Juno Capital launches first funds of EISs
A new venture from investor Julian Hickman, Juno Capital, is launching two innovative multi-manager funds that invest in enterprise investment schemes (EIS).
Mr Hickman, who set up Juno Capital last year alongside Edward Rudd shortly after they left EIS provider Longbow Capital, said while there were only 46 EIS products on the market, they were “quite opaque”.
He said a fund of EISs offered a solution to investors looking to benefit from the tax-efficient schemes.
Mr Hickman said he launched the products after speaking with advisers who said they wanted the “headache” taken away from investing in EISs.
He said: “They told me they wanted the products wrapped up in one vehicle that they could use. What we want is for IFAs to outsource their EIS investment to us and we can solve the problems for them.”
Juno has launched a Balanced Risk fund and a Managed Risk fund, which is the more defensive of two.
The Managed fund will invest in two or three EIS funds that aim to preserve clients’ capital from volatility and will target the lower risk investments in areas such as renewable energy funds and pub companies.
The vehicle also has the capability to invest directly in an EIS qualifying company if they match a similar risk profile or fit the fund’s investment goals.
The Balanced fund will target higher returns by investing 30 per cent of the portfolio in EIS funds which have a higher target return and higher risk, such as an EIS that specialises in emerging technology, medical devices, or software.
The remaining 70 per cent will invest in EIS vehicles with a focus on capital preservation, as with the Managed fund.
The minimum investment requirement for both funds is £25,000.
However, Mr Hickman said that was flexible and a smaller amount would be considered on a case-by-case basis.