CQS Rig Finance Fund Ltd : Statement re June Monthly Factsheet CQS Rig Finance Fund Limited (the "Company"), a closed-ended investment company incorporated in Guernsey, is pleased to announce that its Monthly Fact Sheet for June 2013 is now available on the Company's website (www.cqsrigfinance.com) and includes further information on the top ten investments and outstanding borrowings. Global markets continued to react to concerns of a sooner-than-anticipated tapering of the US Federal Reserve's ('Fed') quantitative easing programme. Equities, US Treasuries, and global credit markets were all weaker in June, although statements from Fed officials in an attempt to calm markets helped to reverse some of the sharper moves towards the end of the month. Increased volatility was also exacerbated by continued weak macroeconomic data, especially from Europe and China. The MSCI World Index fell 2.4% net in local currencies. European equities, as measured by the MSCI Europe Index, saw a decline of 5.0% while the MSCI Asia Index fell 2.5%. US 10-year Treasury yields climbed to over 2.6%, from 2.1% at the beginning of June, though rates partially retraced back to 2.5% by month-end. In Europe, iTraxx Crossover (S19) widened from 422bps to 477bps and iTraxx Main (S19) widened from 103.25bps to 119.75bps. In the US, CDX Investment Grade (S20) widened from 77.75bps to 86.50bps and the CDX High Yield (S20) widened from 383bps to 428bps. On an intra-month basis, both iTraxx Crossover (S19) and CDX High Yield indices (S20) widened by over 100bps. The BoAML euro Non-Financial Fixed & Floating Rate High Yield Constrained Index posted a 2.1% loss. As in May, the price of Brent Crude oil was volatile but started and ended the month not far from the $100 per barrel mark. Against this backdrop, the Company's NAV per share posted a loss of 1.2% on the month to close at 36.31p. Losses were recorded across the majority of strategies alongside the weakening markets and negative newsflow from Subsea 7 SA. On 26 June, the company announced an increase in the estimated full-life project loss on the Guará-Lula NE project which is offshore Brazil. It stated, "as a result, the company no longer expects full year adjusted EBITDA to show progress compared to 2012...Based on the experience to date, the estimated full-life project costs are expected to increase by between $250 million and $300 million as compared to our previous expectations"^1. This profit warning led to a steep fall in the Subsea 7 share price and negatively impacted the price of the Subsea bonds in the portfolio. Despite the weak markets, the liquidity in the investment space was reasonably robust. The market has historically become more illiquid during the summer months, especially the Norwegian high yield market as most participants take holiday in July. As well as this potential liquidity risk, two other factors are notable: weak data from China has reignited the market debate over a possible 'hard landing' and the ensuing risk to global growth; and it is noteworthy that the oil price has remained resilient in the face of weakness in the wider commodity markets. Bearing this in mind, the Company took advantage of the liquidity to exit some smaller positions and trim other positions across the portfolio, thus increasing cash balances. All market data sourced from Bloomberg and MSCI unless otherwise stated. MSCI index returns are in local currencies with net dividends reinvested. ^1Source: Bloomberg, as at 26 June 2013 For further information, please contact: Corporate Secretariat Kleinwort Benson (Channel Islands) Fund Services Limited 01481 710 607 Alastair Moreton, Darren Vickers NOMAD and Broker Westhouse Securities Limited 020 7601 6118 Rig Fact Sheet ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: CQS Rig Finance Fund Ltd via Thomson Reuters ONE HUG#1717117
CQS Rig Finance Fund Ltd : Statement re June Monthly Factsheet
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