Jenson Seed EIS Fund - Clubfinance

56 Jenson Seed EIS FundFAQs 5710. Frequently asked questions(a) What kind of companies will theJenson Seed EIS Fund invest in?Investments will be made in small, start-upcompanies, selected by the Fund Manager,carrying on business in a wide range of sectorsand industries as outlined in Section 5.3. TheFund Manager intends to initially target SEISQualifying Companies, who are less than twoyears old, with less than 25 employees andwith gross assets not exceeding £200,000.The Fund Manager and Jenson LLP havealready started to identify target companiesinto which the Fund Manager intends toinvest the monies raised by the Fund in respectof successful applications received by thefirst Closing Date.(b) How will Investments be monitored?The Fund Manager with assistance fromJenson LLP will constantly monitor andre-evaluate the Investments to ensurethat they perform to the Fund Manager’sexpectations. This will include regularboard meetings, informal meetings withmanagement teams and a review ofquarterly financials against budget. Inaddition, Jenson Solutions will be workingclosely with the Investee Companies byproviding business support services and insome cases a part-time finance director.(c) How do Investors check the progressof the Fund?A formal valuation statement preparedby the Administrator & Custodian will besent to Investors every six months togetherwith a report from the Fund Manager. Inaddition, additional updates from the FundManager are planned quarterly. The FundManager will be responsible for providingthe valuation of the underlying Investmentsbased on International Private Equity andVenture Capital Valuation Guidelines to theAdministrator & Custodian.(d) How long will my investment be heldin the Fund?To maximise the growth available to Investors,it is intended that funds will be returned toInvestors as each Investment is realised. Giventhe early stage nature of these Investments,realisations could take five to seven years.(e) What is the minimum and maximumI can invest?The minimum participation by an Investor inthe Fund is £10,000. Participation in excessof this amount must be in multiples of £1,000.There is no maximum participation in the Fund,but income tax relief is presently restricted toa maximum investment of £100,000 under theSEIS and £1 million under the EIS respectively.There is no limit on the amount of capital gainstax that can be deferred under the EIS, andno limit on the amount of business propertyrelief for IHT purposes.(f) Who owns the Investment in theInvestee Companies?The Investors are the beneficial owners ofshares in each Investee Company in whichthe Fund invests. Each Investor’s Investmentwill be in proportion to his/her investmentin the Fund subject only to any roundingwhere there are insufficient funds to buya whole share. However, to allow efficientadministration, shares will be registeredin the name of the Nominee who will holdthe shares on an Investor’s behalf as theInvestor’s nominee, subject always to HMRCrules for ownership from time to time. Furtherdetails of the nominee arrangement aregiven in clause 7 of the Investor’s Agreement,the Administrator & Custodian StandardTerms and in section 9.1 of this Memorandum.(g) Can an Investor own an Investmentjointly with his/her spouse?Investments in the Fund cannot be jointlyowned, but each spouse can make aseparate investment, and each can receiveincome tax relief on the first £100,000 inrespect of SEIS Qualifying Investments or £1million in respect of EIS Qualifying Investments.