We charge a transaction fee of 2% upon your subscription to the Fund. A dealing charge of 0.65% will apply on purchases and sales of shares in Investee Companies.
There is an annual management charge of 1.75% based on the Fund’s last published net asset value, paid quarterly in arrears.
The Fund will also have certain operating expenses, such as audit, legal and corporate governance, for this there is a charge of 0.1% per quarter, based on the Fund’s last published net asset value, and paid quarterly in arrears.
These fees are all payable by Investee Companies rather than by the Fund and, in accordance with current HMRC policy, will not reduce the EIS Relief available to Investors. They will reduce the value of Investors’ Investments in the Fund.
In order to align CIM’s interests with those of Investors, a performance fee will be charged to each Investee Company equal to 30% of the Return per share paid to or received by investors in respect of their investment in that Investee Company which are in excess of a Return per share of £1.27 per £1 invested.
All charges will accrue from the Closing Date and will be payable in advance. Value Added Tax will be charged where applicable.
Adviser Charges and Intermediary Commission
We are able to facilitate the payment of any fees that you may have agreed upon with your adviser in relation to your application. If this is the case, the amount available for investment will be decreased to cover payment of the initial adviser fee which you have agreed and also any ongoing adviser fees you might have agreed upon, for up to three years. Adviser fees should be described in pounds. For amounts stated in respect of adviser fees, VAT should be included if applicable. The amount of any ongoing charges to be facilitated by CIM will be deposited in a bank account with the Manager pending payment to advisers.
Where advice is provided to a professional investor, the adviser can still be remunerated through commission. In these circumstances, CIM will continue to pay the adviser commission in line with the details below. Financial intermediaries who provide execution only services may also, in certain circumstances, be permitted to receive commission. In such permitted situations advisors or financial intermediaries will be paid initial commission at the rate of 3% of Subscriptions, plus annual trail commission at the rate of 0.5% of Subscriptions for a maximum of four years (inclusive of VAT). CIM will charge an equivalent amount to the Investee Companies in addition to its initial Transaction Fee.