What are the charges & discounts?

The charges taken by VCT managers vary widely but as a broad rule of thumb annual charges are often about 3% and initial charges are about 5% (although we will discount these often by up to 4%). The managers are obliged to disclose many of them in the prospectus. However they are not as simple and transparent as a unit trust.

As well as initial and annual charges, managers often apply performance fees and some will allow 'sweet equity' deals for the individual managers where they co-invest their own money on the same or perhaps even better terms as the VCT itself. Another way VCT managers can make money is from charging the underlying company for the services of the VCT manager. While the charges are complex and will be a secondary issue to the skills of the manager, we believe that it is an important differentiating factor and also very useful in determining the motivation of the manager. We are using our influence in the marketplace to try and encourage managers to align their interests to those of their clients.

View the current list of VCTs and the discounts available.