RNS Number:9913U
Dresdner RCM Endwmnt Policy2003 PLC
24 April 2002
For immediate release 24th April 2002
DRESDNER RCM ENDOWMENT POLICY TRUST 2003 plc
PRELIMINARY ANNOUNCEMENT OF RESULTS
For the year ended 31st March 2002
Investment Review
A summary of the results for the year ended 31st March 2002 is set out overleaf.
The net asset value per ordinary share at 31st March 2002 was 221.3p, compared
to 222.5p per ordinary share at 31st March 2001. This is a decrease of 0.5% over
the last twelve months. Calculations of net asset value are based on data
extracted from recent open market transactions at auction.
The projected final net asset value at 31st October 2003 is 243.9p per share
calculated using the principal bases and assumptions set out below which, inter
alia, assume no further changes in life office bonus rates and that no further
demutualisation proceeds are received. If bonuses were to fall immediately by
20%, the projected final net asset value per share is projected to be 226.9p.
This illustration is given in order to provide an indication of the sensitivity
of the projected final net asset value to bonus rate changes, and should not be
taken as indicating any particular degree of change in bonus rates.
The Company currently has investments in policies valued at £55.0 million from a
total of 46 with-profits life funds. During the twelve months to 31st March 2002
the Company received proceeds of policy maturities amounting to £10.5 million.
The average annualised return on these policies was 11.6% since purchase. The
proceeds have in the main been invested in short term fixed interest securities.
Negative publicity in the wake of bonus rate reductions across the life sector
and the disappointing equity returns had a negative impact on the share price
over the year under review. The season for bonus rate declarations started
earlier than usual for offices like Friends Provident and Scottish Life, and the
general downward trend in payouts was not surprising. However, the Trust's
holding of Standard Life policies, which represented nearly 30% of the policy
portfolio by value at the year end, helped to limit the effect of these rate
changes as the mutual reduced bonuses by a much lesser degree overall than any
of its peer group. Compared to last year, the Trust has experienced a net
overall decrease averaged across the portfolio, equivalent to equal reductions
in both reversionary and terminal bonuses of around 20%. Despite the fact that
markets remain uncertain, we expect the smoothing of returns should continue to
reduce the volatility experienced by the Trust relative to other equity-related
investments.
The Trust has only 18 months before its scheduled winding up in October 2003.
The Managers are developing proposals for a tax efficient roll-over option which
will be offered to shareholders.
Earnings and dividend
The Company is managed with the objective of providing returns to investors
entirely in the form of capital growth. The continuing deficit on the Revenue
Reserve is consistent with this objective. Consequently, no dividend will be
payable.
Status
The Company operates as an approved investment trust within the meaning of
Section 842 of the Income and Corporation Taxes Act 1988. The Company has been
approved by the Inland Revenue as an approved Investment Trust Company for the
year ended 31st March 2001. Such approval is expected to be granted for the year
ended 31st March 2002 . The Company is not a close company.
Annual General Meeting
The Annual General Meeting will be held on Monday 22nd July 2002 at 12:45pm.
10 Fenchurch Street By Order of the Board
London EC3M 3LB P W I Ingram
Company Secretary
PRINCIPAL BASES AND ASSUMPTIONS USED IN PROJECTING THE FINAL NET ASSET VALUE
1) The final net asset value has been calculated as at 31st October 2003
on the basis that all policies are held to maturity and no death claims
arise.
2) The latest reversionary and or demutualisation benefits terminal
bonus rates declared at 31st March 2002 continue to apply until maturity.
3) The estimated mid-market gross redemption yields as at 31st March
2002, for policies of differing remaining terms, are assumed to remain
unchanged.
4) Annual expenses are assumed to be in line with the estimates
originally published in the listing particulars for DEPT 2003 and future
annual inflation is assumed to be 3%. Interest rates over the Company's life
are assumed to be consistent with the shape of the swap yield curve at 31st
March 2002.
DRESDNER RCM ENDOWMENT POLICY TRUST 2003 plc
SUMMARY OF UNAUDITED RESULTS
For the year ended 31st March 2002
STATEMENT OF TOTAL RETURN *
For the year ended 31st March 2002 Revenue Capital Total
£ £ £
Net gains on investments - 431,430 431,430
Income from investments 365,732 - 365,732
Other income 22,748 - 22,748
Management and advisory fees (1,016,646) - (1,016,646)
Expenses of administration (140,191) - (140,191)
Return on ordinary activities (768,357) 431,430 (336,927)
before finance costs and taxation
Finance costs of borrowings (7,245) - (7,245)
Return on ordinary activities before taxation (775,602) 431,430 (344,172)
Taxation - - -
Transfer (from) to reserves (775,602) 431,430 (344,172)
Return per Ordinary Share (2.59)p 1.44p (1.15)p
*The revenue column of this statement is the
profit and loss account of the Company.
NET ASSET STATEMENT
as at 31st March 2002
£
Valuation of investments 65,986,237
Net current assets 438,838
Total Net Assets 66,425,075
Called up Share Capital 3,000,925
Share Premium Account 27,015,040
Capital Reserves :Realised 17,091,375
:Unrealised 26,797,301
Revenue Reserve (7,479,566)
Shareholders' Funds 66,425,075
Net asset value per Ordinary Share 221.3p
The net asset value is based on 30,009,248 Ordinary Shares in issue
STATEMENT OF TOTAL RETURN *
For the year ended 31st March 2001 Revenue Capital Total
£ £ £
Net gains on investments - 4,431,750 4,431,750
Income from investments 114,749 - 114,749
Other income 11,468 - 11,468
Management and advisory fees (995,926) - (995,926)
Expenses of administration (111,161) - (111,161)
Return on ordinary activities (980,870) 4,431,750 3,450,880
before finance costs and taxation
Finance costs of borrowings (65,482) - (65,482)
Return on ordinary activities before taxation (1,046,352) 4,431,750 3,385,398
Taxation (736) - (736)
Transfer (from) to reserves (1,047,088) 4,431,750 3,384,662
Return per Ordinary Share (3.49p) 14.77p 11.28p
*The revenue column of this statement is the profit
and loss account of the Company.
NET ASSET STATEMENT
As at 31st March 2001 £
Valuation of Investments 65,750,422
Net current assets 1,018,825
Total Net Assets 66,769,247
Called up Share Capital 3,000,925
Share Premium Account 27,015,040
Capital Reserves :Realised 11,143,854
:Unrealised 32,313,392
Revenue Reserve (6,703,964)
Shareholders' Funds 66,769,247
Net asset value per Ordinary Share 222.5p
The net asset value is based on 30,009,248 Ordinary Shares in issue.
CASH FLOW STATEMENT
For the two years ended 31st March 2002 and 2001
2002 2001
£ £
Net cash outflow from operating activities (843,751) (1,006,849)
Servicing of Finance
Interest paid (9,737) (64,921)
Taxation
Income tax repaid 1,301 1,499
Investing activities
Acquisition of investments (10,223,859) (2,337,066)
Receipts from demutualisations 335,643 1,263,750
Disposal of investments 10,608,054 4,560,068
Net cash inflow from financial investment 719,838 3,486,752
Net cash (outflow) inflow before financing (132,349) 2,416,481
Financing (1,500,000)
Repayment of Medium Term Loan -
(Decrease) increase in cash (132,349) 916,481
The financial information set out in the announcement does not constitute the
Company's statutory accounts for the years ended 31st March 2002 or 31st March
2001. The financial information for the year ended 31st March 2001 is derived
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts; their report
was unqualified and did not contain a statement under section 237(2) or (3) of
the Companies Act 1985. The statutory accounts for the year ended 31st March
2002 will be finalised on the basis of the financial information presented by
the Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.
TWENTY LARGEST HOLDINGS
BY LIFE OFFICE
AS AT 31st MARCH 2002
Value of Policies % of
£000s Total Investments
Standard Life 16,463 25.0
CGNU (Norwich Union) 5,424 8.2
Legal & General 4,387 6.6
Scottish Widows 3,981 6.0
Royal & Sun Alliance (Royal Life) 2,740 4.2
Prudential 2,440 3.7
Prudential (Scottish Amicable) 2,204 3.3
Clerical Medical and General 1,554 2.4
AXA Equity and Law 1,390 2.1
Friends Provident 1,250 1.9
CGNU (Commercial Union) 1,178 1.8
Guardian Assurance 1,170 1.8
Scottish Life 1,154 1.7
CGNU (General Accident) 1,010 1.5
Scottish Provident 1,008 1.5
Scottish Mutual 641 1.0
Colonial 618 0.9
National Mutual Life 518 0.8
Alba Life (Crusader) 517 0.8
Friends Provident (London and Manchester) 460 0.7
Holdings in other offices 50,107 75.9
4,861 7.4
Total holding of endowment policies 54,968 83.3
LISTED EQUITY HOLDINGS
AS AT 31st MARCH 2002
£'000s % of Total Investments
CGNU 132 0.2
Friends Provident 247 0.4
379 0.6
FIXED INTEREST HOLDINGS
AS AT 31st MARCH 2002
£'000s % of Total Investments
Abbey National Treasury 8% £ BD 2/4/03 1,183 1.8
KFW International 6% 27.10.03 5,456 8.3
DRSEPT Zero Coupon Uns Loan Notes 4,000 6.0
10,639 16.1
Total Invested Funds 65,986 100.0
For further information, please contact
Simon White, Dresdner RCM Global Investors (UK) Ltd
Tel: 020 7475 7106
or
Tessa Murray, Dresdner RCM Global Investors (UK) Ltd
Tel: 020 7475 8861
This information is provided by RNS
The company news service from the London Stock Exchange
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