To: Editors
Date: 25 January 2008
Close Investments today announces a temporary suspension of dealing in the Property Investment Portfolio plc (“Closepip”). Trading has also been temporarily suspended in one of its sub-funds, Active Commercial Estates (“ACE”) of which Closepip is a majority shareholder.
Close Investments state that this decision has been made in the interests of the investors in the fund to ensure that the high level of redemption requests does not force property sales. The Board of Directors of Closepip have taken the decision to suspend dealing in the fund with effect from 22nd January, 2008. This suspension will be in place until otherwise notified. It is currently anticipated that the suspension will be in place initially for six months; however, this may change depending on market conditions. The Board will keep the position under review with the Sponsor, Close Investments, and any developments will be communicated to shareholders.
Closepip is designed to generate consistent, steady, attractive returns and the table below demonstrates that it is doing just what it should be doing, even in the present difficult market conditions. Closepip continues to benefit from its wide diversification from UK and European commercial property to low volatile UK residential ground rents.
Peter Roscrow, Chief Investment Officer, Close Investments Property comments: “We continue to believe in the long term future performance of Closepip which has performed better than the vast majority of competitor open ended property funds over the last 1, 3, and 6 months, 1 and 3 years.”
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Closepip and competitor performance as at 31/12/07
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1m (%)
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3m (%)
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6m (%)
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1y (%)
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3y (%)
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Aberdeen Property Share A Acc
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-2.2
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-17.23
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-26.92
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-37.95
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7.93
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Legal & General UK Property R Inc
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2.61
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-5.3
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-6.24
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-3.47
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M&G Property Portfolio Sterling A Inc
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-6.64
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-16.03
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-16.08
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-13.36
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New Star UK Property Inc
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-6.64
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-12.69
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-18.86
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-19.6
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5.03
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Norwich Property Inc
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-4.55
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-11.8
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-19.07
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-18.97
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10.62
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Norwich Property Investment
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-4.68
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-14.25
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-15.37
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-13.8
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12.9
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ResolutionAsset UK Property Acc
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-3.33
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-16.77
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-17.86
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-15.76
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8.31
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Skandia Property Acc
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-6.76
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-17.39
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-19.04
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-19.33
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St James's Place Property Acc
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-1.77
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-14.17
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-16.24
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Standard Life Inv Select Property Ret Acc
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-2.9
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-11.54
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-12.67
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-10.57
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SWIP Property Trust Acc
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0.83
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-12.98
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-13.17
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-11.01
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21.41
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Total Average (11)
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-3.28
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-13.65
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-16.5
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-16.38
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11.03
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ClosePIP Growth Portfolio (£)
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-0.45
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-4.12
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-4.43
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-1.34
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18.09
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ClosePIP Distribution Portfolio (£)
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-0.33
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-3.9
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-4.03
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-1.28
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19.64
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source: Lipper, Close Investments
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Notes:
Both European Property Investment Portfolio Plc (“Europip”) and Freehold Income Trust (“FIT”) remain open for monthly dealing as usual.
Please see background note to editors attached.
For further information, please contact:
Karen Wagg
Polhill Communications Tel: 0207 655 0540
NOTES TO EDITORS
PROFESSIONAL ADVISERS ONLY
Closepip key features:
· Launched in May 2003
· Isle of Man ‘Experienced Investor Fund’
Close Investments does not provide advice to, or ensure suitability for investors in respect of any of its investment products.
Past performance is not a guide to future performance Closepip is not a regulated collective investment scheme for the purposes of the Financial Services and Markets Act 2000 and distribution of this document and information relating to Closepip is accordingly restricted by law.
Close Investments provides a broad spectrum of innovative products for institutional, mutual funds and private investors including property, tax mitigation products, manager of managers, specialist fund management (such as fixed income and the Alternative Investment Market) and structured products. Close Investments manages assets of £4bn^. Close Investments Limited and Close Multi Manager Limited are members of the Close Investments Group and each uses the trading name Close Investments. The other members of the Close Investments Group are Close Teams Limited, Fortune Asset Management Limited, and Close Fund Management Limited. Close Investments Limited is authorised and regulated by the Financial Services Authority.
Close Investments products include:
· open & closed ended property funds
· open ended investment companies
· inheritance tax mitigation products
· capital gains tax and income tax mitigation products
· generalist and AIM Venture Capital Trusts
· UK smaller company and AIM investments
· fixed income funds
· structured products
Close Investments is a subsidiary of Close Brothers Group plc.
Close Brothers Group plc is an independent investment banking group which was founded in the City of London in 1878 and is listed on the London Stock Exchange. The Group employs over 2,500 staff and manages assets of £9.1bn*. Its main activities comprise asset management, corporate finance, market making and banking, including asset financing. The Group has established a strong reputation for independence and integrity. Its growth is largely attributable to an entrepreneurial but conservative approach and it has achieved market leadership in several specialist areas
^As at end July 07 (Source Close Investments)
*As at end July 07 (Source Close Brothers Group plc)