Adviser Charge or Commission or Non-Advised Charge
We deduct one of the following amounts based on the information supplied on your application form from the amount you invest in to the fund.
Adviser charge as agreed between the investor and the adviser, OR
Commission payment of up to 3% where agreed between the investor and introducer.
There is an initial charge of 1.5% plus VAT to cover Fund establishment costs, calculated on your gross investment into the Fund less the charge referred to above.
Please note that the initial charge together with either the Adviser charge, Commission payment or Non-advised charge will be deducted at the outset and will reduce the amount invested. This will affect the final value of your investment and the tax reliefs you are able to claim.
Annual Management Charge
There is an annual management charge of 2% calculated on your gross investment into the fund less the adviser charge, or commission, or non-advised charge and less the initial charge referred to above.
This is charged for the first 3 years following investment. The annual management charge in years 4 and 5 following investment is 2% calculated on your gross investment into the fund less the adviser charge, or commission, or non-advised charge and less the initial charge referred to above, and less any return of capital.
To the extent that you have funds that remain invested after 5 years following the date of your investment no annual management charge will apply.
Where you are investing through a financial adviser and receiving advice from them, we can facilitate the payment of an annual adviser charge of 0.5% of the value of your portfolio, where you indicate on the application form that you wish us to do so for the first three years from the date of your investment into the Fund (paid out of our Annual Management Fee).
Annual management charges are paid quarterly in advance and are subject to VAT. In the event that there is insufficient cash to pay ongoing charges, the fees will accrue on your account until such time as a realisation or income on your portfolio facilitates the payment.
There is a performance fee payable equivalent to 20% of the profits returned in excess of the gross amount originally invested by you (excluding all tax benefits), plus VAT where applicable.
This performance fee is not payable until at least the end of year three (calculated from the date of your original investment into the Fund) and will apply to all investment exits once the gross amount originally invested by you has been returned to you.
CC retains the right to charge arrangement, monitoring and non-executive fees to private companies in which CC EIS Growth Fund invests. The costs of the deals that do not proceed to completion will be borne by CC.