A specialist VCT investing in companies operating in healthcare technology, drug discovery, medical services and other health-related areas.
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.
What do I need to know before investing?
Where is my money invested?
We believe healthcare is a vital area to invest in for a host of reasons, including the increasing ageing population, the increase in chronic conditions, the advances in medical treatment and the continued pressure on health services.
The Downing FOUR VCT Healthcare Share Class aims to invest in a range of researched and carefully selected healthcare companies, for example innovative biomedical, drug discovery and diagnostic technology companies. Our in-house healthcare specialists manage this share class and are supported by the wider investment team.
These companies 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 cashflow 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 Healthcare 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 Healthcare portfolio invests in companies in a single sector rather than across a range of sectors.
- 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 Healthcare 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 fee 2.5% 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 fee 20% 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 payable before then
What happens once I've invested?
Once you have invested in the Downing FOUR VCT Healthcare 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.