Title: URL Source: https://doc.morningstar.com/document/e1306a60b602b4c913ea12812a883a86.msdoc/?clientid=ajbell&key=805803a4ca9fc338 Markdown Content: Key Information Document > Triple Point Venture VCT plc Key Information Document 1 # You are about to purchase a product that is not simple and may be difficult to understand. # PURPOSE ## This document provides you with key information about this investment product. It is not ## marketing material. This 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. ## Type This product is an offer for new shares in the Triple Point Venture VCT plc, which is a Venture Capital Trust and an Alternative Investment Fund (AIF). The share class launched on 18 September 2018 and is currently open to new investment. The VCT has a premium listing on the Main Market of the London Stock Exchange. ## Objectives and Summary Investment Policy The product aims to provide capital growth for investors, where shares are invested for at least five years, whilst enabling investors to benefit from available VCT tax reliefs. The VCT aims to invest in businesses which have the potential to generate long term capital growth, typically investing in early stage companies often at seed and pre-seed funding rounds - looking to maximise financial returns by investing in innovative companies solving real-world corporate challenges. The key objectives of the VCT are to: • Achieve capital growth for investors by investing in young, innovative companies with the potential to deliver ground-breaking technology or products at scale and transform markets • Pay regular tax-free dividends to investors • Maintain VCT status to enable investors to benefit from the associated tax reliefs ## Intended retail investor The VCT has been designed for retail investors who understand the risks and benefits of early stage investing and want to benefit from our challenge-led approach. Investors should be UK taxpayers, over 18 years of age and with one or more of the following characteristics: • Understands the risk of investing in illiquid assets • An understanding that investing in small, young businesses comes with a higher risk profile than traditional investments • Sufficient income and capital to commit to invest for the recommended holding period (at least five years) and the ability to bear losses of up to 100% of the capital invested • Sufficient earnings to be able to benefit from the VCT tax reliefs ## Insurance benefits The VCT does not have any insurance benefits. Product: Triple Point Venture VCT plc, (the product or the VCT) Name of the PRIIP manufacturer: Triple Point Investment Management LLP (TPIM) Website: www.triplepoint.co.uk Call: +44 (0)20 7201 8989 Date of production of this document: 4 September 2024 TPIM is registered in England & Wales no. OC321250 and authorised and regulated by the Financial Conduct Authority (FCA) no. 456597. ## WHAT IS THIS PRODUCT? Triple Point Venture VCT plc Key Information Document 2 ## Risk summary The summary risk indicator is a guide to the level of risk of these investments compared to other products. It shows how likely it is that these investments will lose money because of movements in the markets or because we are not able to pay you. We have classified this investment as 6 out of 7, which is the second-highest risk class. This rates potential losses from future performance at a high level, and poor market conditions are very likely to impact the capacity of the VCT to pay you. This is because the VCT invests in early stage unquoted companies which, by their nature, involve a higher degree of risk than some other investments. These investments do not include any protection from future market performance so you could lose some or all of your investment. If the VCT were not able to pay what is owed, you could lose your entire investment. However, you may benefit from a consumer protection scheme (see the section “what happens if we are unable to pay you”). The indicator above does not consider this protection. ## WHAT ARE THE RISKS AND WHAT COULD I GET IN RETURN? The performance of the VCT is dependent on the ability of Triple Point to source appropriate investments for the VCT and on the selected Investee Companies performing as expected. While our challenge-led approach seeks to increase the ratio of successful businesses within the portfolio, and therefore the returns to VCT investors, some companies within the portfolio will still fail. The VCT tax reliefs are dependent on individual circumstances and anyone that is unsure as to whether they will be able to take advantage of any such reliefs should seek financial advice before investing. VCT shares are usually illiquid and must be held for five years to qualify for the tax reliefs available. You may want to hold your shares for longer than this to maximise returns and secure the best sale price as VCT shares are infrequently traded. Please note there is no relevant index or benchmark for Venture Capital investments. ## What could affect my return positively? Venture capital investments are high risk but also come with the potential of high return. It is generally accepted that a number of early stage investments will fail but that value will be generated by the successful investments within the portfolio. How many companies are successful, and the level of that success will be a key factor in positively impacting your dividends and capital growth. Our challenge-led approach seeks to maximise this by selecting investments that have already received market-validation. A buoyant market for VCT shares will also increase your ability to benefit from the strong performance of such investee companies. There is no cap on the investment returns from these successful investments. ## What could affect my return negatively? As mentioned above, not all investments in the portfolio will be successful and factors from changes in market conditions to new regulatory requirements can impact an investee company’s performance. If fewer investee companies are successful, the value of your VCT investment would be impacted. Where the VCT portfolio does perform well, the market for shares is a consideration and it may be harder to find a buyer during a negative economic cycle. Where it is hard to find a buyer and/or where the VCT is unable to buy back your shares, selling your investment quickly may mean accepting a price that is lower than the net value of the VCT’s assets or a sale may not be possible at all. Please see the Risk Factors section of the Brochure for more details of what could negatively impact your return. ## INVESTMENT PERFORMANCE INFORMATION An investment in the VCT is not covered by the Financial Services Compensation Scheme (the FSCS). As such FSCS protection does not apply to investments held in the VCT once shares have been allotted. However, deposit protection applies to when money belonging to investors is held in the Client Account, prior to shares being allotted. While money is held in the Client Account it is protected by the FSCS deposit protection which is currently £85,000 per eligible person per bank. To find out more go to www.fscs.org.uk. ## WHAT HAPPENS IF TRIPLE POINT IS UNABLE TO PAY OUT > The risk indicator assumes you will hold the investment > for five years. The actual risk can vary significantly if you > cash in at an early stage and you may get back less. > You may not be able to cash in early. You may not be > able to sell your product easily or you may have to sell > at a price that significantly impacts on how much you > get back. 1 2 3 4 5 6 7 > Lower > Risk > Higher > Risk ## Risk indicator Triple Point Venture VCT plc Key Information Document 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. There are no potential early exit penalties. The figures assume you invest £10,000 and are estimates which may change in the future. The person selling or advising you about this investment 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. Investment of £10,000 If you cash in after one year If you cash in after three years If you cash in after five years Total costs £515 £1,069 £1,664 Impact on return (RIY) per year % 5.31% 3.57% 3.22% 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 holding period; and the meaning of the different cost categories. ## Composition of Costs This table shows the impact on return per year based on the recommended five year holding period > One-off costs Entry Costs 0.48% The impact of the costs you pay when entering your investment. > Ongoing costs Exit costs 0.00% The impact of the costs of exiting your investment when it matures. There are not > any applicable exit costs. > Portfolio > transaction costs > 0.05% The impact of the costs of us buying and selling underlying investments for the VCT. > Other ongoing > costs > 2.58% The impact of the costs that we take each year for managing investments for the VCT. This > figure includes 2% management fees. Total ongoing costs are capped at 3.5% > Incidental costs Performance fees 0.12% The impact of the performance fee. Triple Point is entitled to a performance fee of 20% on > the NAV’s total return in excess of an annual threshold of 3.0% calculated on a compound > basis. Example based on a moderate return scenario over 5 years. > Carried interests 0.00% The impact of carried interests. There are no carried interests applicable to this product. ## HOW LONG SHOULD I HOLD IT AND CAN I ## TAKE MONEY OUT EARLY? ## Recommended holding period The recommended holding period of this investment is a minimum of five years which is necessary to benefit from the VCT tax reliefs, but investments may be held for longer to maximise returns given the early stage nature of the underlying holdings and as exits are only expected to take place within five to ten years from the VCT’s first investment. Therefore, you should recognise an investment in the VCT is long term in nature. Shares in the VCT may be illiquid. The VCT offers investors a share buyback facility, provided there are funds available and subject to the Board’s discretion, priced at a 5% discount to the NAV. Full details of this facility can be found in the Prospectus available at https://www.triplepoint.co.uk . Should investors dispose of shares before the end of the five year holding period they will be required to repay any income tax relief received. There is no tax claw-back on a disposal following the death of the investor within the five year holding period. ## HOW CAN I COMPLAIN? Triple Point has a complaints procedure in place which requires the firm to deal fairly with any complaint received. If an investor has a complaint, they should write to Complaints, Triple Point Investment Management, 1 King William Street, London, EC4N 7AF, who will acknowledge receipt of your letter, investigate the circumstances and report back to you. If the investor remains unsatisfied with Triple Point’s handling of the complaint, they may be eligible to refer the complaint to the Financial Ombudsman Service. ## OTHER RELEVANT INFORMATION For a detailed overview of risks and the terms and conditions associated with an investment in the VCT, please refer to the Brochure and Prospectus available on the Triple Point website or on request at contact@triplepoint.co.uk.