Our funds

Overview

Currently there are five Baronsmead VCTs: four generalist VCTs and one AIM VCT.

Baronsmead launched the four generalist VCTs between 1995 and 2001.  In February 2006 we launched Baronsmead AIM VCT plc, raising £16m net proceeds to invest primarily in qualifying AiM-traded companies.

Our VCTs have over 15,000 shareholders total, but we estimate the net number of shareholders at about 12,000 because a significant minority of our shareholders have invested in more than one of the VCTs.

Generalist VCTs	Launch date	No of Shareholders approx	Net Assets at 30-09-2008 approx	Total NAV * return ('O' shares only)
Baronsmead VCT plc	November 1995	3,300	£48m	201%
Baronsmead VCT 2 plc	April 1998	3,300	£55m	184%
Baronsmead VCT 3 plc	January 2001	3,000	£58m	155%
Baronsmead VCT 4 plc	December 2001	2,800	£51m	133%
AIM focused VCT	Launch date	No of Shareholders approx	Net Assets at 31-07-2008 approx	Total NAV * return ('O' shares only)
Baronsmead AIM VCT plc	March 2006	2,000	£24m	95%
* Equals NAV plus reinvested dividends in line with AIC methodology

Management

The five Baronsmead VCTs have been managed by ISIS EP LLP (ISIS) since inception. ISIS is controlled by individual partners who have worked together since 2000 and take a dynamic investment approach.

Each of our VCTs is directed and governed by an independent Board of Directors. The Boards operate within the Combined Code of Best Practice and the Turnbull guidelines for fully listed companies. All of the Directors hold shares of their VCT.

Investment Objectives

All of our VCTs strive to achieve long-term capital growth and generate tax-free dividends for private investors.

The four generalist Baronsmead VCTs invest:

• Primarily in a diverse portfolio of established and profitable UK unquoted companies that are seeking to raise expansion capital or are the subject of a management buy-out or buy-in

• In companies raising new share capital on AiM

• Selectively in companies that have proven they can transform and adapt their activities through technological innovation

Investment strategy is driven by the Manager’s approach to selection and subsequent management of the portfolio and individual investments. Typically the Baronsmead VCTs participate by co-investing into larger transactions and larger companies than many other VCTs.

Performance
You can view the track record of the generalist Baronsmead VCTs in their statutory reports. The investment returns are set out both in an absolute and comparative basis.

The benefits of the VCT tax reliefs to shareholders are also measured in terms of cash returned to shareholders since the launch of each Baronsmead VCT as set out in the annual reports. Their dividend policies are also explicitly stated and compare well with most other investment products for the private investor. If the tax-free nature of dividends paid to qualifying shareholders is also taken into account, the comparisons are even more favourable.

We’re committted to keeping all of our VCT shareholders updated on portfolio performance. Shareholders receive statutory reports twice yearly, plus updates at the quarterly intervals between statutory reports. In addition to these four annual updates, shareholders can check our website for Baronsmead news and offers anytime.