VCT Cash Piles

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
naflod
Posts: 27
Joined: November 5th, 2016, 7:40 pm

VCT Cash Piles

Postby naflod » December 5th, 2016, 5:41 pm

After a lot of fun on the testing page (an excellent feature when trying to sort something out) and sage advice from kiloran, here is my latest update:

Code: Select all

                                     Invs (exc
                  fund               int bearing            6m       12m       6m       12m       war
                  raising Date       parked cash)  Cash     Pipeline Pipeline  realised realised  chest         years
2016              £m                 £000's        £000's   £000's   £000's    £000's   £000's    £000's
Baronsmead VT             30/09/2016 128,261       21,591            4,475              15,494          21,591  4.82
Baronsmead 2VT            30/09/2016 116,579       24,110   1,512              6,191                    24,110  7.97
Br Smaller Cos    3.8     31/03/2016 58,790        36,120            5,400              13,700          39,920  7.39
Br Smaller Cos 2          30/06/2016 35,792        20,006            1,100              2,378           20,006  18.19
Chrysalis                 30/04/2016 17,573        7,351    605                1,600                     7,351  6.08
Crown Place               30/06/2016 30,296        6,896             4,556              2,879            6,896  1.51
Downing One               31/03/2016 65,445        26,713            21,456             27,448          26,713  1.25
Edge H                    31/08/2016 3,171         2,112    500                0                         2,112  2.11
Maven 4 VCT               30/06/2016 27,891        4,471    1,048              1,011                     4,471  2.13
Maven 5 VCT               31/05/2016 24,953        516      497                3,024                        516 0.52
Mobeus I&G 2              30/09/2016 22,797        18,202   374                59                       18,202  24.33
Northern VT               30/09/2016 69,226        8,552             6,200              11,100           8,552  1.38
Northern VT 2             30/09/2016 60,991        11,093   5,000              4,400                    11,093  1.11
Northern VT 3             30/09/2016 68,849        1,542    4,700              3,300                     1,542  0.16
ProVen                    31/08/2016 63,836        36,329   3,290              6,269                    36,329  5.52
ProVen G&I                31/08/2016 62,184        10,578   2,780              7,265                    10,578  1.90
Albion VCT                30/09/2016 51,672        6,706    4,373              318                       6,706  0.77
Albion Dev                30/06/2016 32,509        10,954   1,025              491                      10,954  5.34
Albion Enterprise         30/09/2016 35,719        8,629    2,135              473                       8,629  2.02
Albion Tech&Gen           30/06/2016 53,517        8,987    1,855              1,196                     8,987  2.42
Foresight 1 Ord           30/06/2016 60,329        32,017   0                  92                       32,017
Income & Growth           31/03/2016 42,174        32,982   4,440              5,674                    32,982  3.71
Mobeus I&G                30/06/2016 37,886        30,667   1,690              2,250                    30,667  9.07
Mobeus I&G 4              30/06/2016 28,669        11,378   1,310              1,640                    11,378  4.34
Octopus Titan             30/04/2016 188,265       113,465  19,900             47,107                 113,465   2.85
 
                  3.8                1,387,374     491,967  57,034   43,187    92,360   72,999    495,767       3.15


British Smaller Co's and Income & Growth are overdue for publishing September figures, but I wanted to get the latest table up, to get it going here on The Lemon Fool.

Baronsmead 2 published 9 month figures, so I weighted them into the 6 month column.

The average time required is 3 years 2 months, but that is definitely still being skewed by the fund managers adjusting to the new rules. this applies to such an extent with Foresight 1 that they had no new investments in the last six months!

Apologies to those who wanted names on the right as well in the past, but there is a width limit that tips on to the next line.

As ever, please let me know if you spot any errors

naflod

naflod
Posts: 27
Joined: November 5th, 2016, 7:40 pm

Re: VCT Cash Piles

Postby naflod » December 5th, 2016, 5:48 pm

I have just discovered that by clicking on select all at the top of the table, then opening notepad, it can be pasted in, to be viewed in full rather than needing to scroll and losing the headings.

naflod

Karellan
Posts: 37
Joined: November 4th, 2016, 2:42 pm

Re: VCT Cash Piles

Postby Karellan » December 6th, 2016, 8:49 am

naflod , much appreciated as always.

BusyBumbleBee
Lemon Pip
Posts: 56
Joined: November 4th, 2016, 7:55 am

Re: VCT Cash Piles

Postby BusyBumbleBee » December 6th, 2016, 9:39 am

:D Very much appreciated as always :D Comes out even better than it did in the other place and fits on the page without the end column of names - ability to copy brilliant - thanks for pointing it out.

Shows just how much cash the Brit Smaller Cos VCT has - so it can/must make that distribution for the sale of Go Outdoors

Many thanks - BBB

naflod
Posts: 27
Joined: November 5th, 2016, 7:40 pm

Re: VCT Cash Piles

Postby naflod » December 14th, 2016, 11:23 am

Here is the update to take account of the British Smaller Cos and Downing One six month figures:

Code: Select all

                               Invs (exc
                  fund               parked             6m       12m       6m       12m       war
                  raising Date       cash)     Cash     Pipeline Pipeline  realised realised  chest   years
2016              £m                 £000's    £000's   £000's   £000's    £000's   £000's    £000's
Baronsmead VT             30/09/2016 128,261   21,591            4,475              15,494    21,591  4.82
Baronsmead 2VT            30/09/2016 116,579   24,110   1,512              6,191              24,110  7.97
Br Smaller Cos            30/09/2016 62,672    29,544   1,376              847                29,544  10.74
Br Smaller Cos 2          30/06/2016 35,792    20,006            1,100              2,378     20,006  18.19
Chrysalis                 30/04/2016 17,573    7,351    605                1,600              7,351   6.08
Crown Place               30/06/2016 30,296    6,896             4,556              2,879     6,896   1.51
Downing One               30/09/2016 87,644    8,118    25,577             5,549              8,118   0.16
Edge H                    31/08/2016 3,171     2,112    500                                   2,112   2.11
Maven 4 VCT               30/06/2016 27,891    4,471    1,048              1,011              4,471   2.13
Maven 5 VCT               31/05/2016 24,953    516      497                3,024              516     0.52
Mobeus I&G 2              30/09/2016 22,797    18,202   374                59                 18,202  24.33
Northern VT               30/09/2016 69,226    8,552             6,200              11,100    8,552   1.38
Northern VT 2             30/09/2016 60,991    11,093   5,000              4,400              11,093  1.11
Northern VT 3             30/09/2016 68,849    1,542    4,700              3,300              1,542   0.16
ProVen                    31/08/2016 63,836    36,329   3,290              6,269              36,329  5.52
ProVen G&I                31/08/2016 62,184    10,578   2,780              7,265              10,578  1.90
Albion VCT                30/09/2016 51,672    6,706    4,373              318                6,706   0.77
Albion Dev                30/06/2016 32,509    10,954   1,025              491                10,954  5.34
Albion Enterprise         30/09/2016 35,719    8,629    2,135              473                8,629   2.02
Albion Tech&Gen           30/06/2016 53,517    8,987    1,855              1,196              8,987   2.42
Foresight 1 Ord           30/06/2016 60,329    32,017                      92                 32,017
Income & Growth           31/03/2016 42,174    32,982   4,440              5,674              32,982  3.71
Mobeus I&G                30/06/2016 37,886    30,667   1,690              2,250              30,667  9.07
Mobeus I&G 4              30/06/2016 28,669    11,378   1,310              1,640              11,378  4.34
Octopus Titan             30/04/2016 188,265   113,465  19,900             47,107             113,465 2.85
 
                  0.0                1,413,455 466,796  83,987   16,331    98,756   31,851    466,796 2.53


Interestingly, the massive level of investment by Downing One has offset the slow progress of others and brought the overall average down to two and a half years' cash and back within the three year limit.

It will be interesting to look back in the future to see how Downing fare; the phrase "fools rush in where angels fear to tread" looms large in the mind, but then they may end up looking like geniuses by taking advantage of the situation whilst others dithered.

naflod

naflod
Posts: 27
Joined: November 5th, 2016, 7:40 pm

Re: VCT Cash Piles

Postby naflod » December 28th, 2016, 9:29 pm

I found it interesting in the Investment Management Report in the Chrysalis VCT year end accounts published last week that there was the following paragraph:

As well as making new investments more difficult, the new rules have dramatically reduced the pool of potential investee companies, however, there remains substantial cash in VCTs looking for a home. Consequently, competition for deals is fiercer and investment terms are inevitably less attractive. Although the new rules emulated from Brussels, it is unlikely that they will be substantially changed in the medium term despite Brexit.
Chrysalis VCT plc remains fortunate that we are fairly fully invested and is therefore not under pressure to make new investments. We do, of course, continue to look for new opportunities and to work with the portfolio in order to finance their growth where it is allowed.


They spell out the substantial cash pile and the knock on effect of having to settle for less attractive terms in order to secure deals.

Their claim to be "fairly fully invested and is therefore not under pressure to make new investments" may however, appear to be a little disingenuous as, at their recent rate of investment it will take over 8 years to fully invest their cash pile. On the other hand, looking at the ratio of VC investments to investments plus cash and parked cash they are 74% invested, so exceed the 70% rule.

naflod

naflod
Posts: 27
Joined: November 5th, 2016, 7:40 pm

Re: VCT Cash Piles

Postby naflod » January 5th, 2017, 9:14 pm

My poll has had its week run and has come out in favour of continuing posting on this thread.

Since the last update there have been results from Income & Growth and Chrysalis, plus the start of notifications on Clubfinance of amounts raised in the current offerings:

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

A change that I have made to the layout is to sort them into alphabetical order, rather than my traditional my holdings followed by Mrs naflod's holdings, but now made possible by the wonderful table posting macro, available on the link below along with other useful resources:

http://lemonfoolfinancialsoftware.weebl ... neous.html

Code: Select all

                                     Invs (exc
                  fund               parked             6m       12m       6m       12m       war
                  raising Date       cash)     Cash     Pipeline Pipeline  realised realised  chest   years
2016              £m                 £000's    £000's   £000's   £000's    £000's   £000's    £000's
Albion Dev                30/06/2016 32,509    10,954   1,025              491                10,954  5.34
Albion Enterprise         30/09/2016 35,719    8,629    2,135              473                8,629   2.02
Albion Tech&Gen           30/06/2016 53,517    8,987    1,855              1,196              8,987   2.42
Albion VCT                30/09/2016 51,672    6,706    4,373              318                6,706   0.77
Baronsmead 2VT            30/09/2016 116,579   24,110   1,512              6,191              24,110  7.97
Baronsmead VT             30/09/2016 128,261   21,591            4,475              15,494    21,591  4.82
Br Smaller Cos            30/09/2016 62,672    29,544   1,376              847                29,544  10.74
Br Smaller Cos 2          30/06/2016 35,792    20,006            1,100              2,378     20,006  18.19
Chrysalis                 31/10/2016 17,811    6,318             755                1,890     6,318   8.37
Crown Place               30/06/2016 30,296    6,896             4,556              2,879     6,896   1.51
Downing One               30/09/2016 87,644    8,118    25,577             5,549              8,118   0.16
Edge H                    31/08/2016 3,171     2,112    500                                   2,112   2.11
Foresight 1 Ord           30/06/2016 60,329    32,017                      92                 32,017
Income & Growth           30/09/2016 42,583    29,310            5,120              7,390     29,310  5.72
Maven 4 VCT               30/06/2016 27,891    4,471    1,048              1,011              4,471   2.13
Maven 5 VCT               31/05/2016 24,953    516      497                3,024              516     0.52
Mobeus I&G                30/06/2016 37,886    30,667   1,690              2,250              30,667  9.07
Mobeus I&G 2              30/09/2016 22,797    18,202   374                59                 18,202  24.33
Mobeus I&G 4              30/06/2016 28,669    11,378   1,310              1,640              11,378  4.34
Northern VT               30/09/2016 69,226    8,552             6,200              11,100    8,552   1.38
Northern VT 2             30/09/2016 60,991    11,093   5,000              4,400              11,093  1.11
Northern VT 3             30/09/2016 68,849    1,542    4,700              3,300              1,542   0.16
Octopus Titan     60.1    30/04/2016 188,265   113,465  19,900             47,107             173,565 4.36
ProVen                    31/08/2016 63,836    36,329   3,290              6,269              36,329  5.52
ProVen G&I        17.0    31/08/2016 62,184    10,578   2,780              7,265              27,578  4.96
 
                  77.1               1,414,102 462,091  78,942   22,206    91,482   41,131    539,191 2.99


Thanks for the suggestion of the [pre] command TJH to pin the column headers, but I haven't managed yet to get it to work with the posting tool. I'll keep trying to get that to work.

In the meantime, if anyone wants the spreadsheet e-mailing whenever I post an update let me know off board and I'll send it.

The thing that jumps out from this update is that the combined years to invest, following the inclusion of the Octopus Titan and ProVen G&I new money raised figures stands at 2.99 years. I have ignored the Albion group fund raised total of £8million as no split is given, however if that were included it would take the total to 3.04 years.

naflod

BusyBumbleBee
Lemon Pip
Posts: 56
Joined: November 4th, 2016, 7:55 am

Re: VCT Cash Piles

Postby BusyBumbleBee » January 6th, 2017, 10:32 am

A big thank-you for this - again

The Albion Top up offers 2016/17) are for £4 million for each plus up to another £2 million each if needed.

What is also apparent is that the cash piles cost big time in terms of the Manager's fee and the longer they are held the more they are devalued by this fee. So Chrysalis which has a management fee of 1.5% of NAV must be compared with 2% for British Smaller Cos, 2.5% for Ventus for example. Might be figure worth including in another column.

with kind regards - BBB


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