To maximise tax-free distributions to Shareholders principally from the successful realisation of investments. The Company will initially invest in a portfolio of the investments will be held in a portfolio of Qualifying Companies. The Company aims to invest in established VCT qualifying unquoted companies for the purposes of funding expansions, acquisitions, management buy-outs or turn around opportunities. The Company will occasionally invest in AIM quoted stocks. It will also occasionally invest in technology and early stages businesses but usually as part of a syndicate of investors.
The annual investment fee is 1.65% NAV of the Company. when NAV exceeds GBP 34m, the fee reduces to 1.35%. Performance incentive fees are payable quarterly to the Manager from capital. The contract is terminable on 12 months notice.
The Directors intend to maximise the stream of tax free dividend distributions, primarily from the successful realisation of investments for cash and also partly from income. It is intended that dividends will be paid twice a year in February and July. The Company distributes sufficient revenue dividends to ensure that not more than 15% of the income from shares and securities in any one year is retained.