VCTs

VCT News

ShareSoc Launches EDGE Performance VCT Campaign

ShareSoc has launched a campaign to improve the performance of Edge Performance VCT Plc (consisting of H and I share classes) and reduce the fees charged by its investment manager, Edge Investments Limited. We are seeking shareholders to: collectively work together to persuade the incumbent directors to make various changes, vote to appoint new directors, vote against various resolutions at the upcoming General Meeting in February 2020. In addition, we seek to persuade Edge Performance VCT to agree a better deal with ...

End of year musings – VCTs

Should I continue to invest in VCTs, I ask myself. Hold, Buy or Sell? I was steered into these investments by my financial adviser, when I was busy working and never had the time to get to understand what I had bought until I retired. So, to start my decision process, I looked at returns. Northern VCT total returns are 3.6% gross (5.1% after 30% tax relief)  p.a. compound since 1995, 24 years ago when I invested. Baronsmead 3 total returns are 3.6% ...

Albion Capital Group LLP Partners’ 67% pay increase

Albion Capital Group LLP have recently disclosed their average pay per Partner for year end 31 March 2019 was £803,000, a whopping 67% increase on the previous year (£480,000). This shows what a wonderful business fund management can be, in particular managing VCTs. ShareSoc is currently running a campaign about the egregious investment manager fees at Albion Venture Capital (AAVC) (which is one of the funds managed by Albion Capital Group LLP). ShareSoc is seeking the directors to agree a better deal ...

Northern VCTs and Mercia

The 3 Northern VCTs (Northern Venture Trust, Northern 2 VCT and Northern 3 VCT) are proposing to novate their management agreements with NVM Private Equity LLP in favour of Mercia Asset Management. I looked at the NVM Private Equity LLP accounts and they show turnover of £12.5 million whereas the Mercia RNS says the bit they are buying has £7.5 million turnover (and £270 million AUM), but there is no explanation of the difference in the RNS. However, a little hunting on the ...

Profit Warnings at XP Power and Ted Baker, plus Mercia Placing

A number of profit warnings this morning. The most interesting to me was at XP Power (XPP) although I do not hold it. It was interesting because as a former IT Manager it is a good example of how to screw up a business by poor IT management. In this case their problem is an implementation of a new SAP Enterprise Resource Planning (ERP) system. The announcement this morning says that some short-term disruption to shipments “will result in revenues and adjusted ...

Mello Event, ProVen and ShareSoc Seminars and Lots More News

It’s been a busy last two days for me with several events attended. The first was on Tuesday when I attended the Mello London event in Chiswick. It was clearly a popular event with attendance up on the previous year. I spoke on Business Perspective Investing and my talk was well attended with an interesting discussion on Burford Capital which I used as an example of a company that fails a lot of my check list rules and hence I have ...

What Were the Real Returns from VCTs over 24 Years?

I wrote a previous blog article on the merits of Venture Capital Trusts (VCTs) but I thought it worthwhile to actually do some analysis of the capital and dividend returns from some of my historic holdings of such companies. This is not at all easy because most VCTs have been through restructuring or mergers over the years and actually identifying all the dividends received was not easy because I only started using Sharescope after some years which automatically records the dividends ...

Are VCTs Worth the Risks, and 40-Year Mortgages?

The FT Money supplement on Saturday ran a big article on Venture Capital Trusts which was headlined “Are VCTs worth the risks for higher earners?”. As a long-standing investor in such companies, having first invested in some in 1995 soon after they were launched, it made for interesting reading. It seems that wealthy investors are flocking to these funds due to the generous tax breaks and now there are few other good alternatives so the amount invested in them reached near record ...

City of London IT, Equals Interims, Paypoint CEO, Downing One VCT and Parliamentary Pandemonium

Having been away on holiday in the North of England last week, this is a catch up on news that impacted my portfolio. I received the Annual Report for City of London Investment Trust (CTY) which is one of my most boring holdings. This is large cap equity growth/income trust managed for many years by Job Curtis and I have held since 2011 – it seems longer. Total return last year was 2.7% which beat most of the comparable indices. But a ...

3i – Well Managed and Well Incentivised

The 8 times increase in the 3i share price in the past 10 years means that 3i is one of the largest holdings in my portfolio. So I thought I ought to read the annual report of this £11 billion market cap company. CEO Simon Borrows has accumulated £160 million of 3i shares and is therefore very well aligned with shareholders. His annual pay is around the £7 million mark, but most of this is performance based and paid in shares. He ...