Gartmore launches new Venture Capital Trust

22 October 2001

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Gartmore Investment Ltd launched a new VCT onto the market on 8 October, its first since 1995. Entitled Gartmore Premier VCT plc it aims to raise Â£25m through the issue of 25,000,000 ordinary shares at 100p each. The minimum investment per individual subscriber is Â£3,000 and the maximum is Â£100,000 per tax year. The management fee is set at 1.5% of net assets in the first period to 30 September 2002, 1.75% of net assets in the following financial year and 2% of net assets for all subsequent years. Commission for IFAs and other intermediaries is an initial 2.5%, with a renewal rate of 0.25% (for an initial period of five years). The issue is sponsored by Teather & Greenwood Ltd.

Investments

Gartmore Premier VCT aims to invest in mature companies over a broad range of sectors with the aim of getting as balanced a portfolio as possible. Gervais Williams, who will manage the VCT for Gartmore Investment, says that up to 20% of the fund may be invested in unquoted companies, but only those later-stage companies expecting to float within 18 months of investment. It is intended that within three years 70% of the portfolio will consist of mature unquoted companies and companies on the AIM and OFEX markets. Initially the capital will be invested on a tactical basis in a range of fixed-income securities and, from time to time, in high-yielding smaller companies and Gartmore collective investment funds. When asked why now was an opportune time to launch Gartmoreâ€™s first VCT in six years Williams explained that company prices have been driven down by the recent downturn in the economy, making this a good time to invest, and that the UK economy is better placed than most to recover from the current slump, which should mean a healthy return on any investments made now.

People

Gartmore Premier VCT will be managed by the Gartmore Smaller Companies Team, which is headed by Gervais Williams. Other members of the team are Tim Dainton, Frank Manduca, Simon King, Andrew Russell and Chris McVey.