Calculus Capital, in conjunction with Investec Structured Products, intends to launch a Venture Capital Trust (VCT) in February 2010. The VCT will adopt a disciplined investment strategy combined with a policy of minimising fees and will be available for investment in both the 2009/2010 and 2010/2011 tax years.
The VCT offers the potential of tax relief of 30 per cent on the initial investment with all subsequent dividends and capital gains tax free. The VCT will invest in a combination of Structured Products and Venture Capital Investments to diversify risk with the initial objective to achieve an annual dividend for 5 years of 5.25 pence per share plus a return of 43.75 pence per share after 5.5 years by way of a special dividend or a cash tender offer for shares. After this time the investor will still hold a portfolio of investments in Qualifying Companies within the VCT. The Structured Products within the portfolio will be managed by Investec Structured Products and will have simple defined returns based on the FTSE 100 Index with pre-determined risk profiles and a diversified range of counterparties. The Venture Capital Investments will be managed by Calculus Capital.
Calculus Capital has a highly experienced and respected core team of specialist investment managers who have been successfully investing in small unquoted companies since 1997. Calculus launched the first Inland Revenue approved Enterprise Investment Scheme (EIS) in 2000 and have since launched and closed for subscription a further 8 EIS funds and 2 VCT issues.
Gary Dale, Head of Intermediary Sales at Investec Structured Products said, “This forthcoming launch is hugely exciting for us. It has always been our intention to broaden our product range to suit a wider variety of advisers and investors and teaming up with Calculus Capital to offer this VCT is our first development which truly fits in the wealth management space.”
“VCTs have the ability to offer excellent tax-planning opportunities and with the combined expertise of Investec Structured Products and Calculus Capital, this first issue aims to deliver strong investment returns as well as an element of capital protection. Initial feedback tells me that this first launch will be incredibly popular.”
Susan McDonald, Chairman of Calculus Capital, added “We are delighted to have been selected by Investec to help them launch and manage this exciting and innovative product.”
