The Fund continues to be in line to be fully encashed by the end of July. Indeed at the end of June, there were only 88 policies representing fewer than 7% still to mature. All bar a handful have already informed us of the maturity proceeds so there is a high degree of confidence that the policies will mature as forecast. The net asset value inched ahead in the quarter to stand at 165.62p at the end of June. The share price continues to lag behind at around 160p with an anomalously wide spread of 156 – 163p indicating that the marketmakers are reluctant to trade.
In order to protect investment trust status, the Fund’s liquidity has been divided between short dated UK Government Securities and short term Sterling deposits with large well financed depositors. The blended interest rate is approximately 5%.
The Manager’s forecast terminal asset value is currently estimated to be approximately 170 pence per share as at the end of 2008. With all policy proceeds planned to have been received by the end of the third quarter, it is the current intention to convene a shareholders’ meeting early in the fourth quarter in order to return money to shareholders as soon as possible thereafter and well before the year end.