Shore Capital, the London-listed independent investment banking group, is launching two new Puma VCTs targeting the investment opportunities arising from the credit crunch. The new funds, which offer investors a 30 per cent income tax relief and tax free returns, will provide secured loans to well-run companies finding it hard to raise finance on attractive terms from banks hit hard by the current credit turmoil. Shore is expecting the fund to generate a net annual return of 11.4 per cent over five years. The new Puma VCT Offer is to raise up to £40 million ($80 million), making Shore Capital's total VCT funds up to £100 million. Shore Capital's managing director Graham Shore said: “Our aim is to devise investment products which reflect changing market circumstances. For the coming period, cash will have a premium value which we intend to capitalise upon. “In over 11 years of investing in unquoted companies we have generally delivered excellent returns in good times, whilst in more difficult conditions we have protected capital and delivered growth in net assets per share.” The minimum investment is £5,000, with the maximum capped at £200,000. Offer costs and annual management fees are both 2 per cent, with other annual running costs expected to run at 1 per cent. Shore Capital is based in London, Liverpool, Frankfurt and Berlin and specialises in equity capital market activities and fund management. Total funds under management as at 30 November 2007 were £1.41 billion. The existing Puma VCTs raised about £60 million in 2005 and 2006.