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
Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter