Net Asset Value(s)
09 Juin 2003 - 6:36PM
UK Regulatory
Life Offices Opportunities Trust
9 June 2003
Projected Maturity Values
In line with the other trusts in the sector, Life Offices Opportunities Trust
is publishing projected fund values for the trust when it winds up in 2008. It
is intended that these values will be updated quarterly.
The method adopted by the Company to calculate the projected fund values is to
use returns on the underlying assets. This comprises the equities, bonds and
property that with-profits funds hold. Asset shares for individual policies are
not disclosed and have been estimated from public data. Policy maturity values
may also differ from the underlying asset shares. Consequently even if the
assumptions below are satisfied, the amount returned to shareholders may be
different from that given in the table.
The net asset value at 31 March 2003 was 127.49p per share.
Rate of Return No further 4% 8%
bonuses
Final NAV per share 90.8p 154.0p 195.4p
As at 31 March 2003 the estimated rate of return required to ensure bonuses
remain unchanged is 7.8% per annum. "No further bonuses" assumes that the
return consists only of the amount guaranteed by life offices as at 31 March
2003.
The rates of return used are indicative and should not be taken as predictions
of future returns.
The following are the main assumptions used.
* All policies are held to maturity, with no policyholders dying.
* All future premiums are paid.
* Interest rates of 5% per annum on borrowings and 3% per annum on deposits.
* Administrative costs increase at 2.5% per annum.
* During its life the Company continues as an investment trust and maintains
its current tax position.
* The Company winds up at 31 December 2008 and incurs no additional expenses.
* No further windfall gains are received.
* No further shares are issued or bought back.
For further enquiries: Brian Moretta Tel: 0131 226 6699
END