The objective of the company is to provide high long-term tax-free returns to investors through a combination of dividend yield and capital growth. The company invests primarily in unquoted UK manufacturing and service businesses which meet the key criteria of good value, growth potential, strong management and ability to generate cash. The directors intend that the long-term disposition on the assets of the company will be approximately 80% in a portfolio of VCT qualifying unquoted and AIM investments and 20% in other investments selected with a view to producing an enhanced return while avoiding undue capital volatility, to provide a reserve of liquidity which will maximize the flexibility of the company as to the timing of investment acquisitions and disposals, dividend payments and share buy-backs.
Management fee 2.06% p.a. of NAV. Performance fee will be measured on a sliding scale by reference to total return of the company. The agreement may be terminated at any time by not less than twelve months notice being given by either party.
It is intended that most of the distributable income and realised gains will be paid out.