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Downing VCT takes cautious approach

Downing is introducing a further two venture capital trusts before the April deadline, including a protected product aimed at more cautious investors.

It hopes to attract 40m for the Downing VCT4 and Protected 5 VCT.

The Protected 5 VCT will be more cautiously managed and focus on capital preservation, with wind-up expected in around five years.

Fifty per cent will be invested across a range of sectors including pubs, children’s nurser- ies, garden centres and health clubs, with the rest split equally between ordinary shares of qualifying companies and cash and fixed-income securities.

Investors will receive a 1 per cent discount on the 5.5 per cent initial charge in the form of shares for applications received before January 31 while commission will be enhanced to 3.5 per cent from 2.5 per cent.

Downing Corporate Finance director Nicholas Lewis says: “These are ideal for investors who are seeking to reduce the risks normally associated with VCTs. The directors will accept lower returns on the protected VCT’s investments in return for lower risk.”

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