Title: https://doc.morningstar.com/document/f78c41ba759f982f515fd38ee748aedc.msdoc/ URL Source: https://doc.morningstar.com/document/f78c41ba759f982f515fd38ee748aedc.msdoc/?clientid=equiniti&key=118e3421984822cc Number of Pages: 3 Markdown Content: Page 1 of 3 # Key Information Document This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. # Octopus Apollo VCT plc ISIN: GB00B17B3479 ; Sedol: B17B347 This Key Information Document (KID) is issued and approved by Octopus Investments L imited , authorised and regulated in the UK by the Financial Conduct Authority (FCA). Website: www.octopusinvestments.com Customer enquiries: +44 (0) 800 316 2295 Date of production : 14/10 /20 22 # You are about to purchase a product that is not simple and may be difficult to understand # What is the product? New issue shares in Octopus Apollo VCT plc (the “Company”) which is a Venture Capital Trust (VCT) listed on the London Stock Exchange. It primarily invests into unquoted UK smaller companies which are expected to be VCT -qualifying. It is important to note that the information contained within this Key Information Document is related to the subscription of new shares. If shares are purchased on the secondary market the costs may be different and you will not be eligible to claim the 30% income tax relief. Investment policy The Company offers investors access to a diversified portfolio of over 40 establ ished and developing companies from a broad range of sectors . Typically, investments of around £2 million - £10 million are made in to young business to business (B2B) software companie s. Any uninvested funds are typically held in cash and money market funds to provide flexibility as to the timing of investment acquisitions an d disposals, dividends payments and share buybacks. The Board control the overall risk of the portfolio by ensuring tha t the Company has exposure to a diversified range of investee companies from a number of different sectors. In order to limit the risk to the portfolio that is derived from any particular investment, at the point of investment no more than 15% of the Compa ny by value will be in any one investment . Investments are normally made using shareholders’ funds and it is not intended that the Company will take on any long -term borrowing. The Company’s VCT -qualifying investments are held with a view to long - term capital growth as well as income and will ofte n have limited marketability due to their unquoted nature. Investment decisions made for VCT -qualifying investments must adhere to HMRC’s VCT qualification rules. The Company typically looks for investment opportunities where the following apply: • A busines s that has been operating for around four to ten years and that has successfully brought a product or service to market • A growing and diversified customer base, with a clear trajectory toward profitability • A clearly defined business model and a competitive edge. This may, for example, involve proprietary technology, industry -leading innovation or operating in a niche market • Annual revenue between £ 2 million - £8 million, ideally recurring or contracted. This makes future revenues more predictable • A business whose customers are other businesses. These companies are usually able to retain their customers well • A strong management team with extensive industry experience Dividend policy The Company currently targets an annual tax -free dividend yield of 5% of net asset value , as well as the potential for special dividends although these are not guaranteed. Who is this product suitable for? A typical investor for whom the Offer is designed is a UK taxpayer over 18 yea rs of age with a n investment range of between £ 5,000 and £200,000 who considers the investment policy to be attractive. This may include retail and sophisticated investors, as well as high ne t worth individuals who already have a portfolio of investments. Investors need to be comfortable that investing in smaller UK companies is higher risk than some other investments and have a longer investment horizon of at least 5 years. Your shares may be difficult to sell, it may take time to find a bu yer or you may h ave to accept a price lower than the NAV (net asset value – value per share on a specific date or time) of the investment . Recommended Holding Period There is no recommended holding period for VCT shares, alth ough for the purposes of this Key Information D ocument (to allow you to compare this with other similar products) the recommended holding period is stated as 5 years. This is because VCT shares must be hel d for a minimum of 5 years in order to retain the 30% upfront income tax relief Page 2 of 3 # What are the risks and what could I get in return? The summary risk indicator is a guide to the level of risk of this product compared to other products . It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you. We have classified this product as a 2 out of 7 which is a low risk class, using the required calculation methodology . How ever, please note the summary risk indicator is reflective of the historic share price volatility of The Company’s shares . It excludes other risks inherent with the product and is not representative of the full risk to the investor. Investment in unquoted companies, which constitutes most of the Company’s portfolio, by their nature, involv e a higher degree of risk than some other investments. The value of the shares may go down as well as up. This product does not include any protection from future market p erformance so you could lose some or all of your investment. There is no certainty that the market price of shares will fully reflect their underlying NAV or that any dividends will be paid, nor should shareholders rely upon any share buyback policy to off er any certainty of selling their shares at prices that reflect their underlying NAV. The risk indicator assumes yo u keep the product for 5 years. If you sell early the risk indicator may be different. For full details on the risks associated with the Octopus Apollo VCT refer to ‘What are the key risks that are specific to the issue?’ of the VCTs Prospectus dates October 202 2, which is available on our website. This table shows the money you could get back over the next 5 years, under different scenarios, assuming that you invest £10,000. The scenarios shown illustrate how your investment could perform. You can compare them with the scenarios of other products . The scenarios presented are an estimate of future performance based on evidence from the past and are not an exact indicator. What you get will depend on how the market performs and how long you keep the investment. The stress scenario shows what you might get bac k in extreme market circumstances, and it does not take into account the situation where you are unable to sell your shares. The figures shown include all the costs of the product itself, where applicable, but may not include all the costs that you p ay to your adviser or distributor. The figures do not take into account your personal tax situation, which may als o affect how much you get back. The figures shown do not include any upfront income tax relief you receive on your investment or take into account any penalties to which this inves tment may be subject, from HMRC, in the event of a sale before 5 years. Any dividends paid out by the VCT are also tax -free. # What happens if Octopus Apollo VCT is unable to pay out? If the Company is unable to facilitate a share buyback then you could s ell your VCT shares on the secondary market. The number of buyers of second -hand VCT shares is limited, as a result, selling shares directly into the market can produce a poor result. As a shareholder of Octopus Apollo VCT you are not covered by the Financ ial Services Compensation Scheme (FSCS). Scenarios 1 Year 3 Years 5 Years (Recommended holding period) What you might get back after costs £6,885 £7,586 £7,079 Average return each year -31.15% -8.80% -6.68% What you might get back after costs £9,164 £9,271 £9,512 Average return each year -8.36% -2.49% -1.00% What you might get back after costs £9,700 £10,263 £10,860 Average return each year -3.00% 0.87% 1.66% What you might get back after costs £10,339 £11,442 £12,485 Average return each year 3.39% 4.59% 4.54% Stress Scenario Unfavourable Scenario Moderate Scenario Favourable Scenario Page 3 of 3 # What are the costs? The Reduction in Yield (RIY) shows what impact the total costs you pay will have on the investment return you might get. The total costs take into account one -off , ongoing and incidental costs. The amounts shown here are the cumulative costs of the product itself, for three different holding periods. The figures assume you invest £10,000. The figures are estimates and may change in the future. The person selling y ou or advising you about this product may charge you other costs. If so, this person will provide you with information about these costs, and show you the impact that all costs will have on your investment over time. This does not take into account any pen alties that may be incurred by HM Treasury for selling prior to the 5 year minimum holding period . The table below shows the impact each year of the different types of costs you might get at the end of the recommended holdin g period and, what the differe nt cost categories mean . This table shows the impact on return per year. # How long should I hold it and can I take money out early? You must hold onto the shares for a minimum of 5 years in order to retain the upfront income tax relief. If you choose to disinvest before the 5 year holding period you will have to pay any income tax relief back to HMRC and there may be additional penalties. Your shares may be difficult to sell, there isn’t an active market for VCT shares in the way there is for shares in many other listed companies . This means that if you decide to sell your VCT shares, it may take time to find a buyer, or you may have to acc ept a price lower than the NAV of the investment. The Octopus Apollo VCT offers investors a share buyback facility, provided there are funds available and will purchase them at a small discount to the NAV price (currently 5%). The buybacks are conducted at the Board’s discretion, therefore there are no guarantees that shares will always be sold on request. # How can I complain? If you have a complaint, you can contact O ctopus Investments by phone on 0800 316 2295 , by email co mplaints@octopusinvestments.com or in writing to ‘The Complaints Manager, Octopus Investments Ltd, 33 Holborn, London, EC1N 2HT’. # Other Relevant Information: Other relevan t informati on relating to the Octopus Apollo VCT can be found in the Prospectus dated October 202 2 (which acts a s the T erms & Conditions of the offer) , the brochure & accompanying application form . For full details of the VCT’s risks please see ‘What are the key risks that are specific to the issuer?’ of the VCT’s Prospectus dated Oct ober 202 2. This Key Information Document is in relation to subscribing to new issue shares, if shares are purchased on the secondary market costs may be different and you would not be eligible to claim the 30% upfront income tax relief. The cost, performance and risk c alculations included in this Key Information Document follow the met hodology prescribed by EU rules, as stated in the PRIIPs Regulation and as transposed in UK law in the FCA Handbook. Scenarios If you cash in after 1 year If you cash in after 3 years If you cash in after 5 years ## Total costs £891 £1,567 £2,232 Impact on return (RIY) per year 9.19% 5.46% 4.70% Entry costs 1.16% Exit costs 0.00% Portfolio transaction costs 0.32% Other ongoing costs 2.84% Performance fees 0.61% Carried interests 0.00%