VCT

EDGE Performance VCT Webinar on 14 August 2020, at 4pm

We have arranged a webinar on Friday 14 August at 4pm for shareholders to better understand the implication of the resolutions, and hence help them determine how they should vote at the GM and AGM. Terry Back, Chair of the VCT, and members of the Action Group (Robin Goodfellow, Richard Roth and Cliff Weight) will be speaking with plenty of time for Q&A. To register go to https://www.sharesoc.org/events/sharesoc-edge-vct-webinar-14-aug-2020/ ShareSoc launched a campaign in Jan 2020 to improve the performance of Edge Performance VCT Plc ...

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...

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...

Albion Venture Capital VCT Blog number 2

Albion want to change the performance fee from the current arrangement (1.9% management fee, plus 8% of returns over a hurdle rate of 5% per annum with a high-water mark) to 20% of returns above a hurdle of RPI +2%p.a., from a new starting point of NAV at 1 April 2019. ShareSoc recommends shareholders vote against this proposal and other resolutions at the AGM on 21 August. 1.9% plus 20% is egregious, particularly when: it represents an increase from historically agreed arrangements and  ...

VCTs and the Budget

It looks like VCTs have escaped, but there is some tightening of the qualifications. We will need to read this in detail to see the outcome. There has however...

VCTs – Possible budget changes and pre-planning our response

The autumn statement/budget on 22nd November is getting closer, so we may soon learn the government's views on patient capital. At a Proven VCT meeting on 1 November the VCT manager, Stuart Veale, seemed certain that something will change for VCTs, but nobody knows what. Richard Waltham spoke to him afterwards to suggest that if the changes are adverse then the main focus for lobbying could move from the Treasury to MPs. It may only take a handful of MPs to trigger ...

The VCT Investors Group Campaign

A university academic has just joined the VCT Investors Group and he emailed me with this interesting story and commentary, which other readers might find of interest…. As you...

AIC Press Release on VCTs

To follow on from my last blog post, another interesting press release from the AIC today was that on the performance of Venture Capital Trusts (VCTs). That's particularly so when everyone is considering their tax bills at this time of year, i.e. those just paid and how they can avoid such big ones for the current year and next. VCTs do of course offer upfront income tax relief when investing in new shares, and also tax free dividends thereafter. Many have been ...

Who Caused the Stock Market Collapse? And consequences.

Who or what caused the stock market falls immediately after the Brexit vote? It was not just the UK market that fell, but many international ones plus of course the pound fell very significantly - to its lowest level since 1985. It was somewhat unexpected that the impact would be so immediate. The UK stock market has recovered to a large extent in the large cap stocks, many of which will benefit from the lower pound and a move to more "defensive" ...

VCT/EIS Changes and Rensburg AIM VCT

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 ...