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RNS Number : 4940C

Thames River Multi Hedge PCC Ltd

08 March 2011

COMPANY ANNOUNCEMENT

Thames River Multi Hedge PCC Limited

Redemption Facility

The Board of Directors of Thames River Multi Hedge PCC Limited has resolved not to implement the discretionary Redemption Facility as at 30 June and 31 December 2011.

The Board has studied the results of the operation of the Redemption Facility during 2010 and found that operating the Facility when a portion of the Company's portfolio is invested in illiquid and re-structured investments creates difficulties in the management of the portfolio that are to the detriment of shareholders as a whole. Although substantial steps have been taken and there is a plan in place through 2011 to continue to reduce the proportion of the portfolio in illiquid investments, this still represents about 6% of the portfolio. When the Redemption Facility is operated, the Investment Manager can sell investments only from the more liquid performing portion of the portfolio to meet the cash requirements of the Redemption Facility, thus leaving an increasingly unbalanced portfolio to the disadvantage of the ongoing shareholders. Each time the Redemption Facility is exercised the situation is exacerbated.

The Directors recognise that a Redemption Facility which does not allow net asset value adjustments to reflect the true cost of selling illiquid investments within its operation can operate to the detriment of the Company and believe that it is undesirable to continue to operate the Redemption Facility until this has been rectified. In order to remedy the situation the Board proposes to change the Articles of Association to make the Redemption Facility calculation fairer to all shareholders. Accordingly, it intends to propose a resolution to amend the Articles at the Annual General meeting in the third quarter of 2011.

While the Investment Manager achieved near double-digit returns on the performing portion of the portfolio in 2010, the Board is sensitive to the investment performance of the overall portfolio having fallen short of its double-digit return target. This was to a large extent caused by the impact of write-downs of the legacy side pocketed holdings from the 2008 financial crisis in the illiquid portion of the portfolio, combined with the requirement to raise cash from the more liquid, performing portion of the portfolio to fund both the Redemption Facility and the share buy-back programme. With the worst effects of the 2008 financial crisis on the illiquid portion of the portfolio being worked through, the Directors are advised that the performance of the overall portfolio is now expected to revert to its target of double-digit returns.(1)

With this in mind, the Directors intend to continue with the share buy-back programme during 2011 subject to prevailing market conditions and any legal and regulatory constraints but will not implement the Redemption Facility. However, if the net asset value performance of the Company's shares is not on target to achieve this level of return for the calendar year 2011, the Board will consider offering a liquidity event of at least 20% of the issued share capital of the Company early in 2012 upon such terms as they determine in their sole discretion.

Note:

1. Nothing contained in this announcement is, or should be taken as, a forecast of profits or dividends and no guarantee or assurance is given as to the future performance of the Company or the targeted returns.

Enquiries:

Thames River Capital LLP

Michael Warren Phone: +44 (0) 20 7360 1370

Cenkos Securities plc

Dion Di Miceli Phone: +44 (0) 20 7397 1921

Northern Trust International Fund Administration Services (Guernsey) Limited

Fraser Hiddelston Phone: +44 (0) 1481 745738

The Company is an authorised closed-ended investment scheme domiciled in Guernsey. As an existing closed-ended fund the Company is deemed to be granted an authorisation declaration in accordance with section 8 of the Protection of Investors (Bailiwick of Guernsey) Law 1987, as amended and rule 6.02 of the Authorised Closed-ended Investment Schemes Rules 2008 on the same date as the Company obtained consent under the Control of Borrowing (Bailiwick of Guernsey) Ordinance 1959 to 1989.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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