FCAP.L Regulatory News (FCAP)

27 Mar 2007 15:46

FRM Credit Alpha Limited27 March 2007 Company AnnouncementFor Immediate Release 27 March 2007 1437034 FRM Credit Alpha Limited Re: Results of Issue THIS COMMUNICATION IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTOTHE UNITED STATES, CANADA, JAPAN OR AUSTRALIA THIS COMMUNICATION IS AN ADVERTISEMENT AND NOT A PROSPECTUS AND IS NOT AN OFFERTO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN THE UNITED STATESOR IN ANY OTHER JURISDICTION The Board of FRM Credit Alpha Limited (the 'Company'), a newly formedclosed-ended investment company listed on the Irish Stock Exchange and admittedto trading on the International Bulletin Board of the London Stock Exchange, ispleased to announce that subscriptions have been received pursuant to thePlacing with an aggregate value of £46 million comprising 46 million SterlingShares issued at £1 per Share. The Company will seek to deliver better risk adjusted returns than thoseachieved by making passive investments in corporate debt securities, whenmeasured over a complete market cycle. The Company will seek to achieve itsobjective by investing in a portfolio of hedge funds pursuing a variety ofdifferent credit and credit related investment strategies. By investing in acombination of investee funds managed by managers who adopt research-based value/ event-driven or long-short approaches, the Company believes that volatilityand peak-to-trough drawdowns will be lower than those typically delivered bylong-only approaches. The investment portfolio and general deployment of assets of the Company will bemanaged by FRM Investment Management Limited. Investment advice will beprovided by Financial Risk Management Limited, which has been allocating toCredit Strategies since 1998 and currently advises on credit strategyallocations valued at around US $1.5 billion. Both FRM Investment ManagementLimited and Financial Risk Management Limited are part of the FRM Group whichwas founded in 1991, and as at December 31, 2006 had around US $12 billion infunds of hedge funds assets under management. FRM has over 200 employees inoffices in London, New York, Tokyo, Sydney and Guernsey. Paul Dunning, CEO of Financial Risk Management Limited, says: "Credit hedgefunds with a research-driven approach can offer investors diversification fromtraditional investments in equities and bonds. Credit is a growing asset class,and there are a number of hedge funds which use sophisticated instruments,extensive research and activism to generate attractive returns in this market.Investing in these funds through FRM Credit Alpha brings investors the benefitsof FRM's proven track record in credit and our rigorous research and portfolioconstruction capabilities." The Company's Sterling Shares of no par value have today been admitted tolisting on the Irish Stock Exchange and to trading on the International BulletinBoard of the London Stock Exchange with an ISIN code of GB00 B1QH6J27 and a TIDMof FCAP. The defined terms used in this announcement have the meanings set out in theCompany's Prospectus dated 20 March 2007. There is no guarantee that thereturns that the company seeks to deliver will be achieved or that losses willnot be incurred. This announcement is an advertisement and not a prospectus and is not an offerto sell or a solicitation of any offer to buy any securities in the UnitedStates or in any other jurisdiction. The issuer has not been and will not be registered under the US InvestmentCompany Act of 1940, as amended (the "Investment Company Act"). In addition, theshares have not been and will not be registered under the US Securities Act of1933, as amended (the "Securities Act"). Consequently, the shares may not beoffered, sold or otherwise transferred within the United States or to, or forthe account or benefit of, US persons except in accordance with the SecuritiesAct or an exemption therefrom and under circumstances which will not require theissuer to register under the Investment Company Act. No offering of the shareswill be made in the United States. Neither this document nor anything contained herein shall form the basis of, orbe relied upon in connection with, any offer or commitment whatsoever in anyjurisdiction. Any offer to acquire securities referred to in this advertisementshould be made solely on the basis of information contained in a prospectus madegenerally available in Ireland on 20 March 2007. Copies of such prospectus maybe obtained at no cost from FRM, through the website of the Irish FinancialServices Authority or the website of the issuer. This communication is issued in the UK by Financial Risk Management Limitedwhich is authorised and regulated by the Financial Services Authority and whoseoffice is at 15 Adam Street, London WC2N 6AH. This communication is directed only at (i) persons outside the United Kingdom,or (ii) persons having professional experience in matters relating toinvestments who fall within the definition of "investment professionals" inArticle 19(5) of the Financial Services and Markets Act 2000 (FinancialPromotion) Order 2005 (the "Order") or (iii) high net worth companies,unincorporated associations and partnerships and trustees of high value trustsas described in Article 49(2) (a) to (d) of the Order. Persons within the UnitedKingdom who receive this communication (other than persons falling within (ii)and (iii) above) should not rely on or act upon this communication. Enquiries: Financial Risk Management Limited Luke Burdess, 020 7968 6208, luke.burdess@frmhedge.com Tina Hugo, 020 7968 6209, tina.hugo@frmhedge.com Winterflood Investment Trusts Nathan Brown, 020 7621 5572, nathan.brown@wins.co.uk Jane Lewis, 020 7621 5521, jane.lewis@wins.co.uk Broadgate Roland Cross, Broadgate, 020 7776 0512, rcross@bgate.co.uk Sally Moore, Broadgate, 020 7776 0508, smoore@bgate.co.uk Listing Sponsor at the Irish Stock Exchange Roslyn Doran, McCann FitzGerald Listing Services Ltd, 353 1 6071294,rxd@mccannfitzgerald.ie This announcement has been issued through the Companies Announcement Service of The Irish Stock Exchange This information is provided by RNS The company news service from the London Stock Exchange