Change of Manager

 
TIDMFAME 
 
Framlington AIM VCT PLC 
 
Change of investment manager 
 
As reported in the announcement of the results of the Company for the year 
ended 30 September 2011 released today, the Board has, given the disappointing 
performance of the AIM market, been considering for some time a new strategic 
direction for the Company. Experience over the last few years has shown that 
AIM is not necessarily the best place for VCT funds with VCTs specialising in 
unquoted investments in general having offered better returns. 
 
The Board has, therefore, decided to change the manager of the Company to a 
manager that specialises in managing both AIM and unquoted investments. The 
Board invited a number of experienced investment managers to submit their 
proposals for taking over the management of the Company and after due 
consideration, has decided to appoint Downing LLP as the Company's investment 
manager. The appointment of Downing LLP is currently expected to be effective 
from 1 March 2012. 
 
Following this appointment, the name of the Company will be changed to Downing 
Income VCT 4 PLC. 
 
As part of this agreement, Downing has committed to conduct an additional 
fundraising for the Company which should make the running of the Company more 
economic and provide additional funds for investment. This should also enable 
the Company to operate a share buy back policy nearer to net asset value, which 
may also have a positive impact on the Company's share price. 
 
Downing has also agreed to manage the Company for a lower annual fee of 1.8%, 
and to institute a lower overall cost cap of 3%, which is one of the lowest in 
the VCT industry. 
 
Downing LLP is an experienced and successful VCT manager with funds under 
management of approximately GBP285m. It proposes, subject to shareholder 
approval, to follow a different investment strategy. Downing will, over time, 
transfer around half of the qualifying investments into unquoted companies 
which have the potential to generate attractive returns. It will in the process 
manage a careful selling programme of a number of the Company's AIM stocks and 
will focus upon the AIM stocks where it believes there is the most opportunity 
for upside. This change of strategy will reduce the Company's exposure to the 
AIM market, which has been volatile, and broaden the investments in the 
portfolio to include private equity backed businesses. This change of strategy 
will require shareholder approval and accordingly a resolution to amend the 
Company's investment policy will be put to shareholders at the Annual General 
Meeting to be held on 13 March 2012. 
 
The Board would like to thank AXA Framlington for its work as investment 
manager to the Company since launch and for its co-operation in the change of 
investment manager. In October 2011 the Board gave 12 months' notice to AXA 
Framlington in accordance with the investment management agreement. AXA 
Framlington has kindly agreed to waive payment of the final seven months' worth 
of its fee due to 31 October 2012. 
 
Framlington AIM VCT PLC 
 
31 January 2012 
 
Enquiries: 
 
Framlington AIM VCT PLC 
 
Chris Kay, Director: 020 7486 7599 
 
Downing LLP 
 
Judith MacKenzie 020 7416 7780 
 
Colin Corbally 020 7416 7780 
 
 
 
END