Executive Summary
TP70 VCT plc offers combined exposure to GAM's funds of hedge funds and venture capital investments identified by Triple Point Investment Management LLP. TP70's key objectives include relatively low risk of capital loss, low correlation to traditional asset classes and a rapid exit after 5 years. TPIM manages one of the largest VCTs launched in 2005-06, Triple Point VCT plc. TPIM's risk mitigation strategy focuses on venture capital investments in companies with contractual revenues from financially sound counterparties. GAM, an acknowledged leader in funds of hedge funds, is the sub-adviser to TPIM advising on the selection of direct investments in GAM funds of hedge funds. TP70's initial exposure will principally be to the Index which replicates the performance of GAM's Diversity strategy obtained through a contract for differences under which the return on TP70's bond portfolio will be exchanged for the return of the Index. This will be supplemented by less than 15% direct investment in GAM Diversity Inc.. Launched in 1989, and now a T2.8 billion fund, GAM Diversity Inc seeks capital appreciation with diversification of risk through exposure to approximately 50 underlying hedge funds across diverse strategies and regions. The fund has made positive returns in each of the sometimes highly volatile past 10 years, with low correlation to equity markets.
