Downing FOUR VCT Generalist Share Class

A multi-sector VCT investing in businesses at different stages of maturity.

Your capital is at risk and you may not get back the full amount you invested. VCT investments are long term and high risk. Tax reliefs are subject to change and depend on personal circumstances. Please read full details of the risks here.

Key features

  • Dividend target: At least 4% p.a. of net asset value (NAV) from summer 2020 onwards. This is not guaranteed.
  • Monthly or lump sum investments: Minimum investment: £500 per month, or £5,000 lump sum per tax year. Maximum investment: £16,666 per month, or £200,000 lump sum per tax year.
  • Share buy-back policy: Nil discount to NAV (subject to VCT regulations, market conditions and liquidity).
  • Proprietary follow-on deal flow:  Our Ventures EIS portfolio provides a regular source of investment opportunities. 
  • Cap on annual running costs: Downing will pay any costs in excess of 3% p.a. of the net assets. 
  • Target raise: £20.3 million.

Closing 30 August 2019

What do I need to know before investing?

  • Where is my money invested?

    We conduct thorough research to really get to know a company and develop a strong business relationship. The Downing FOUR VCT Generalist Share Class currently invests in around 20 carefully selected companies across a range of sectors. Current examples are in enterprise SaaS (software-as a-service), consumer technology and education technology. 

    The companies the VCT invests in are usually in the early stages of their development but will have a solid business plan or have shown potential in their chosen market.  

    Many companies will still be pre-profit; others will already be profitable but need additional cash flow to fuel their growth potential

    In all cases we look for talented management teams, a defined market and a clear strategy for profitable growth. 

  • What are the risks?

    As with all investments, the Downing FOUR VCT Generalist has risks that you should be aware of and comfortable with before you invest. 

    • The value of your VCT shares can go up and down so your capital is at risk.
    • Any income received from your VCT shares can rise and fall.
    • VCT tax benefits are not guaranteed, are subject to change and apply only if you hold your shares for a minimum of five years.
    • Maintaining VCT status is not guaranteed, which may result in you having to repay the amount you received in tax relief. 
    • It can be hard to sell your VCT shares compared to other stock market investments so you should be prepared to hold them for the long term.
    • The Downing FOUR VCT Generalist portfolio will usually consist of around 20 companies so diversification could be considered limited.
    • The past performance of a VCT is not a reliable indicator of future results.

    Please note this is only a brief overview of the risks involved with investing in a VCT. Please read full details of all the risks here before investing.

  • What are the charges?

    These fees are paid by the Downing FOUR VCT Generalist Share Class and they can reduce the amount invested in your portfolio. Note, you can get tax relief on the full amount you pay into the VCT. VAT will be charged where applicable.

    Promoter fee
    Direct and Advised
    3%of the money invested
    Promoter fee
    Intermediary
    5%of the money invested. Part of which will be used to pay commission to the intermediary
    Investment management fee2% p.a.of the net assets
    Secretarial and administration fees£40,000(increasing at RPI), plus 0.1% of net assets in excess of £10 million p.a., plus £5,000 per additional share pool
    Performance fee20%of all dividends will be paid if the total return per share exceeds £1.00 for all  years to 31 March 2020. For subsequent years, the total return hurdle increases by £0.03 each year. We don't anticipate paying any dividends until summer 2020, so don't expect any performance fee to be charged before then
  • What happens once I've invested?

    Once you have invested in the Downing Four VCT Generalist Share Class we'll send you an acknowledgement letter, typically within seven business days. We make share allotments, i.e. create and issue your shares in the VCT, at least every quarter.

    You'll receive your income tax and share certificates usually within four weeks of your shares being allotted. This will allow you to claim income tax relief on your investment amount. If you subscribe monthly you'll receive tax and share certificates on a quarterly basis. 

    To keep you up to date on the performance of your investments, we'll send you a valuation and investment report every six months.

Essential reading

It's really important that you read these key documents, paying particular attention to the risks before you decide to invest. We recommend you seek financial advice before investing.
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Prospectus
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Key Information Document
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Brochure
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Allenbridge rating and review

How to invest

The first step is to read the prospectus, key information document (KID) and brochure. When you’re ready to invest complete the application form below. Send the completed application to us, making sure you've included the required forms of identification.

We're here to help

If you have any questions, please call us on 020 7416 7780 or email us at customer@downing.co.uk.