Quester Capital Management is looking to raise £50m through the launch of the Quester VCT4 this week...
Quester Capital Management is looking to raise £50m through the launch of the Quester VCT4 this week.
Some 50 million shares of 1p each will be issued on 1 November at a placing price of £1. The total cost of the issue will be capped at 5%, of which 3% will go to intermediaries.
The trust aims to hold between 30 and 40 companies, which Quester believes to be a wide portfolio spread. It will be managed by a team of 10 fund managers.
John Spooner, director at Quester, said: "We are aiming for about 30 or 40 holdings, not only to reduce our risk by spreading investment but also to increase our prospects for getting a good return."
According to Spooner, the trust will be looking for rapidly growing companies within new economy sectors, essentially an identical approach to the three predecessor VCTs launched by Quester.
Spooner said: "The fund will be managed along the same lines as its three predecessors because the formula is proven to work.
"The three others are almost fully invested but demand in the market remains strong and the new fund should soak up some of the extra demand.
"Potential holdings will be vetted in terms of competitive position, product development, management style and track record."
Spooner said Quester assessed potential investments on these grounds to establish the true value of the stock.
The annual management fee will be 1.5% for the first year, rising to 2% for the second year and 2.5% from year three onwards.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till