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News: Close Brothers on VCT trail again

Close Venture Management is launching a C Share issue on behalf of Close Brothers Technology & General VCT PLC to raise up to £35 million of new money.

VCTs (Venture Capital Trusts) allow tax relief on the way in (and with no CGT levied on capital gains) so long as you hold your shares for three years. In exchange for these goodies the investment will usually be in fledgling companies that generally carry a higher investment risk profile.

Close Technology & General VCT meanwhile has raised £14.4 million from private investors since its launch in December 2000 and is offering investors the opportunity to participate in a balanced portfolio of technology and non-technology businesses.

The company's policy is for the investment portfolio to be broadly split as follows: 40% in technology companies, with: 15% in quoted international technology stocks; and 25% in unquoted UK technology-related companies. The balance will go into unquoted UK non-technology firms.

Proceeds of the issue of will be invested under the same investment policy as has been applied to the Ordinary Shares, and investments will be allocated between the two pools representing the two classes of share in the ratio of funds available for investment. The two classes of share will merge following the Annual General Meeting to approve the accounts for the year to December 31st 2010.

It is currently intended that the subscription list for the offer will open on January 3rd 2006 and close on April 4th 2006.

The maximum qualifying investment which an individual may invest in the company (and in any other VCT in the current financial year) is £200,000. The minimum investment under the offer is £5,000.

The annual management fee is 2.5% (plus VAT) of the net asset value of the company. Total annual expenses, including the management fee, are limited to 3.5% (inclusive of VAT) of the net asset value.

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