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Stargate EIS funds come under fire

Stargate Capital Management has come under fire for promoting two EIS funds as inv-esting in women-owned businesses and film but which only provide 28 per cent exposure to these investments.

Stargate’s Trapezia EIS is billed as an altruistic investment, investing in “women’s intuition”, while its MagicGate EIS is marketed as a “new vision for British film finance”.

Capital protection is opt-ional but Stargate managing director Paresh Shah says the company is budgeting for all investors opting for this. Those choosing capital protection see 68 per cent of their investment placed into a portfolio of A-rated bonds, with 28 per cent invested in the EIS and the rem-ainder swallowed up in charges.

Tax Efficient Review editor Martin Churchill says: “It is a misnomer to call it a film EIS because the majority of the money goes into a structured product.”

Shah says: “The info is set out in the memoranda and capital protection is optional.”

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