Venture Capital Trusts |
 AXA Framlington manage two venture capital trusts (VCTs). The Framlington AIM VCT PLC was launched in 2004 and the Framlington AIM VCT 2 launched in 2006. |
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Both products invest in higher risk smaller companies listed on the AIM market.
There is an update on the performance over the last year, some perspectives on the wider market conditions, and Brian's outlook for 2009 and beyond.
As with all stockmarket investments, we believe that money should be invested for a minimum of five years.
We would also like to draw your attention to the important information relating to these funds, which can be found on our risk warnings page, or at the bottom of this page. |
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Literature associated with these Trusts
Interim statements
Proxy voting totals report
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Past performance is not a guide to future performance. The value of investments and the income from them can fluctuate and investors may not get back the amount originally invested, even taking into account the tax breaks. Changes in exchange rates will affect the value of investments made overseas. Therefore investors may not recoup the value of their original investment. Investment in smaller companies offers the possibility of higher returns but may also involve a higher degree of risk. These companies may not perform as hoped and in some circumstances may completely fail. Prospective investors should be be aware that the Board has authority to incur borrowings up to a limit not exceeding 10% of the company’s adjusted share capital and reserves. Whilst there is no present intention of doing so, the use of borrowings in that event will enhance the net value assets of Shares where the value of the Company’s underlying assets is rising. It will have the opposite effect where the underlying asset value is falling. Furthermore, should any fall in the underlying asset value result in the Company breaching the financial covenants contained in any Loan Facility, the Company may be required to repay such borrowings forthwith in whole or in part together with any attendant costs. Loans and related costs outstanding in the event of liquidation will rank in priority to other classes of creditor including shareholders. There may also be constraints imposed upon the realisation of investments by reason of the need to maintain the VCT tax status of the company. The secondary market for shares in VCTs is limited and as a result shares in VCTs can trade at a discount to the net asset value. In order to partially address this issue the Directors intend to pursue an active share buy back policy within regularly reviewed guidelines.Investors should be aware that ordinary shares must be held for at least three years to qualify for tax relief. The tax rules or their interpretation in relation in an investment in the Company and/or the rates of tax may change during the life of the Company and investors should take independent professional advice covering their personal circumstances. Additionally, such investments in VCTs should be viewed as long term ie. 7-10 years.
This should be regarded as a higher risk investment vehicle. Please ensure that you consider all risk factors relating to the fund. These are described in detail in the Prospectus which can be found in our Literature section.
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For more information, visit the Important Information section of our website. |
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