Paul Mumford, who manages the Cavendish opportunities fund, is one of only six managers to have beaten the FTSE 100 index every year for the past five years. Furthermore, his longterm performance is outstanding, up by over 240 per cent over the past 10 years.Cavendish has now decided to launch an entirely different type of venture capital trust. Its intention is to build value with a view to an exit after five years while distributing a modest income into an Oeic rather than distribute as much as possible and be left with a residue of relatively little value. When the VCT is converted into an Oeic, it will be at the full value of the underlying assets rather than having to sell at a discount, which is usually the case with other VCTs. Mumford’s long-term intention is to run an Oeic investing in the Alternative Investment Market, going in via the tax-efficient route of the VCT but not having a permanent VCT structure with all its restrictions. This is because an Oeic will be able to widen the portfolio to include all the Aim and market-listed smaller companies. The VCT is to invest up to 50 per cent in existing Aim stocks, with a view to building the asset value and delivering realised profits as early as possible. Around 25 per cent of the remaining proceeds of issue will initially be held in gilts to achieve some yield and defray the operating costs. The remaining 25 per cent will be held in cash to provide funds for new investments and share buybacks. Assuming the VCT is fully subscribed, the objective is to hold around 60 stocks to spread the risk. With 40 per cent tax relief available to all income taxpayers, this is a highly attractive long-term investment and suitable for all investors who do not require a high income now but wish to make the most of their capital over the longer term.