FORESIGHT 4 VCT PLC - Foresight Group

Summary Investment Objective and Investment Policy
It is proposed to change the investment policy of the Company to provide for a more generic policy of
investing in unquoted companies.
A summary of the existing investment policy is to target UK unquoted companies which depend to a
significant extent on the application of scientific and technological skills or knowledge, or whose activities
embrace a significant technology component as a major source of competitive advantage.
A summary of the new investment policy is to target UK unquoted companies which it believes will
achieve the objective of producing attractive returns for Shareholders
Otherwise the current and proposed investment policies are similar and the following is a summary of
these comparable policies. The Company invests in a range of securities including, but not limited to,
ordinary and preference shares, loan stock, convertible securities, and fixed-interest securities as well as
cash.
The Company aims to be significantly invested in growth businesses subject always to the quality of
investment opportunities and the timing of realisations. Risk is spread by investing in a number of
different businesses within different industry sectors using a mixture of securities.
Share Capital
The number of Ordinary Shares in issue at the date of this document is 36,512,963. The maximum
number of New Ordinary Shares and New C Shares to be issued pursuant to the merger is 2,000,000
and 25,000,000 respectively.
Dividend Policy
The dividend policy of the Company is to maximise the level of dividends generated either from income
or from capital profits realised on the sale of investments while at the same time providing a maintainable
annual dividend stream. The stated annual dividend objective for the Ordinary Shares fund is 5p per
Share.
With regard to the proposed C Shares fund, it is hoped that a payment of annual dividends can be
initiated once the portfolios acquired from Foresight 5 and Acuity 3 have been given the time to develop
under the management of Foresight and as a result of the increased size and reduced running costs of
this fund. Payment of dividends in respect of the C Shares will depend on the performance of the
underlying investments in the C Shares fund.
Buybacks
The Board intends to continue to consider repurchasing Ordinary Shares when they become available in
order to provide a degree of liquidity for sellers of the Company’s shares. In pursuing this policy,
Ordinary Shares will be bought back in the market at a discount to NAV and the Board will ensure that
they are acting prudently and in the interests of remaining Shareholders. Buybacks are entirely at the
Board’s discretion and will be subject to the Company having the relevant shareholder authorities,
distributable reserves and funds available for such a purchase. Buybacks will also be subject to the
Listing Rules and any applicable law at the relevant time.
The Board intends to apply the above policy to the C Shares.
Summary Risk Factors
An investment in the Company is subject to a number of risks, which could materially and adversely
affect its value and a summary of the material risks is set out below:
. Completion of any one Scheme is dependent upon a number of conditions precedent being
fulfilled, including the approval of Shareholders. Whilst the Board has identified a number of
potential benefits for the Enlarged Company, there is no certainty that these benefits will lead to
improved prospects for the Enlarged Company. If one or more of the Schemes are not approved
and effected, the full benefits of the Enlarged Company may not be realised.
. Shareholders may be adversely affected by the performance of the investments, whether acquired
from the Target VCTs or made by the Company, which may restrict the ability of the Company
following the merger to distribute any capital gains and revenue received on the investments
transferred from Target VCTs to the Company (as well as the investments of the Company).
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