FCEV F&C Event Driv

    RNS Number : 4322B
  F&C Event Driven Limited
  15 August 2008
   

    F&C Event Driven Limited

    Interim Management Statement

    For the three month period from 1 April 2008 to 30 June 2008.


    Investment Objective

    The investment objective is to achieve a target return of 8-12%, per annum (net of costs) with a target volatility of 5-8% per annum.
The Company will seek to achieve this objective by primarily investing in a portfolio which is expected, in normal circumstances, to
comprise at least 20 listed and unlisted hedge funds each of which primarily follows an Event Driven Investment Strategy.


    Performance Summary

                                                      30 June 2008             31 March 2008

    Share Price                                            75.25p                         84.50p
    Net asset value per share                        89.15p                         89.43p
    Discount to NAV                                   15.59%                         5.51%    


    Review for the Period
    F&C Event Driven Limited is a Guernsey domiciled, closed-ended investment company established to invest in a portfolio of hedge funds. 


    The Net Asset Value (NAV) of the fund declined by 0.3% during the second quarter. There were positive contributions from the Distressed
and Merger Arbitrage/Event sectors and from the Multi Strategy funds. In total they added 110 bp (basis points) to the NAV of the fund.
However, losses from two of the funds largest investments, Glenview and Tosca, both equity long/shorts, more than offset these profits.
Tosca, with a high concentration in financial event stocks, in particular fell over 18% during the quarter impacting the NAV by over 130bp. 


    The quarter was characterised by significant volatility in equity markets. The Eurostoxx 50 fell by 11.25% in June and was down more
than 21% for the first half of the year. The hardest hit sector continued to be financials. Credit spreads also widened in June,
particularly in the commercial mortgage market with some credit spreads reaching March's widest levels. European credit also widened - the
Itraxx S8 Cross-Over closed at 501bp, 61bp wider on the month of June and 343bp up on the year.

    Overall, it remains a difficult environment for fundamental investors. The most successful trading strategies this year have been
momentum driven, particularly outright longs in commodities and outright shorts in financials. For event driven investors, there are
significant rewards to be had from very selective positioning. The risks are both actual and perceived and distinguishing between the two is
the stock and trade of the Managers. The market is choosing only to reward stocks when an event is actually completed, so we expect returns
to be rather more lumpy and volatile in the interim.  The Board remain confident in the Managers' abilities to deliver returns and are
comfortable with the balance of the portfolio as it stands. 


    Borrowing Facility
    The Company has in place a loan facility with RBS of up to $37.5m and to date no draw down has taken place.


    Share Buy Backs
    The Board announced to the market on 5 August 2008 that it has been unable to exercise the Company's share buy back authority due to
changes in the Company's share register with the effect that less than the required number of the Company's shares are held in public hands
as defined by the Listing Rules.

    The Company has been in consultation with the FSA regarding this issue and is now in a position to resume the Company's share buy back
programme.  Since the announcement, no share buy backs have been transacted.  The Board is also considering steps to broaden the Company's
shareholder base with the aim of improving liquidity in the Company's shares and has asked its professional advisers to conduct a strategic
review of the Company and its operations.


    Brokership Arrangements
    Following the termination of the formal brokership arrangement with Dresdner Kleinwort the Board has appointed Winterflood Investments
Trusts to act as broker to the Company.


    Ten Largest Holdings 



 Position as at  Position as at                                           % of
 30 June 2008    31 March 2008                                           Gross
                                                                        Assets

                                  Company

 1               2                The Canyon Value Realisation Fund        7.8
                                  (Cayman) Limited 
 2               1                Glenview Capital Partners (Cayman)       7.5
                                  Limited 
 3               4                Polygon Global Opportunities Fund        7.3
 4               5                NGA Fairfield Limited                    6.7
 5               3                Tosca Fund Limited                       6.1
 6               6                Taconic Opportunities Offshore           5.8
                                  Fund Ltd 
 7               7                Litespeed Offshore Fund Limited          5.6
 8               8                Shepherd Investments International       5.6
                                  Ltd 
 9               9                Amber Fund (Cayman) Limited              5.5
 10              11               Seneca Capital International             5.0
                                  Limited

                                                                          62.9

    The Board is not aware of any significant events or transactions which have occurred since 30 June 2008 and the date of publication of
this statement which would have a material impact on the financial position of the Company.


    Further information regarding the company, can be found at
    www.fandceventdriven.com.


    By order of the Board
    Capita Financial Administrators (Guernsey) Limited
    Secretary


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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