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.
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
- Digital Health
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.