Page 19 - Praetura EIS 2019 Fund Information Memorandum

Fund Charges Explained

Charges payable by the Investor Charges payable by the Investee Company

Initial Charge Arrangement Fee
An initial fee of up to 2.5% will be charged to Investors in the Fund. This will be A one-time arrangement fee of up to 4% of funds invested will be payable to the
payable to the Fund Manager prior to investment in the Investee Companies Fund Manager by the Investee Companies upon investment.
and therefore will reduce the EIS relief available to Investors. This fee is to cover
all initial legal, professional and transaction costs. Monitoring Fee

An annual fee will be payable by an Investee Company at a rate of 1% of funds
Annual Management Charge invested, subject to a minimum annual charge of £36,000.
An annual management charge of 2% of funds invested will be charged and
taken one year in advance.
VAT
VAT will be charged on all applicable
Advisor Charges & Intermediary Commission fees and charges at the
If an Investor requests that a payment is made to their financial advisor or prevailing rate.
intermediary for advice received, this will be deducted from the Investor’s
subscription monies.

Custodian Charges
Our nominated Custodian, The Share Centre, will hold investors’ money on
behalf of the Fund and will treat it as client money, subject to the FCA client Performance Fee
money rules. In order to align interests between the Fund Manager and
the Investors, no performance incentive is payable until the
The Custodian charges the Fund Manager a custody fee of £75 plus VAT underlying Investee Companies have achieved a hurdle rate of
per annum per Investor. This custody fee is passed on directly to 30% growth on the capital deployed.
Investors on a per annum basis.
Thereafter, the Fund Manager will be entitled to 20% of profits
In addition, the Custodian charges the Fund Manager a dealing above this hurdle.
charge of 0.35% on all transactions, including the purchase and
sale of shares in Investee Companies. The Fund Manager will, as
part of Initial Charge, cover the dealing charge associated with The performance fee is charged in respect of the cumulative
the purchase of shares. The dealing charge payable on the sale Fund performance, as opposed to being payable in respect of
of shares will be passed through to the Investor by the each individual investment within the Fund.
Fund Manager.