Our EIS portfolio charging structure is designed to align us with our investors’ objectives. For example, if we consider an investment of £100,000:
Our initial fee is 2% plus VAT.
Upon an Investor’s request, we can facilitate advice fees of up to 3% plus VAT and 1% p.a. plus VAT to be paid to their financial adviser. (In either case, these would be facilitated by an additional deduction from the initial subscription).
The Custodian charges the following fees:
- 0.35% upon entry into an investment
- 0.35% upon exit from an investment
- An annual administration fee of £75 + VAT*
*Upon an Investor’s first Subscription to the Service, the Custodian will set aside an amount of £375 plus VAT from the initial Subscription and hold this amount in cash in the Investor’s name, to cover the annual administration fee for the first five years. Upon any subsequent Subscriptions, the Custodian will set aside a sufficient amount to ensure that a total of £375 plus VAT is held in cash in the Investor’s name, to cover the annual administration fee for the following five years.
Our annual management charge (AMC) is 2% plus VAT for the first four years of an investment only. However, this is deferred and only levied once we have exited from an investment and Investors are able to receive their original gross investment (net of any adviser fees facilitated). The full AMC will only be charged if the Investor is able to receive a return (of capital plus growth) of at least 109.6p for each £1 invested (net of any adviser fees facilitated).
Seneca charge a Performance Fee of 20% plus VAT when exiting an investment, but only where the Investor is able to receive a return (of capital plus growth) and the AMC has been paid in full. In other words, the Performance Fee is 20% plus VAT of any return above 109.6p for each £1 invested (net of any adviser fees facilitated).
Investors receive half yearly statements scheduling their EIS investments together with a brief narrative on the investee companies and the expected timing for receipt of the underlying EIS3 certificates upon which tax reliefs are claimed.
NB. Charges may be subject to VAT where applicable and the illustration takes no account of any fees that may be payable by agreement with your financial advisor.