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Alliance Trust Results

Post Date: July 24, 2015

Yesterday (23/7/2015) Alliance Trust (ATST) announced its results for the six months to 30 June 2015. The results were disappointing with a net asset value (NAV) total return of 1.4% and a share price total return of 2.7%. Based on data published by Morningstar the NAV and share price total returns were below comparable figures for the company's peer group. The Morningstar peer group NAV return was 4.26% and share price return 5.53%. The Alliance Trust discount has, however, fallen from ...

National Grid AGM, Rensburg AIM VCT and Stocktrade

Post Date: July 22, 2015

I attended the National Grid Annual General Meeting in Birmingham yesterday. Unfortunately, I was not allowed to ask a question as the organisation that I was representing as a proxy put my son's name on it rather than mine so I was only allowed in as a "guest". It was not a particularly exciting event this year. Not a single shareholder complained about the outrageously high pay of the executive directors. The Chairman was both dogmatic and condescending to the mainly ...

VCT/EIS Changes and Rensburg AIM VCT

Post Date: July 20, 2015

The Summer Budget announced changes to the qualifying investments for Venture Capital Trusts (VCTs) and EIS investments. Some of changes and their impact were not immediately apparent but have come to light since. The rules will effectively be tightened to keep them focussed on early stage companies. For example for VCTs the investee companies will need to have been trading less than 10 years (or 7 years if they are not "knowledge intensive" businesses) and management buy-outs will be discouraged. The details ...

Foresight 4 “C” Shareholders Object

Post Date: July 13, 2015

Shareholders in the "C" fund of Foresight 4 VCT are unhappy with the conversion of their shares to Ordinary shares. These holders are former investors in the Acuity VCTs. They feel the conversion is being done on inequitable terms for the "C" shareholders. Put at its simplest, C shareholders are aggrieved that free and surplus cash in the C fund has not been paid out to them as a dividend before conversion. A large portion of surplus cash within existing C shares ...

The Budget – How Will It Affect Private Investors?

Post Date: July 9, 2015

George Osborne announced the Government's Budget yesterday (8/7/2015). These were the main changes that might affect individual investors: - Personal income tax allowance will rise from £10,600 to £11,000 in 2016-17. The Higher Rate Threshold will increase to £42,385 in 2015-16 with further increases in subsequent years. - Dividend taxation will be substantially changed. Dividend tax credits will be abolished and be replaced by a new Dividend Tax Allowance of £5,000 with tax rates on dividend income above that at 7.5% for basic ...