The VCT's objectives are to maximise tax free capital gains and income to Shareholders from dividends and capital distributions by investing the VCT's funds in:1. a portfolio of clean technology and environmentally sustainable investments, primarily in the UK and the EU, that have attractive income and growth characteristics, with investments in existing asset-backed renewable generation projects as the core of the portfolio; 2. a range of non-qualifying investments, comprised from a selection of cash deposits, fixed income funds, securities and secured loans and which will have credit ratings of not less than A minus (Standard & Poor's rated)/A3 (Moody's rated).
The management fee is 1.4% of NAV p.a. for 2018 financial year and is reduced to 1.15% p.a. in subsequent years. The performance fee is equal to 20% of the surplus when dividends exceed 5p per share for a financial year and 30% when dividends exceed 10p per share.The aggregate fees will not exceed 100,000 annuallyexcluding any Performance Incentive fees to which the Directors may be entitled from time to time.
The Company will distribute surplus Funds generated by the underlying investments, subject to maintaining an appropriate cash reserve within the VCTs to meet anticipated future requirements. The VCT has an objective of paying dividends of 5p per share annually in September.