Title: 

URL Source: https://doc.morningstar.com/document/46a6a5a9e9acbf514d3a83c1e36b7598.msdoc/?clientid=ajbell&key=805803a4ca9fc338

Markdown Content:
Key Information Document 

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 and to help yo u

comp are it with other products. 

# Product 

Name: Baronsmead Venture Trust plc ISIN: GB0002631934 Contact number: 020 7382 0999 

PRIIP Manufacturer: Baronsmead Venture Trust plc (the “VCT” or the “Company”) 

Competent authority: The Company is not authorised or regulated by the Financial Conduct Authority (“FCA”). The FCA has 

supervisory powers in respect of the product and contents of this document. 

This key information document is accurate as at 6th September 202 4.

# What is this product? 

Type  This product is  a Venture Capital Trust and public limited company, whose shares are traded on the  London 

Stock Exchange as a Closed Ended Investment Fund and incorporated in the United Kingdom. 

Objectives  The investment objective of the Company is to generate long term investment returns with tax free capital 

gains and regular dividend income for its shareholders, primarily through investment in a diverse portfolio of 

UK growth businesses, whether unquoted or traded on AIM. The VCT will manage its portfolio to comply wi th 

the requirements of the rules and regulations applicable to VCTs from time to time. 

Intended retail investor  Retail investors, aged 18 or over, who are UK tax -payers  intending to invest for at least 5 years and who are 

comfortable with higher risk investments in small, illiquid unquoted and quoted companies. VCT investing is 

only suitable for investors who are capable of evaluating the risks and merits of such investm ent and who 

have sufficient resources to bear any loss which may result from the investment. Investors should read the 

risk factors set out in the most recent Prospectus or Annual Report. 

Gearing  The Company has the ability to borrow for short term liquid ity purposes up to a maximum of 25% of its gross 

assets. Currently there is no borrowing, however any future borrowing would magnify any gains or losses 

made by the VCT. 

Bid / Offer spread  The Company's existing shares are bought and sold via the London  Stock Exchange. Typically, at any Bid / 

Offer spread given time on any given day, the price you pay for a share will be higher than the price at which 

you could sell it. 

Maturity  There is no maturity date. The Company cannot unilaterally terminate this pr oduct and there are no 

circumstances under which it can be automatically terminated. 

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

The risk indicator assumes you keep the product for 5 years. If you sell your product earlier, you may have to sell at a price that 

significantly impacts how much you get back. You may not be able to sell. 

The summary risk indicator is a guide to the lev el of risk of the Product compared to other products. It shows how likely it is that the 

Product will lose money because of movements in the market or because we are not able to pay you. We have classified this 

Product as 6 out 7, which is the second highest risk class. This rates the potential losses from future performance at a high level, and 

poor market conditions are very likely to impact our capacity to pay you . This Product does not include any protection from future 

market performance so you co uld lose some or all of your investment. If we are not able to pay what is owed, you could lose your 

entire investment. 

The required summary risk indicator only reflects historic share price volatility of the company’s shares. It excludes other risks 

inher ent in the product and, therefore, does not show the full risks to the investor. Investment in AIM traded and unquoted 

companies have a higher degree of risk than investments in companies traded on the main market of the London Stock Exchange. 

These risks include market, credit, liquidity and interest rate risks. 

The cost, performance and risk calculations included in this KID follow the methodology prescribed in UK rules. 

Risk  indicator 

## Lower risk  Higher  risk 

# 1 2 3 4 5 6 7Performance information 

The main factors that will affect the performance of Baronsmead VCT are the selection and performance of UK Equity Growth 

companies in the unquoted and AIM sector s; and the ability to develop underlying companies into attractive businesses to sell .

Baronsmead VCT (BVCT) has delivered an annualised return of 6. 1% a t an annualised volatility of 14. 3% since inception on the 

5th May 1998 . Over the latest ten -year period, ending 5th September 202 4, BVCT has delivered 3.7 % per annum at an annualised 

volatility of 11. 6%. Over the whole trading history, the highest risk experienced over a rolling five -year period was 23.9% per 

annum . In our calculations w e have used an ex -ante moderate performance scenario of 1.43 % over the recommended holding 

period of five years to produce our reduction in yield calculations. 

VCT funds may carry higher risks than is reflected in the ir traded price history , so for comparison, we created a liquid proxy 

based on the Fund ’s weighting s to Small Cap sectors , AIM, and key market indices g oing back to 31st December 1999 . We have 

refer red to th is proxy ’s performance where it would give a more cautious performance o utcome .

What could affect my return positively? 

Specific factors that affect returns positively are the good selection and performance of sectors and investments within the 

Fund . The Fund currently has sector exposures to Technology, Health Care & Education and Business Services in the Unquoted 

and AIM markets . General i mprovements in the valuation of UK companies, and these sectors , are likely to positively impact 

on returns . Correlations have been observed to increase during improved valuations for the UK market , but otherwise day to 

market correlation s ha ve been low . In terms of quantitative evidence, BVCT ’s best performance over a rolling one -year period 

was 45.1% and, over the recommended holding period of five -year s, the best five -year rolling return was 16. 6% per annum. 

What could affect my return negatively? 

Specific factors that affect returns negatively are the poor selection and under performance of investments within the portfolio 

through either inefficient operation, poor execution , and poor assessment of market risks. Falling valuations of UK small and 

AIM equities, particularly in the key sectors of Technology, Health Care & Education and Business Services would be expected 

to impact on returns. In market downturns , we would expect to see stronger correlations between BVCT and the falling market s.

In terms of quantitative evidence, BVCT’s worst rolling one -year performance was -31 .0 %; for comparison , our proxy’s worst 

one -year performance was -48.8 %. Over longer periods , BVCT ’s worst five -year rolling performance wa s -1.1% per annum , and 

for comparison , our proxy ’s worst five -year performance was -10.1 % per annum .

What could happen in severely adverse market conditions? 

Under severely adverse market conditions, the investor could expect to lose some , or all of their investment. 

The markets have recently experienced adverse market conditions, from September 2021 to De ce mber 2023, the Company 

experienced a shareholder loss of 24.9 %. A more severe experience could be a loss of 34. 6%, which BVCT experienced between 

February 20 00 and October 20 02 . BVCT took around two and a half years to recover in May 20 05 . A deeper downturn was 

identified in our proxy , which was a -65.9 % fall from M arch 200 0 to Oct ober 200 2 before recovering in April 201 5.

# What happens if Baronsmea d Venture Trust plc is unable to pay out? 

As a shareholder of the Company you would not be able to make a claim to the Financial Services Compensation Scheme about 

the Company in the event that the Company is unable to pay out. 

# What are the costs? 

The Reduction in Yield (RIY) shows what impact t he 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. T hey include 

potential early exit penalties. The figures assume you invest £10,000. The figures are estimates and may change in the future .

Costs over time 

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.             

> Investment: £10,00 0
> If you cash in after… 1 year 3 years 5 years
> Total Costs (£) £73 1£1, 297 £1 ,9 11
> Impact on return (RIY) per year (%) 7.3 1%4. 09 %3.4 6%

Composition of costs 

The table below shows: 

• the impact each year of the different types of costs on the investment return you might get at the end of the 

recommended minimum holding period; 

• the meaning of the different cost categories. 

This table shows the impact on return per year 

One  – off costs  Entry costs  0.9 4% The impact of the costs you pay when entering your investment, for 

subscriptions for new shares. The entry cost assumed an initial charge of 4.5% 

and is the most you will pay. If you invest directly or through a financial adviser 

the initial charge could b e less, as low as 2.25%. 

Exit costs  0.00%  This product does not have any exit costs. 

Ongoing costs  Portfolio transaction 

costs 

0.00%  The impact of the costs of the fund buying and selling underlying investments 

for the product. 

Other ongoing costs  2.34 % The impact of the costs taken by the fund each year for managing your 

investments. 

Incidental costs  Performance fees  0. 18 % The impact of the performance fee. The manager is paid from your investment 

when the total return on shareholders’ funds exceeds an annual threshold of 

the higher of 4 per cent or base rate plus 2% calculated on a compound basis. 

The manager is paid 10% on performance above the benchmark. 

Carried interests  0.00%  This product does not charge any carried interest. 

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

Recommended required minimum holding period for subscriptions of new shares: 5 years 

The recommended minimum holding period of 5 years has been selected, as VCTs are intended to have a long investment horizon and 

any divestment within the recommended minimum holding period could have implications with respect to tax advantages of invest ing 

in the Company. 

Disinvestment is possible at any time. The Company's shares are quoted and traded on the London Stock Exchange, so, provided 

there is a willing buyer, you can realise your investment at any time through a stockbroker or a share dealing account. You should 

note that previously owned VCT shares do not qualify for initial income tax relief and there is, therefore, a very limited secondary 

market for the Company's existing shares. The price you receive on the open market may therefore not reflect the underlying N AV 

of the shares. As there is a limited market for its existing shares, the Company m aintains a share buyback programme subject to the 

opinion of the board, concluding a repurchase of shares would be in the best interests of the shareholders as a whole. The ai m is to 

buy back shares at 5% discount to net asset value, however there is no gu arantee .

There are no additional fees or penalties incurred on exit, however the price you receive on the open market may not reflect the 

underlying NAV of the shares .

# How can I complain? 

As a shareholder of the Company you do not have the right to compl ain to the Financial Ombudsman Service (FOS) about the 

management of the Compan y. Complaints about the Company or the k ey information document should be directed to the Company. 

More informat ion can be found at: http://www.baronsmeadvcts.co.uk/enquiry.asp .

You can submit your complaint via post to Baronsmead Venture Trust plc, Octagon Point, 5 Cheapside, London, EC2V 6AA or via 

telephone on 020 3837 6270. 

# Other relevant information 

The late st annual report and prospectus can be found at www.baronsmeadvcts.co.uk . The cost, performance and risk calculations 

included in this KID follow the methodology prescribed by EU rules. Depending on how you buy these shares you may incur other 

costs, incl uding broker commission, issue costs, platform fees and Stamp Duty. The distributor will provide you with additional 

documents where necessary. If you are in any doubt about the action you should take, you should seek independent financial ad vice.