The policy is to invest primarily in a diverse portfolio of UK unquoted companies. Investments are generally structured as part loan and part equity in order to receive regular income to generate capital gains upon sale. Investments are made selectively across a number of sectors, principally in established companies. The cash and liquid resources of Company are held in a range of instruments of varying maturities, subject to the overriding criterion that the risk of loss of capital be minimised.
Management fee of 2.4% p.a. of closing NAV, calculated on a quarterly basis. Investment Adviser is entitled to receive an annual performance-related incentive fee of 20% of the dividends paid in a year in excess of a Target Rate. The contract is terminable on 12 months notice.
The objective is to provide shareholders with an attractive stream of tax-free dividends. The annual dividend target of the company is 6 GBX per share. However, the Board continues to review the sustainability of this target following the recent changes to the VCT Rules and the ability of the company to pay dividends in the future cannot be guaranteed and will be subject to performance and available cash and reserves.