Title: URL Source: https://doc.morningstar.com/document/3007294de55956a2606a77e4af506b3b.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 you comp are it with other products. # PRODUCT Name: Foresight Technology VCT plc ( "the Company "), FWT Shares ISIN: GB00BKF2JH04 Manufacturer: Foresight Technology VCT plc Competent Authority: Financial Conduct Authority Contact Details: The Company can be contacted through its company secretary Foresight Group LLP, The Shard, 32 London Bridge Street London SE1 9SG +44 (0)20 3667 8100 www.foresight.group Date: This key information document ( "KID ") has been produced by the board of directors of the Company for publication on 5 September 2024 Investment Manager: Foresight Group LLP ("Manager ") (FCA No. 198020) ## You are about to purchase a product that is not simple and may be difficult to understand # WHAT IS THIS PRODUCT Type : The FWT ordina ry shares of 1p each ( "Shares ") of the Company, which is a venture capital trust ( "VCT ") and a self -managed Alternative Investment Fund ( "AIF "), are listed on the premium segment of the Official List of the FCA and admitted for trading on the Main Market of the London Stock Exchange. There is no specified maturity date or unilateral termination date. Objectives : To provide attractive returns from a portfolio of investments in unquoted UK technology companies and to optimise tax -free income from dividends and interest received on investments. The value of the Shares, and income therefrom, will depend on the performance of the underlying investments. It is also the Company’s objective to continue to qualify as a Venture Capital Trust so that shareholders benefit from various available tax reliefs. Intended retail investor : Retail investors, aged 18 or over, who are UK tax -payers. VCT investing is only suitable for investors who are capable of evaluating the risks and merits of such investment and who have sufficient resources to bear any loss which might result from the investment. Notes: Shares of the Company are bought and sold via the London Stock Exchange . Typically, at any given time on any given day the price you pay for a share will be higher than the price at which you can sell it. # WHAT ARE THE RISKS AND WHAT COULD I GET IN RETURN? Risk Indicator # 1 2 3 4 5 6 7 The risk indicator ass umes you keep the product for 5 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 sell your product easily or you may have to sell at a price that significantly impacts on how much you get back. Lower risk Higher Risk 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 6 out of 7, which is the second -highest risk class. This rates the potential losses from future performance at a high level and suggests that adverse market conditions in future could lead to a significant loss in the val ue of your investment. Capital may be at risk as the value of investments may go down as well as up and is not guaranteed and therefore investors ma y not get back the amount originally invested. Past performance is not a guide to future performance. This product does not include any protection from future market performance so you could lose some or all of your investment. Qualifying investors are entitled to receive back up to 30% of their investment for new shares subscribed from the Company vi a income tax relief. Any amount over this, and any additional return, depends on future market performance and is uncertain. Howeve r, this tax relief will be repayable to HMRC if you cash -in before 5 years. Investment Performance Information What are the main factors likely to affect future returns? The main factors likely to affect future returns include: • Valuation - Net asset value of the FWT Shares and investor returns are dependent on the value and performance of underlying investments in the FWT Shares fund portfolio. Market price s of the FWT Shares might not fully reflect their underlying net asset value. • Underlying Investments – The VCT will invest in small, unquoted companies. Investments of this nature are illiquid , uncertain and involves a higher degree of risk than a portfolio of quoted shares. Products and technologies developed by underlying investments may prove not to be commercially or technically successful. • Dividends – Dividends in respect of the FWT Shares fund are anticipated to be paid from profits generated from realisations within the portfolio. Due to the nature and returns profile of the underlying investments, there will be irregular dividends paid as and when exits occur. • VCT and Taxation – Changes to the existing tax laws, regulations and legislation, inc. VCT rules, may change during the life of the Company this may affect investor returns. ! # !How does the target compare with performance and volatility? Returns will be paid to investors as tax -free dividends, which will depend primarily on profits generated from realisations within the portfolio and the timing of those realisations. Returns will be generated through the growth in NAV and the sale of shares in underlying investments . What is the most relevant benchmark? No relevant benchmark is available as there is no single benchmark that adequately measures the performance of small, unquoted companies. What could affect my return positively? A strong growing economy, a stable political environment, diverse portfolio, robust performance of investee companies and lower operating costs might positively affect returns. What could affect my return negatively? Economic and global political uncertainty, interest, inflation and high operating costs might adversely affect returns. What can be expected if Fund is encashed under severely adverse market conditions? The secondary market for VCT shares is generally illiquid and Shareholders may find it difficult to realise their investment. Due to the illiquid nature of VCT shares, investors may find it difficult to realise their investments under severely adverse market conditions. (see "How Long Should I Hold It and Can I Take Money Out Earlier? ") # WHAT HAPPENS IF THE COMPANY IS UNABLE TO PAY OUT? The Company is not required to make any payment to you in respect of your investment. As a Shareholder you have no access to the Financial Services Compensation Scheme and would not be able to make a claim to the FSCS about the Company. A default by the Company or any of the underlying holdings could affect the value of your investment. Should the Company be liquidated, the amount you receive for your holding will be based on the value of assets avail able for distribution after all other liabilities have been paid. WHAT ARE THE COSTS? Costs over Time Composition of 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. They include potential early exit penalties. The figures assume you invest £10,000. The figures are estimates and may change in the future. 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 £10,000 Scenarios If you cash in after 1 year If you cash in after 3 years If you cash in after 5 years Total costs (advised investors – entry costs of 2.5% apply) £600 £1,290 £1,993 Impact of return (RIY) per year 6.00% 4.27% 3.92% Total costs (direct investors – entry costs of 5.5% apply) £900 £1,568 £2,249 Impact of return (RIY) per year 9.00% 5.21% 4.43% 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; • the meaning of the different cost categories. This table shows the impact on return per year One off costs Entry Costs Advised Retail Advised Professional Direct 2.5% 2.5% 5.5% The impact of the costs you pay when entering your investment. This is the most you will pay, and you could pay less. This includes the costs of distribution of your product. Not included are any adviser charges you may separately agree with your financial adviser. Stamp Duty of 0.5% is payable if shares are purchased on the secondary market Exit Costs n/a The impact of the costs of exiting your investment when it matures. Ongoing costs Portfolio transaction costs n/a The impact of the costs of us buying and selling underlying investments for the product. Please note transaction costs are borne by the underlying investment companies. Other ongoing costs 2. 5% The impact of the costs that we take each year for managing your investment, including fees paid to the Manager. Please note that annual ongoing costs are capped at an amount equal to 3.6% of net assets of the Company. Incidental costs Performance fees 1.0% Foresight will become entitled for a performance incentive fee of 20% once actual distributions (including capital distributions of NAV) exceed 110p (subject to annual adjustment of this hurdle in line with the Retail Price Index). Carried interest n/a n/a Depending on how you buy these shares you may incur other costs, including broker commission platform fees and stamp duty. Th e distributor will provide you will additional documents where necessary. The Company aims, but is not committed, to offer liquidity to shareholders through ongoing buybacks, subject to cash availability, at a target discount of approximately 10% to net asset value. Distribution costs may arise. HOW LONG SHOULD I HOLD IT AND CAN I TAKE MONEY OUT EARLY? RECOMMENDED MINIMUM HOLDING PERIOD: 5 YEARS You should be prepared to hold your shares for a minimum of 5 years in order to retain your initial income tax relief. If you sell your shares earlier, you will be required to repay any initial income tax relief you claimed. It is recommended that you hold your shares for more than 5 years, as VCTs are intended to have a long investment horizon. An investment in the Company should be considered as a long -term investment. The Company does not have a fixed winding -up date and, unless shareholders vote to wind -up the Company, Shareholders will only able to realise their investment through the market. You may sell your investments within the recommended holding period without penalty fee . The Company’s share prices are quoted on the London Stock Exchange so, provided there is a willing buyer, you may realise your investment through a stockbroker or share dealing account. Previously owned VCT shares do not qualify for initial income tax relief and there is, therefore, a l imited market for secondary VCT shares. The price you receive on the open market may therefore not reflect the underlying net asset value of th e shares. The Company aims, but is not committed, to offer liquidity to shareholders through an ongoing share buy back policy, subject to cash availability , at a target discount of approximately 10% to net asset value. In line with regulation governing public companies, there are specific periods when buy backs are prohibited, such as when the Company is preparing its annual and half -yearly reports and accoun ts. # HOW CAN I COMPLAIN? As a shareholder of the Company you do not have the right to complain to the Financial Ombudsman Service (FOS) about the management of the Company . The Manager has established procedures in accordance with the FCA Rules for consideration of complaints. Details of these pro cedures are available from it on request. Should an investor have a complaint about the product or this KID , they should contact the Manager at Foresight Group LLP, The Shard, 32 London Bridge Street London SE1 9SG , by telephone at +44 (0)20 3667 8100 or by email at investorrelations@foresightgroup.eu . The Manager's website is at https://foresight.group . Where the Investor is categorised by the Manager as an eligible complainant , if for any reason the investor is dissatisfied with the Manager’s final response, the Investor is entitled to refer their complaint against the Manager to the Financial Ombudsman Service. A leaflet detailing the procedure involved will be provided in the Manager’s final response. # OTHER RELEVANT INFORMATION? The cost, performance and risk calculations included in this KID follow the methodology set out in Commission Delegated Regul ation (EU) 2017/653 as adopted by the United Kingdom and amended by the FCA pursuant to the Packaged Retail and Insurance -based Inv estment Products (Scope Rules and Technical Standards) Instrument 2022. Depending on how you buy these shares you may incur other costs, including broker commission platform fees and stamp duty. Th e distributor will provide you will additional documents where necessary. Certain tax reliefs are available to shareholders and new investors as below, provided shares are held for at least five year s. A Shareholder who disposes of shares within five years of issue will be subject to clawback by HMRC of any income tax reliefs o riginally claimed on subscription. Tax relief s available to Investors (a) Income tax (i) Relief from income tax on investment A qualifying investor subscribing for new S hares will be entitled to claim income tax relief on amounts subscribed up to a maximum of £200,000 invested in VCTs in any tax year. The relief is given at the rate of 30% on the amount subscribed for VCT shares regardless of whether th e qualifying investor is a higher rate, additional rate or basic rate tax payer, provided that the relief is limited to the amount which reduces the qualifying investor’s income tax liability to nil. Investments to be used as securi ty for or financed by loans may not qualify for relief, depending on the circumstances. (ii) Dividend relief A qualifying investor, who acquires shares in VCTs in any tax year costing up to a maximum of £200,000, will not be liable to income tax on dividends paid on those shares and there is no withholding tax thereon. (iii) Purchases in the market A qualifying investor who purchases existing shares in the market will be entitled to claim dividend relief (as described in paragraph (a)( ii) above) but not relief from income tax on investment (as described in paragraph (a)(i) above). (iv) Withdrawal of relief Relief from income tax on a subscription for VCT shares will be withdrawn if the VCT shares are disposed of (other than betwe en spouses or on death) within five years of issue or if the VCT loses its approval within this period as detailed below. Dividend relief ceases to be available if the VCT loses its approval within this period, as detailed below, or if shares are no longer owned by a qualifying investor. (b) Capital gains tax (i) Relief from capital gains tax on the disposal of VCT shares. A disposal by a qualifying investor of VCT shares will give rise to neither a chargeable gain nor an allowable loss for the purposes of UK capital gains tax. The relief is limited to the disposal of VCT shares acquired within the limit of £200,000 for any tax year and does not apply where VCT shares were issued after 5 April 2014 and are repurchased by the VCT directly from the shareholder within three yea rs of issue. (ii) Purchases in the market An individual purchaser of existing VCT shares in the market will be entitled to claim relief from capital gains tax on dispo sal (as described in paragraph b(i) above) The latest Company annual report and accounts can be found at https://www.foresightgroup.eu/resources/documents . Please contact Foresight Group LLP for further information.