Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Mercia launches tax-friendly digital fund

Mercia launches tax-friendly digital fund

Technology specialist Mercia Fund Management is launching a fund offering tax-efficient access to the UK's digital economy.

The Mercia Digital Fund will utilise the hybrid structure of Mercia’s previous three tax-efficient funds, combining the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS), to invest in a diversified portfolio of digital companies with high growth potential.

The fund, which launches on 11 August and requires a £25,000 minimum investment, targets a compound annual growth rate of up to 50% (excluding tax advantage) and investors can expect to realise their portfolios in between years three and seven.

The Mercia team will be aided by its long-term partnerships with eight universities to identify investment opportunities.

Its hunting ground will comprise four sub-sectors - financial technology, the internet of things, E-commerce and gaming and gamification.

Mercia managing director Mark Payton highlighted a number of compelling arguments for launching the fund in the current climate.

'First and foremost, digital is the UK’s fastest-growing sector and is already the third biggest contributor to the nation’s economy, Payton said.

'The sector boasts three times higher employment growth than the wider economy, with 25% greater revenue growth than traditional firms, and a Gross Value Added (GVA) per employee of £83,000, the output within digital is nearly twice the UK average for all sectors.

'[And finally] Figures from 2010 to November 2013 show investment returns in digital technology dwarfed other sectors, with 17 UK tech flotations with an average return of 101.7%, compared with 1.8% across 256 listings on the London Stock Exchange.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Gutteridge puts the heat on Odey's asset allocation maestro with a couple of tough questions.

Brewin's Foster & Gutteridge: searching for the yield of dreams

Brewin's Foster & Gutteridge: searching for the yield of dreams

Guy Foster and Ben Gutteridge discuss the latest upbeat US payroll report and how it has increased the probability of a first hike in interest rates in June.

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter