Title: VCT KID URL Source: https://doc.morningstar.com/document/46c4af56a01d44256983422bbcc93df6.msdoc/?clientid=ajbell&key=805803a4ca9fc338 Markdown Content: Key Information Document – Guinness VCT – September 2024 - Page 1 # Key Information Document This document provides you with key information about this investment product. It is not marketing material. The information is required b y 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. # The ‘Product’ – Guinness VCT Product name Guinness VCT Plc ISIN GB00BQD0HG35 Provider /Manufacturer Guinness Asset Management Limited ( Guinness ) Contact For more information call 020 7222 3475 or email vct@guinnessfunds.com Last update 11 September 2024 You are about to purchase a product that is not simple and may be difficult to understand. # What is this product? # What are the risks and what could I get in return? The risk indicator assumes you keep the product for over five years. The actual risk can vary significantly. 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. We have classified this product as 6 out of 7. 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 value because of adverse 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 is because VCT ’s underlying assets tend to be illiquid and have fewer observable pricing data points, as they are only periodically valued . This rates the potential losses from future performance at a high level and suggests that poor market conditions are very likely to impact our ability to pay you . Type The Fund is a Venture Capital Trust (“VCT”). The Fund’s shares are typically subscribed for via an Offer which, for eligible investors, will attract income tax relief on the amount subscribed as well as other VCT tax benefits. Existing shares can be bought and sold via a Secondary Market Purchase. Objective To achieve capital growth and pay tax -free dividends over the medium term by investing in VCT qualifying companies . The VCT will invest primarily in companies that exhibit good growth potential and have strong management teams. It may also invest in companies on the Alternative Investment Market (AIM) of the London Stock Exchange . Intended retail investor The Product is intended for UK taxpayers with sufficient income and capital available to commit to invest for a recommended holding period of not less than 5 years and who can afford to lose their entire investment. Investment should only be made if the investor is able to understand and tolerat e the risks associated with VCT investing. Insurance benefits The Product is not designed to create any insurance benefits and has no particular insurance costs. 1 2 3 4 5 6 7 Lower risk Higher risk Key Information Document – Guinness VCT – September 2024 - Page 2 The Product does not include any protection from future market performance, exchange rate movements or interest rate movements so you could lose all or some of your investment. Investment performance information The performance of the Guinness VCT Plc is dependent on the selection and performance of the unquoted companies in which the VCT invests. VCT shares are usually illiquid and must be held for five years to retain the income tax relief available on your initial subscription . Please note there is no relevant index or benchmark for Venture Capital Trust investments. 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. What could affect my return positively? Venture Capital Trust investments are high risk but also come with the potential of high return. The number of successful companies within the VCT portfolio, and the level of that success will be a key factor in positively impacting your dividends and capital growth. What could affect my return negatively? The VCT invests in smaller unquoted companies (including those listed on AIM) which may have limited product lines or resources , be early stage and may be more susceptible to political, exchange rate, taxation , regulatory and macroeconomic changes. The more investments in the VCT portfolio which are impacted by such factors the more impact there will be on the financial performance of the VCT and therefore the returns to investors. The market for VCT shares is also a factor and if it is difficult to find a buyer, such as during a negative economic cycle or at all. You may not be able to sell your shares at a price that reflects the underlying Net Asset Value. You should refer to pages 12 to 14 of the Prospectus issued by Guinness VCT on 11 September 2024 for further information on relevant risk factors . # What happens if Guinness is not able to pay out? An investment in the VCT is not covered by the Financial Services Compensation Scheme (the “FSCS”). # 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. This ignores any available tax reliefs. The total costs take into account one -off , ongoing and incidental costs. The amounts shown here are the cumulative costs of the Fund itself, for three different holding periods. The fi gures assume you invest £10,000. The fi gures are estimates and may change in the future. Costs over time The person selling you or advising you about the 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. Costs if you cash in after: > (based on a £10,000 subscription ) 1 year 3 years 5 years > (end of the recommended > holding period ) Total costs £900 £1,600 £2,300 Impact of return (RIY) per year 9.0% 5.3% 4.6% Key Information Document – Guinness VCT – September 2024 - Page 3 # Composition of costs The table below shows the impact each year of the diffe rent 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. One off costs Entry costs 5.5 % Direct investor fee The impact of the costs you pay when acquiring you r investment. This is the most you could pay, and you may pay less. Exit costs n/a The impact of the costs of exiting your investment . Ongoing costs Portfolio transaction costs n/a The impact of the cost of buying and selling underlying investments within the VCT . Other ongoing costs 3.5 % p.a. The impact of the costs take n each year for managing your investments. This includes the Manager’s annual management charge and other running costs associated with the Fund including directors’ remuneration, registrar’s fees, audit fees, listing fees etc. Incidental costs Performance fees 1% Performance fees are charged at 20% directly to the Fund subject to a hurdle which increases each year. Carried interests n/a The impact of carried interests # How long should I hold it and can I take money out early? Recommended holding period of five years or more. Investments in shares in Guinness VCT plc are not readily marketable and you may be unable to sell them early or may lose money if you do so. You should be prepared to leave the investment intact for at least five years if you invest under an Offer. Investments are likely to be realised b y sale of Shares back to the Fund or in the market. The Fund has a policy of buying back shares which its shareholders wish to sell but its ability to do so may be limited by available cash, the rules of the FCA , the Companies Act 2006 and the VCT rules. Accordingly, there is unlikely to be a liquid market as there is a limited secondary market for the shares in the VCT and investors may find it difficult to realise their investment. # How can I complain? If you have any complaints, you should contact Guinness at 020 7222 3475 or at vct@guinnessfunds.com. If Guinness cannot resolve your complaint, you may be entitled to refer the complaint to the Financial Ombudsman Service. The Financial Ombudsman can be contacted at: Email: complaint.info@financial -ombudsman.org.uk or Tel: 0800 023 4567. # Other relevant information Tax reliefs are available but the amount and type of tax relief you can claim depends on your personal circumstances and certain conditions you are required to meet. These reliefs are NOT included in any of the scenarios above and you should seek professio nal advice if you are unsure about this aspect. Issued by Guinness Ventures Limited, an Appointed Representative of Guinness Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority Other relevant information can be found in the prospectus dated September 2024 which is available from www.guinnessgi.com/ventures .