Risk Management
Our risk management policy aims to offer a significant degree of capital protection by judicious use of established and approved film and TV production finance methods whilst retaining the full potential for excellent tax free capital growth within a period of three to five years, which is the primary investment objective of the Fund Manager.
The Fund's strategy will be to invest in various aspects of independent film and TV productions, many of which carry significantly less risk than, for example, productions that have no specified sales agents, arranged pre-sales or known artists involved.
Some of the services provided by the Fund through Investee Companies will utilise Fund resources only on a temporary basis for activities where there are already contractual arrangements in place for funding to be received from reasonably reliable sources at some time in the future (for example VAT refunds, film tax credits, pre-sales and minimum sales guarantees), but where such funding is required by producers in order to enable them to fulfil delivery conditions.
In addition, as an integral part of the range of services offered to independent producers, the Fund will consider taking equity positions in productions that meet certain risk/reward criteria.
The Fund may invest up to 20% of the total budgeted cost of suitable productions and for further risk diversification it will not expose more than 20% of the Fund's total resources to such risk investments. Once the 20% limit has been reached, no further funds will be put at risk until the income generated, either from recoupment of investment or from the provision of services, is sufficient to allow for further investment.
The Fund's strategy will be to invest in various aspects of independent film and TV productions, many of which carry significantly less risk than, for example, productions that have no specified sales agents, arranged pre-sales or known artists involved.
Some of the services provided by the Fund through Investee Companies will utilise Fund resources only on a temporary basis for activities where there are already contractual arrangements in place for funding to be received from reasonably reliable sources at some time in the future (for example VAT refunds, film tax credits, pre-sales and minimum sales guarantees), but where such funding is required by producers in order to enable them to fulfil delivery conditions.
In addition, as an integral part of the range of services offered to independent producers, the Fund will consider taking equity positions in productions that meet certain risk/reward criteria.
The Fund may invest up to 20% of the total budgeted cost of suitable productions and for further risk diversification it will not expose more than 20% of the Fund's total resources to such risk investments. Once the 20% limit has been reached, no further funds will be put at risk until the income generated, either from recoupment of investment or from the provision of services, is sufficient to allow for further investment.
The Fund Brochure and Application form are both available via the Downloads page.
