Having run our EIS Portfolio Service as our flagship EIS offer for over 8 years, we have decided to refresh our EIS offer as the the EIS Portfolio Fund.
Documents
Key Information Document (where financial advice has been given)
Key Information Document (where no financial advice has been given)
Our Custodian’s Terms of Business
Application Form for Individuals
What is the EIS Portfolio Fund?
The Seneca EIS Portfolio Fund is an Alternative Investment Fund managed by Seneca Partners Ltd (Please see Important information below). The Fund is evergreen, meaning that it is open for new investment all year round and will not close having raised a predetermined amount of money.
The Fund targeting targeting a return of 1.6 to 1.8x after five years*, excluding any tax reliefs.
Investors receive 100% of any realisation proceeds up to the amount of their Investment Amount (their Subscription net of any fees deducted or set aside at outset or dealing fees charged for the purchase of shares) before any Annual Management Charge or Performance Fee is levied by the Fund Manager.
Our Annual Management Charge is capped and will only be charged for a maximum of 5 years.
In its previous guise as our EIS Portfolio Service, our EIS offer received over £60 million of Subscriptions.
What happens when you invest?
When you Subscribe to the Fund, your Subscription will be held in cash by the Custodian, helping build a sum of money for the Fund to invest (an “investment tranche”). Periodically, we will complete what is known as a “soft close” so that we can start making investments for all those investors who are included in that “investment tranche”. The timing of these “soft closes” will be designed to ensure efficient investment of investors’ money.
The Fund will remain open for further Subscriptions which will build to form the next “investment tranche”.
Once your Subscription is included in an “investment tranche”, we will begin buying shares on your behalf, usually in four to six investee companies. Investee companies will either be private companies or those with shares quoted on either the Alternative Investment Market (“AIM”) or Aquis Stock Exchange (“AQSE”) Growth or Trading Markets. Your portfolio may include some of each, but this is dependent upon the timing of investee companies passing our due diligence requirements and being ready for investment.
A typical portfolio will likely include a mixture of holdings in more established companies and some earlier stage businesses, all seeking capital growth. However, the Fund does not invest in start-ups. We will consider investing in most industry sectors, though the drive in the wider economy towards tech solutions accelerated by the global impact of coronavirus is increasing. Tech solutions, digital analysis software, e-commerce and life sciences are likely to feature strongly in our pipeline of investment opportunities as more businesses embrace technology as a way of becoming more resilient for the future.
For further information about the companies we have previously invested in, please click here**.
How much can you invest?
The minimum initial investment is £25,000
For any additional investments the minimum amount is £5,000
Our Target Market
We have designed our EIS Portfolio Fund to appeal to investors who are looking to invest in UK SMEs with the aim of achieving capital growth over the medium-term (five to six years) in an investment that qualifies for the tax reliefs available under the Enterprise Investment Scheme.
They will have experience of investing in tax advantaged investments (e.g. EIS, VCT) or buying shares in FTSE 100, FTSE 250, smaller quoted (e.g. the Aquis Stock Exchange), AIM or unquoted companies.
Those investors will understand what factors drive the movement of share prices and how in turn that impacts the value of their investment. They will also understand and accept the risks associated with making an investment in the Fund (see pages 24 to 25 of the Information Memorandum). Their current financial situation will mean that they do not need access to the amount they invest for at least five years or need an income from it. They should also be able to withstand the loss of some or all of that amount.
You should not invest in this Fund if you lack the requisite knowledge and experience, are looking to invest for less than five years, need your investment to pay an income or are risk averse or have a low tolerance to risk.
Important information
The Seneca EIS Portfolio Fund is an Alternative Investment Fund for the purposes of the Alternative Investment Fund Managers Directive. It is not a collective investment scheme within the meaning of section 235 of the Financial and Services Market Act nor a Non-mainstream Pooled Investment by virtue of it being a fund complying with the meaning of Article 2 in the Schedule to the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001.
* Target returns are not guaranteed and you may get back less than you invest.
**Please note that If you decide to invest in the Seneca EIS Portfolio Fund, you will not receive shares purchased as a part of any previous investment tranches.