Vanneck EIS Reporting
Vanneck EIS is a rolling evergreen fund. This makes investor reporting a challenge. First, investors have different entry points and underlying investments. Second, every new company we back is added to the fund which ever increases the number of investments to report on.
Further, our presbyterian instinct is to stress the failures; we'd hate our investors to think that we were highlighting successes and ignoring failures. Equally, the return profile of EIS investment means that this is what we should do! In EIS investing, the majority of investments are likely to fail but the returns should be 0.6x given the tax reliefs.* I.e. Investors should be focused on the potential successes which will actually dictate their return.
Consequently, we adopted the following to make our investor updates as useful and efficient as possible:
Further, our presbyterian instinct is to stress the failures; we'd hate our investors to think that we were highlighting successes and ignoring failures. Equally, the return profile of EIS investment means that this is what we should do! In EIS investing, the majority of investments are likely to fail but the returns should be 0.6x given the tax reliefs.* I.e. Investors should be focused on the potential successes which will actually dictate their return.
Consequently, we adopted the following to make our investor updates as useful and efficient as possible:
- A chronological table of investments up front with a broad classification of how each is doing. Template below.
- If an investment is moved to "Valued at £0", we shall detail what's happened.
- From then on, we won't give updates even if the company is still going. This ensures our reporting focuses on the investments that will determine returns.
Company |
Date |
Gone Under |
Valued at £0 |
Too Early |
Neutral |
Optimistic/Success |
Company X |
x/x/xxxx |
- |
- |
- |
- |
x |
Company Y |
y/y/yyyy |
- |
x |
- |
- |
- |
* Tax reliefs are not guaranteed and vary depending on the circumstances of each investor. E.g. higher rate vs. lower rate.