The Lemon Fool

Posted: **January 3rd, 2017, 12:13 pm**

Hi
Thanks to Karellan for clarifying that BSC dividend will be paid as planned.

Forms for BSC2 fundraising are now available from

http://www.yfmep.com/Investor_area/

I am not adding to VCT investments this year, so its not for me.

Ramage

Posted: **January 3rd, 2017, 2:05 pm**

Yay, looking forward to the divi as I have a solid holding.

As per above, I will not be adding any more VCT's until the rules change to something more favourable and will roll out of the ones I do have as holding periods expire.

Posted: **January 3rd, 2017, 2:45 pm**

Forms for BSC2 fundraising are now available from

http://www.yfmep.com/Investor_area/

I am holding BSC2 from many moons ago, but if I was investing in a new issue this tax year, I would definitely not choose this one, mainly due to the excessive performance fee (see page 16 of the offer document). I would not consider the Maven I&G 6 offer either, as that one has a similar performance fee issue.

Posted: **January 3rd, 2017, 9:33 pm**

Performance fee calculations are invariably really complicated and the summaries provided to shareholders are generally wholly inadequate. A starting point would be for VCTs to give illustrative samples of the way in which the annual fees are calculated and the net impact that they have.

Reverting to the specific BSC issues, I note that that the BSC2 offer terms are wholly different (and in my view fairer - first come, first served) than the indicative BSC1 offer, which will literally be a complete lottery and so not for me, not least because it is so late in the tax year. I have given my views to the manager and the directors, because I think that they have misjudged things. No doubt others will have different opinions, but I think that they have made a mess of the offer and so I am going to place funds elsewhere.

Posted: **January 4th, 2017, 4:10 pm**

I expressed my opinions of this BSC issue to YFM & they were transmitted to the board. I am not going in for the issue although I would like some more , its just too close to the financial year end to let a lottery dictate your tax planning.

Posted: **January 6th, 2017, 7:51 pm**

According to Club Finance, BSC2 was 76% full as of today, so presumably it will be full by end of business on Monday. I suspect this high demand is a sign of things to come for many other generalist VCTs which are planning top ups for later in the tax year and bad news if you are a wannabe subscriber living in the parts of Britain where first class post doesn't always mean next day.

http://www.clubfinance.co.uk/VCT-funds-raised.php

Posted: **January 6th, 2017, 11:03 pm**

I suspect this high demand is a sign of things to come for many other generalist VCTs which are planning top ups for later in the tax year and bad news if you are a wannabe subscriber living in the parts of Britain where first class post doesn't always mean next day.

I would guess that there is going to be an avalanche of applications for the Northern offers when they become available. I suspect I'll have to settle for some more AIM VCTs this year.

Posted: **January 7th, 2017, 1:05 pm**

timbo003 wrote:According to Club Finance, BSC2 was 76% full as of today, so presumably it will be full by end of business on Monday. I suspect this high demand is a sign of things to come for many other generalist VCTs which are planning top ups for later in the tax year and bad news if you are a wannabe subscriber living in the parts of Britain where first class post doesn't always mean next day.

Got a thud on the doormat this morning. From YFM themselves, not from any of the brokers. So now I can fill in my application in time for the prepaid envelope to go in Monday's post!

Also a leaflet about a shareholder event for May 3rd.

Posted: **January 8th, 2017, 10:05 am**

Hi UncleE - you say

So now I can fill in my application in time for the prepaid envelope to go in Monday's post!

If it were me I would get it in the post tonight - there is usually a collection on Sundays at the bigger local post offices

What amazes me here is that if you signed up for electronic communications - they still send the prospectus and application form by snail mail. Surely we signed up to get everything by email etc.

kind regards - BBB

Posted: **January 8th, 2017, 8:28 pm**

BusyBumbleBee wrote:If it were me I would get it in the post tonight - there is usually a collection on Sundays at the bigger local post offices

Sorry, my comment was meant to be ironic, contrasting the Saturday arrival of the package with timbo's observation:

I'm not buying any new VCTs this year: my taxable income on national minimum wage is insufficient to benefit from the tax breaks.
If I were buying new VCTs, British Smaller wouldn't be top of my list.

If I'd really wanted to post it (and not already done so), I could doubtless have found a post box with saturday afternoon/evening collection.

Posted: **January 10th, 2017, 2:11 pm**

So Brit Smaller 2 offer is full already

Posted: **January 18th, 2017, 11:12 am**

With the payment of the dividend this morning, British Smaller Companies joins my holdings in Baronsmead 1 & 2 (my three largest holdings) as having received more back in dividends and tax relief than I paid for them.

Yippee!

Now to reinstate the DRIS

naflod

Posted: **January 18th, 2017, 1:18 pm**

Now to reinstate the DRIS

I have maintained the DRIS in British Smaller Cos - and today's large dividend was made even more attractive by the generous DRIS price of 77.71p per share, while it is currently quoted on the market at 81.5/84.5. And I'll get a further tax rebate!

I have never quite understood why VCTs are quoted as high risk for Sophisticated Investors only. Whereas Bank deposit accounts which are losing money (in real value) year by year are considered a safe investment for the rest.

Posted: **January 18th, 2017, 5:27 pm**

naflod wrote:With the payment of the dividend this morning, British Smaller Companies joins my holdings in Baronsmead 1 & 2 (my three largest holdings) as having received more back in dividends and tax relief than I paid for them.

naflod

Several of mine have done that , its a good feeling indeed.

scotia wrote:I have never quite understood why VCTs are quoted as high risk for Sophisticated Investors only. Whereas Bank deposit accounts which are losing money (in real value) year by year are considered a safe investment for the rest.

scotia

I must agree , after a dozen years of this high risk strategy it seems to be more dependable than most of my other investment efforts.

Posted: **February 10th, 2017, 2:36 pm**

New Offer:-

The Board is pleased to announce that the Company has today launched a new share offer (the "Offer") to raise up to £4,250,000. Full details of the Offer are contained in an offer document (the "Offer Document") issued by the Company, dated 10 February 2017.
Only postal or hand-delivered subscriptions will be accepted by the receiving agent and the Offer will remain open to existing shareholders until 6 March 2017. If the Offer is fully subscribed at that date it will be closed and shares allotted by way of a ballot.
If the Offer remains undersubscribed at that date it will be opened to other investors and shares will then be allocated in order of receipt until fully subscribed.
In order to be as fair as possible to all investors if the Offer is oversubscribed at 6 March 2017 the minimum individual subscription has been set at £3,000 and only one subscription will be accepted per investor.
The Company will only accept payment by cheque and will only present cheques for successful subscriptions once the ballot has concluded. Bankers' drafts and electronic payments will not be accepted.
Pursuant to the Offer, YFM Private Equity Limited, the Company's investment adviser, will receive a fee of 3 per cent (of the gross proceeds of the Offer) in respect of subscriptions received either direct or through an adviser and 5 per cent (of the gross proceeds of the Offer) for subscriptions received through an execution only platform or broker. This constitutes a related party transaction under Listing Rule 11.1.10R.

It looks like they are trying very hard to avoid the shambles (my opinion) of the Baronsmead and Northern Offers where anyone who waited for the offer documents was too late to participate.

Posted: **February 10th, 2017, 9:30 pm**

See the reassuring accounting in the IMS?

NAV Total Return up by 0.3% over the quarter. Marginal, but in the right direction.

Disposal of final (by now non-qualifying) stake in GO Outdoors, with big divi returning our capital. So total return excluding that must be negative, and by a rather greater sum.

Looks like there must've been some writedowns quietly hiding under the big disposal there.

Posted: **February 11th, 2017, 7:46 am**

I think it is actually the ugliness of the performance fee hitting home!

"Following the realisation a dividend of £16.0 million was paid on 18 January 2017 and the resultant additional incentive fee of £3.6 million was provided for in the quarter."

So my read is that the incentive fee payable on the large dividend (£3.6m) largely as a result of the realisation more than offset the actual uplift on the final sale (£2.8m). So actually there must have been some other positive revaluations to have an overall uplift in total return.

Posted: **February 28th, 2017, 12:41 pm**

The Board is pleased to announce that valid Subscriptions have now been received from existing shareholders exceeding the full amount available under the Offer, and consequently the Offer will not be opened to other investors from 7 March 2017.

The Offer remains open to existing shareholders until 6 March 2017, after which shares will be allotted by way of a ballot and the Offer will be closed.

So its going to a Ballot!

Posted: **March 1st, 2017, 9:04 am**

Glad I am not involved. These issues so close to the year end make it much more hit and miss whether you get something that you believe fits in with your other holdings or something that you buy because they had some still unsold. These late issues like this are playing snooker with your tax planning and I cannot think that it is anything that an IFA would have much to do with. I dont feel that it is being mindful of your shareholders needs.

Posted: **April 26th, 2017, 10:11 am**

Karellan wrote:Glad I am not involved. These issues so close to the year end make it much more hit and miss whether you get something that you believe fits in with your other holdings or something that you buy because they had some still unsold. These late issues like this are playing snooker with your tax planning and I cannot think that it is anything that an IFA would have much to do with. I don't feel that it is being mindful of your shareholders needs.

So today they have announced an interim dividend of 5.75 pence per share. If you use the DRIS you can get in really early this year. The directors will not be proposing a final dividend

The Lemon Fool

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