Downing ONE VCT

A generalist VCT with an existing track record from income-generating and other investments and a special offer for early applications.

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. Past performance is not a reliable indicator of future performance. Please read full details of the risks here.

Key features

  • Early bird special offer: Up to to 1.5% off initial fee for applications received by 13 December 2019.  For more information scroll down to the charges section.
  • Existing portfolio: Includes asset-backed and yield-generating investments that no longer qualify for new VCT investment. 
  • Dividend target: At least 4% p.a. of the net asset value (NAV). This is not guaranteed.
  • Monthly or lump sum investments: Minimum investment: £500 per month, or £5,000 lump sum (which can be split over two tax years). Maximum investment: £16,666 per month, or £200,000 lump sum per tax year.
  • Share buy-back policy: 5% discount to latest published NAV, subject to liquidity, VCT rules and applicable regulations.
  • Cap on annual running costs: Downing will pay costs in excess of 2.6% p.a. of the net assets, one of the lowest caps in the VCT sector.
  • Follow-on deal flow: Our ventures EIS portfolio provides a regular source of investment opportunities. 
  • Initial target raise: £15 million.

What do I need to know before investing?

  • Where is my money invested?

    Your investment will be used to fund early-stage, potentially fast-growing venture capital and small company opportunities with attractive valuations. 

    You can also benefit from any income and growth derived from the investments in the existing portfolio companies. Some of these are yield-generating or asset-backed investments that are deemed to be less risky but no longer qualify for new VCT investment due to changes in legislation. 

    We conduct thorough research to really get to know our companies and develop strong business relationships. Downing ONE VCT already has a diverse portfolio of approximately 90 carefully selected companies across a range of sectors (as at 31 July 2019). Examples are healthcare and life sciences, leisure, software & services and alternative energy. For additional diversification, Downing ONE also invests in small quoted companies.

    All these businesses are usually in the early stages of their development but will have a solid business plan or have shown potential in their chosen market.  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, Downing ONE VCT 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.
    • Investing in smaller companies will normally involve greater risk compared to investing in larger, more established companies.
    • 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 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 in the Prospectus before investing.

  • What are the charges?

    SPECIAL OFFER on initial fee

    Existing investors*​New investors​
    Investing by 13 December 2019​1.5% off​1.0% off​
    Investing by 28 February 2020​1.0% off ​0.5% off​

    *Investors who hold, or have held, any Downing LLP product

    Please refer to the Prospectus for full details of the investor discounts.

    The fees below will apply to your investment in Downing ONE VCT. They can reduce the amount invested in your portfolio. VAT will be charged where applicable. Note, you can get tax relief on the full amount you pay into the VCT. For full details of the charges, please read the Prospectus.

    Initial feeDirect and advised clients: 2.5% of the monies subscribed.
    Execution only (via an intermediary): 4.5% of the monies subscribed.
    (Paid by investor and also referred to as 'promoter's fee' in the Prospectus.)
    Total running costsCapped at 2.6% p.a. of the net assets - including Downing LLP's investment advisory fee of 2% p.a. of the net assets; secretarial and administration fees: and all other costs.
    (Paid by Downing ONE VCT.)
    Performance incentive
    fee
    20% of the realised gains on any exit from 'new' investments made since 1 April 2019, following two hurdles being achieved.
    (Paid by Downing ONE VCT.)
    Trail commission feeFor a maximum of five years, 0.25% of the net asset value of your new shares.
    Paid by Downing ONE VCT to Downing LLP, who then pay your intermediary (where applicable). Any surplus fees will be repaid to Downing ONE.
    Portfolio company chargesFees paid by the portfolio companies:
    Arrangement fee: total arrangement fees of up to 2% of all new monies invested in any year (individual arrangement fees vary between 0% and 3%).
    Annual monitoring fee : typically up to 0.5% p.a. of the sums invested in each portfolio company​. Note, if arrangement fees are lower than 2%, monitoring fees may be up to 0.5% higher. Please see the Prospectus for more information on portfolio company charges.

    All fees are subject to shareholders' approval at the general meeting on 6 November 2019.

  • What happens once I've invested?

    Once you have invested in Downing ONE VCT we'll send you an acknowledgement letter, typically within seven business days. We intend to make share allotments, i.e. create and issue shares in the VCT, at least once a quarter. We'll send you an email soon after your shares have been allotted. 

    You can expect to receive your income tax and share certificates within four weeks of your shares being allotted. You'll need your tax certificate to claim income tax relief on your investment amount. If you subscribe monthly you'll receive tax and share certificates on a quarterly basis. 

    In July of each year, we'll send you the annual report and accounts to  31 March. We'll also send you a half-yearly report in December each year for the six months to 30 September.

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.
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Prospectus
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Brochure
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Key Information Document

How to invest

The first step is to read and understand the brochure, key information document and Prospectus. 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. There's a handy checklist at the end to help make sure you haven't left anything out. 

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.