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# Key Information Document – New Century AIM VCT 2 plc 

## Purpose : 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 an d to 

help you comp are it with other products. 

## Product : Name of Product: New Century AIM VCT 2 plc – £0.10 Ordinary Shares 

ISIN GB00B 1SN3863 

Manufacturer: Oberon Investments Ltd 

Competent Authority: Financial Conduct Authority - UK 

Firm Contact Details: Web: www.o beroninvestments.com Tel: +44 (0)20 3179 5300 

Date of document : 31 st December 202 3

## You are about to purchase a product that is not simple and may be difficult to understand .

## What is this product? 

Type : Shares in New Century AIM VCT2 plc (the “Company”) which is a Venture Capital Trust listed on the London 

Stock Exchange. It primarily invests into UK smaller companies that are not listed on the main London Stock 

Exchange, but are traded on London’s Alternative Investment Market (AIM). 

Objectives : The company’s principal objectives, as set out in the prospectus, are to achieve long term capital growth through 

investment in a diversified portfolio of ‘Qualifying Companies’ – primarily quoted on AIM. To continue to qualify 

as a Venture Capital Trust by maintaining at least 80% of the company’s assets invested in ‘Qualifying Companies’. 

Intended Retail Investor : A typical investor for whom an investment in the Company is designed will be a UK taxpayer who can 

benefit from the tax reliefs of a VCT investment, who is aged 18 years or over. This may include retail, 

sophisticated investors, as well as high net worth i ndividuals who already have a portfolio of investments. 

Investment in Venture Capital Trusts is risky and is only suitable for investors who understand those risks and 

have sufficient resources to bear any loss that may arise. 

The market in Venture Capital Trust shares is relatively illiquid. Investment in Venture Capital Trusts is unlikely to 

be suitable for money that may be required at short notice. 

## What are the risks and what could I get in return? 

Risk indicator 

This product offers no guarantee against credit or market risk. If the underlying companies do not pay what they owe the 

company, or if the value of the company’s investments falls, you could lose part of the capital you invest. However, you will not 

be required to make addition al capital contributions. There is a limited secondary market for shares on Venture Capital Trusts. You may find it difficult to sell your shares at sh ort 

notice, or you may have to sell at a discount to the company’s net asset value. 

## Investment Performance Information 

Venture Capital Trust s (VCTs) are a special class of investment trust created by the UK Government to encourage investment in 

new and small companies through a number of tax incentives on investments of up to £200,000 per year. 

• If you invest in newly issued VCT shares, you will normally be able to claim income tax relief on 30% of your 

subscription. To get this relief, you must keep your whole investment for five years, and the company must continue 

to meet the criteria to qualify as a VCT 

• You will normally be exempt from income tax on dividends and capital gains tax on sale of your shares. 

Tax law may change and the tax treatment may depend on your individual circumstances. If in doubt, please take appropriate 

independent advice. 

VCTs normally invest in new issues of shares and hold them for the medium to long term. They are not actively traded. This is a

condition of maintaining the VCT status. 

This is an AIM VCT. The shares of the companies in which it invests are normally quoted on AIM. The company has a broad 

portfolio of such shares. You should note, however, that not all companies whose shares are traded on AIM are ‘qualifying 

investments’ in a VCT. 

Over the long term, the performance of the VCT’s portfolio will be primarily determined by the success of the companies in 

which it invests. However, in the shorter term, it may be affected by the general economic outlook and by sentiment in the AI M

market generally. 

In addition, the market price of the VCT shares may differ from the net asset value of the portfolio. If you sell your shares in the 

market, the price you get may be less than the net asset value. This will adversely affect your return. Conversely, if you bu y

shares in the market at a discount to the net asset value, this will enhance your overall investment return. 

In light of the tax incentives available to the Company’s investors, this VCT seeks to distribute its realised profits by way of 

dividends. This means that the VCTs shares are likely to underperform AIM. However, as this document was being prepared, 

the ta x free dividend yield on the shares was 5.3 %. This may, of course, vary according to the availability of distributable 

reserves in the Company and the share price of the Company .

Because VCTs invest in new issues of start -ups and growing companies, there is a relatively higher risk that any one investment 

will fail. We seek to manage this risk by diversifying the portfolio. 

## What happens if the Venture Capital Trust is unable to pay out ?

Venture Capital Trusts invest their funds in smaller companies, some of which may be unquoted. Investment in such companies 

involves a higher degree of risk than investment in larger quoted companies. They may have more limited resources or product 

lines, and they may be more reliant on key individuals involved in their management .

The company’s ability to return funds to shareholders in the form of dividends or capital redemptions will ultimately depend on 

the performance of these underlying investments. If the underlying investments fail then the value of your investment will be 

re duced. 

A Venture Capital Trust is a listed company. Shareholders are not covered by the Financial Services Compensation Scheme in the 

event that the company is unable to return to you what you might have spent acquiring shares in the Company .

As a shareholder of the New Centur y AIM VCT2 plc you are not covered by the Financial Services Compensation Scheme (FSCS). What are the costs? 

## Costs over time 

The Reduction in Yield (RIY) shows the impact the total costs you pay will have on the investment returns an investor might 

achieve . The amounts shown here are the cumulative costs of the product itself , for an illustrative holding period of one , three, 

or five years (at the end of which , in each case, the investment is sold) . The figures assume an initial investment of £10 ,000 . We 

have assumed for this purpose that the company earns no returns on its investment portfolio. Because the charges are based 

on the value of the portfolio, the cash amount of the charges will be higher if the VCT makes a profit and lower if it makes a 

loss. However, the percentage impact will be broadly similar .

The person selling you or advising you about this product may charge you other costs. If so, this person will provide you wit h

information about these costs, and show you the impact that all costs will have on your investment over time.                      

> Cost Scenarios
> Investment of £10,000
> Invest ment held for o ne year Invest ment held for t hree year sInvest ment held for f ive year s
> Total costs (£1 49 .50) (£ 345 .53 )(£ 53 7.65 )
> RIY per annum as a percentage
> of original investment
> (1. 495 %p.a. )(1.1 52 %p.a. )(1. 075 %p.a. )

## Composition of costs               

> This table shows t he different costs borne by the VCT using the 5 year holding period exam ple above :
> One -off costs Entry and exit
> cost s£0.00
> The VCT is a close -ended company. Shares are traded on the stock exchange.
> The company does not make any charges in this regard. Your stock broker will
> notify you of his charges for buying and selling the shares.
> Ongoing costs Management
> Charge (£ 490 .1 0)The investment manager charges a fee of 1% per annum
> Occasional costs Dealing
> commission (£ 47.55 )
> The company incurs dealing charges where it exits investments in the
> secondary market. These are charged by its broker on an ad -valorem basis at
> 0.5% per transaction . However, by the nature of a VCT, investments are
> generally held for several years.

## How long should I hold it and can I take money out early? 

The recommended holding period is 5 years or more. 

Venture Capital Trusts are listed companies. Their shares may be bought and sold on the London Stock Exchange whenever the 

market is open for business . The market is relatively illiquid, however, and the costs of dealing are likely to be high. Venture 

Capital Trust shares commonly trade at a discount to the value of their underlying assets. A sale in the secondary market is 

unlikely to realise the full v alue of your investment. The company arranged a tender offer to buy back up to 10% of its issued 

shares at a 5% discount to NAV in 2017. It intends to make further buy back offers “from time to time” 

If you have subscribed for newly issued shares in the Company within the past five years, you may have to repay part of any tax 

relief that you obtained if you sell the shares. 

## How can I complain? 

If you have any complaints about the company, you should contact the chairman of the company :

Geoff Gamble, Chairman, New Century AIM VCT 2 Plc ,

c/o Suite 5, 7 th Floor , 50 Broadway, London, SW1H 0DB 

Shareholders do not have access to the Financial Ombudsman Service in relation to complaints about their investee companies. 

## Other relevant information 

This document has been produced in accordance with regulatory requirements to provide a standardised overview of the key 

features of shares in New Century AIM VCT 2 plc. The illustrative returns have been estimated in accordance with a 

methodology required by the Financial Conduct Authority. They are based on the historical performance of the Company’s 

portfolio which may not continue in the future. 

The tax implications of an investment in a Venture Capital Trust may depend on your personal circumstances and may be 

subject to legislative change. 

There is no guarantee that the companies invested in will be qualifying companies or that the company will retain its qualify ing 

status as a Venture Capital Trust. 

If you are unsure about the suitability of this investment for you, please seek advice from a suitably qualified financial ad viser.