Investments
Underlying Investments - the most important consideration
Although the EIS tax breaks are considerable, the most important aspect of any investment is the potential for capital growth.
Whereas the vast majority of VCTs invest predominantly in AIM-listed companies, the Lacomp EIS Funds always seek to invest prior to the uplift in valuation usually associated with a listing. Nevertheless, it is worth noting that this does not exclude the potential for our investment selections to be asset backed.
Previous funds have invested in a diverse range of underlying Investee Companies, innovators in fields such as:
* internet card-payment systems;
* affordable workplace health screening;
* e-learning systems;
* robotic surgical devices and cameras;
* the oil industry;
* waste disposal;
* blast-proof fabrics;
* revolutionary anti-bacterial cleaning agents.
It has often been argued that any sizeable, well-spread portfolio should always contain an element of unquoted equities. Obviously, such an exposure should be proportionate to the size of the total portfolio in order to retain the chosen overall risk profile. This is one of the reasons we set the level for the minimum investment at £3,000, thus making this investment opportunity available to almost everyone.
Spread of risk
Unlike traditional, single company EIS investments, Lacomp EIS Funds invest in a minimum of four different companies, giving investors the benefit of risk being spread across a 'portfolio' of different investments.
The term “fund” is something of a misnomer since an EIS Fund is a collection of individual discretionary management portfolios. Investors' shareholdings in the underlying assets of the fund (i.e. the individual qualifying EIS companies) are in exact proportion to the amount of monies they have invested and to the overall size of the fund.
