b'18 Mercia Asset Management PLC Annual Report & Accounts 2022Chief Investment Officers review continuedOur equity performanceIRR 31 March 2022 31 March 2021Proprietary capital 16% 15%TVPI * Venture Private Equity Venture Private EquityInstitutional FundsLegacy 193% 132% 138% 142%Current 111% 109% 98% 87%Retail EIS FundsLegacy 139% n/a 123% n/aCurrent 96% n/a 102% n/aVCTs (pence per Ordinary share) NAV **Total return ** NAV Total returnNorthern Venture Trust 68.4 252.9 79.8 254.3Northern 2 VCT 64.4 196.8 71.3 196.2Northern 3 VCT 97.9 206.3 107.0 206.4*TVPI % defined as; distributions + total value + cash/capital paid in** VCT Total return growth over 12 months, based on 31 March 2022 cumulative total return, of -0.6% to +0.3%We use different performance measures across our suite of asset classes. For our direct portfolio, IRR is adopted as our proprietary capital is also used for other activities. As at 31 March 2022, the direct portfolio IRR had increased to c.16%, largely following the successful sale of Faradion. We measure Total Value to Paid In (TVPI) across our Regional and Private Equity (PE) funds as it shows total value returned and accruing to investors after fees; this naturally increases over time as more capital is returned and the portfolio values grow. Our legacy Venture funds, at a TVPI of 193%, are significantly up year on year as a number of assets were sold at higher values during FY22. Our newest PE fund saw a recovery in asset values as the impact of the pandemic on its portfolio businesses began to recede. For our VCTs, total return includes cumulative dividends paid alongside current asset value to give a true total performance measure. It has been principally flat year on year due to sharp price weakness across the listed part of the VCT portfolios in the final quarter of the financial year.Our strong overall investment performance enables us to raise additional funds, and we were allocated a further 31.4million this financial year from additional contributions to the Northern Powerhouse Investment Fund (NPIF) Equity and Debt funds and our Midlands Engine Investment Fund (MEIF) Proof of Concept and Early Stage Fund by BBB. Alongside this, our Enterprise Investment Scheme (EIS) team raised new funds totalling c.16million, in addition to Northern VCT investorsre-investing c.6million of dividends paid during the year. Since year end, 40.0million of new funds were raised by our Northern VCTs, together with c.5million raised by our first Knowledge-intensive Impact EIS Fund. At the year end, we had c.297million of liquidity across all our funds and balance sheet.Post AuM Private Investor Public Sector AuM year end 1 April 2021inflowsinflowsPerformanceDistributions31 March 2022inflows Asset class m m m m m m mVenture 600 22 20 30 (80) 592 45Private Equity 54 (2) (4) 48 Debt 11011(3) 118 Total FuM 764 22 31 28 (87) 758 45Proprietary Capital 176 28 (3) 201 Total AuM 940 22 31 56 (90) 959 45'