-11 27-Apr-11 27-May-11 2.20%
20-Jul-11 27-Jul-11 26-Aug-11 2.20%
19-Oct-11 26-Oct-11 25-Nov-11 2.00%
18-Jan-12 25-Jan-12 24-Feb-12 2.00%
UK Enhanced Income
Listing: Channel Islands Stock Exchange
Launch date: 24 September 2009
Issue price at launch: 101 pence
NAV immediately following launch: 100 pence
Maturity date: 24 September 2029
ISIN: GG00B3YF5842
SEDOL: B3YF584
Investment Overview
The Cell's investment objective is to provide Shareholders with
a stable stream of quarterly dividends (with a targeted dividend
yield of approximately 8% per annum, subject to increase and
decrease in certain circumstances) and return on capital, such
investment objective being intended to be achieved by reference to
an investment strategy (the "Strategy") linked to the total return
performance of the FTSE 100(TM) Index (the "Index") and notional
short-term call options written on such index.
Investment Performance
Between launch on 24 September 2009 and close on 30 April 2012
the NAV had increased by 13.1% TR. Over this period the FTSE 100
Total Return Index had increased by 23.4%. The directors declared
interim dividends as follows:
Harewood Structured Investment PCC Limited (the "Company")
INVESTMENT MANAGER'S REPORT (continued)
Announcement Ex-Dividend Pay Date Dividend
30-Dec-09 06-Jan-10 05-Feb-10 2.00%
31-Mar-10 14-Apr-10 07-May-10 2.00%
24-Jun-10 07-Jul-10 06-Aug-10 2.00%
24-Sep-10 06-Oct-10 05-Nov-10 2.00%
24-Dec-10 05-Jan-11 04-Feb-11 2.00%
24-Mar-11 06-Apr-11 06-May-11 2.00%
24-Jun-11 06-Jul-11 05-Aug-11 2.00%
24-Sep-11 05-Oct-11 04-Nov-11 1.90%
04-Jan-12 11-Jan-12 10-Feb-12 1.90%
Harewood Structured Investment PCC Limited (the "Company")
STATEMENT OF COMPREHENSIVE INCOME
for the period ended 30 April 2012
Period
to Period to
30 Apr
2012 30 Apr 2011
Total Total
Notes GBP GBP
Net movement in unrealised gains
on investments 8 51,460,702 5,576,652
Operating expenses 1b,7 (531,275) -
Income received from Counterparty
in relation to
operating expenses 1b 964,592 -
Realised (loss) / gains on investments (66,294,290) 4,406,108
Realised exchange (losses )/ gains
on currency balances (4,632) 2,611
Amortisation of debt issue costs 1g - (18,611)
Income from financial assets at fair
value through profit
or loss 14,022,790 17,339,247
Finance costs - distributions to
holders of Preference
Shares 1m (14,022,790) (17,339,247)
(Decrease) / increase in net assets
attributable to Preference shareholders
from operations (14,404,903) 9,966,760
------------- -------------
Other Comprehensive Income:
Exchange losses on currency balances (967,114) (2,313,201)
------------- -------------
Total Comprehensive Income (15,372,017) 7,653,559
============= =============
Pence Pence
(Loss) / gain per Share 1k (2.22) 1.23
In arriving at the results for the financial period, all amounts
above relate to continuing operations. There are no recognised
gains or losses for the period other than those disclosed
above.
The notes on pages 43 to 67 form an integral part of these
financial statements.
Harewood Structured Investment PCC Limited (the "Company")
STATEMENT OF FINANCIAL POSITION
as at 30 April 2012
Period to Year to
30 Apr 2012 31 Oct 2011
Total Total
Notes GBP GBP
ASSETS
NON CURRENT ASSETS
Financial assets at fair value through
profit or loss 3 456,107,679 606,861,780
CURRENT ASSETS
Core cash and cash equivalents 1b 513,313 2,583
Redemption proceeds receivable 8 18,772,235 -
Investment income receivable 5,713,267 4,882,397
24,998,815 4,884,980
LIABILITIES
CURRENT LIABILITIES
Accrued expenses 82,045 -
Redemption proceeds payable 8 18,775,235 -
Dividends payable 1m 5,713,267 4,882,397
------------ ------------
24,567,547 4,882,397
------------ ------------
NET ASSETS ATTRIBUTABLE TO HOLDERS
OF
PREFERENCE SHARES 456,107,679 606,861,780
NET ASSETS ATTRIBUTABLE TO HOLDERS
OF
MANAGEMENT SHARES 1b 431,268 2,583
------------ ------------
TOTAL NET ASSETS 456,538,947 606,864,363
============ ============
The financial statements were approved by the Board of directors
on June 2012 and are signed on its behalf by:
John R Le Prevost Trevor Hunt
Director Director
The notes on pages 43 to 67 form an integral part of these
financial statements.
Harewood Structured Investment PCC Limited (the "Company")
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF
PREFERENCE SHARES
for the period ended 30 April 2012
Period
to Period to
30 Apr
2012 30 Apr 2011
Total Total
Notes GBP GBP
Opening balance 606,861,780 749,568,707
Redemption of shares (134,953,399) (21,267,698)
Net (loss) / gain for the period
attributable to holders of
Preference Shares (14,833,588) 9,964,149
Exchange losses on currency balances (967,114) (2,313,201)
-------------- -------------
Balance attributable to preference
shares as at 30 April 2012 456,107,679 735,951,957
Net gain for the period attributable
to holders of Management Shares 428,685 2,611
Cash reserve brought forward attributable
to Management Shares 2,583 -
-------------- -------------
Balance attributable to management
shares as at 30 April 2012 431,268 2,611
Total balance attributable to shares
as at 30 April 2012 456,538,947 735,954,568
============== =============
The notes on pages 43 to 67 form an integral part of these
financial statements.
Harewood Structured Investment PCC Limited (the "Company")
STATEMENT OF CASH FLOWS
for the period ended 30 April 2012
Period to Period to
30 Apr 2012 30 Apr 2011
Total Total
GBP GBP
Operating activities
Net (loss) / gain for the period attributable
to holders of Preference Shares (14,404,903) 9,966,760
Distributions to holders of Preference
Shares 13,191,920 16,358,933
Movement in realised and unrealised
loss / (gain) on investments 14,833,588 (9,982,760)
Movement in debtors and creditors during
the period 82,045 18,611
-------------- -------------
Net cash inflow from operating activities 13,702,650 16,361,544
Investing activities
Redemption of financial assets 116,181,164 21,267,698
-------------- -------------
Net cash inflow from investing activities 116,181,164 21,267,698
Financing activities
Distributions to holders of Preference
Shares redeemed (116,181,164) (21,267,698)
Distributions to holders of Preference
Shares (13,191,920) (16,358,933)
-------------- -------------
Net cash outflow from financing activities (129,373,084) (37,626,631)
Increase in cash and cash equivalents 510,730 2,611
-------------- -------------
Cash and cash equivalents at beginning
of period 2,583 -
Increase in cash and cash equivalents 510,730 2,611
-------------- -------------
Cash and cash equivalents at end of
period 513,313 2,611
-------------- -------------
The notes on pages 43 to 67 form an integral part of these
financial statements. Harewood Structured Investment PCC Limited
(the "Company")
Notes to the Financial Statements
for the period ended 30 April 2012
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted by the Company and
applied in the preparation of these financial statements are set
out below. These policies have been consistently applied to all
periods presented, unless otherwise stated in the following
text.
(a) Basis of preparation
The financial statements have been prepared in conformity with
International Financial Reporting Standards ("IFRS"). The financial
statements have been prepared under the historical cost convention
as modified for the measurement at fair value of financial
instruments held at fair value through profit or loss.
The preparation of financial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also
requires the Board of directors to exercise judgement in the
process of applying the Company's accounting policies. The areas
involving a high degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial
statements are disclosed in Note 2.
Changes in accounting policy and disclosures:
No new Standards or Interpretations have been adopted in the
current period.
The following Standards or Interpretations have been issued by
the IASB but not yet adopted by the Company.
IFRS 7 Financial Instruments: Disclosures - Amendments relating
to the offsetting of assets and liabilities effective for annual
periods beginning on or after 1 January 2013 and interim periods
within those periods.
IFRS 7 Financial Instruments: Disclosures - Deferral of
mandatory effective date of IFRS 9 and amendments to transition
disclosures effective for annual periods beginning on or after 1
January 2015.
IFRS 9 Financial Instruments: Deferral of mandatory effective
date of IFRS 9 and amendments to transition disclosures effective
for annual periods beginning on or after 1 January 2015.
IFRS 13 Fair value measurement - Original issue effective for
annual periods beginning on or after 1 January 2013.
IAS 1 Presentation of Financial Statements - Amendments to
revise the way other comprehensive income is presented effective
for annual periods beginning on or after 1 July 2012.
IAS 32 Financial Instruments: Presentation - Amendments relating
to the offsetting of assets and liabilities effective for annual
periods beginning on or after 1 January 2014.
The directors have considered the above and are of the opinion
that the above Standards and Interpretations are not expected to
have an impact on the Company's financial statements except for the
presentation of additional disclosures and changes to the
presentation of components of the financial statements. These items
will be applied in the first financial period for which they are
required.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Recognition of expenses and related income
In prior periods, expenses borne by BNP Paribas SA on behalf of
the Company and income received in order to pay Company expenses
had not been included in the Statement of Comprehensive Income.
Additionally the cash at bank relating to the excess of income
received from BNP Paribas SA over expenses paid out had not been
included in the Statement of Financial Position. The expenses were
instead detailed in note 7 Related Party Transactions.
The directors are of the opinion that the expenses, income and
cash reserve detailed above should be included in the financial
statements of the Company, as this more accurately represents the
position of the Company. In light of this change, the expenses and
income have been detailed in the Statement of Comprehensive Income
and the cash reserve built up by the excess of income over expenses
has been allocated to the holders of Management shares in the
Statement of Financial position.
The directors do not feel that restatement of the prior period
is required due to the amount being immaterial and it not meeting
the definition of a prior period adjustment under IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors. The cash
reserve brought forward from previous periods is therefore included
in income received from the Counterparty in relation to operating
expenses.
Pursuant to the terms of an Engagement Letter between the
Company and BNP Paribas SA, all expenses are borne by BNP Paribas
SA, therefore any cash at bank relating to the excess of income is
due to BNP Paribas SA as holder of the Management shares of the
Company and is not due to the holders of Preference Shares.
(c) Functional and presentation currency
Items included in the Company's financial statements are
measured using the currency of the primary economic environment in
which it operates (the "functional currency"). This is pounds
sterling, which reflects the Company's primary activity of
investing in sterling-denominated derivative transactions. The
Company has adopted pounds sterling as its presentation currency as
the Company is listed on the Channel Islands Stock Exchange and the
majority of its registered shareholders are domiciled in the United
Kingdom. Up until the maturity of the Cell BNP Paribas Agribusiness
in February 2011, there was only one Cell which was not listed on
the Channel Islands Stock Exchange, instead being listed on the
Budapest Stock Exchange. Whilst shareholders of this cell were not
exposed to movements in the HUF/Sterling Exchange rate, the
previously reported value of this cell in the financial statements
was exposed to such movements, as the aggregated financial
statements are prepared in the functional currency.
(d) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at
period-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the Statement
of Comprehensive Income. Translation differences on non-monetary
financial assets and liabilities such as equities at fair value
through profit or loss are recognised in the Statement of
Comprehensive Income within net movement in unrealised
gains/(losses) on investments.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(e) Taxation
The Company has been granted exemption from Guernsey Income Tax
under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989 and
is charged an annual fee of GBP600. Dividend income is recognised
on a gross basis, including withholding tax, if any.
(f) Expenses
All expenses are accounted for on an accruals basis and
accounted for in the Statement of Comprehensive Income. As
described in note 1 (b) all expenses are borne by BNP Paribas SA
pursuant to the terms of an Engagement Letter between the Company
and BNP Paribas SA. The ongoing expenses for the period under
review are shown in detail in note 7 to the financial
statements.
(g) Debt issue costs
Pursuant to the placing and offer for subscription of Shares in
the Enhanced Global Asset Allocation Cell ("EGAA") the Initial Cell
Expenses incurred (as defined in EGAA's Supplemental Memorandum)
amounted to GBP297,509. Because the Preference Shares in EGAA were
redeemable on 17 March 2011, they were required to be classified as
debt instruments under IAS 32. Consequently, issue costs were
required to be amortised over the life of the instrument.
(h) Cash and cash equivalents
At the reporting date cash and cash equivalents comprise cash at
bank. As detailed in note 1(b), all expenses of the Company are
borne by BNP Paribas SA, with income being received from BNP
Paribas SA for the payment of Company expenses. Any excess of
income received from BNP Paribas SA for payment of expenses is
accounted for separately as this is due to the holder of Management
shares.
All income received to Preference Shares is distributed to
shareholders in the relevant cells as dividends.
(i) Income recognition
Dividend income is recognised in the Statement of Comprehensive
Income when the relevant cell's right to receive the dividend has
been established, normally being the ex-dividend date. Dividend
income is recognised on a gross basis, including withholding tax,
if any.
Income received from BNP Paribas SA is recognised in the
Statement of Comprehensive Income on an accruals basis.
(j) Financial assets at fair value through profit or loss
All investments and financial instruments are classified as "at
fair value through profit or loss". Investments are initially
recognised at cost, being the fair value of the consideration
given, including transaction costs associated with the investment.
After initial recognition, investments are measured at fair value,
with unrealised gains and losses on investments being recognised in
the Statement of Comprehensive Income.
The Company seeks to achieve the investment objective of each
cell by entering into a contract with BNP Paribas (referred to
herein as the "Counterparty"). Each contract is substantially in
the form of an ISDA Master Agreement as supplemented by a
transaction confirmation.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(j) Financial assets at fair value through profit or loss (continued)
In respect of each contract, within BNP Paribas Group (the
"Group"), the Market and Liquidity Risk department is responsible
for the day-to-day risk monitoring and contributes to the control
of the economic fair value of the Group's trading books. This risk
function department is separate and independent from the Trading
and Sales departments.
The Market and Liquidity Risk department reviews the consistency
of the non-observable market parameters by comparing and
reconciling on a monthly basis several external data sources,
including Bloomberg, Reuters, Markit/Totem and 10X.
This department is also responsible for the validation and
control of any valuation models.
(k) Loss per Share
The loss per Share is based on the decrease in net assets
attributable to Preference shareholders from operations of the
Company for the period of GBP14,404,903 (Apr 2011: GBP9,966,760
gain) and on 648,829,338 (Apr 2011: 812,570,070) shares, being the
weighted average number of shares in issue during the period. There
were no dilutive instruments in issue during the period.
(l) Trade date accounting
All "regular way" purchases and sales of financial assets are
recognised on the "trade date" i.e. the date that the entity
commits to purchase or sell the asset. Regular way purchases or
sales of financial assets that require delivery of the asset within
the time frame generally established by the regulation or
convention in the market place.
(m) Distributions payable to holders of redeemable shares
Proposed distributions to holders of redeemable shares are
recognised in the Statement of Comprehensive Income when they are
declared by the Board of directors. The distribution on these
redeemable shares is recognised in the Statement of Comprehensive
Income as finance cost.
(n) Going concern
After making enquiries, the directors have a reasonable
expectation that the Company has adequate resources to continue in
operational existence for the foreseeable future. The directors
believe the Company is well placed to manage its business risks
successfully despite the current economic climate. Accordingly, the
directors have adopted the going concern basis in preparing the
financial information.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Management make critical accounting estimates and judgements
concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates
and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within
the financial period are outlined below:
(a) Fair value of derivative financial instruments
The Company holds investments which are tailored to meet the
Company's respective needs for each cell. As the investments are
not traded in an active market, the fair value of such instruments
is determined by using valuation techniques. The fair value is
calculated weekly and as at each month end by the Counterparty. As
at the reporting date, an independent check of the valuations of
the investments is performed by Future Value Consultants Limited
(the "Calculation Agent"), an independent third party. The
Calculation Agent uses a variety of methods and makes assumptions
that are based on market conditions existing at the reporting date.
Valuation techniques used include the use of comparable recent
arm's length transactions (where available), discounted cash flow
analysis, option pricing models and other valuation techniques
commonly used by market participants. These techniques are
periodically reviewed by experienced personnel at the Calculation
Agent.
Models use observable data, to the extent practicable. However,
areas such as credit risk (both own and counterparty),
volatilities, capital risk and correlations require management to
make estimates. Changes in assumptions about these factors could
affect the reported fair value of financial instruments.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
3 NET ASSETS ATTRIBUTABLE TO HOLDERS OF PREFERENCE SHARES
Period
to Year to
30 Apr
2012 31 Oct 2011
Total Total
GBP GBP
Opening portfolio cost 725,661,033 789,581,018
Opening unrealised loss on valuation (125,369,115) (46,362,181)
Opening exchange gains on currency
balances 6,569,892 6,349,870
Opening valuation 606,861,780 749,568,707
Proceeds of sales of financial assets (134,953,399) (74,385,318)
Unrealised gain / (loss) for the
period / year 51,460,702 (79,006,934
Realised (loss) / gains on investments (66,294,290) 10,465,333
Exchange (losses) / gains on currency
balances (967,114) 219,992
Closing valuation 456,107,679 606,861,780
============== ==============
Closing portfolio cost 524,413,344 725,661,033
Closing unrealised loss (73,908,413) (125,369,115)
Closing exchange gains on currency
balances 5,602,748 6,569,862
Closing valuation 456,107,679 606,861,780
============== ==============
IFRS 7 requires fair value measurements to be disclosed by the
source of inputs, using the following three-level hierarchy:
* Quoted prices (unadjusted) in active markets for identical
assets or liabilities (Level 1)
* Inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly (as prices)
or indirectly (derived from prices) (Level 2).
* Inputs for the asset or liability that are not based on
observable market data (unobservable inputs) (Level 3).
The financial assets held by the Company have been classified as
Level 2. This is in accordance with the fair value hierarchy.
There have been no transfers between Level 2 and Level 3 of the
fair value hierarchy during the period under review.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
4 SHARE CAPITAL
Authorised SHARES GBP
Preference shares of no par value
each Unlimited -
Ordinary shares of no par value each 2 -
---------- ----
2 -
========== ====
Shares issued
Allotted, called-up as at Shares issued
and fully paid 1 November Preference Preference as at 30 April
Preference Shares 2011 Shares Redeemed Shares Issued 2012
Cell Agribus - - - -
Cell EGAA - - - -
Cell FTSE S - - - -
Cell UK HI 141,613,549 (141,613,549) * - -
Cell EBM (2) 32,506,140 (32,506,140) * - -
Cell ES 25,000,000 (25,000,000) * - -
Cell Abs Pro 76,748,923 - - 76,748,923
Cell US HI A 92,469,987 - - 92,469,987
Cell US HI B 58,337,229 - - 58,337,229
Cell Agrinvest 47,225,896 - - 47,225,896
Cell EPR 30,125,000 - - 30,125,000
Cell EBM (3) 49,587,600 - - 49,587,600
Cell COMAC 25,526,009 - - 25,526,009
Cell USEI A 48,500,080 - - 48,500,080
Cell USEI B 45,079,125 - - 45,079,125
Cell UK EI 49,015,722 - - 49,015,722
Cell EI 39,999,346 - - 39,999,346
Ordinary Shares 2 - - 2
------------------- ----------------- --------------- ----------------
TOTAL 761,734,608 (199,119,689) - 562,614,919
=================== ================= =============== ================
*See Note 8
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
4 SHARE CAPITAL (continued)
Shares issued
Allotted, called-up as at Shares issued
and fully paid 1 November Preference Preference as at 31 October
Preference Shares 2010 Shares Redeemed Shares Issued 2011
Cell Agribus 72,500 (72,500) - -
Cell EGAA 13,500,255 (13,500,255) - -
Cell FTSE S 40,501,195 (40,501,195) - -
Cell UK HI 141,613,549 - - 141,613,549
Cell EBM (2) 32,506,140 - - 32,506,140
Cell ES 25,000,000 - - 25,000,000
Cell Abs Pro 76,748,923 - - 76,748,923
Cell US HI A 92,469,987 - - 92,469,987
Cell US HI B 58,337,229 - - 58,337,229
Cell Agrinvest 47,225,896 - - 47,225,896
Cell EPR 30,125,000 - - 30,125,000
Cell EBM (3) 49,587,600 - - 49,587,600
Cell COMAC 25,526,009 - - 25,526,009
Cell USEI A 48,500,080 - - 48,500,080
Cell USEI B 45,079,125 - - 45,079,125
Cell UK EI 49,015,722 - - 49,015,722
Cell EI 39,999,346 - - 39,999,346
-
Ordinary Shares 2 - - 2
-------------- ----------------- --------------- ------------------
TOTAL 815,808,558 (54,073,950) - 761,734,608
============== ================= =============== ==================
Holders of Ordinary Shares shall not be entitled to receive and
shall not participate in any dividends or other distributions out
of the profits of the Company. Holders of Ordinary Shares shall be
entitled to receive notice of and to attend and vote at general
meetings. The Ordinary Shares are not redeemable and comprise the
Company's non-cellular assets.
Holders of BNP Paribas Absolute Progression Preference Shares,
BNP Paribas Agrinvest Preference Shares, Enhanced Property Recovery
Preference Shares, Energy-Base Metals (3) Preference Shares and BNP
Paribas COMAC, ("Cell shares") shall not be entitled to receive and
shall not participate in any dividend or other distributions of the
Company.
Holders of Class A Sterling Hedged US High Income Preference
Shares, Class B Unhedged US High Income Preference Shares, Class A
Sterling Hedged US Enhanced Income Preference Shares, Class B US
Dollar Unhedged US Enhanced Income Preference Shares, Enhanced
Income Preference Shares and UK Enhanced Income Preference Shares
("Cell Shares") shall be entitled to receive any dividends or other
distributions out of the profits of their respective cells only,
but not out of the non-cellular assets of the Company.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
4 SHARE CAPITAL (continued)
On their respective redemption dates the holders of Cell Shares
shall be entitled to receive per Cell Share held an amount equal to
the net asset value per Cell Share. As disclosed in the
Supplemental Memorandum or Summary and Securities Note for each
cell, the Cell Shares of each cell will be compulsorily redeemed by
the Company on their respective redemption dates.
Holders of Cell Shares shall not be entitled to receive notice
of or to attend or vote at any general meeting of the Company.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
5 SHARE PREMIUM
Share premium Share premium
Share Premium as at 1 November Preference Preference as at
Preference Shares 2011 Shares Redeemed Shares Issued 30 April 2012
GBP GBP GBP GBP
Cell Agribus - - - -
Cell EGAA - - - -
Cell FTSE S - - - -
Cell UK HI 143,419,549 (143,419,549) * - -
Cell EBM (2) 32,828,140 (32,828,140) * - -
Cell ES 25,000,000 (25,000,000) * - -
Cell Abs Pro 77,271,523 - - 77,271,523
Cell US HI A 92,942,487 - - 92,942,487
Cell US HI B 30,710,285 - - 30,710,285
Cell Agrinvest 49,516,896 - - 49,516,896
Cell EPR 30,125,000 - - 30,125,000
Cell EBM (3) 49,292,100 - - 49,292,100
Cell COMAC 25,526,009 - - 25,526,009
Cell USEI A 48,500,080 - - 48,500,080
Cell USEI B 28,964,898 - - 28,964,898
Cell UK EI 49,015,722 - - 49,015,722
Cell EI 42,548,346 - - 42,548,346
TOTAL 725,661,035 (201,247,689) - 524,413,346
================== ================= =============== ===============
*See Note 8
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
5 SHARE PREMIUM (continued)
Share premium Share premium
Share Premium as at 1 November Preference Preference as at 31 October
Preference Shares 2010 Shares Redeemed Shares Issued 2011
GBP GBP GBP GBP
Cell Agribus 2,502,344 (2,502,344) - -
Cell EGAA 14,656,755 (14,656,755) - -
Cell FTSE S 47,058,395 (47,058,395) - -
Cell UK HI 143,419,549 - - 143,419,549
Cell EBM (2) 32,828,140 - - 32,828,140
Cell ES 25,000,000 - - 25,000,000
Cell Abs Pro 77,271,523 - - 77,271,523
Cell US HI A 92,942,487 - - 92,942,487
Cell US HI B 30,710,285 - - 30,710,285
Cell Agrinvest 49,516,896 - - 49,516,896
Cell EPR 30,125,000 - - 30,125,000
Cell EBM (3) 49,292,100 - - 49,292,100
Cell COMAC 25,526,009 - - 25,526,009
Cell USEI A 48,500,080 - - 48,500,080
Cell USEI B 28,964,898 - - 28,964,898
Cell UK EI 49,015,722 - - 49,015,722
Cell EI 42,548,346 - - 42,548,346
TOTAL 789,878,529 (64,217,494) - 725,661,035
================== ================= =============== ==================
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company's activities expose it to a variety of financial
risks: market risk (including interest rate risk and market price
risk), credit risk, liquidity risk, capital risk and foreign
exchange risk.
The Company's overall risk management programme focuses on the
unpredictability of financial markets and seeks to minimise
potential adverse effects on the Company's financial performance.
The Company uses derivative financial instruments to moderate
certain risk exposures.
(a) Interest Rate Risk
The Company is not directly exposed to cash flow interest rate
risk. Changes in interest rates may affect the performance of the
swap contracts in which each cell is invested. The Board and the
Investment Manager monitor, but cannot control, interest rate
risk.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(b) Market Price Risk
Market price risk arises mainly from uncertainty about future
prices of financial instruments held. It represents the potential
loss the Company might suffer through holding market positions in
the face of price movements. The Investment Manager actively
monitors market prices and reports to the Board as to the
appropriateness of the prices used for valuation purposes. On a
periodic basis independent valuations of the Company's investments
are obtained from the Calculation Agent. A list of investments held
by the Company is shown in the Schedule of Investments on pages 68
to 70.
The Investment Manager also monitors on a monthly basis the
market price risk of each Cell's underlying financial assets and
liabilities using statistical measures, such as Delta. Delta is the
percentage change in price of a derivative in relation to a 1%
change in the price of the underlying security, index or rate. As
there is no secondary market for the Company's investments, the
Board cannot directly monitor nor control market price risk.
Price sensitivity
If market prices as at 30 April 2012 / 31 October 2011 had been
10 per cent higher / lower, and assuming these values were to
remain unchanged through to the end of the life of the Cells, with
all other variables held constant, the increase / decrease in net
assets attributable to holders of Cell Shares on the Redemption
Date would have been as stated below, arising due to the increase /
decrease in the fair value of the financial assets at fair value
through profit or loss.
Increase in net assets Decrease in net assets
attributable to holders attributable to holders
of Preference Shares of Preference Shares
Period ended Year ended Period ended Year ended
30 April 2012 31 October 30 April 31 October
2011 2012 2011
Cell GBP GBP GBP GBP
Cell UK HI - 6,475,988 - (6,475,988)
Cell EBM (2) - 5,184,729 - (5,184,729)
Cell ES - 1,858,825 - (1,858,825)
Cell Abs Pro 9,793,470 9,600,216 (9,793,470) (9,600,216)
Cell US HI A 3,570,266 4,791,795 (3,570,266) (4,791,795)
Cell US HI B 1,562,845 2,006,037 (1,562,845) (2,006,037)
Cell Agrinvest 5,453,316 5,757,262 (5,453,316) (5,757,262)
Cell EPR 1,941,195 1,960,505 (1,941,195) (1,960,505)
Cell EBM (3) 5,032,398 5,271,509 (5,032,398) (5,271,509)
Cell COMAC 1,751,595 1,680,530 (1,751,595) (1,680,530)
Cell US EI A 5,277,876 4,960,346 (5,277,876) (4,960,346)
Cell US EI B 3,031,153 2,863,093 (3,031,153) (2,863,093)
Cell UK EI 4,597,675 4,551,845 (4,597,675) (4,551,845)
Cell EI 3,598,981 3,723,499 (3,598,981) (3,723,499)
--------------- ------------ ------------- -------------
45,610,768 60,686,179 (45,610,768) (60,686,179)
=============== ============ ============= =============
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(c) Credit Risk
Credit risk is the risk that an issuer or counterparty will be
unable or unwilling to meet a commitment that it has entered into
with the Company. At the date of this report the Counterparty was
rated AA- by Standard & Poor's for credit purposes.
Investors should be aware that repayment by the Company at the
relevant redemption date of the redemption proceeds due to
shareholders will only be performed if the Counterparty satisfies
its obligations under the relevant contract to repay to the Company
any amount due. Under the terms of the Credit Support Deeds between
the Company and the Counterparty, the Counterparty is required to
deliver varying amounts of collateral to an escrow account held in
favour of the Company.
Under the terms of credit support deeds entered into between the
Counterparty and the Company acting for and on behalf of each cell,
the Counterparty is required to post collateral in the form of AAA
rated G7 government bonds in favour of the Company acting for and
on behalf of each cell, such collateral being valued on a weekly
basis and, if the value of the collateral is less than the value
calculated as specified below (the "Credit Support Amount"), the
Counterparty will provide additional collateral to increase the
aggregate value to at least the Credit Support Amount. Where there
is an event of default in respect of the Counterparty under the
swap confirmation, the Company will be entitled to enforce its
security over the collateral.
Due to the collateral being monitored on a weekly basis (as
detailed above), there is a risk due to timing, that the amount
posted to collateral will be less than the Credit Support
Amount.
The Credit Support Amount is the lesser of (a) 100% of the net
asset value of the relevant cell and (b) the total of the
Applicable Percentage of such net asset value plus 10% of such net
asset value (where the "Applicable Percentage" is calculated so as
to reflect the percentage of shares in the relevant cell held at
the relevant time by shareholders other than BNP Paribas Arbitrage
SNC).
The most significant concentration of credit risk for the
Company is that the Counterparty will be unable to satisfy its
obligations under the relevant contract to repay to the Company any
amount due. The maximum credit risk exposure at the reporting date
is therefore considered to be the valuation of the investments at
this date, being GBP456,107,679.
The Investment Manager and Administrator monitor collateral
posted on a weekly basis and report to the Board quarterly on the
Investment Counterparty's compliance with the relevant Credit
Support Deeds. The Investment Manager and Administrator have also
undertaken to report to the Board immediately if there is a breach
of compliance with the terms of the relevant Credit Support
Deeds.
The Board monitors, but cannot control, credit risk.
(d) Liquidity Risk
Liquidity risk is the risk that the Company will encounter
difficulty in realising assets or otherwise raising funds to meet
financial commitments and obligations to shareholders on redemption
of their shares of a cell. The only financial commitments of the
Company are to meet ongoing expenses and these are met out of
monies provided to the Company's Administrator by BNP Paribas
SA.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(d) Liquidity Risk (continued)
There is a further liquidity risk in respect of the redemption
of shares, the dates of which are set out in note 6 (g) (ii).
As the investments are not traded in an active market, the
Company may not be able to liquidate quickly its investments in
these instruments at an amount close to their fair value to meet
its liquidity requirements or to respond to specific events such as
deterioration in the credit worthiness of the Counterparty.
The table below details the residual contractual maturities of
the financial liabilities:
Over 1
1 - 3 months 3 - 12 months year Total
GBP GBP GBP GBP
As at 30 April 2012
Net assets attributable
to holders of Management
shares 431,268 - - 431,268
Net assets attributable
to holders of Preference
Shares 97,934,696 51,331,113 306,841,870 456,107,679
------------- -------------- ------------- ------------
98,365,964 51,331,113 306,841,870 456,538,947
As at 31 October 2011
Net assets attributable
to holders of Management
shares 2,583 - - 2,583
Net assets attributable
to holders of Preference
Shares 64,759,876 166,437,701 375,664,203 606,861,780
------------- -------------- ------------- ------------
64,762,459 166,437,701 375,664,203 606,864,363
The table below details the expected liquidity of net assets
attributable to holders of Preference Shares held:
Over 1
1 - 3 months 3 - 12 months year Total
GBP GBP GBP GBP
As at 30 April 2012
Net assets 98,365,964 51,331,113 306,841,870 456,538,947
As at 31 October 2011
Net assets 64,762,459 166,437,701 375,664,203 606,864,363
The Board monitors, but cannot actively control, liquidity risk.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(e) Capital Risk
The Company has an unlimited life but the Protected Cell Shares
for each cell have a fixed redemption date.
The Board of directors believes the current capital structure to
be sufficient in meeting the capital requirements of the
Company.
All expenses are borne by BNP Paribas SA and redemption proceeds
are limited to the amounts received, if any, on the maturity or
early termination of the relevant investment contract between the
Company and the Counterparty.
Potential losses to shareholders are mitigated by the returns
stipulated in the swap agreement with the Counterparty as described
in note 6(h) and the collateral arrangements which are set out in
note 6 (i).
(f) Foreign Exchange Risk
The carrying amounts of the Company's foreign currency
denominated financial assets at the reporting date are as
follows:
Period ended Year ended
30 April 2012 31 October
2011
GBP GBP
US Dollar 45,939,976 48,691,298
-------------- -----------
As subscription, redemption and dividend payments in respect of
all cells other than US High Income are made in the same functional
currency, none of the cells other than US High Income is exposed to
foreign exchange risk. Subscription and redemption payments in
respect of Class B US High Income are made in US Dollars, but
dividends are paid in the Sterling equivalent of a fixed US Dollar
amount, unless the relevant shareholder elects to receive their
dividends in US Dollars. As the currency in which these dividends
are paid is selected at the option of the shareholder and may be
paid in the functional currency, the directors do not consider that
the Company acting on behalf of US High Income is exposed to
material foreign exchange risk.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(g) Valuation
(i) The notional amounts of the derivative instruments are as
follows:
BNP Paribas Absolute Progression GBP 76,748,923
US High Income Cell - Class A GBP 92,469,987
US High Income Cell - Class B USD 58,337,229
BNP Paribas Agrinvest GBP 47,225,896
Enhanced Property Recovery GBP 30,125,000
Energy - Base Metals (3) GBP 49,587,600
BNP Paribas COMAC GBP 25,526,009
US Enhanced Income - Class A GBP 48,500,080
US Enhanced Income - Class B USD 45,079,125
UK Enhanced Income GBP 49,015,722
Enhanced Income GBP 39,999,346
(ii) The maturity dates of the derivative instruments are as
follows:
BNP Paribas Absolute Progression 26 July 2012
US High Income Cell - Class A 19 November
2012
US High Income Cell - Class B 19 November
2012
BNP Paribas Agrinvest 22 June 2013
Enhanced Property Recovery 13 March 2014
Energy - Base Metals (3) 5 June 2014
BNP Paribas COMAC 8 June 2029
US Enhanced Income - Class A 16 July 2029
US Enhanced Income - Class B 16 July 2029
UK Enhanced Income 24 September
2029
Enhanced Income c. 30 April
2108*
*The maturity date of the Enhanced Income cell will be the
26(th) business day after the final ex dividend date. As the
business days in April 2108 cannot yet be determined, an
approximate date is disclosed.
(iii) Early Settlement Options relating to the derivative
contracts:
Each contract entered into between the Counterparty and the
Company acting for and on behalf of each cell has been entered into
upon terms which allow such contracts to be terminated, inter alia,
in the following circumstances:
(a) by the Company if the Counterparty fails to make a payment
under the relevant contract (subject to a grace period of three
local business days) or makes a representation which is incorrect
or misleading in any material respect or fails to comply with its
related obligations;
(b) (b) by the Counterparty if the Company fails to make a
payment it is required to pay under the relevant contract (subject
to the grace period mentioned above); and
(c) by either the Counterparty or the Company if the other party
is dissolved, becomes insolvent or is unable to pay its debts as
they become due or on the occurrence of an illegality or the
imposition on payments under the Contract of a withholding which
the Company or the Counterparty, as the case may be, is unable to
gross-up.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(g) Valuation (continued)
(iii) Early Settlement Options relating to the derivative
contracts (continued)
It is anticipated that, on early termination of a Contract, a
termination payment would become due to the Company equal to the
aggregate net asset value of the relevant Contract at the date of
such termination. The directors may reinvest such proceeds as they
see fit in investments which in the opinion of the directors
replicate as nearly as practicable the investment characteristics
of the contract so terminated and so that the proceeds are
invested, as nearly as practicable, in accordance with the
Company's stated investment objective for the relevant cell.
Even if recovered by the Company, any early redemption amount in
respect of the shares of the relevant cell may result in a lower
return than would have been the case if the contract had continued
and been performed up to its maturity date.
In the event that the directors determine that the investment
characteristics of the Contract cannot be replicated then the
directors will notify Shareholders of the relevant cell of such
circumstances, the relevant early redemption amount and the
relevant early redemption date.
If the Counterparty fails to top up the collateral such that it
is equal to at least the Specified Percentage (as set out in note
6(i) below) or other circumstances constituting an event of default
with respect to the Counterparty occur, the Company will be
entitled to enforce its security over the collateral as well as to
pursue any other remedies it may have against the Counterparty. In
such circumstances, the Company will re-invest the proceeds of
realisation of the collateral or distribute the same to
Shareholders.
(h) Periodic Returns on Principal and Timings of Payments
US High Income cell - Class A
Under the terms of the Swap Confirmation between the
Counterparty and the Company acting for and on behalf of the US
High Income cell in respect of Class A, the Counterparty pays to
the Company for the account of the US High Income cell quarterly a
Sterling amount equal to 1.875% of the notional amount of the Swap
Confirmation, equivalent to 1.875 pence per Class A Sterling Hedged
US High Income Preference Share, provided that if the underlying
portfolio net asset value reaches 110% of the initial underlying
portfolio net asset value (equivalent to a net asset value of 110
pence per share), future payments will increase to 2.0625% of the
notional amount of the Swap Confirmation, equivalent to 2.0625
pence per Class A Sterling Hedged US High Income Preference Share.
For each subsequent 5 per cent increase in the underlying portfolio
net asset value, subsequent quarterly payments will increase by
0.09375%, equivalent to 0.09375 pence per Class A Sterling Hedged
US High Income Preference Share.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(h) Periodic Returns on Principal and Timings of Payments (continued)
US High Income cell - Class B
Under the terms of the Swap Confirmation between the
Counterparty and the Company acting for and on behalf of the US
High Income cell in respect of Class B, the Counterparty pays to
the Company for the account of the US High Income cell quarterly
the Sterling equivalent of an amount equal to 1.875% of the
notional amount of the Swap Confirmation, equivalent to 1.875 cents
per Class B Unhedged US High Income Preference Share, provided that
if the underlying portfolio net asset value reaches 110% of the
initial underlying portfolio net asset value (equivalent to a net
asset value of 110 cents per share), future payments will increase
to 2.0625% of the notional amount of the Swap Confirmation,
equivalent to 2.0625 cents per Class B Unhedged US High Income
Preference Share. For each subsequent 5 per cent increase in the
underlying portfolio net asset value, subsequent quarterly payments
will increase by 0.09375%, equivalent to 0.09375 cents per Class B
Unhedged US High Income Preference Share. Where holders of Class B
Unhedged US High Income Preference Shares have elected to receive
their quarterly dividends in US Dollars, the Counterparty pays at
the request of the Company in US Dollars such proportion of the
quarterly payment as is required to enable the Company to finance
the quarterly dividends payable in US Dollars and the balance in
Sterling.
Enhanced Income
Under the terms of the Swap Confirmation between the
Counterparty and the Company acting for and on behalf of the
Enhanced Income cell, the Counterparty will pay to the Company for
the account of the Enhanced Income cell quarterly a Sterling amount
equal to 2.00% of the notional amount of the Swap Confirmation,
equivalent to 2.00 pence per Class A Sterling Hedged Enhanced
Income Preference Share, provided that if the underlying portfolio
net asset value reaches 110% of the initial underlying portfolio
net asset value (equivalent to a net asset value of 110 pence per
share), future payments will increase to 2.200% of the notional
amount of the Swap Confirmation, equivalent to 2.200 pence per
Class A Sterling Hedged Enhanced Income Preference Share. For each
subsequent 5 per cent increase in the underlying portfolio net
asset value, subsequent quarterly payments will increase by 0.1%,
equivalent to 0.1 pence per Class A Sterling Hedged Enhanced Income
Preference Share.
Where the underlying portfolio net asset value subsequently
decreases after having increased to 110% or more of the initial
underlying portfolio net asset value, but has not decreased to less
than 100% of the initial underlying portfolio net asset value,
subsequent quarterly payments will reduce to 2.00 pence per Class A
Sterling Hedged Enhanced Income Preference Share. If the underlying
portfolio net asset value has fallen below 100 per cent. and below
a lower percentage which is an integral multiple of 5 per cent.
i.e. 95%, 90%, 85% (down to 5%) of the initial underlying portfolio
net asset value, subsequent dividend payments will be adjusted to
be the product of 2.00% and the relevant percentage threshold level
and 100 pence per Class A Sterling Hedged Enhanced Income
Preference Share.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(h) Periodic Returns on Principal and Timings of Payments (continued)
UK Enhanced Income
Under the terms of the Swap Confirmation between the
Counterparty and the Company acting for and on behalf of the BNP
Paribas UK Enhanced Income cell, the Counterparty will pay to the
Company for the account of the UK Enhanced Income cell quarterly a
Sterling amount equal to 2.000% of the notional amount of the Swap
Confirmation, equivalent to 2.000 pence per UK Enhanced Income
Preference Share, provided that if the underlying portfolio net
asset value reaches 110% of the initial underlying portfolio net
asset value (equivalent to a net asset value of 110 pence per
share), future payments will increase to 2.200% of the notional
amount of the Swap Confirmation, equivalent to 2.200 pence per UK
Enhanced Income Preference Share. For each subsequent 5 per cent
increase in the underlying portfolio net asset value, subsequent
quarterly payments will increase by 0.1%, equivalent to 0.1 pence
per UK Enhanced Income Preference Share.
Where the underlying portfolio net asset value subsequently
decreases after having increased to 110% or more of the initial
underlying portfolio net asset value, but has not decreased to less
than 100% of the initial underlying portfolio net asset value,
subsequent quarterly payments will reduce to 2.00 pence per UK
Enhanced Income Preference Share. If the underlying portfolio net
asset value has fallen below 100 per cent. and below a lower
percentage which is an integral multiple of 5 per cent. i.e. 95%,
90%, 85% (down to 5%) of the initial underlying portfolio net asset
value, subsequent dividend payments will be adjusted to be the
product of 2.00% and the relevant percentage threshold level and
100 pence per UK Enhanced Income Preference Share.
US Enhanced Income - Class A
Under the terms of the Swap Confirmation between the
Counterparty and the Company acting for and on behalf of the US
Enhanced Income cell in respect of Class A, the Counterparty will
pay to the Company for the account of the US Enhanced Income cell
quarterly a Sterling amount equal to 2.000% of the notional amount
of the Swap Confirmation, equivalent to 2.000 pence per Class A
Sterling Hedged US Enhanced Income Preference Share, provided that
if the underlying portfolio net asset value reaches 110% of the
initial underlying portfolio net asset value (equivalent to a net
asset value of 110 pence per share), future payments will increase
to 2.200% of the notional amount of the Swap Confirmation,
equivalent to 2.200 pence per BNP Paribas US Enhanced Income Class
A Preference Share. For each subsequent 5 per cent increase in the
underlying portfolio net asset value, subsequent quarterly payments
will increase by 0.1%, equivalent to 0.1 pence per Class A Sterling
Hedged US Enhanced Income Preference Share.
Where the underlying portfolio net asset value subsequently
decreases after having increased to 110% or more of the initial
underlying portfolio net asset value, but has not decreased to less
than 100% of the initial underlying portfolio net asset value,
subsequent quarterly payments will reduce to 2.00 pence per Class A
Sterling Hedged US Enhanced Income Preference Share. If the
underlying portfolio net asset value has fallen below 100 per cent.
and below a lower percentage which is an integral multiple of 5 per
cent. i.e. 95%, 90%, 85% (down to 5%) of the initial underlying
portfolio net asset value, subsequent dividend payments will be
adjusted to be the product of 2.00% and the relevant percentage
threshold level and 100 pence per Class A Sterling Hedged US
Enhanced Income Preference Share.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(h) Periodic Returns on Principal and Timings of Payments (continued)
US Enhanced Income - Class B
Under the terms of the Swap Confirmation between the
Counterparty and the Company acting for and on behalf of the US
Enhanced Income cell in respect of Class B, the Counterparty will
pay to the Company for the account of the US Enhanced Income cell
quarterly a US Dollar amount equal to 2.000% of the notional amount
of the Swap Confirmation, equivalent to 2.00 cents per Class B US
Dollar Unhedged US Enhanced Income Preference Share, provided that
if the underlying portfolio net asset value reaches 110% of the
initial underlying portfolio net asset value (equivalent to a net
asset value of 110 pence per share), future payments will increase
to 2.200% of the notional amount of the Swap Confirmation,
equivalent to 2.200 cents per BNP Paribas US Enhanced Income Class
B Preference Share. For each subsequent 5 per cent increase in the
underlying portfolio net asset value, subsequent quarterly payments
will increase by 0.1%, equivalent to 0.1 cents per Class B US
Dollar Unhedged US Enhanced Income Preference Share.
Where the underlying portfolio net asset value subsequently
decreases after having increased to 110% or more of the initial
underlying portfolio net asset value, but has not decreased to less
than 100% of the initial underlying portfolio net asset value,
subsequent quarterly payments will reduce to 2.00 cents per Class B
US Dollar Unhedged US Enhanced Income Preference Share. If the
underlying portfolio net asset value has fallen below 100 per cent.
and below a lower percentage which is an integral multiple of 5 per
cent. i.e. 95%, 90%, 85% (down to 5%) of the initial underlying
portfolio net asset value, subsequent dividend payments will be
adjusted to be the product of 2.00% and the relevant percentage
threshold level and 100 cents per Class B US Dollar Unhedged US
Enhanced Income Preference Share.
(i) Collateral Arrangements
Under the terms of credit support deeds entered into between the
Counterparty and the Company acting for and on behalf of each cell,
the Counterparty is required to post collateral in the form of AAA
rated G7 government bonds in favour of the Company acting for and
on behalf of each cell, such collateral being valued on a weekly
basis and, if the value of the collateral is less than the Credit
Support Amount (as set out in note 6(c) above), the Counterparty
will provide additional collateral to increase the aggregate value
to at least applicable Credit Support Amount. Where there is an
event of default in respect of the Counterparty under the swap
confirmation, the Company will be entitled to enforce its security
over the collateral.
The collateral is delivered to an escrow account, held by BNP
Paribas Securities Services as custodian, in favour of the
Company.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
6 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(i) Collateral Arrangements (continued)
The collateral held against all derivative instruments as at 30
April 2012 is detailed below:
Cell Period ended Year ended
30 April 2012 31 October
2011
GBP GBP
UK HI - 10,112,173
EBM (2) - 6,284,675
Abs Pro 13,958,568 12,861,034
US HI 10,241,231 13,171,624
Agrinvest 9,895,705 10,830,717
EPR 9,590,059 10,422,194
EBM (3) 12,546,417 14,664,023
COMAC 2,735,050 2,720,430
US EI 39,169,192 39,297,838
UK EI 18,205,665 16,906,645
EI 11,865,901 12,561,977
-------------- -----------
(j) Finance Costs and Expenses
All payments by the Company are made in Sterling, except that
the Investment Manager's fees in respect of Class B of US High
Income and US Enhanced Income are paid in US Dollars.
As detailed in note 1 (b), all expenses are borne by BNP Paribas
SA and recognised in the Statement of Comprehensive Income.
Quarterly payments to the Company for the account of the US High
Income cell in respect of Class B are made in Sterling, except that
if the Company so elects by notice in writing to the Counterparty
specifying the portion of the derivative contract in respect of
which the Company wishes to receive payment in US Dollars, such
payment is paid in part, in US Dollars in an amount equal to the
product of (a) the number of Units so specified, (b) USD 1.00 and
(c) the underlying dividend rate (as explained further at note 6(h)
above) and (2) as to the balance in Sterling in an amount equal to
the product of (x) the remaining number of Units, (y) the Sterling
Amount which could be purchased with USD 1.00 at the applicable
Forward Rate and (z) the underlying dividend rate) as explained
further at note 6(h) above). Such election will be made to satisfy
elections from holders of Class B Unhedged US High Income
Preference Shares to receive their dividends in US Dollars.
Dividends paid by the Company to holders of Class B Unhedged US
High Income Preference Shares are paid in Sterling except that,
where holders of such shares have elected to receive their
dividends in US Dollars, such dividends will be paid in US Dollars
in an amount equal to (a) the number of Class B Unhedged US High
Income Preference Shares in respect of which such election is made,
(b) USD 1.00 and (c) the underlying dividend rate (as explained
further at note 6(h) above).
Payments to the Company for the account of the US Enhanced
Income cell in respect of Class B are made in US Dollars.
Dividends paid by the Company to holders of Class B US Dollar
Unhedged US Enhanced Income Preference Shares are paid in US
Dollars.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
7 RELATED PARTY TRANSACTIONS
Anson Fund Managers Limited is the Administrator and Secretary
of the Company and Anson Registrars Limited is the Registrar of the
Company. John R Le Prevost is a director of both these companies.
During the period under review, the Administrator charged fees of
GBP99,817 (Apr 2011: GBP127,699) in respect of its administration
of the Company of which GBP13,944 (Oct 2011: GBP17,771) was
outstanding at the period end and the Registrar charged fees of
GBP14,426 (Apr 2011: GBP20,313) in respect of registration services
on behalf of the Company of which GBP1,692 (Oct 2011: GBP1.259) was
outstanding at the period end.
Anson Group Limited ("AGL") is the parent company of Anson Fund
Managers Limited and Anson Registrars Limited, John Le Prevost is a
director of AGL. John R Le Prevost is also the beneficial owner of
AGL.
THEAM (previously named Harewood Asset Management SAS) and BNP
Paribas Arbitrage SNC, the Company's ultimate controlling party,
are both members of the BNP Paribas Group.
During the period under review the Investment Manager charged
fees of GBP274,947 (Apr 2011: GBP340,034)), of which GBP19,082 (Oct
2011: GBP56,441l) was outstanding at the period end.
As described elsewhere in the financial statements, BNP Paribas,
a member of the BNP Paribas Group, was appointed as Distributor of
Preference Shares in all the cells and is also the counterparty to
the Index Derivative Contracts entered into by the Company on
behalf of all cells. All these transactions and arrangements have
been entered into on an arms length basis. At the end of the period
BNP Paribas Group and its subsidiaries held the following shares in
issue:
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
7 RELATED PARTY TRANSACTIONS (continued)
As at As at
30 Apr 2012 % of total 31 Oct
2011 % of total
Shares shares Shares shares
BNP Paribas UK High Income - 0.00% 134,021,882 94.64%
BNP Paribas Energy - Base
Metals (2) - 0.00% 31,736,309 97.63%
BNP Paribas European Shield - 0.00% 22,692,027 90.77%
BNP Paribas Absolute Progression 74,362,625 96.89% 74,351,196 96.88%
US High Income Class A Sterling
Hedged Preference Shares 84,420,647 91.30% 83,662,674 90.48%
US High Income Class B Unhedged
Preference Shares 55,741,836 95.55% 55,266,836 94.74%
BNP Paribas Agrinvest 44,521,311 94.27% 43,688,878 92.51%
BNP Paribas Enhanced Property
Recovery 18,714,550 62.12% 17,841,850 59.23%
BNP Paribas Energy - Base
Metals (3) 42,755,076 86.22% 41,540,153 83.77%
BNP COMAC 24,438,699 95.74% 24,431,594 95.71%
US Enhanced Income Class
A 34,914,523 71.99% 31,783,523 65.53%
US Enhanced Income Class
B 25,255,527 56.02% 23,606,527 52.37%
UK Enhanced Income 35,424,622 72.27% 32,754,741 66.82%
BNP Paribas Enhanced Income 31,101,192 77.75% 30,394,824 75.99%
As detailed in Note 8 on 15 December 2011 all BNP Paribas UK
High Income Preference Shares were compulsorily redeemed and BNP
Paribas UK High Income was subsequently dissolved.
On 27 March 2012, all BNP Paribas Energy- Base (2) Preference
Shares were compulsorily redeemed and BNP Paribas Energy-Base
Metals (2) was subsequently dissolved.
On 26 April 2012, all BNP Paribas European Shield Preference
Shares were compulsorily redeemed and BNP Paribas European Shield
was subsequently dissolved.
The Counterparty, which is part of the BNP Paribas Group, is
required to post collateral in favour of the Company acting for and
on behalf of each cell. Details of the collateral arrangements and
amount held against each financial instrument are detailed in Note
6 (i).
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
7 RELATED PARTY TRANSACTIONS (continued)
ONGOING EXPENSES Period ended Period ended
30 Apr 2012 30 Apr 2011
TOTAL TOTAL
GBP GBP
Administration fees 99,817 127,699
Directors' remuneration 13,469 12,000
Registration fees 14,426 20,313
Custody fees 55,129 72,959
Asset management fees 274,947 340,034
Tax fees 37,425 10,000
Audit fees 23,614 34,550
Annual fees 11,239 14,016
Other operating expenses 1,209 8,039
------------- -------------
531,275 639,609
============= =============
All expenses are accounted for on an accruals basis through the
Statement of Financial Position and are borne by BNP Paribas
SA.
8 REDEMPTION ON SHARES
During the period, BNP Paribas UK High Income, BNP Paribas
Energy-Base Metals (2) and BNP Paribas European Shield reached
their redemption dates. Therefore all BNP Paribas UK High Income
Preference Shares, BNP Paribas Energy-Base Metals (2) Preference
Shares and BNP Paribas European Shield Preference Shares in issue
were compulsorily redeemed.
The redemption value per BNP Paribas UK High Income Preference
Share was 43.7931 pence, resulting in redemption proceeds and
distributions to the holders of BNP Paribas UK High Income
Preference Shares of GBP62,016,693. The net realised loss on this
redemption was GBP81,402,586.
The redemption value per BNP Paribas Energy - Base Metals (2)
Preference Share was 166.6276 pence, resulting in redemption
proceeds and distributions to the holders of BNP Paribas Energy -
Base Metals (2) Preference Shares of GBP54,164,201. The net gain on
this redemption was GBP21,336,061.
The redemption value per BNP Paribas European Shield Preference
Share was 75.08894 pence, resulting in redemption proceeds and
distributions to the holders of BNP Paribas European Shield
Preference Shares of GBP18,772,235. The net loss on this redemption
was GBP6,227,765. The redemption proceeds and distributions were
received and paid on 3 May 2012, therefore they have been shown in
'redemption proceeds receivable' and 'redemption proceeds payable'
respectively, in the Statement of Financial Position.
Harewood Structured Investment PCC Limited (the "Company")
Notes to the Financial Statements (continued)
for the period ended 30 April 2012
9 ULTIMATE CONTROLLING PARTY
The ultimate controlling party is BNP Paribas Arbitrage SNC as
beneficial holder of the two Ordinary Shares in issue.
10 SUBSEQUENT EVENTS
There have been no material subsequent events
Harewood Structured Investment PCC Limited (the "Company")
SCHEDULE OF INVESTMENTS
as at 30 April 2012
As at 30 April 2012
NOMINAL VALUATION TOTAL NET ASSETS
GBP %
BNP Paribas UK High Income
Cell
BNP Paribas Index Derivative
Contract GBP 141,613,549 - 0.00%
BNP Paribas Energy - Base
Metals (2)
Cell
BNP Paribas Index Derivative
Contract GBP 32,506,140 - 0.00%
BNP Paribas European Shield
Cell
BNP Paribas Index Derivative
Contract GBP 25,000,000 - 0.00%
BNP Paribas Absolute Progression
Cell
BNP Paribas Index Derivative
Contract GBP 76,748,923 97,934,696 21.47%
US High Income Cell - Class
A
BNP Paribas Index Derivative
Contract GBP 92,469,987 35,702,662 7.82%
US High Income Cell - Class
B
BNP Paribas Index Derivative
Contract USD 58,337,229 15,628,451 3.43%
BNP Paribas Agrinvest Cell
BNP Paribas Index Derivative
Contract GBP 47,225,896 54,533,159 11.96%
BNP Paribas Enhanced Property
Recovery Cell
BNP Paribas Index Derivative
Contract GBP 30,125,000 19,411,947 4.26%
BNP Paribas Energy - Base
Metals (3)
Cell
BNP Paribas Index Derivative
Contract GBP 49,587,600 50,323,976 11.03%
BNP Paribas Enhanced Income
Cell
BNP Paribas Index Derivative
Contract GBP 39,999,346 35,989,812 7.89%
BNP Paribas UK Enhanced
Income Cell
BNP Paribas Index Derivative
Contract GBP 49,015,722 45,976,747 10.08%
BNP Paribas COMAC Cell
BNP Paribas Index Derivative
Contract GBP 25,526,009 17,515,947 3.84%
US Enhanced Income Cell
- Class A
Sterling Hedged
BNP Paribas Index Derivative
Contract GBP 48,500,080 52,778,757 11.57%
US Enhanced Income Cell
- Class B
US Dollar Unhedged
BNP Paribas Index Derivative
Contract USD 45,079,125 30,311,525 6.65%
------------ -----------------
TOTAL 456,107,679 100.00%
============ =================
Harewood Structured Investment PCC Limited (the "Company")
SCHEDULE OF INVESTMENTS
as at 31 October 2011
As at 31 October 2011
NOMINAL VALUATION TOTAL NET ASSETS
GBP GBP %
BNP Paribas UK High Income
Cell
BNP Paribas Index Derivative
Contract GBP 141,613,549 64,759,876 10.67%
BNP Paribas Energy - Base
Metals (2)
Cell
BNP Paribas Index Derivative
Contract GBP 32,506,140 51,847,293 8.54%
BNP Paribas European Shield
Cell
BNP Paribas Index Derivative
Contract GBP 25,000,000 18,588,250 3.06%
BNP Paribas Absolute Progression
Cell
BNP Paribas Index Derivative
Contract GBP 76,748,923 96,002,158 15.81%
US High Income Cell - Class
A
BNP Paribas Index Derivative
Contract GBP 92,469,987 47,917,947 7.90%
US High Income Cell - Class
B
BNP Paribas Index Derivative
Contract USD 58,337,229 20,060,373 3.31%
BNP Paribas Agrinvest Cell
BNP Paribas Index Derivative
Contract GBP 47,225,896 57,572,618 9.49%
BNP Paribas Enhanced Property
Recovery Cell
BNP Paribas Index Derivative
Contract GBP 30,125,000 19,605,049 3.23%
BNP Paribas Energy - Base
Metals (3)
Cell
BNP Paribas Index Derivative
Contract GBP 49,587,600 52,715,090 8.69%
BNP Paribas Enhanced Income
Cell
BNP Paribas Index Derivative
Contract GBP 39,999,346 37,234,991 6.14%
Harewood Structured Investment PCC Limited (the "Company")
SCHEDULE OF INVESTMENTS (continued)
as at 31 October 2011
As at 31 October 2011
NOMINAL VALUATION TOTAL NET ASSETS
GBP %
BNP Paribas UK Enhanced
Income Cell
BNP Paribas Index Derivative
Contract GBP 49,015,722 45,518,450 7.50%
BNP Paribas COMAC Cell
BNP Paribas Index Derivative
Contract GBP 25,526,009 16,805,303 2.77%
US Enhanced Income Cell
- Class A
Sterling Hedged
BNP Paribas Index Derivative
Contract GBP 48,500,080 49,603,457 8.17%
US Enhanced Income Cell
- Class B
US Dollar Unhedged
BNP Paribas Index Derivative
Contract USD 45,079,125 28,630,925 4.72%
------------ -----------------
TOTAL 606,861,780 100.00%
============ =================
Harewood Structured Investment PCC Limited (the "Company")
DIRECTORS AND SERVICE PROVIDERS
Directors Investment Manager
Trevor Hunt THEAM
Francois-Xavier Foucault 1 Boulevard Haussmann
John Reginald Le Prevost 75009-Paris
Youri Siegel France
---------------------------------- -----------------------------------
Administrator and Secretary Solicitors to the Company (English
Anson Fund Managers Limited Law)
Anson Place Clifford Chance LLP
Mill Court 10 Upper Bank Street
La Charroterie London E14 5JJ
St. Peter Port England
Guernsey GY1 1EJ
---------------------------------- -----------------------------------
Auditors Advocates to the Company (Guernsey
PricewaterhouseCoopers CI LLP Law)
PO Box 321 Mourant Ozannes
Royal Bank Place 1 Le Marchant Street
1 Glategny Esplanade St. Peter Port
St. Peter Port Guernsey GY1 4HP
Guernsey GY1 4ND
---------------------------------- -----------------------------------
Custodian Registrar, Transfer Agent &
BNP Paribas Securities Services, Paying Agent
Luxembourg Branch Anson Registrars Limited
33, Rue de Gasperich PO Box 426
Howald-Hesperange Anson Place
L-2085 Luxembourg Mill Court
La Charroterie
St Peter Port
Guernsey GY1 3WX
---------------------------------- -----------------------------------
Investment Counterparty Registered Office
BNP Paribas Anson Place
10 Harewood Avenue Mill Court
London NW1 6AA La Charroterie
England St Peter Port
Guernsey GY1 1EJ
---------------------------------- -----------------------------------
Harewood Structured Investment PCC Limited (the "Company")
SHAREHOLDER INFORMATION
Shares of all cells are listed on the Channel Island Stock
Exchange and may be dealt in directly through a stockbroker or
professional adviser acting on an investor's behalf. The buying and
selling of such shares may be settled through CREST. Announcements
to holders of such shares and daily market closing prices are
available on Bloomberg, Reuters and the Channel Islands Stock
Exchange's web-site.
Further information relating to such shares is available from
BNP Paribas, telephone 44 (0)207 595 8442 or e-mail
EQD_CEE@bnpparibas.com, and from Anson Fund Managers Limited,
telephone 44 (0)1481 722 260 or e-mail:
reception@anson-group.com.
REGISTRAR ENQUIRIES
The Company's registrar is Anson Registrars Limited in Guernsey
and they can be contacted on 01481 711301.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KMGZVKGMGZZM
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