Blogs

Latest Blogs

Performance Fees – Don’t You Just Hate Them?

Post Date: July 11, 2017

I mentioned in a previous blog post the result of a performance incentive fee for the manager at British Smaller Companies VCT (BSV) which resulted in total fees of 6.9% of net assets last year. Another similar example is that of Proven VCT (PVN) who managed to do even better at 8.8% of assets for the same reason. This problem of excessive and perverse performance fees has recently been covered in the FCA’s “Asset Management Market Study” and in a very good ...

Our Risk, Their Gain: TD Direct & the FCA

Post Date: July 9, 2017

Thursday last, I was somewhat shocked to receive the following missive from one of my brokers, TD Direct (now owned by Interactive Investor): The key paragraph is this: To ensure we maintain our ability to appropriately diversify client money across highly rated, strongly capitalised banks, our regulator, the Financial Conduct Authority (FCA) has given us, and other similar firms, permission to deposit some of our client monies in fixed term deposits for up to 95 days. This is a change to the current ...

Guide to ShareSoc’s new Events Page

Post Date: July 6, 2017

As part of the redevelopment of ShareSoc's website, we have enhanced our directory of events. Our aim is that it should be the "go to" place for investors in the UK wishing to find out about interesting events relating to investment. We therefore list not only our own events, but any worthwhile investment related events from 3rd parties (subject to our editorial control). If you know of any upcoming event which we have not listed, please let us know. The main body of ...

Grenfell: Lessons for the Investment Community

Post Date: July 2, 2017

The Grenfell Tower disaster shocked and saddened the whole of the UK. It leaves questions about how such a tragic series of failings, which led to the disaster, were allowed to happen. It is to be hoped that the forthcoming public enquiry will shed some light on this. A recent article in the Financial Times, however, may offer some clues. And I believe that some of the failings have parallels that the financial services industry could learn from. The article reports that building ...

Enormous Management Fees at British Smaller Companies VCT

Post Date: June 28, 2017

British Smaller Companies VCT (BSV) has been one of the more successful Venture Capital Trusts in terms of fund performance – it is managed by YFM. The NAV Total Return has been 106.9 over the last ten years according to the AIC (i.e. investors have doubled their money), beating the sector performance for generalist VCTs of only 64. With high, tax-free dividends being paid, investors have probably been happy. But back in 2009 the managers performance incentive fee was changed to be ...