Downing FOUR VCT

Healthcare share class

The Downing FOUR Healthcare share class gives you the opportunity to invest in a high conviction portfolio of ambitious healthcare and life sciences companies.

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

  • Special offer: 1% reduction in initial fee for new investors or 1.5% reduction for existing Downing investors, if application is received by 29 October 2021. 
  • A high conviction portfolio: A rigorously researched portfolio of existing healthcare companies already in Downing-managed funds, as well as new opportunities that our team selects.  
  • Portfolio companies we know well: Our investment managers aim to have close relationships with the portfolio companies (often introducing suitable Non-Executive Directors or advisors to the company or taking a board seat themselves). Through proactive engagement, we aim to identify both challenges and opportunities as early as possible. 
  • Diversification: The Healthcare share class can be used as a tax-efficient way to complement and diversify your existing investment portfolio.  
  • Target raise: £10 million (with capacity for an additional £15 million). This figure allows us to deploy your capital more efficiently and avoid holding too much cash, which can act as a drag on returns. 
  • Minimum investment: A minimum lump sum investment of £5,000 (which can be split over two tax years and three share classes, subject to a minimum of £1,000 in any one option). The maximum you can invest per tax year is £200,000.
  • Generous share buy-back policy: Downing FOUR intends to buy-back its shares at a nil discount to their net asset value, giving you the opportunity to sell your shares with no exit penalties. (Subject to liquidity and applicable VCT regulations).  

What do I need to know before investing?

  • Where is my money invested?

    Your investment in the Downing FOUR VCT Healthcare share class is looked after by our specialist Healthcare team, who use a thematically driven approach, focusing on sectors where we have significant subject matter expertise as investors but also as operators and advisers.  

    The teams extensive experience and expertise, alongside a global network of industry connections, means we can cast the net wide to source high-quality, early-stage investment opportunities.  

    We look to invest your funds in a variety of areas it the healthcare and life sciences sector. Below are the main five areas we concentrate on: 

    • Pharmaceutical services 
    • Medical devices 
    • Therapeutics 
    • Digital Health 
    • Diagnostics 

    Over the last seven years, we have invested more than £30 million into 17 companies in the healthcare and life sciences sector through our EIS and VCT funds (to 30 June 2021). Those companies are now valued at a total of £40 million, giving a return on investment of 1.33x.

    Before selecting an investment opportunity, we use our network of healthcare sector specialists to undertake customer, intellectual property, tech, product, market and financial reviews for both new and follow-on investments. While we look at a large number of investment opportunities, we only progress with a select few. 


  • What are the risks?

    As with all investments, Downing FOUR 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. 
    • Shares in the Healthcare share class are high risk compared to larger ‘blue-chip’ companies quoted on the main stock exchange.  
    • 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. 
    • There is no certainty on the level of any dividends. 
  • What are the charges?

    Special offer: 1% reduction in initial fee for new investors or 1.5% reduction for existing Downing investors, if application is received by 29 October 2021.

    Below is a summary of the fees that will apply to your investment in Downing FOUR VCT. For full details of all fees associated with this product, please refer to the brochure.  

    Initial fee 2.5% of the sum invested (via an adviser) or 4.5% (direct or via an intermediary) 
    Annual management fee 2.5% p.a. of net assets. The total annual running cost is capped at 3.5% p.a. (this includes fees for audit and taxation advice etc.) 
    Performance incentive fee 20% of all dividends paid when the total returns are above a hurdle (see page 19 of the Prospectus)
  • What happens once I've invested?

    Once you have invested in Downing FOUR VCT we'll send you and your adviser an email confirming receipt of the application, so you can then arrange to transfer the funds for your investment. We will send you another email confirming that your money has been received. We intend to make share allotments, i.e. create and issue shares, at least once per quarter.

    Shortly after your shares have been allotted, we’ll send you and your adviser an email, which will contain a PDF version of your tax certificate that you can use to claim income tax relief. You can expect to receive a share certificate in the post within 10 working days of an allotment. You'll need your tax certificate to claim income tax relief on your investment amount.

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

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 before investing.
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Brochure
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Key Information Document
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Prospectus and Supplementaries

How to invest

The first step is to read and understand the brochure, key information document and the Prospectus and Summary. If you are applying through a financial adviser please discuss this investment with them. When you’re ready to invest you or your adviser should fill in the online application form below.

We're here to help

If you are a financial adviser, or discretionary fund manager please call us on 020 7630 3319 or email us at sales@downing.co.uk.

If you are a private investor you can speak to Downing LLP's investor relationship team on 020 3828 0975 or email customer@downing.co.uk.