TIDMHSGU TIDMHSGS
RNS Number : 0612T
HSBC Global Absolute Limited
29 May 2009
HSBC GLOBAL ABSOLUTE LIMITED
INTERIM REPORT AND CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS ENDED 31 MARCH 2009
TABLE OF CONTENTS
+--------------------------------------------------------------------------+--------------+
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| General Information | 1-2 |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| Directors' Responsibility Statement | 3 |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| Investment Adviser's Report | 4 |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| Condensed Financial Statements: | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| - Condensed Income Statement | 5 |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| - Condensed Statement of Changes in Shareholders' Equity | 6 |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| - Condensed Balance Sheet | 7 |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| - Condensed Statement of Cash Flows | 8 |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| - Notes to the Condensed Financial Statements | 9-20 |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| Schedule of Investments | 21-23 |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
| | |
+--------------------------------------------------------------------------+--------------+
GENERAL INFORMATION
Manager, Company Secretary HSBC Management (Guernsey)
Limited
and Registered Office St. Martin's House
Le
Bordage
St. Peter
Port
Guernsey
GY1 1BP
Directors Mr Raymond
Philip Apsey (Chairman)
Mr Paul
Wrench
Mr Keith
Dorrian
Mr Ian
Domaille
Mr Stuart
Carnegie
Banker HSBC Private
Bank (C.I.) Limited
Park
Place
Park
Street
St. Peter
Port
Guernsey
GY1 1EE
Investment Adviser HSBC Alternative
Investments Limited
5th
Floor, 78 St James's Street
London
SW1A 1JB
Solicitors to the Company Herbert Smith LLP
in England Exchange House
Primrose
Street
London EC2A
2HS
Legal Advisers to the Company Carey Olsen
in Guernsey PO Box 98
7 New
Street
St. Peter
Port
Guernsey
GY1 4BZ
Channel Islands Sponsor HSBC Management
(Guernsey) Limited
St.
Martin's House
Le
Bordage
St. Peter
Port
Guernsey
GY1 1BP
Independent Auditors KPMG Channel
Islands Limited
20 New
Street
St. Peter
Port
Guernsey
GY1 4AN
Registrar
Capita Registrars (Guernsey) Limited
Longue
Hogue House
St.
Sampson
Guernsey
GY2 4JN
Custodian State Street
Custodial Services (Ireland) Limited
Block D
Iveagh
Court
Harcourt
Road
Dublin 2
The Fund HSBC Global
Absolute Limited (the "Company") is a Guernsey registered, closed-end investment
company. The Company was incorporated and registered in Guernsey on 14 August
2001, under the Companies (Guernsey) Laws 1994 to 1996 (as amended) with
registered number 38660. The initial Shares in the Company were offered at a
price of 100p each by HSBC and were also available in US Dollar denominated
Global Depositary Receipts ("GDRs"). As of 30 November 2004, the Company
introduced currency hedging on the Sterling class to protect from fluctuations
in the US Dollar/Sterling exchange rate. This was carried out by reclassifying
Sterling class shares previously held directly by Shareholders, i.e. not in the
form of GDRs, into new Sterling Hedged Shares. At the same time, all shares
previously represented by GDRs, were reclassified as new US Dollar Shares.
Shareholders automatically received new US Dollar Shares if they held GDRs
and/or Sterling Hedged Shares if they held their Shares directly. Shareholders
may, however, elect to receive shares of the other class. The Company is listed
on the Channel Islands Stock Exchange and the London Stock Exchange.
Objective The Company's
objective is to seek to achieve equity-like returns with lower levels of
volatility. Its policy is to achieve this by investing in a diversified
portfolio of hedge funds and managed accounts investing in global markets which
are managed to seek to provide investors with an absolute total return with a
lower volatility than equities generally.
Net Asset Value The Net Asset
Value ("NAV") of the Company is calculated monthly with the relevant valuation
point being 5.00pm (Guernsey time) on the last Business Day of each month. A
further two estimated NAVs are calculated and published each month.
DIRECTORS' RESPONSIBILITY STATEMENT
We confirm that to the best of our knowledge:
* The condensed set of financial statements, which has been prepared in accordance
with IAS 34 'Interim Financial Reporting', gives a true and fair view of the
assets, liabilities, financial position and profit or loss of the issuer, or the
undertakings included in the consolidation as a whole as required by Disclosure
and Transparency Rules ("DTR") 4.1.12R;
* the interim Investment Advisers Report includes a fair review of the information
required by DTR 4.2.7 R; (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six months of the year); and
* the interim Investment Advisers Report includes a fair review of the information
required by DTR 4.2.8 R, in the case of an issuer of shares (disclosure of
related parties' transactions and changes therein).
By order of the Board
____________________ __________________
Director Director
Date: 29 May 2009
INVESTMENT ADVISER'S REPORT
For the period 30 September 2008 to 31 March 2009, the portfolio fell and the
assets also decreased.
Over the reporting period, global central banks moved aggressively to combat the
global financial and economic crisis with the major central banks cutting rates
and embarking on various quantitative easing policies. During that time, equity
markets tumbled, with the MSCI Global Index in USD falling over 21% in Q4-2008
and 12% in the first quarter of 2009. Towards the end of 2008, credit spreads
across both investment grade and high yield instruments remained at historically
wide levels, but began to gradually improve in early 2009 as new issues came to
market and which were well bid. The convertible bonds space was extremely hard
hit in Q4-2008 as dislocations widened sharply due to elevated sell-offs. The
asset-class has, however, picked up in 2009 as investor appetite returned.
Commodities markets were mixed during the period, with both oil and copper
falling heavily in Q4-2008 but bouncing back in Q1-2009, while gold returned
more consistent performance. In currencies, the US Dollar strengthened against
the Euro, the Japanese Yen and the Pound in Q4-2008, but the Yen then
strengthened against the US Dollar in Q1-2009.
Against this backdrop, the portfolio fell during the reporting period, with the
multi-strategy/event driven, convertible arbitrage and high yield/distressed
strategies detracting from performance. All other strategies returned positive
performance. The largest allocation in the portfolio was to the equity
long/short strategy which was the strongest performer. Equity long/short
managers with exposure to emerging markets in Q4-2008 suffered as these markets
fell and liquidity remained poor. In early 2009, managers benefited from an
overall short bias to equity markets, particularly to financials and healthcare
stocks, however these gains were partially offset in March 2009 as equity
markets rallied. Short positioning in mid-caps, commodity names and highly
geared companies were especially detrimental. Managed futures strategies
contributed some positive performance as they benefited from the slump in
commodity prices and sustained trends in currency, bond and interest rate
markets at the end of 2008 and early 2009. March 2009, however, saw some
managers suffer as many long term trends in commodities and equity markets
reversed sharply, thereby erasing some prior gains. The market neutral strategy
was marginally positive as statistical arbitrage managers benefited from high
levels of equity market volatility. The largest single contribution came from a
macro manager whose gains were largely due to the fixed income directional
trades especially at the short end of government bond yield curves, and partly
from currency directional trades. On the down-side the multi-strategy/event
driven strategies suffered in Q4-2008 as ongoing deleveraging put pressure on
less liquid markets. Managers were particularly hard hit in October as bank debt
sold off considerably, merger spreads widened and emerging markets fell sharply.
The strategy was, however, positive in Q1-2009, benefiting from increasing
merger opportunities particularly in the banking, pharmaceutical and mining
space as industries were being forced to consolidate. As intimated above, the
convertible arbitrage strategy also suffered heavily in the fourth quarter of
2008 from the overall deleveraging as secondary trading volume remained weak and
new issuance was scarce, but the strategy has begun to recover in 2009.
Moreover, high-yield/distressed managers suffered as large scale redemptions
across hedge fund managers drove down asset prices specifically for bank debt
and loans.
During the reporting period, six new managers were added to the portfolio and
two allocations were increased, while the Fund redeemed seven managers and
reduced two allocations. Overall, the allocation to equity long/short managers
increased notably with some reduced and redeemed managers being replaced with
new ones. The allocation to the high yield/distressed strategy also increased.
Meanwhile, the multi-strategy/event driven strategy allocation was reduced as
other strategies remained relatively constant.
HSBC Alternative Investments Limited
March 2009
+-----------------+--------+--------+---------+--------+---------+
| CONDENSED INCOME STATEMENT FOR THE PERIOD ENDED 31 |
| MARCH 2009 |
+----------------------------------------------------------------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | 31 | | 31 |
| | | | March | | March |
| | | | 2009 | | 2008 |
+-----------------+--------+--------+---------+--------+---------+
| | Note | | US$'000 | | US$'000 |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Interest | | | | | |
| income | | | | | |
| for | | | | | |
| financial | | | | | |
| assets | | | | | |
| that are | | | | | |
| not at | | | | | |
| fair | | | | | |
| value | | | | | |
| through | | | | | |
| profit or | | | | | |
| loss: | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| - Cash | | | 1,869 | | 17 |
| and | | | | | |
| cash | | | | | |
| equivalents | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Net (loss)/gain | 4 | | (7,026) | | 1,427 |
| on financial | | | | | |
| assets held at | | | | | |
| fair value | | | | | |
| through profit | | | | | |
| or loss | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Net | | | (5,157) | | 1,444 |
| investment | | | | | |
| (loss)/income | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Management | 8 | | (868) | | (1,075) |
| fee | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Performance | 8 | | - | | 275 |
| fee | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Directors' | 8 | | (59) | | (52) |
| fees and | | | | | |
| expenses | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Other | | | (228) | | (192) |
| operating | | | | | |
| expenses | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Total | | | (1,155) | | (1,044) |
| operating | | | | | |
| expenses | | | | | |
| before | | | | | |
| finance | | | | | |
| costs | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Net | | | (6,312) | | 400 |
| (loss)/income | | | | | |
| from | | | | | |
| operations | | | | | |
| before | | | | | |
| finance costs | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| Interest | | | | | |
| expense | | | | | |
| for | | | | | |
| financial | | | | | |
| liabilities | | | | | |
| that are | | | | | |
| not at fair | | | | | |
| value | | | | | |
| through | | | | | |
| profit or | | | | | |
| loss: | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| - | | | (125) | | (56) |
| Interest | | | | | |
| expense | | | | | |
| on loans | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| (Loss)/profit | | | (6,437) | | 344 |
| for the | | | | | |
| period after | | | | | |
| finance costs | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
| The items in the above | | | |
| statement are derived | | | |
| from continuing | | | |
| operations | | | |
+-----------------------------------+---------+--------+---------+
| | | | | | |
+-----------------+--------+--------+---------+--------+---------+
The notes on pages 9 to 20 form an integral part of these financial statements.
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE PERIOD ENDED 31 MARCH 2009
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | Redeemable Preference Shares | |
+----------------------------+----+----------+--------------------------------+----------+
| | | Nominal | Share | Share | Retained | Total |
| | | shares | capital | premium | earnings | |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| Balance at 30 September | | 1,690 | 1,188 | 134,410 | 667 | 137,955 |
| 2007 | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| Profit for the period | | - | - | - | 344 | 344 |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| Issue of shares | | - | 107 | 11,428 | - | 11,535 |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| Redemption of shares | | (77) | (65) | (6,534) | - | (6,676) |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| Balance at 31 March 2008 | | 1,613 | 1,230 | 139,304 | 1,011 | 143,158 |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| Balance at 30 September | | 1,736 | 958 | 106,842 | (10,472) | 99,064 |
| 2008 | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| Loss for the period | | - | - | - | (6,437) | (6,437) |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| Issue of shares | | 278 | 266 | 34,032 | - | 34,576 |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| Redemption of shares | | (820) | (91) | (14,639) | - | (15,550) |
+----------------------------+----+----------+----------+----------+----------+----------+
| | | | | | | |
+----------------------------+----+----------+----------+----------+----------+----------+
| Balance at 31 March 2009 | | 1,194 | 1,133 | 126,235 | (16,909) | 111,653 |
+----------------------------+----+----------+----------+----------+----------+----------+
The notes on pages 9 to 20 form an integral part of these financial statements.
+-------------+----+----+--------+--------+----+--------+----+--------+----+----+----+----+--------+
| CONDENSED BALANCE SHEET | | | | |
| AS AT 31 MARCH 2009 | | | | |
+--------------------------------+--------+------------------+--------+----------------------------+
| | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | | | 31 March 2009 | | 30 September 2008 |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | Note | | US$'000 | | US$'000 |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Assets | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Financial | 3 | | 109,288 | | 108,224 |
| assets at | | | | | |
| fair | | | | | |
| value | | | | | |
| through | | | | | |
| profit or | | | | | |
| loss | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Cash | 2 | | 197 | | 2,192 |
| and | | | | | |
| cash | | | | | |
| equivalents | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Other | 5 | | 2,446 | | 6,747 |
| receivables | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Total | | | 111,931 | | 117,163 |
| assets | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Liabilities | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Financial | | | - | | (167) |
| liabilities | | | | | |
| at fair | | | | | |
| value | | | | | |
| through | | | | | |
| profit or | | | | | |
| loss | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Loans | 9 | | - | | (15,683) |
| payable | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Accounts | 6 | | (278) | | (2,249) |
| payable | | | | | |
| and | | | | | |
| accrued | | | | | |
| expenses | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Total | | | (278) | | (18,099) |
| liabilities | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Net | | | 111,653 | | 99,064 |
| assets | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Equity: | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Share | 7 | | 1,133 | | 958 |
| capital | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Share | 7 | | 126,235 | | 106,842 |
| premium | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Nominal | 7 | | 1,194 | | 1,736 |
| shares | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| Retained | | | (16,909) | | (10,472) |
| earnings | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | | | 111,653 | | 99,064 |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| | | | | | |
+-------------+------------------+--------+------------------+--------+----------------------------+
| US$ redeemable | | US$1.7786 | | US$1.8367 |
| participating preference | | | | |
| shares - net assets value | | | | |
| per share based on | | | | |
| 37,231,054 | | | | |
| (2008: 41,365,763) shares | | | | |
| outstanding | | | | |
+--------------------------------+--------+------------------+--------+----------------------------+
| | | | | | |
+-----------------------+--------+--------+------------------+--------+----------------------------+
| GBP Hedged redeemable | | GBP0.9509 | | GBP0.9915 |
| participating preference | | | | |
| shares - net assets value | | | | |
| per share based on | | | | |
| 16,926,624 | | | | |
| (2008: 11,907,598) shares | | | | |
| outstanding | | | | |
+--------------------------------+--------+------------------+--------+----------------------------+
| | | | | |
+--------------------------------+--------+------------------+--------+----------------------------+
| EUR redeemable | | EUR1.4019 | | - |
| participating preference | | | | |
| shares - net assets value | | | | |
| per | | | | |
| share based on 11,437,819 | | | | |
| (2008: Nil) shares | | | | |
| outstanding | | | | |
+--------------------------------+--------+------------------+--------+----------------------------+
| |
+--------------------------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------------------------+
| The EUR Share Class launched on 31 October 2008. |
+--------------------------------------------------------------------------------------------------+
| | | | | | |
+------------------+---------------------------+--------+------------------+---------+-------------+
| The financial statements on pages 5 to 8 were approved by the Board of Directors on 29 May |
| 2009 and were signed on its behalf by: |
+--------------------------------------------------------------------------------------------------+
| | | | | |
+----------------------------------------------+--------+------------------+---------+-------------+
| | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| Director | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| Director | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| | | | | | |
+------------------+---------------------------+--------+-----------------------+---------+--------+
| | | | | | |
+-------------+----+----+--------+--------+----+--------+----+--------+----+----+----+----+--------+
The notes on pages 9 to 20 form an integral part of these financial statements.
+---------------------------------------------+---+----------+---------+--+----------+---------+
| CONDENSED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 MARCH 2009 |
+----------------------------------------------------------------------------------------------+
| | | | | |
+---------------------------------------------+---+--------------------+--+--------------------+
| | | 31 March 2009 | | 31 March 2008 |
+---------------------------------------------+---+--------------------+--+--------------------+
| | | US$'000 | US$'000 | | US$'000 | US$'000 |
| | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Operating Activities: | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| (Loss)/profit for the period | | (6,437) | | | 344 | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Adjustments for: | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Net realised gain on investments | | (25) | | | (2,848) | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Net unrealised loss on investments | | 4,451 | | | 443 | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Net movement in unrealised (gain)/loss on | | (417) | | | 695 | |
| forward foreign currency contracts | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| (Increase) in debtors | | (31) | | | (81) | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| (Decrease) in creditors | | (212) | | | (775) | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Net cash outflow from operating activities | | | (2,671) | | | (2,222) |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Investing activities: | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Purchase of financial assets at fair value | | (30,852) | | | (29,497) | |
| through profit or loss | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Sale of financial assets at fair value | | 27,687 | | | 34,098 | |
| through profit or loss | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Net cash (outflow)/inflow from investing | | | (3,165) | | | 4,601 |
| activities | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Financing activities: | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Repayment of loans | | (45,604) | | | (14,158) | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| New loans advanced | | 29,876 | | | 7,027 | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Proceeds from issue of redeemable | | 34,298 | | | 11,535 | |
| participating preference shares | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Amounts paid on redemption of redeemable | | (14,729) | | | (6,599) | |
| participating preference shares | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Net cash inflow/(outflow) from financing | | | 3,841 | | | (2,195) |
| activities | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Net (decrease)/increase in cash and cash | | | (1,995) | | | 184 |
| equivalents | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Cash and Cash equivalents at start of | | | 2,192 | | | 4 |
| period | | | | | | |
+---------------------------------------------+---+----------+---------+--+----------+---------+
| Cash and Cash equivalents at end of period | | | 197 | | | 188 |
+---------------------------------------------+---+----------+---------+--+----------+---------+
+---------------------------------------------+---+---------+---------+--+----------+---------+
| Supplementary Information: | | | | | | |
+---------------------------------------------+---+---------+---------+--+----------+---------+
| Interest received | | | 1,869 | | | 17 |
+---------------------------------------------+---+---------+---------+--+----------+---------+
| Interest paid | | | (125) | | | (56) |
+---------------------------------------------+---+---------+---------+--+----------+---------+
The notes on pages 9 to 20 form an integral part of these financial statements.
1SIGNIFICANT ACCOUNTING POLICIES
HSBC Global Absolute Limited (the "Company") is a close-ended investment fund
incorporated as a limited liability company under the Companies (Guernsey) Laws
1994 to 1996 of Guernsey on 14 August 2001. The Company's shares are listed on
the Channel Island Stock Exchange and the London Stock Exchange.
The objective of the Company is to provide shareholders with an absolute total
return and with a lower volatility than equities in general through a simple
structure and diversified portfolio managed by an experienced investment team.
The Company's investment policy is to invest in hedge funds and hedge fund
strategies managed by a number of different investment managers which invest
globally. The Investment Adviser will seek to achieve this by investing in a
diversified portfolio of holdings in hedge funds and managed accounts exposed to
long/short strategies investing in global markets.
The financial statements were authorised for issue by the Board of Directors on
29 May 2009.
a) Changes in Presentation
The Company has decided to adopt a condensed set of financial statements for the
Interim Reports. The Company prepares these financial statements in accordance
with International Financial Reporting Standard IAS 34: Interim Financial
Reporting ("IAS34") issued by the International Accounting Standards Board (the
"IASB"), and comply with the Companies (Guernsey) Laws 1994 to 2008. As a result
these financial statements, which are a condensed set of financial statements
prepared in accordance with section 8 of IAS 34, do not include all the
disclosures as required for the Company's annual financial statements.
b) Basis of preparation
The accounting policies set out below have been applied consistently to all
periods presented in the financial statements.
The financial statements are presented in U.S. dollars and rounded to the
nearest thousand dollars. They are prepared on a fair value basis for
derivative financial instruments, financial assets and financial liabilities at
fair value through profit or loss. Other financial assets and financial
liabilities are stated at amortised cost.
The preparation of financial statements in conformity with IFRSs requires
management to make judgments, estimates and assumptions that affect the
application of policies and the reported amounts of assets and liabilities,
income and expense. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making the judgments about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
The accounting policies have been applied consistently by the Company in
dealings with items which are considered material in relation to the Company's
financial statements.
The financial statements have been prepared using accounting policies consistent
with International Financial Reporting Standards, subject to the above mentioned
amendments in relation to the production of Interim Financial Statements, and in
accordance with International Financial Reporting Standards (IFRS) 34 - 'Interim
Financial Reporting', as adopted by the International Accounting Standards Board
(IASB), and interpretations issued by the International Reporting
Interpretations Committee of the IASB (IFRIC).
There has been no effect in the financial position, financial performance and
cashflows of the company from the transition from previous GAAP (UK accounting
standards) to IFRS other than to modify the layout and presentation in certain
items.
Accounting policies and methods of computation followed in these interim
financial statements are consistent with those applied in the most recent annual
financial statements.
1 SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
c) Foreign currency translation
Presentational and functional 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"). The Company's functional currency is the US Dollar
(US$), and the Company has also selected the US Dollar as the currency in which
it presents the financial statements.
Transactions and balances
Transactions in foreign currencies, other than US Dollars, are translated at the
foreign currency exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies are translated to US
Dollars at the foreign currency closing exchange rate ruling at the balance
sheet date. Foreign currency exchange differences arising on translation and
realised gains and losses on disposals or settlements of monetary assets and
liabilities are recognised in the income statement. Foreign currency exchange
differences relating to investments at fair value through the profit or loss and
derivative financial instruments are included in net gains and losses on
investments and net foreign exchange gains and losses, respectively.
d) Financial instruments
* Classification
IAS 39 establishes specific categories into which all financial assets and
liabilities must be classified. The classification of financial instruments
dictates how these assets and liabilities are subsequently measured in the
financial statements. There are four categories of financial assets: assets at
fair value through profit or loss, available for sale, loans and receivables and
held to maturity.
The Company classifies its investments in debt and equity securities, and
related derivatives, as financial assets or financial liabilities at fair value
through profit or loss. These financial assets and financial liabilities are
classified as held for trading or designated by the Board of Directors at fair
value through profit or loss at inception.
Classification of debt and equities
* Financial assets or financial liabilities held for trading are those acquired or
incurred principally for the purposes of selling or repurchasing in the short
term. Derivatives are also categorised as financial assets or financial
liabilities held for trading. These include forward foreign currency contracts.
The Company does not classify any derivatives as hedges in a hedging
relationship. All derivatives in a net receivable position (positive fair value)
are reported as financial assets held for trading. All derivatives in a net
payable position (negative fair value) are reported as financial liabilities
held for trading.
* Financial assets and financial liabilities designated at fair value through
profit or loss at inception are those that are managed and their performance
evaluated on a fair value basis in accordance with the Company's documented
investment strategy. The Company's policy is for the Investment Manager and the
Board of Directors to evaluate the information about these financial assets on a
fair value basis together with other related financial information. These
included investment in Investment Funds.
* Financial assets that are classified as loans and receivables include accounts
receivable and equalisation paid on investments.
* Financial liabilities that are not at fair value through profit or loss include
accounts payable.
(ii) Recognition
Financial assets and liabilities are recognised on the Company's balance sheet
when the Company becomes a party to the contractual provisions of the
instrument.
1 SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
d) Financial instruments (continued)
(ii) Recognition (continued)
A regular way purchase of financial assets is recognised using trade date
accounting - the date on which the Company commits to purchase or sell the
investment. Investments are derecognised where the rights to receive cash flows
from the investments have expired or the Company has transferred substantially
all risks and rewards of ownership. From this date any gains and losses arising
from changes in fair value of the financial assets or financial liabilities are
recorded.
(iii) Measurement
Financial instruments are measured initially at fair value. Transaction costs on
financial assets and financial liabilities at fair value through profit or loss
are expensed immediately. Subsequent to initial recognition, all instruments
classified at fair value through profit or loss are measured at fair value with
changes in their fair value recognised in the income statement.
Financial assets classified as loans and receivables are carried at amortised
cost using the effective interest rate method, less impairment losses, if any.
Financial liabilities, other than those at fair value through profit or loss,
are measured at amortised cost using the effective interest rate method.
(iv) Fair value measurement principles
The fair value of financial instruments traded in active markets is based on
quoted market bid prices at the balance sheet date. The fair value of
investments in investment funds is based on the net asset value per share of the
underlying investment funds as at the balance sheet date as advised by the fund
administrators of those funds.
The Company may from time to time invest in financial instruments that are not
traded on an active market. The fair value of such instruments is determined by
using appropriate valuation techniques, which in the opinion of the directors,
provide the best estimates of the fair value of such investments.
(v) Right of offset
Financial assets and liabilities are offset and the net amount presented in the
Balance Sheet when, and only when, the company has a legal right to set off the
amounts and intends either to settle on a net basis only when permitted by the
accounting standards.
(vi) Impairment
Financial assets that are stated at cost or amortised cost are reviewed at each
balance sheet date to determine whether there is objective evidence of
impairment. If any such indication exists, an impairment loss is recognised in
the income statement as the difference between the asset's carrying amount and
the present value of estimated future cash flows discounted at the financial
asset's original effective interest rate.
If in a subsequent period the amount of an impairment loss recognised on a
financial asset carried at amortised cost decreases and the decrease can be
linked objectively to an event occurring after the write down, the write down is
reversed through the income statement.
(vii) Specific instruments
Cash and cash equivalents
Cash comprises cash balances and call deposits with banks. Cash equivalents are
short-term highly liquid investments that are readily convertible to known
amounts of cash, are subject to an insignificant risk of changes in value, and
are held for the purpose of meeting short-term cash commitments rather than for
investment or other purposes.
1 SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
d) Financial instruments (continued)
(vii) Specific instruments (continued)
Forward contracts
Forward contracts are commitments to either purchase or sell a designated
financial instrument, currency or an index at a specified future date for a
specified price and may be settled in cash or another financial asset. Forward
contracts are valued by reference to the forward price at which a new contract
of the same size and maturity could be undertaken at the valuation date. The
unrealised gain or loss on open forward contracts is calculated as the
difference between the contract rate and this forward price (the rate to close
out the contract). Unrealised gains and losses on forward contracts are
recognised in the income statement and reported in the Balance Sheet as an asset
or a liability respectively.
e) Revenue and expenses
Interest income and expense is recognised in the income statement as it accrues,
using the original effective interest rate of the instrument calculated at the
acquisition or origination date. Interest income includes the amortisation of
any discount or premium, transaction costs or other differences between the
initial carrying amount of an interest-bearing instrument and its amount at
maturity calculated on an effective interest rate basis.
Expenses are accounted for on an accruals basis.
f) Shares
The Company has a twice yearly tender facility under which, subject to certain
limitations and the Directors exercising their discretion to operate the
facility, shareholders are entitled to have their shareholding, up to a maximum
specified by the Board, purchased by the Company at a price equal to the net
asset value per share (less any tender costs), as appropriate, calculated as at
the relevant tender date. The Directors meet regularly to consider the operation
of the tender facility in the light of prevailing market conditions, shareholder
sentiment and legal constraints.
The Company also has a twice yearly conversion facility under which, subject to
certain limitations and the Directors exercising their discretion to operate the
facility, investors are provided the opportunity to convert shares of either
class into shares of the other class. Such conversion will be on the basis of
the ratio of the last reported net asset value of the class of shares held to
the last reported net asset value of the class of shares into which they will be
converted and otherwise as set out in the Company's articles of association.
+--------+--------+-------------+---------+--------+---------+
| 2 | | CASH | | | |
| | | AND | | | |
| | | CASH | | | |
| | | EQUIVALENTS | | | |
+--------+--------+-------------+---------+--------+---------+
| | | | 2009 | | 2008 |
+--------+--------+-------------+---------+--------+---------+
| | | | US$'000 | | US$'000 |
+--------+--------+-------------+---------+--------+---------+
| | | | | | |
+--------+--------+-------------+---------+--------+---------+
| | | Cash | 197 | | 2,192 |
| | | and | | | |
| | | cash | | | |
| | | equivalents | | | |
+--------+--------+-------------+---------+--------+---------+
| | | | | | |
+--------+--------+-------------+---------+--------+---------+
Cash and Cash Equivalents is made up of cash deposits of US$196,673. Material
cash balances are held with the custodian, State Street Custodial Services
(Ireland) Limited.
+--------+--------+------------+---------+--------+--------------+
| 3 | | FINANCIAL | | | |
| | | INSTRUMENT | | | |
| | | CATEGORY | | | |
+--------+--------+------------+---------+--------+--------------+
| | | | 31 | | 30 September |
| | | | March | | 2008 |
| | | | 2009 | | |
+--------+--------+------------+---------+--------+--------------+
| | | | US$'000 | | US$'000 |
+--------+--------+------------+---------+--------+--------------+
| | | | | | |
+--------+--------+------------+---------+--------+--------------+
| | | Designated | | | |
| | | at fair | | | |
| | | value | | | |
| | | through | | | |
| | | profit or | | | |
| | | loss: | | | |
+--------+--------+------------+---------+--------+--------------+
| | | - | 109,288 | | 108,224 |
| | | Hedge | | | |
| | | funds | | | |
+--------+--------+------------+---------+--------+--------------+
| | | Total | 109,288 | | 108,224 |
| | | financial | | | |
| | | assets at | | | |
| | | fair | | | |
| | | value | | | |
| | | through | | | |
| | | profit or | | | |
| | | loss | | | |
+--------+--------+------------+---------+--------+--------------+
+--------+--------+-------------------+---------+--------+---------+
| 4 | | NET (LOSSES)/GAINS ON FINANCIAL |
| | | ASSETS HELD AT FAIR VALUE THROUGH |
| | | PROFIT OR LOSS |
+--------+--------+------------------------------------------------+
| | | | 31 | | 31 |
| | | | March | | March |
| | | | 2009 | | 2008 |
+--------+--------+-------------------+---------+--------+---------+
| | | | US$'000 | | US$'000 |
+--------+--------+-------------------+---------+--------+---------+
| | | | | | |
+--------+--------+-------------------+---------+--------+---------+
| | | Net | | | |
| | | (losses)/gains on | | | |
| | | financial assets | | | |
| | | at fair value | | | |
| | | through profit or | | | |
| | | loss: | | | |
+--------+--------+-------------------+---------+--------+---------+
| | | - | 25 | | 2,848 |
| | | Realised | | | |
| | | gains on | | | |
| | | investments | | | |
+--------+--------+-------------------+---------+--------+---------+
| | | - | (3,927) | | (283) |
| | | Realised | | | |
| | | losses | | | |
| | | on | | | |
| | | currency | | | |
+--------+--------+-------------------+---------+--------+---------+
| | | - | (3,541) | | (443) |
| | | Net | | | |
| | | unrealised | | | |
| | | losses on | | | |
| | | investments | | | |
+--------+--------+-------------------+---------+--------+---------+
| | | - | 417 | | (695) |
| | | Net | | | |
| | | unrealised | | | |
| | | gains/(losses) | | | |
| | | on forwards | | | |
+--------+--------+-------------------+---------+--------+---------+
| | | | | | |
+--------+--------+-------------------+---------+--------+---------+
| | | Total | (7,026) | | 1,427 |
| | | net | | | |
| | | (losses)/gains | | | |
+--------+--------+-------------------+---------+--------+---------+
| | | | | | |
+--------+--------+-------------------+---------+--------+---------+
| | | Gains and losses presented above |
| | | excludes interest income, |
| | | dividend income and interest |
| | | expense |
+--------+--------+-------------------+---------+--------+---------+
+--------+--------+-------------+---------+--------+-----------+
| 5 | | OTHER | | | |
| | | RECEIVABLES | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | | 31 | | 30 |
| | | | March | | September |
+--------+--------+-------------+---------+--------+-----------+
| | | | 2009 | | 2008 |
+--------+--------+-------------+---------+--------+-----------+
| | | | US$'000 | | US$'000 |
+--------+--------+-------------+---------+--------+-----------+
| | | | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | Amounts | - | | 5,000 |
| | | paid in | | | |
| | | advance | | | |
| | | of | | | |
| | | securities | | | |
| | | purchased | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | Amounts | 1,221 | | 11 |
| | | receivable | | | |
| | | on | | | |
| | | securities | | | |
| | | sold | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | Amounts | 1,194 | | 1,736 |
| | | due | | | |
| | | from | | | |
| | | Investment | | | |
| | | Manager | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | Other | 31 | | - |
| | | receivables | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | | 2,446 | | 6,747 |
+--------+--------+-------------+---------+--------+-----------+
+--------+--------+-------------+---------+--------+-----------+
| 6 | | ACCOUNTS | | | |
| | | PAYABLE | | | |
| | | AND | | | |
| | | ACCRUED | | | |
| | | EXPENSES | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | | 31 | | 30 |
| | | | March | | September |
+--------+--------+-------------+---------+--------+-----------+
| | | | 2009 | | 2008 |
+--------+--------+-------------+---------+--------+-----------+
| | | | US$'000 | | US$'000 |
+--------+--------+-------------+---------+--------+-----------+
| | | | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | Amount | - | | (2,000) |
| | | received | | | |
| | | in | | | |
| | | advance | | | |
| | | of | | | |
| | | securities | | | |
| | | sold | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | Accrued | (57) | | (16) |
| | | Directors' | | | |
| | | fees | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | Accrued | (145) | | (139) |
| | | expenses | | | |
| | | due to | | | |
| | | Manager | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | Accrued | - | | (30) |
| | | performance | | | |
| | | fee | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | Other | (76) | | (64) |
| | | accrued | | | |
| | | expenses | | | |
+--------+--------+-------------+---------+--------+-----------+
| | | | (278) | | (2,249) |
+--------+--------+-------------+---------+--------+-----------+
7SHARE CAPITAL
The Company's capital is represented by the nominal shares and redeemable shares
outstanding. The Company does not have any externally imposed capital
requirements.
The Company strives to invest the subscriptions of redeemable shares in
investments that meet the Company's investment objectives while maintaining
sufficient liquidity to meet operating requirements.
The Company has the authority to purchase up to 10% of the Redeemable
participating preference shares in issue and hold them as Treasury Shares until
a time when they are either re-issued or cancelled. As at 31 March 2009 the
Company held 3,723,105 US Dollar Shares, 1,181,988 Sterling Hedged Shares and
80,000 Euro Shares in treasury (2008: 4,026,576 US Dollar Shares, 1,080,759
Sterling Hedged Shares and Nil Euro Shares).
The authorised shares of the Company were:
+------------------------------------------------------------+------------+------------+
| | 31 March | 30 |
| | 2009 | September |
| | | 2008 |
+------------------------------------------------------------+------------+------------+
| | GBP | GBP |
+------------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------------+------------+------------+
| 100 Founder Shares of GBP1 each ("founder shares") | 100 | 100 |
+------------------------------------------------------------+------------+------------+
| 400,000,000 Redeemable Participating Shares of GBP0.01 | 4,000,000 | 4,000,000 |
| each (the "shares") | | |
+------------------------------------------------------------+------------+------------+
| 100,000,000 Unclassified Shares of GBP0.01 each | 1,000,000 | 1,000,000 |
| ("unclassified shares") | | |
+------------------------------------------------------------+------------+------------+
| | 5,000,100 | 5,000,100 |
+------------------------------------------------------------+------------+------------+
On incorporation, 2 Founder Shares were allotted to the subscribers to the
Memorandum of Association. As Founder Shares are not participating shares of the
Company and do not form part of the Net Asset Value of the Company, they are
disclosed in the financial statements by way of this note only. The Unclassified
Shares may be allotted and issued as Shares of one or more classes or as non
Participating Redeemable Shares of 0.01p each (Nominal Shares). The Company's
Articles of Association grant discretion to the Board to issue the Shares with
such preferred, deferred or other special rights or restrictions as the Board
may determine. As at 31 March 2009, the Board has issued shares designated as US
Dollar Shares, Sterling Hedged Shares and Euro Shares.
US Dollar Shares have a nominal value of 1p per share although their share price
is quoted in US Dollars. US Dollar Shares are entitled to the net asset of the
Company attributable to the US Dollar Shares (based on the NAV of the US Dollar
Shares) on a winding up. All distributions payable to the holders of the US
Dollar Shares will be paid in US Dollars.
Sterling Hedged Shares have a nominal value of 1p per share and their price will
be quoted in British Pound Sterling. Sterling Hedged Shares are entitled to the
net assets of the Company attributable to Sterling Hedged Shares (based on the
net asset value of the Sterling Hedged Shares) on a winding up. It is the
intention of the Investment Manager predominantly to continue to hedge the
currency exposure of the assets of the Company attributable to the Sterling
Hedged Shares into British Pounds Sterling. The costs of providing the currency
hedge or any profits derived there-from are borne by the Sterling Hedged Share
class and this is reflected in their net asset value. All distributions payable
to the holders of the Sterling Hedged Shares will be paid in British Pounds
Sterling.
The EUR Share Class launched on 31 October 2008. Euro Shares have a nominal
value of 1c per share although their share price is quoted in US Dollars. Euro
Shares are entitled to the net asset of the Company attributable to the Euro
Shares (based on the NAV of the Euro Shares) on a winding up. All distributions
payable to the holders of the Euro Shares will be paid in Euros.
Issued and fully paid share capital
+------------------------------------------------------+---------------+------------------------+------------------------+
| | 31 March | | 30 September |
| | 2009 | | 2008 |
+------------------------------------------------------+---------------+------------------------+------------------------+
| | Number of | | Number of |
| | shares | | shares |
+------------------------------------------------------+---------------+------------------------+------------------------+
| | | | |
+------------------------------------------------------+---------------+------------------------+------------------------+
| Founder shares | 2 | - | 2 |
+------------------------------------------------------+---------------+------------------------+------------------------+
| Nominal shares | 83,693,460 | | 96,015,596 |
+------------------------------------------------------+---------------+------------------------+------------------------+
| | | | |
+------------------------------------------------------+---------------+------------------------+------------------------+
| 7SHARE CAPITAL - (CONTINUED) | | | |
| Redeemable participating | | | |
| preference shares | | | |
+------------------------------------------------------+---------------+------------------------+------------------------+
| US$ redeemable participating preference shares | 37,231,054 | | 41,365,763 |
+------------------------------------------------------+---------------+------------------------+------------------------+
| GBP Hedged redeemable participating shares | 16,926,624 | | 11,907,598 |
+------------------------------------------------------+---------------+------------------------+------------------------+
| EUR redeemable participating preference shares | 11,437,819 | | - |
+------------------------------------------------------+---------------+------------------------+------------------------+
| Total redeemable participating preference shares in | 65,595,497 | | 53,273,361 |
| issue | | | |
+------------------------------------------------------+---------------+------------------------+------------------------+
The movement in shares during the period to 31 March 2009 is shown below:
+---------------------------+--------------+---------------+-----------------+-----------------+
| | | Redeemable | Redeemable | Redeemable |
| | | Participating | Participating | Participating |
| | | Preference | Preference | Preference |
| | | Shares | Shares | Shares |
+---------------------------+--------------+---------------+-----------------+-----------------+
| | Nominal | US$ Class | Sterling Hedged | EUR Class |
| | Shares | | Class | |
+---------------------------+--------------+---------------+-----------------+-----------------+
| Number of shares at 30 | 96,015,596 | 41,365,763 | 11,907,598 | - |
| September 2008 | | | | |
+---------------------------+--------------+---------------+-----------------+-----------------+
| Number of shares issued | 6,309,533 | 114,067 | 6,999,770 | 11,517,832 |
+---------------------------+--------------+---------------+-----------------+-----------------+
| Number of shares redeemed | (18,631,669) | (4,248,776) | (1,980,744) | (80,013) |
+---------------------------+--------------+---------------+-----------------+-----------------+
| Number of shares at 31 | 83,693,460 | 37,231,054 | 16,926,624 | 11,437,819 |
| March 2009 | | | | |
+---------------------------+--------------+---------------+-----------------+-----------------+
Treasury Shares are excluded from the Redeemable Participating Shares US$ Class,
Sterling Hedged Class and EUR Class table above.
The movement in shares during the period to 30 September 2008 is shown below:
+------------------------------------+--------------+--+---------------+-+-----------------+
| | | | Redeemable | | Redeemable |
| | | | Participating | | Participating |
| | | | Preference | | Preference |
| | | | Shares | | Shares |
+------------------------------------+--------------+--+---------------+-+-----------------+
| | Nominal | | US$ Class | | Sterling Hedged |
| | Shares | | | | Class |
+------------------------------------+--------------+--+---------------+-+-----------------+
| Number of shares at 30 September | 83,240,553 | | 49,161,576 | | 16,886,828 |
| 2007 | | | | | |
+------------------------------------+--------------+--+---------------+-+-----------------+
| Number of shares issued | 25,193,490 | | 9,222,770 | | 3,195,677 |
+------------------------------------+--------------+--+---------------+-+-----------------+
| Number of shares redeemed | (12,418,447) | | (17,018,583) | | (8,174,907) |
+------------------------------------+--------------+--+---------------+-+-----------------+
| Number of shares at 30 September | 96,015,596 | | 41,365,763 | | 11,907,598 |
| 2008 | | | | | |
+------------------------------------+--------------+--+---------------+-+-----------------+
The movement in share capital and share premium of redeemable participating
preference shares during the period to 31 March 2009 is shown below:
+-------------------------------------+----------+-+--------------+-+-----------+--+---------+----------+
| | US$ | | Sterling | | EUR Class | | Total | |
| | Class | | Hedged | | | | | |
+-------------------------------------+----------+-+--------------+-+-----------+--+---------+----------+
| | US$'000 | | US$'000 | | EUR '000 | | US$'000 | |
+-------------------------------------+----------+-+--------------+-+-----------+--+---------+----------+
| Share capital | | | | | | | | |
+-------------------------------------+----------+-+--------------+-+-----------+--+---------+----------+
| Balance at 30 September 2008 | 747 | | 211 | | - | | 958 | |
+-------------------------------------+----------+-+--------------+-+-----------+--+---------+----------+
| Issued during the period | 2 | | 100 | | 164 | | 266 | |
+-------------------------------------+----------+-+--------------+-+-----------+--+---------+----------+
| Redeemed during the period | (61) | | (29) | | (1) | | (91) | |
+-------------------------------------+----------+-+--------------+-+-----------+--+---------+----------+
| Balance at 31 March 2009 | 688 | | 282 | | 163 | | 1,133 | |
+-------------------------------------+----------+-+--------------+-+-----------+--+---------+----------+
+-------------------------------------+----------+-+--------------+-+-----------+--+----------+-+
| | US$ | | Sterling | | EUR Class | | Total | |
| | Class | | Hedged | | | | | |
+-------------------------------------+----------+-+--------------+-+-----------+--+----------+-+
| | US$'000 | | US$'000 | | EUR '000 | | US$'000 | |
+-------------------------------------+----------+-+--------------+-+-----------+--+----------+-+
| Share premium | | | | | | | | |
+-------------------------------------+----------+-+--------------+-+-----------+--+----------+-+
| Balance at 30 September 2008 | 86,351 | | 20,491 | | - | | 106,842 | |
+-------------------------------------+----------+-+--------------+-+-----------+--+----------+-+
| Issued during the period | 4,275 | | 18,630 | | 11,127 | | 34,032 | |
+-------------------------------------+----------+-+--------------+-+-----------+--+----------+-+
| Redeemed during the period | (7,377) | | (103) | | (7,159) | | (14,639) | |
+-------------------------------------+----------+-+--------------+-+-----------+--+----------+-+
| Balance at 31 March 2009 | 83,249 | | 39,018 | | 3,968 | | 126,235 | |
+-------------------------------------+----------+-+--------------+-+-----------+--+----------+-+
7SHARE CAPITAL - (CONTINUED)
The movement in share capital and share premium of redeemable participating
preference shares during the period to 30 September 2008 is shown below:
+---------------------------------------------+------------+-+------------+-+-------------+-+
| | US$ Class | | Sterling | | Total | |
| | | | Hedged | | | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| | US$'000 | | US$'000 | | US$'000 | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| Share capital | | | | | | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| Balance at 30 September 2007 | 888 | | 300 | | 1,188 | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| Issued during the period | 167 | | 58 | | 225 | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| Redeemed during the period | (308) | | (147) | | (455) | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| Balance at 30 September 2008 | 747 | | 211 | | 958 | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
+---------------------------------------------+------------+-+------------+-+-------------+-+
| | US$ Class | | Sterling | | Total | |
| | | | Hedged | | | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| | US$'000 | | US$'000 | | US$'000 | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| Share premium | | | | | | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| Balance at 30 September 2007 | 103,070 | | 31,340 | | 134,410 | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| Issued during the period | 18,720 | | 6,962 | | 25,682 | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| Redeemed during the period | (35,440) | | (17,810) | | (53,250) | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
| Balance at 30 September 2008 | 86,350 | | 20,492 | | 106,842 | |
+---------------------------------------------+------------+-+------------+-+-------------+-+
Rights attaching to shares
Unclassified Shares - The Directors may issue any of the Unclassified Shares
of GBP0.01 each in the capital of the Company as one or more classes of Shares
or as non-participating redeemable shares of GBP0.01 each (Nominal Shares). The
Shares may be issued as separate classes of redeemable participating preference
shares.
Nominal shares - The Nominal Shares may only be issued to the Manager at par and
for the purpose of providing funds for the redemption of Shares. Nominal Shares
do not carry voting rights. Nominal Shares do not carry any general right to
dividends. However, a fixed dividend of GBP100 in aggregate shall be payable to
the holders of Nominal Shares pro rata to their holdings in each year. In the
event of liquidation, they rank pari passu inter se but only for a return of the
nominal amount paid up on them. The Company may redeem at par all or any of the
Nominal Shares for the time being issued and outstanding out of any monies which
may lawfully be applied for that purpose on at least one month's written notice.
Nominal Shares are not participating shares of the Company and do not form part
of the Net Asset Value of the Company.
Rights as to income - Subject to the rights of the holders (if any) of the
Founder Shares, the Shares carry the right to receive all the revenue profits of
the Company available for distribution. The Founder Shares carry the right to
receive out of the profits of the Company available for distribution a fixed
cumulative preferential dividend at the annual rate of 0.01 per cent on the
nominal amount of each share. For so long as there are Shares in issue, the
Founder Shares do not confer any further right to participate in the Company's
profits.
Rights as to capital - On a return of capital or other return of assets of the
Company on winding up or otherwise (other than conversion, redemption or
purchase of Shares), the assets of the Company available for distribution to
Shareholders will be applied as follows (and in each case distributed among
the holders of Shares of each class rateably according to amounts paid up on
such Shares held by them):
(i) first there will be paid to the holders of the Founder Shares in respect of
each such share the amount paid up or treated as paid up thereon; and
(ii) secondly, there will be paid to the holders of the Shares all further
assets of the Company to which their Shares relate subject to any specific
rights attributable thereto as described in a circular or prospectus published
by the Company from time to time
7SHARE CAPITAL - (CONTINUED)
Rights attaching to shares (continued)
Rights as to voting - The holders of the Shares will have the right to receive
notice of, and to vote at, general meetings of the Company. Each holder of a
Share who is present in person (or, being a corporation by representative) at a
general meeting will have on a show of hands one vote and on a poll every such
holder who is present in person or by proxy (or, being a corporation, by
representative) will have one vote in respect of each Share held by him. For so
long as there are Shares in issue, the holders of the Founder Shares will not
have any right to receive notice of or vote at any general meeting of the
Company. When there are no Shares in issue, the holders of the Founder
Shares will have the right to receive notice of, and to vote at, general
meetings of the Company. In such circumstances, each holder of a Founder Share
who is present in person (or, being a corporation, by representative) at a
general meeting will have on a show of hands one vote and on a poll every such
holder who is present in person or by proxy (or being a corporation, by
representative) will have one vote in respect of each Founder Share held by him.
The Tender Facility
In order to assist further the narrowing of any discount to Net Asset Value
at which the Shares of the relevant class may be trading, the Company has a
twice yearly facility under which, subject to certain limitations and the
Directors exercising their discretion to operate the facility, Shareholders may
complete a tender offer form for all or part of their holdings of Shares of the
relevant class for cash by giving notice to the Company not less than 60 days'
prior to the relevant Tender date.
In respect of any Tender offer the Company will be restricted to buy back up to
25 per cent. (or such lesser amount as the Directors, in their discretion,
resolve) of each class of Share in issue, with any excess Tender requests being
scaled back pro-rata.
Issue of shares
Subject to any resolution of the Company in general meeting, the Company's
unissued shares shall be at the disposal of the Board which may offer, allot,
grant options over, or otherwise dispose of them to such persons, for such
consideration, on such terms and conditions and at such times as the Board
determines but so that no share shall be issued at a discount and so that the
amount payable on application on each share shall be fixed by the Board.
8 RELATED PARTY TRANSACTIONS
IAS 24, Related Party Disclosures requires the disclosure of information
relating to material transactions with parties who are deemed to be related to
the reporting entity. Parties are considered to be related if one party has the
ability to control the other party or exercise significant influence over the
other party in making financial or operational decisions.
Management Agreement
Pursuant to the Management Agreement dated 21 September 2001, the Company
has appointed HSBC Republic Management (Guernsey) Limited as the Manager of the
Company. On 1 January 2004 the Manager changed its name to HSBC Management
(Guernsey) Limited. The Manager will be paid periodic fees and (if applicable)
performance fees. The periodic fees will be paid monthly at a rate equivalent to
1.5% (1.7% up to 31 March 2007) per annum of the value of the Company's net
assets and will be paid in arrears. Such fees will be paid by the Company to the
Manager, out of which the Manager will discharge the fees to the Investment
Adviser and Custodian. The performance fee (if applicable) will be equal to 10%
of the excess of the growth in the Net Asset Value of the Company in the
Performance Period over the Performance Hurdle. Any performance fee payable will
be subject to a cap equal to 4% of the Net Asset Value of the Company in any one
year. The performance fee for the period was US$Nil (March 2008:
US$274,539(positive)). The performance fee outstanding at period/year end was
US$ Nil (September 2008: US$ Nil). The management fee for the period was
US$868,979 (March 2008: US$1,074,584) of which US$145,247 (September 2008:
US$139,285) was outstanding at the period/year end.
Investment Adviser Agreement
Pursuant to the Investment Advisory Agreement dated 21 September 2001 the
Company has appointed HSBC Republic Investments Limited as the Investment
Adviser of the Company. With effect from 1 January 2007, the Investment Adviser
changed its name to HSBC Alternative Investments Limited. The Investment Adviser
fee is included in the management fee.
8 RELATED PARTY TRANSACTIONS - (CONTINUED)
Directors' Interests
None of the Directors have a service contract with the Company. Mr Stuart
Carnegie is a non-executive director of various investment funds and it is
possible that the Company may invest in one or more funds of which Mr Carnegie
is a non-executive Director. Mr Raymond Apsey is a non-executive Director of
various investment funds and it is possible that the Company may invest in one
or more funds of which Mr Apsey is a non-executive Director. Mr Keith Dorrian is
a non-executive Director of various investment funds and it is possible that the
Company may invest in one or more funds of which Mr Dorrian is a non-executive
Director. Mr Ian Domaille is a non-executive Director of various investment
funds and it is possible that the Company may invest in one or more funds of
which Mr Domaille is a non-executive Director. Mr Paul Wrench is a Director of
the Manager. He does not draw a fee for his services as a Director of the
Company.
+--------------------------------------------+--------------------+--------------------+
| The Directors are paid the following fees: | | |
| | | |
+--------------------------------------------+--------------------+--------------------+
| | 2009 | 2008 |
+--------------------------------------------+--------------------+--------------------+
| Raymond Philip Apsey | GBP 25,000 per | GBP 25,000 per |
| | annum | annum |
+--------------------------------------------+--------------------+--------------------+
| Paul Wrench | GBP nil per annum | GBP nil per annum |
+--------------------------------------------+--------------------+--------------------+
| Keith Dorrian | GBP 15,000 per | GBP 15,000 per |
| | annum | annum |
+--------------------------------------------+--------------------+--------------------+
| Ian Domaille* | GBP 15,000 per | GBP nil per annum |
| | annum | |
+--------------------------------------------+--------------------+--------------------+
| Stuart Francis Carnegie | GBP 15,000 per | GBP 10,000 per |
| | annum | annum |
+--------------------------------------------+--------------------+--------------------+
The Directors' fees outstanding at the period/year end were US$57,365 (September
2008: US$16,355). Paul Wrench has waived his entitlement to fees.
*Ian Domaille was appointed in January 2009
9LOANS
The Company will have the ability to borrow up to 20% of its adjusted total of
capital and reserves for short-term or temporary purposes as may be necessary
for settlement of transactions, to facilitate redemption (where applicable) or
to meet ongoing expenses. It is not intended for the Company to have any
structural gearing.
At 31 March 2009 the loan outstanding in respect of the credit facilities
extended to HSBC Global Absolute Limited by HSBC Private Bank (C.I.) Limited was
US$ Nil (30 September 2008: US$15,682,924). This is an unsecured loan repayable
within 1 month.
For the period ended 31 March 2009 the interest expense was US$124,847 (31
March 2008: US$55,696) and the interest rate range was a low of 1.54% (Period
ended 31 March 2008: 4.40%) and a high of 5.07% (Period ended 31 March 2008:
6.20%).
10 CUSTODY AGREEMENTS
Pursuant to the Custodian Agreement dated 21 September 2001 the Company has
appointed Investors Trust and Custodial Services (Ireland) Limited as the
Custodian of the Company. With effect from 26 November 2008 the Custodian
changed its name to State Street Custodial Services (Ireland) Limited. The
Custodian fee is included in the management fee.
11 TAXATION STATUS
The Company is exempt from Guernsey income tax under the Income Tax (Exempt
Bodies) (Guernsey) Ordinance 1989 and is charged an annual exemption fee of
GBP600 per annum (2008: GBP600).
12 NET ASSETS ATTRIBUTABLE TO PREFERENCE SHAREHOLDERS
+-----------------------------------------------+-+----------+-------------+-+-------------+
| | | | At 31 March | | At 30 |
| | | | | | September |
+-----------------------------------------------+-+----------+-------------+-+-------------+
| | | | 2009 | | 2008 |
+-----------------------------------------------+-+----------+-------------+-+-------------+
| | | | US$'000 | | US$'000 |
+-----------------------------------------------+-+----------+-------------+-+-------------+
| | | | | | |
+-----------------------------------------------+-+----------+-------------+-+-------------+
| US$ Class | | | 66,216 | | 75,977 |
+-----------------------------------------------+-+----------+-------------+-+-------------+
| Sterling Hedged Class | | | 22,963 | | 21,351 |
+-----------------------------------------------+-+----------+-------------+-+-------------+
| EUR Class | | | 21,280 | | - |
+-----------------------------------------------+-+----------+-------------+-+-------------+
| | | | | | |
+-----------------------------------------------+-+----------+-------------+-+-------------+
| Total | | | 110,459 | | 97,328 |
+-----------------------------------------------+-+----------+-------------+-+-------------+
+----------------+--------------------+--+--------------------+--+------------+--+-----------+
| Net asset value |
+--------------------------------------------------------------------------------------------+
| The net asset value of each US$, GBP and EUR share is determined by dividing the net assets |
| of the Company attributed to the US$, GBP and EUR shares by the number of US$, GBP and EUR |
| shares in issue at the period end as follows: |
+--------------------------------------------------------------------------------------------+
| | | | | | | |
+-------------------------------------+--+--------------------+--+------------+--+-----------+
| | | Net assets | | Shares in | | Net |
| | | attributable to | | issue | | Assets |
| | | each share class | | | | Per Share |
+-------------------------------------+--+--------------------+--+------------+--+-----------+
| | | | | | | |
+-------------------------------------+--+--------------------+--+------------+--+-----------+
| As at 31 March 2009 | | | | | | |
+-------------------------------------+--+--------------------+--+------------+--+-----------+
| US$ Share | | | US$ 66,215,945 | | 37,231,054 | | 1.7786 |
+----------------+--------------------+--+--------------------+--+------------+--+-----------+
| GBP Share | | | GBP 16,094,811 | | 16,926,624 | | 0.9509 |
+----------------+--------------------+--+--------------------+--+------------+--+-----------+
| EUR Share | | EUR 16,034,622 | | 11,437,819 | | 1.4019 |
+-------------------------------------+--+--------------------+--+------------+--+-----------+
| | | | | | | |
+-------------------------------------+--+--------------------+--+------------+--+-----------+
| As at 30 September 2008 | | | | | | |
+-------------------------------------+--+--------------------+--+------------+--+-----------+
| US$ Share | | | US$ 75,976,280 | | 41,365,763 | | US$ |
| | | | | | | | 1.8367 |
+----------------+--------------------+--+--------------------+--+------------+--+-----------+
| GBP Share | | | GBP 11,806,607 | | 11,907,598 | | GBP |
| | | | | | | | 0.9915 |
+----------------+--------------------+--+--------------------+--+------------+--+-----------+
13 SHAREHOLDERS' INTERESTS
The following Shareholders had significant holdings in the Company at 31 March
2009:
+------------------------------+------------------+------------------+-------------------+
| | Redeemable | Redeemable | Redeemable |
| | Participating | Participating | Participating |
+------------------------------+------------------+------------------+-------------------+
| | Preference | Preference | Preference Shares |
| | Shares | Shares | |
+------------------------------+------------------+------------------+-------------------+
| Shareholder | US$ Class | Sterling Hedged | EUR Class |
| | | Class | |
+------------------------------+------------------+------------------+-------------------+
| | | | |
+------------------------------+------------------+------------------+-------------------+
| Chase Nominees Limited | 6.40% | - | - |
+------------------------------+------------------+------------------+-------------------+
| Citibank Nominees (Ireland) | 2.15% | - | - |
| Limited | | | |
+------------------------------+------------------+------------------+-------------------+
| City of Bradford | - | - | 16.83% |
| Metropolitan | | | |
+------------------------------+------------------+------------------+-------------------+
| Euroclear Nominees Limited | 22.88% | - | - |
+------------------------------+------------------+------------------+-------------------+
| HSBC Global Absolute Limited | 8.39% | 7.94% | - |
+------------------------------+------------------+------------------+-------------------+
| HSBC Global Custody Nominee | 17.13% | 28.52% | 30.29% |
| (UK) | | | |
+------------------------------+------------------+------------------+-------------------+
| James Capel (Channel | 4.47% | 3.14% | 8.80% |
| Islands) | | | |
+------------------------------+------------------+------------------+-------------------+
| James Capel (Nominees) | - | - | 5.61% |
| Limited | | | |
+------------------------------+------------------+------------------+-------------------+
| Pershing Nominees Limited | - | - | 5.25% |
+------------------------------+------------------+------------------+-------------------+
| Rathbone Nominees Limited | - | 6.30% | - |
+------------------------------+------------------+------------------+-------------------+
| Securities Services Nominees | 20.48% | 21.71% | 22.57% |
+------------------------------+------------------+------------------+-------------------+
| The Bank of New York | 8.98% | 3.11% | - |
| (Nominees) | | | |
+------------------------------+------------------+------------------+-------------------+
| Transact Nominees Limited | - | 3.60% | - |
+------------------------------+------------------+------------------+-------------------+
| Vidacos Nominees Limited | - | 2.15% | - |
+------------------------------+------------------+------------------+-------------------+
| | | | |
+------------------------------+------------------+------------------+-------------------+
13 SHAREHOLDERS' INTERESTS ? (CONTINUED)
The following Shareholders had significant holdings in the Company at 30
September 2008:
+---------------------------------------+----------------------+-----------------------+
| | Redeemable | Redeemable |
| | Participating | Participating |
+---------------------------------------+----------------------+-----------------------+
| | Preference Shares | Preference Shares |
+---------------------------------------+----------------------+-----------------------+
| Shareholder | US Dollar Class | Sterling Hedged Class |
+---------------------------------------+----------------------+-----------------------+
| | | |
+---------------------------------------+----------------------+-----------------------+
| Euroclear Nominees Limited | 40.99% | - |
+---------------------------------------+----------------------+-----------------------+
| HSBC Global Custody Nominee (UK) | 22.25% | 17.20% |
+---------------------------------------+----------------------+-----------------------+
| BNY (OCS) Nominees Limited | 19.28% | 28.29% |
+---------------------------------------+----------------------+-----------------------+
| The Bank Of New York (Nominees) | 5.25% | 4.51% |
+---------------------------------------+----------------------+-----------------------+
| James Capel (Channel Islands) | 3.64% | 4.90% |
+---------------------------------------+----------------------+-----------------------+
| Chase Nominees Limited | 3.60% | - |
+---------------------------------------+----------------------+-----------------------+
| James Capel (Nominees) Limited | 0.05% | 5.14% |
+---------------------------------------+----------------------+-----------------------+
| Rathbone Nominees Limited | - | 16.48% |
+---------------------------------------+----------------------+-----------------------+
| Transact Nominees Limited | - | 4.89% |
+---------------------------------------+----------------------+-----------------------+
| Vidacos Nominees Limited | - | 2.93% |
+---------------------------------------+----------------------+-----------------------+
| Forest Nominees Limited | - | 2.25% |
+---------------------------------------+----------------------+-----------------------+
14 EXCHANGE RATES
The exchange rates to USD at 31 March 2009 and 30 September 2008 were as
follows:
+--------------------------------------+----------------------+-------------------------+
| | 31 March 2009 | 30 September 2008 |
+--------------------------------------+----------------------+-------------------------+
| EUR | 1.3272 | 1.4377 |
+--------------------------------------+----------------------+-------------------------+
| GBP | 1.4268 | 1.8084 |
+--------------------------------------+----------------------+-------------------------+
15SIGNIFICANT EVENTS DURING THE PERIOD
The EUR Share Class launched on 31 October 2008.
16SUBSEQUENT EVENTS
As of the date of approval there are no significant events subsequent to the
balance sheet date.
The following pages are not an integral part of these financial statements and
are presented for information purposes only.
SCHEDULE OF INVESTMENTS AS AT 31 MARCH 2009 (UNAUDITED)
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Security | | Holding | | Fair | | % of | |
| Description | | | | value | | total | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| | | | | US$'000 | | net | |
| | | | | | | assets | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Mutual | | | | | | | |
| Funds | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| U.S. | | | | | | | |
| Dollar | | | | | | | |
| (30 | | | | | | | |
| September | | | | | | | |
| 2008: | | | | | | | |
| 109.25%) | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Bellman | | 5,000 | | 4,080 | | 3.69 | % |
| Walter | | | | | | | |
| Global | | | | | | | |
| Class | | | | | | | |
| A1 | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Delta | | 1,258 | | 129 | | 0.12 | % |
| US | | | | | | | |
| Partners | | | | | | | |
| Ltd | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| GLG | | 3,603 | | 200 | | 0.18 | % |
| Emerging | | | | | | | |
| Markets | | | | | | | |
| Special | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| GLG | | 6,935 | | 562 | | 0.51 | % |
| Emerging | | | | | | | |
| Markets | | | | | | | |
| Special | | | | | | | |
| Asset | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| HB | | 45 | | 2,036 | | 1.84 | % |
| Multi | | | | | | | |
| Strategy | | | | | | | |
| HLD | | | | | | | |
| Class B | | | | | | | |
| Series 3 | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Jandakot | | 1,211 | | 37 | | 0.03 | % |
| Leveraged | | | | | | | |
| Fund SF | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Raptor | | 476 | | 326 | | 0.30 | % |
| Private | | | | | | | |
| Holding | | | | | | | |
| Ltd | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Steel | | 70 | | 53 | | 0.05 | % |
| Partners | | | | | | | |
| Japan Fund | | | | | | | |
| Class SP2 | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Steel | | 257 | | 173 | | 0.16 | % |
| Partners | | | | | | | |
| Japan | | | | | | | |
| Fund | | | | | | | |
| Class | | | | | | | |
| SP1 | | | | | | | |
| Series | | | | | | | |
| 99 | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Tudor | | 728 | | 711 | | 0.64 | % |
| BVI | | | | | | | |
| Global | | | | | | | |
| Fund | | | | | | | |
| Ltd | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Tewksbury | | 495 | | 5,925 | | 5.36 | % |
| Invest | | | | | | | |
| Fund S-B | | | | | | | |
| Shares | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| OZ | | 1,419 | | 1,261 | | 1.14 | % |
| Europe | | | | | | | |
| Overseas | | | | | | | |
| Accumulation | | | | | | | |
| Fund | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Two | | 1,145 | | 2,506 | | 2.27 | % |
| Sigma | | | | | | | |
| Eclipse | | | | | | | |
| Cayman | | | | | | | |
| Fund | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Eminence | | 5,987 | | 2,523 | | 2.28 | % |
| Fund Ltd | | | | | | | |
| Class B | | | | | | | |
| USD | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Steel | | 1,272 | | 705 | | 0.64 | % |
| Partners | | | | | | | |
| Japan | | | | | | | |
| Strategic | | | | | | | |
| Fund | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Jandakot | | 19,698 | | 2,464 | | 2.23 | % |
| Fund USD | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Tudor | | 22 | | 1,855 | | 1.68 | % |
| BVI | | | | | | | |
| Global | | | | | | | |
| Fund | | | | | | | |
| Class | | | | | | | |
| B | | | | | | | |
| Shares | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Caxton | | 2,015 | | 3,693 | | 3.34 | % |
| Equity | | | | | | | |
| Growth | | | | | | | |
| Class | | | | | | | |
| B | | | | | | | |
| Series | | | | | | | |
| 29 | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| AG | | 3,247 | | 3,058 | | 2.77 | % |
| Super | | | | | | | |
| Fund | | | | | | | |
| International | | | | | | | |
| Ltd USD | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Farallon | | 257,983 | | 2,225 | | 2.01 | % |
| Capital | | | | | | | |
| Off | | | | | | | |
| Class E | | | | | | | |
| Series D | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| OZ | | 3,074 | | 3,029 | | 2.74 | % |
| Europe | | | | | | | |
| Overseas | | | | | | | |
| Fund II | | | | | | | |
| Ltd | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Brevan | | 51,856 | | 9,366 | | 8.48 | % |
| Howard | | | | | | | |
| USD | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Gamut | | 384 | | 2,869 | | 2.60 | % |
| Investments | | | | | | | |
| Ltd USD | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Lansdowne | | 13,206 | | 4,213 | | 3.81 | % |
| UK Equity | | | | | | | |
| USD | | | | | | | |
| Shares | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| CSFB | | 467 | | 897 | | 0.81 | % |
| Convertible | | | | | | | |
| and | | | | | | | |
| Quantitative | | | | | | | |
| Strategies | | | | | | | |
| Feeder Fund | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| CQS | | 934 | | 1,794 | | 1.62 | % |
| Convertible | | | | | | | |
| & | | | | | | | |
| Quantitative | | | | | | | |
| Strategies | | | | | | | |
| Feeder Fund | | | | | | | |
| Class 1B | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Harbinger | | 2,388 | | 785 | | 0.71 | % |
| Capital | | | | | | | |
| Class B | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Marathon | | 2,930 | | 5,651 | | 5.13 | % |
| Vertex | | | | | | | |
| Aug 04 | | | | | | | |
| Sub | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Pentwater | | 450 | | 222 | | 0.20 | % |
| Event | | | | | | | |
| Fund | | | | | | | |
| Class C | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| SR | | 141 | | 117 | | 0.11 | % |
| Global | | | | | | | |
| Fund | | | | | | | |
| Emerging | | | | | | | |
| Markets | | | | | | | |
| Portfolio | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Paulson | | 16,503 | | 5,598 | | 5.08 | % |
| Advantage | | | | | | | |
| Ltd Class | | | | | | | |
| A | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Meditor | | 6,485 | | 3,520 | | 3.19 | % |
| European | | | | | | | |
| Hedge | | | | | | | |
| Class B | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Diamondback | | 3,001 | | 4,373 | | 3.96 | % |
| Offshore | | | | | | | |
| Fund Ltd | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Winton | | 2,831 | | 2,058 | | 1.86 | % |
| Futures | | | | | | | |
| Fund | | | | | | | |
| USD | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Strategic | | 40,000 | | 3,245 | | 2.94 | % |
| Value | | | | | | | |
| Credit | | | | | | | |
| Restructuring | | | | | | | |
| Fund | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Two | | 2,222 | | 3,159 | | 2.86 | % |
| Sigma | | | | | | | |
| Cayman | | | | | | | |
| Jan | | | | | | | |
| Sub | | | | | | | |
| USD | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Plexus | | 3,991 | | 180 | | 0.16 | % |
| Fund | | | | | | | |
| Ltd | | | | | | | |
| USD | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Penwater | | 2,550 | | 1,613 | | 1.46 | % |
| Event | | | | | | | |
| Fund Ltd | | | | | | | |
| Sub | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Forden | | 217 | | 292 | | 0.26 | % |
| Fund | | | | | | | |
| Ltd | | | | | | | |
| August | | | | | | | |
| Sub | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| SR | | 3,822 | | 3,168 | | 2.87 | % |
| Global | | | | | | | |
| Fund | | | | | | | |
| Emerging | | | | | | | |
| Market | | | | | | | |
| Class G | | | | | | | |
| USD | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Plexus | | 5,661 | | 358 | | 0.32 | % |
| Fund | | | | | | | |
| Ltd | | | | | | | |
| USD | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| Third | | 25,025 | | 2,799 | | 2.53 | % |
| Point | | | | | | | |
| Offshore | | | | | | | |
| Fund Ltd | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| | | | | 93,828 | | 84.94 | % |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
| | | | | | | | |
+---------------+--------+---------+--------+---------+--------+--------+--------+
+----------------+--------+---+--------+-----+---+--------+---+--------+---+--------+--------+---+--------+
| Security | | Holding | | Fair value | | % of | |
| Description | | | | | | total | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| | | | | US$'000 | | net | |
| | | | | | | assets | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Euro (30 September | | | | | | | |
| 2008: Nil %) | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Fortelus Class B | | 3,283 | | 4,400 | | 3.98 | % |
| EUR | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Fortelus Special | | 27 | | 19 | | 0.02 | % |
| Situation | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Lansdowne UK Equity | | 5,680 | | 2,421 | | 2.19 | % |
| Euro | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Polar Capital EUR | | 29,547 | | 4,954 | | 4.49 | % |
| Conviction | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Polar Capital EUR | | 1 | | 67 | | 0.06 | % |
| Conviction | | | | | | | |
| Equalisation | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Meditor European | | 8,184 | | 2,980 | | 2.70 | % |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Fortelus Special | | 14 | | 19 | | 0.02 | % |
| Situation | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Fortelus Special | | 575 | | 600 | | 0.54 | % |
| Situation | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| | | | | 15,460 | | 14.00 | % |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Total value of | | | | 109,288 | | 97.88 | % |
| financial assets at | | | | | | | |
| fair value through | | | | | | | |
| profit or loss | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Net current assets | | | | 2,365 | | 2.12 | % |
| (30 September 2008: | | | | | | | |
| (9.25%)) | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Total net assets | | | | | | | |
| attributable to the | | | | | | | |
| holders of | | | | | | | |
| redeemable | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| participating | | | | 111,653 | | 100.00 | % |
| preference shares | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| | | | | | | | |
+-----------------------------+--------+---------+--------+----------------+--------+--------+------------+
| Net | | | 31 March 2009 | 30 September 2008 |
| asset | | | | |
| value | | | | |
| per | | | | |
| share: | | | | |
+----------------+--------+------------------+-------------------------+----------------------------------+
| HSBC | | | US$1.7786 | US$ 1.8367 |
| Global | | | | |
| Absolute | | | | |
| Limited | | | | |
| - US | | | | |
| Dollar | | | | |
| Share | | | | |
+----------------+--------+------------------+----------------+----------------------------------+
| HSBC | | | GBP 0.9509 | | GBP 0.9915 |
| Global | | | | | |
| Absolute | | | | | |
| Limited | | | | | |
| - | | | | | |
| Sterling | | | | | |
| Hedged | | | | | |
| Share | | | | | |
+----------------+--------+------------------+----------------+--------+----------------------------------+
| HSBC | | | EUR 1.4019 | | - |
| Global | | | | | |
| Absolute | | | | | |
| Limited | | | | | |
| - EUR | | | | | |
| Share | | | | | |
+----------------+--------+------------------+----------------+--------+----------------------------------+
| | | | | | | |
+----------------+--------+------------------+----------------+--------+-------------------------+--------+
| Portfolio | | | 31 March 2009 | | 30 September 2008 |
| Classification | | | | | |
+----------------+--------+------------------+----------------+--------+----------------------------------+
| | | | % of Portfolio | | % of Portfolio |
+----------------+--------+------------------+----------------+--------+----------------------------------+
| Securities | | | 36.88% | | 26.56% |
| with an | | | | | |
| official | | | | | |
| stock | | | | | |
| exchange | | | | | |
| listing | | | | | |
+----------------+--------+------------------+----------------+--------+----------------------------------+
| Unlisted | | | 63.12% | | 73.44% |
| securities | | | | | |
+----------------+--------+------------------+----------------+--------+----------------------------------+
| | | | 100.00% | | 100.00% |
+----------------+--------+---+--------+-----+---+--------+---+--------+---+--------+--------+---+--------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ALMITMMITBLL
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