CALS VCT
INVESTEC STRUCTURED PRODUCTS CALCULUS VCT PLC
INTERIM MANAGEMENT STATEMENT
1 July 2014
Investec Structured Products Calculus VCT plc ("the Company") announces its
Interim Management Statement for the period from 1 March 2014 to 31 May 2014.
This Statement also includes relevant financial information between the end of
the period to the date of this Statement.
The Company is a tax efficient listed company which aims to achieve a regular
tax free dividend stream together with capital growth for private investors.
The Company brings together Investec Structured Product's award winning
expertise in Structured Products and Calculus Capital's award winning expertise
in venture capital.
HEADLINES
* The unaudited net asset value ("NAV") per ordinary share as at 31 May 2014
was 95.59 pence. Taking into account dividends paid to date, the year to
date total return at the period end was 111.34 pence.
* The unaudited NAV per C share as at 31 May 2014 was 93.52 pence. Taking
into account dividends paid to date, the year to date total return at the
period end was 102.52 pence.
* At the Annual General Meeting held on 1 July 2014, shareholders approved
the payment of dividends of 5.25 pence per ordinary share and 4.5 pence per
C share. These dividends will be paid on 24 July 2014.
The total returns are stated before the inclusion of VCT tax reliefs which are
intended to mitigate the higher risk of investing in smaller companies and the
constraints imposed by VCT legislation. The income tax reliefs applicable at
the time of subscription were 30 per cent. VCT dividends are tax free.
INVESTMENT IN STRUCTURED PRODUCTS
In line with the Company's strategy set out in the original offer documents,
part of the initial cash raised has been used to build a portfolio of
Structured Products. The portfolio of Structured Products was constructed with
different issuers and differing maturity periods to minimise risk and create a
diversified portfolio. The majority of this portfolio has now reached full term
and paid a positive return, with all products which have reached full term
paying their maximum return. The recent changes are listed below.
There have been no significant changes to either the Ordinary or C Share
portfolios in the past few months. The next maturity in the Ordinary share
portfolio is May 2015.
There is now one product in the C share portfolio left which is due to mature
in 2017; the strike of this is 5,246.99.
The continued strong performance of the FTSE 100 has supported valuations in
the Structured Products portfolio. The FTSE 100 has remained far above all of
the product's strike levels. As at 31 May 2014, the FTSE 100 was 6,844.51. Over
the past three months, swap rates have increased slightly and volatility has
remained low, mainly due to improvements in the UK economy as a whole.
No new investments were made in Structured Products during the period.
The Structured Products will achieve their target return subject to the Final
Index Level of the FTSE 100 being higher than the Initial Index Level. The
capital is at risk on a one-for-one basis ("CAR") if the FTSE 100 Index falls
more than 50 per cent any time during the investment term and fails to fully
recover at maturity such that the Final Index Level is below the Initial Index
Level. As at 31 May 2014, the following investments had been made in Structured
Products:
Ordinary Share Fund:
Issuer Strike FTSE 100 Notional Purchase Price Maturity Return/
Date Initial Investment Price as at Date/ Capital at
Index 31 May Date Risk (CAR)
Level 2014 Sold
The 05/05/ 5,341.93 £275,000 £0.96 £1.5827 12/05/ 162.5% if
Royal 2010 2015 FTSE 100
Bank of higher*;
Scotland CAR if FTSE
plc 100 falls
more than
50%
Investec 14/05/ 5,262.85 £500,000 £0.98 £1.7418 19/11/ 185% if
Bank plc 2010 2015 FTSE 100
higher*;
CAR if FTSE
100 falls
more than
50%
Abbey 25/05/ 4,940.68 £350,000 £0.99 £1.7670 18/11/ 185% if
National 2010 2015 FTSE 100
Treasury higher*;
Services CAR if FTSE
100 falls
more than
50%
Matured/sold
HSBC Bank 01/07/ 4,805.75 £500,000 £1.00 Returned 06/07/ 125.1% if
plc 2010 £1.2510 2012 FTSE 100
higher*; CAR
if FTSE 100
falls more
than 50%
The Royal 18/03/ 5,718.13 £50,000 £1.00 Returned 19/03/ Autocallable
Bank of 2011 £1.1050 2012 10.5% p.a.;
Scotland CAR if FTSE
plc 100 falls
more than
50%
Nomura 28/05/ 5,188.43 £350,000 £0.98 Sold at 30/03/ 137% if FTSE
Bank 2010 £1.2625 2012 100 higher*;
International CAR if FTSE
100 falls
more than
50%
Morgan 10/06/ 5,132.50 £500,000 £1.00 Sold at 31/10/ 134% if FTSE
Stanley 2010 £1.3224 2012 100 higher*;
International CAR if FTSE
100 falls
more than
50%
Abbey 03/08/ 5,584.51 £50,000 £1.00 Sold at 21/06/ 126% if FTSE
National 2011 £1.1900 2013 100 higher*;
Treasury CAR if FTSE 100
Services falls more than
50%
C Share Fund:
Issuer Strike FTSE 100 Notional Purchase Price Maturity Return/
Date Initial Investment Price as at Date/ Capital at
Index 31 May Date Risk (CAR)
Level 2014 Sold
Investec 05/08/ 5,246.99 £328,000 £1.00 £1.5710 10/03/ 182% if
Bank plc 2011 2017 FTSE 100
higher*;
CAR if FTSE
100 falls
more than
50%
Matured
The Royal 18/03 5,718.13 £200,000 £1.00 Returned 19/03/ Autocallable
Bank of /2011 £1.1050 2012 10.5% p.a.;
Scotland plc CAR if FTSE
100 falls
more than
50%
Nomura Bank 28/05 5,188.43 £350,000 £1.2625 Returned 20/02/ 137% if FTSE
International /2010 £1.3700 2013 100 higher*;
** CAR if FTSE
100 falls
more than
50%
Abbey 03/08 5,584.51 £200,000 £1.00 Returned 05/02/ 126% if FTSE
National /2011 £1.2600 2014 100 higher*;
Treasury CAR if FTSE 100
Services falls more than
50%
* The Final Index Level is calculated using `averaging', meaning that the
average of the closing levels of the FTSE 100 is taken on each Business Day
over the last 2-6 months of the Structured Product plan term (the length of the
averaging period differs for each plan). The use of averaging to calculate the
return can reduce adverse effects of a falling market or sudden market falls
shortly before maturity. Equally, it can reduce the benefits of an increasing
market or sudden market rises shortly before maturity.
** The Nomura Structured Product was sold prior to maturity with a return on
initial investment of 28.8 per cent. This was sold to the C Share Fund.
The total valuation of the amount invested in Structured Products in the
Ordinary Share Fund as at 31 May 2014 was £1,924,603.
The total valuation of the amount invested in Structured Products in the C
Share Fund as at 31 May 2014 was £515,286.
VENTURE CAPITAL INVESTMENTS
Calculus Capital manages the portfolio of VCT Qualifying Investments made by
the Company. No new Venture Capital Investments were made during the period.
The Company continues to meet its requirement for the combined Ordinary and C
share portfolios to be at least 70 per cent. invested in Qualifying
Investments.
The Venture Capital Investments at 31 May 2014 are shown below.
ORDINARY SHARE FUND
Sector Cost Valuation % of total
portfolio
Terrain Energy Limited Energy
Ordinary equity £100,000 £164,060
Total £100,000 £164,060 3.68%
Lime Technology Limited Low carbon
building
Ordinary equity material £57,386 £7,684
Loan stock £250,000 £250,000
Total £307,386 £257,684 5.78%
MicroEnergy Generation Alternative
Services Limited energy
Ordinary equity £150,000 £138,000
Total £150,000 £138,000 3.10%
Heritage House Media Digital
Limited Media
Ordinary equity £22,065 £0
Loan stock £76,827 £0
Deferred shares £26,196 £0
Total £125,088 £0 0.00%
Human Race Group Sports
Limited
Ordinary equity £100,000 £86,793
Loan stock £200,000 £200,000
Total £300,000 £286,793 6.44%
Secure Electrans E-commerce
Limited security
Ordinary equity £100,000 £0
Loan stock £12,000 £12,000
Total £112,000 £12,000 0.27%
Metropolitan Safe Safe
Custody Services depository
Limited services
Ordinary equity £90,000 £129,609
Loan stock £100,000 £100,000
Total £190,000 £229,609 5.16%
Brigantes Energy Energy
Limited
Ordinary equity £125,000 £320,000
Total £125,000 £320,000 7.19%
Corfe Energy Limited Energy
Ordinary equity £75,000 £137,250
Total £75,000 £137,250 3.08%
Dryden Human Capital Human
Group Limited Resources
Ordinary equity £100,035 £14,005
Total £100,035 £14,005 0.31%
AnTech Limited Oil
services
Ordinary equity £120,000 £105,155
Loan stock £150,000 £150,000
Total £270,000 £255,155 5.73%
Hampshire Cosmetics Cosmetics
Limited
Ordinary equity £100,000 £126,718
Loan stock £150,000 £150,000
Total £250,000 £276,718 6.22%
Tollan Energy Limited Energy
Ordinary equity £150,000 £150,000
Loan stock £210,000 £210,000
Total £360,000 £360,000 8.09%
Venn Life Sciences Clinical
Holdings plc research
Ordinary equity £120,033 £76,019
Total £120,033 £76,019 1.71%
C SHARE FUND
Sector Cost Valuation % of total
portfolio
Terrain Energy Limited Energy
Ordinary equity £49,999 £76,164
Loan stock £45,000 £45,000
Total £94,999 £121,164 7.14%
Heritage House Media Digital
Limited media
Ordinary equity £11,033 £0
Loan stock £38,413 £0
Deferred shares £13,098 £0
Total £62,544 £0 0.00%
Human Race Group Limited Sports
Ordinary equity £50,000 £43,396
Loan stock £100,000 £100,000
Total £150,000 £150,000 8.45%
Secure Electrans Limited E-commerce
security
Ordinary equity £50,000 £0
Loan stock £25,000 £25,000
Total £75,000 £25,000 1.47%
Metropolitan Safe Safe
Custody Services Limited depository
services
Ordinary equity £40,000 £57,604
Loan stock £50,000 £50,000
Total £90,000 £107,604 6.34%
Horizon Discovery Biotechnology
Limited
Ordinary equity £50,022 £93,415
Total £50,022 £93,415 5.50%
Pico's Limited Leisure
Ordinary equity £50,013 £64,367
Total £50,013 £64,367 3.79%
Venn Life Sciences Clinical
Holdings plc research
Ordinary equity £80,000 £50,667
Total £80,000 £50,667 2.98%
Quai Administration Business
Services Limited Services
Ordinary equity £150,158 £150,158
Total £150,158 £150,158 8.85%
Scancell Holdings Plc Biotech
Ordinary equity £100,038 £146,700
Total £100,038 £146,700 8.64%
The One Place Capital Technology
Limited (Money
Dashboard)
Ordinary equity £127,000 £127,000
Total £127,000 £127,000 7.48%
Hampshire Cosmetics Cosmetics
Limited
Ordinary equity £50,000 £51,553
Loan stock £100,000 £100,000
Total £150,000 £151,553 8.93%
Events after the period end
Since the period end, Tollan Energy has redeemed £210,000 of its loan stock
from the Ordinary shares portfolio. The proceeds will be used towards paying
the dividend in July.
Other than as described in the paragraphs above the Board is not aware of any
events during the period from 31 May 2014 to the date of this Statement which
would have a material impact on the financial position of the Company.
For further information, please contact:
Gary Dale (Investec Structured Products) 020 7597 4065
INVESTEC STRUC ORD 1P : STRUCTURED PRODUCTS CALCULUS VCT PLC - Interim Management Statement
July 01, 2014 at 09:59 pm IST
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