Title: URL Source: https://doc.morningstar.com/document/5909900cf1a91c1f3d37a92961b5d16f.msdoc/?clientid=ajbell&key=805803a4ca9fc338 Markdown Content: # Praetura Growth VCT plc # 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 compare it with other products. # Product Name: Praetura Growth VCT plc Investment Manager to the Company: Praetura Ventures LTD Phone: 0161 250 3838 Website: www.praeturainvestments.com Competent authority: Financial Conduct Authority (FCA No. 817345) Date of production of this document: This key information document (“KID”) has been approved by Praetura for publication on 8 November 2024 You are about to purchase a product that is not simple and may be difficult to understand # What is this product? Praetura Growth VCT plc (the “Company”) is incorporated and registered in England and Wales as a public company limited by shares with registered number 14525115. The Company is a Venture Capital Trust (“VCT”). The Ordinary Shares of the Company are listed on the premium segment of the Official List of the “Financial Conduct” Authority (“FCA”) and admitted for trading on the Main Market of the London Stock Exchange. Objectives: The Company aims to provide funding to growing small and medium-sized enterprises (“SMEs”) in the UK, in order to generate positive returns for Investors, initially through capital growth and then later through annual tax-free dividends. The Company aims to maintain its VCT status to enable Investors to benefit from the associated tax reliefs. To achieve this, the Company shall invest in companies as allowed under Venture Capital Trust legislation which, in particular, must be UK-established companies, of a limited size and that carry out a qualifying trade. The Company targets direct investments in shares issued by UK unquoted companies and in units of permitted investment funds, including interest-bearing money market open-ended investment companies. The initial proceeds of the offer may also be invested in a portfolio of other listed equity and fixed income and other securities, including UK government bonds, highly rated corporate bonds and cash deposits. The Company intends but cannot guarantee to pay a regular annual dividend commencing in 2027. From then on, the Company expects to achieve an average dividend payment equivalent to between 4 and 6 percent of the prevailing NAV per Share per annum (including the 2027 dividend) over the rest of the life of the Company. Intended retail investor: The Company is intended for UK tax-resident retail investors with sufficient income and capital available to commit to invest for a recommended holding period of not less than five years and who can afford to lose their entire investment. Shareholders may be entitled to income tax relief, but must hold the Shares for a minimum of five years to obtain this tax relief. Investment should be made only if the Investor is able to understand and tolerate the risks associated with VCT investing. Product term: The Company does not have a fixed life and therefore has no maturity date. However, given the requirement to hold Shares in the Company for a minimum of five years to retain the 30% upfront income tax relief, the recommended holding period for the purposes of this KID is ten years. Furthermore, you cannot be forced to redeem your Shares unless the Company is wound up. # What are the risks and what could I get in return? # 1 2 3 4 5 6 7 Lower Risk Higher Risk The risk indicator assumes you keep the product for ten 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 investment easily or you may have to sell at a price that significantly impacts on how much you get back. The summary risk indicator above 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, changes in interest rates 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. The principal of this product is not guaranteed. This product does not include any protection from future market performance so you could lose some or all your investment. If the Company is not able to pay you what is owed, you could lose your entire investment. It is likely that the Company should be considered as having a materially relevant liquidity risk because, notwithstanding that it is admitted to trading on a regulated market, the liquidity depends only on the availability of buyers and sellers on the secondary market. Performance What are the risks and what could I get in return? The main factors that will affect the performance of the Company are the ability of the Investment Manager to select unquoted companies in which the Company invests; the performance of the unquoted companies held within the portfolio and the ability to realise portfolio companies profitably; and the ability of the Board to oversee the Company and its objectives. Our forward-looking ex-ante moderate performance scenario return is 6.47% per annum over the recommended holding period of ten years. We have used this ex-ante return to model the reduction in yield in our cost calculations below. VCT shares are usually illiquid and must be held for five years to retain the income tax relief available on your initial subscription. The recommended holding period is ten years. Since the Company is young, there is a lack of data that objectively illustrates performance. Please note, there is also no relevant index or benchmark for the Company. 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 independent financial advice before investing. VCT investments are high risk but also come with the potential of high return by way of value growth and income returns in and from the portfolio, alongside making profitable realisations. Specific factors that may positively impact capital growth and dividends are the number of successful companies within the portfolio, and the level of that success. General factors that may affect positive returns for the VCT would be an extended period of UK economic growth and fiscal stability. Day to day, the Company’s correlations to UK markets are quite low but we would also expect to see improvements in valuations in the UK equity markets to correlate with improvements of the valuations in the underlying holdings, particularly during larger upward equity market movements. 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 consider one- off, ongoing and incidental costs. The amounts shown here are the cumulative costs of the product itself for different holding periods. 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 with information about these costs and show you the impact that all costs will have on your investment over time. What could affect my return negatively? The VCT invests in smaller unquoted companies which are illiquid. Specific factors that may negatively impact capital growth and dividends are that these companies may have limited product lines or resources, be early stage and may be more susceptible to political, exchange rate, taxation, regulatory and macroeconomic changes. Furthermore, the more companies in the portfolio which are impacted by such factors, the greater the impact there will be on the financial performance of the VCT and therefore the returns to investors. Another factor that may negatively affect returns for the VCT would be the market for shares. It is unlikely there will be a liquid market and it may prove difficult for investors to realise their investment immediately or in full. A general factor that may affect returns negatively would be poor performance of the UK equity markets. What could happen under severely adverse market conditions? The Company may experience a high proportion of realised losses within the portfolio during periods of stress, which could result in you losing all your investment. What happens if the Company is unable to pay out? The value of the Shares and the income derived from them is dependent on the performance of the Company’s underlying investments and can fluctuate. If the Company is unable to pay out, you might lose all of your investment. 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 you lose money on the Shares in the Company. There is no guarantee scheme in place that may offset all or any of this loss. Scenarios If you cash in after 1 year If you cash in after 5 years If you cash in after 10 years Total Costs £650.00 £1,931.71 £3,297.18 Impact on return (RIY) by year 6.50% 3.42% 2.51% Recommended holding period: 10 years This is a long-term investment with a recommended holding period of ten years. If you invest, you should be prepared to hold your Shares for a minimum of five years to be entitled to income tax relief. If you decide to sell your Shares before then, you will be required to repay to HMRC all of the 30% upfront income tax relief you have claimed. How do I sell my Shares? The Company may operate a buyback policy from time to time, to buy back the Company’s Shares in the market at a price which will be at a 5% discount to the most recently announced net asset value (“NAV”) per share, in each case as reported from time to time, less transaction costs payable to market makers and stockbrokers, up to a maximum annual number equivalent to 14.99% of the total number of issued Shares. Operation of this policy will be subject to applicable legislation and the Company having sufficient liquidity. Accordingly, it is unlikely there will be a liquid market, as there is a limited secondary market for shares in VCTs and Investors may find it difficult to realise their investments. How can I complain? The Manager has procedures in accordance with the FCA Rules for complaint handling. Details of these procedures are available from the Manager on request. If the Investor is dissatisfied with the Manager’s final response, the investor is entitled to refer its complaint to the Financial Ombudsman Service. Complaints should be addressed to: Compliance Team, Praetura Ventures, Bauhaus, Quay St, Manchester, M33GY E: complaints@praetura.co.uk t: 0161 250 3838 . Other relevant information This document is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute an investment recommendation as such term is defined in Regulation (EU) 596/2014 or a personal recommendation as such term is defined in the Handbook of the Financial Conduct Authority (“FCA”), nor does it take into account the particular investment objectives, financial situations or needs of individual Investors. This document is not a prospectus and any decision to engage in an investment activity as such term is defined in the FCA’s Handbook should be based solely on the Company’s offering documentation which includes inter alia the Company’s Prospectus which has been approved by the “FCA”. The cost, performance and risk calculations included in this KID follow the methodology prescribed by EU legislation. The data above is not derived from past performance or from any relevant benchmark or proxy and is an estimation of the risks and returns of the Company on an ex-ante basis. VCTs are required to invest in smaller, younger companies that can carry higher risk, albeit with the prospect of higher but more volatile returns. Please note that it cannot be guaranteed that the companies invested in by the Company will be qualifying companies or that the Company will maintain its qualifying status as a Venture Capital Trust. Further information on the Company’s investment strategy and other relevant documents, such as the Company’s most recent Prospectus, are available on the Manager’s website at www.praeturainvestments.com. You are recommended to read the latest Prospectus and, in particular, the risk factors contained therein, before making an investment decision and be comfortable, or confirm with your independent financial adviser if applicable, that you have the expertise, experience and knowledge to properly understand the risks. If you have any questions, or require any further information, please send an email to investors@praetura.co.uk. The distributor will provide you with additional documents where necessary. You may incur other costs such as platform fees when subscribing for Shares in the Company. One-off costs Entry costs 0.30% The impact of the costs you pay when making your investment. The entry cost is 3% of the investment amount. This is the most you will pay, and you could pay less. Exit Costs 0.00% The impact of the costs of exiting your investment when it matures. See the ‘How do I sell my Shares?’ section below. Recurring Costs Portfolio Transaction Costs 0.00% The impact of the costs of Praetura Ventures buying and selling underlying investments for the product. Other Recurring Costs 3.50% The maximum impact of costs each year for running the Company. Incidental Costs Performance Fee 0.00% Carried Interest 0.00% Not applicable. # How long should I hold it and can I take money out early? What are the costs? The table below shows the impact each year of the different types of cost on the investment return that you might get at the end of recommended holding period, and the meaning of the different cost categories.