Pembroke 'B' share offer open

[Kidman]

The latest Pembroke VCT 'B' share offer opened last week and details are available on the Kin Capital website.

https://www.kincapital.co.uk/open-offer ... mediaries/

An Allenbridge Report dated January 2016, is also available but somewhat out of date.

It appears that best deal is to buy execution-only before close of business on 03 March 2017. Conveniently, that should allow one to know how many Brittish Smaller and/or Northern shares one has from their non-prospectus offers by that time. One may have all the 2016/2017 shares required or if not can then consider Pembroke for further purchases.

There is another deadline, 13 January 2017, only for direct investments, and that could be of advantage if there is a related allocation which is at a lower price than the later allocations.

[naflod]

Hi Kidman

On the Clubfinance website it is showing that the full 5% initial charge before discount can be offset by discounts for applications through CF before the early 13th January deadline.

naflod

[ali1947fish]

can you please compare pembroke to the other stable of vcts especially those raising money like Albion and northern

[Kidman]

naflod,
thank you for pointing out the CF 5%. This morning I received the prospectus in the post and have been reading it. I find the parts showing the various options, time limits and discounts somewhat confusing, as indeed have some other recent offers. The 13 January deadline may be only for existing shareholders, or at least to get the best deal. To add to the confusion, I believe there is a factual error on page 84 (iv) where 3% of £10,000 is shown on one line as £200 but correctly in the subsequent calculation at £300.
I am tempted to go for a small allocation by 13 January to not only, hopefully, get the best deal on fees, but in case the NAV goes up again before the subsequent allocations. If I need more later then I have two further deadlines.

I would like more Northern 3 but am concerned that it could be a Baronsmead-style scramble and I may miss out, hence keeping Pembroke in my sights.

Ali,
Pembroke is different to most of the others in a variety of ways. Firstly it is far newer so hasn't got dividend reserves, it has always made early stage investments, more in line with current government policy, but potentially higher risk/higher reward, it has significant directors holdings, about 3%, £1.1m thus far, so a good alignment of interest, TER limited to 2% which is competitive etc. Take a good read of the prospectus and see how you feel. What matters is whether you think it is right for you.

[naflod]

Hi Kidman

So far I have only had a skim through the prospectus, leaving it for detailed reading over Christmas unless it appears to be filling up quickly. Thanks for pointing out page 84's calculations, I'll make a point of starting there to see what I make of them.

naflod

[naflod]

Today's post brought me the certificate for my Pembroke B subscription.

I have, however, received 3% fewer shares than I expected, having applied through Club Finance with their acknowledgement of receipt 10 days before the early application deadline and the deadline for the full rebate of the initial discount.

I have sent Club Finance an e-mail this evening to ask them to look into the discrepancy.

Has any one else had a similar surprise today?

naflod

[UncleEbenezer]

Today's post brought me the certificate for my Pembroke B subscription.

I have, however, received 3% fewer shares than I expected, having applied through Club Finance with their acknowledgement of receipt 10 days before the early application deadline and the deadline for the full rebate of the initial discount.

How exactly do you calculate the number of shares you expect?

I've always found the information they (VCT offers in general) disclose insufficient to make such a calculation, given that it all stems from a base NAV that may have changed since last published.

[scotia]

I have, however, received 3% fewer shares than I expected, having applied through Club Finance with their acknowledgement of receipt 10 days before the early application deadline and the deadline for the full rebate of the initial discount.

Looking at Pembroke's announcement, they state that the shares were issued at 107.13 to 111.61. Now taking a 4% discount from the 111.61, you get 107.145. So allowing for a minor difference due to rounding, I would have expected the 107.13 figure to apply to all early applications which qualified for the 4% discount. However my experience of discount calculations doesn't always match a common sense approach.
I would be interested to learn what price you actually paid, since I have subscribed for their next allocation - and expect to get a 3% discount.

[oxmatt]

I had the same. Was expecting 3% rebated commission and 2% early bird as I applied before 13th Jan bringing the total discount to 5% (Against initial fees of 5%). My shares appear to have been issued after 3% commission so it appears that I received the early bird discount but not the rebated commission. I have also contacted Clubfinance and Pembroke directly to request an explanation.

The NAV as at 31.12.16 of 107.1 was published on 1st Feb and the share certificates issued as at 2nd Feb so I assume this is the correct NAV. It would seem so as the difference is almost exactly 3% as Naflod said with the difference the rounding on 1 share.

I was thinking of adding more after missing out on Northern but will definitely wait and see how this is resolved first.

[naflod]

Hi UncleE

How exactly do you calculate the number of shares you expect?

As there was a full rebate of the charges offered through Clubfinance, I was expecting the issue price of my shares to have been 107.13, the latest NAV figure and the lowest of the range of issue prices.

I have just had a reply from Clubfinance who are in touch with The City Partnership and expect it to be resolved either later today or first thing in the morning.

Per the reply:

We contacted The City Partnership yesterday it appears the issue with the commission rebate not being used to purchase additional shares. Potential solutions to this are now being explored.

naflod

[Kidman]

After some experimentation and with the help of page 84 of the Prospectus, I may have found out how my calculation was calculated.

As in example (iv), take 3% off your subscribed amount, divide by the NAV of 107.13 and round down to an integer.

However, i like many others, subscribed execution only via CF before the 13 January, so was not "advised or direct". It is unclear to me what the various issue prices are and when they are used. I await further news and ideally an additional share certificate.

[naflod]

Hi Kidman

I had a reply today from Clubfinance:

Dear naflod,

Further to my email yesterday my manager has been in contact with The City Partnership this morning and they have advised him over the phone that a solution will be found to get the missing 3% additional shares to our clients.

There are obviously some logistic considerations to be finalised but my manager expects that it will be in the form of additional shares issued in the current tax year.

Many thanks and as soon as I have the final details confirmed I will let you know.

Kind regards,

We just need to wait now for the additional shares to turn up.

naflod

[Kidman]

naflod,

many thanks for the update.

I can see that this will take some time to sort out, calculating the missing shares for all those affected (presumably all execution only customers), issuing the additional share certificate, getting the additional shares listed (presumably at the same time as the next allottment to save fees) and then issuing replacement tax certificates as they have the total number of shares on them.

[scotia]

Is this problem of the missing discount only applicable to Club Finance?
Are there any others out there who applied through other brokers?

[oxmatt]

Mine was through Clubfinance...

A little peeved that we still haven't heard about the planned resolution.

[Kidman]

I spoke to a very helpful lady at The City Partnership this morning, so can give an update.

There will be an additional share certificate and a replacement tax certificate issued. The current tax certificate can be used if anyone needs to send one off as part of a pre end of financial year claim. However, I believe it is too late to change this year's tax code. The new one is necessary as tax certificates show the total number of shares issued for each subscription.

In terms of timing, allow two to three weeks.
The next discount level ends today which will likely trigger another allotment of shares. Our additional shares will be issued at the same time and listed at the same time to keep costs down. My estimate to receive the new certificates is week beginning 20 March 2017.

[oxmatt]

Excellent - thanks for the update!

[naflod]

Yesterday Mrs naflod and I both received letters from The City Partnership (with SAEs enclosed) acknowledging the shortfalls in shares issued and requesting the return of both share certificates and associated tax relief certificates, so that they can be replaced.

naflod

[scotia]

More Pembroke Director Buys (from an RNS issued yesterday). It goes on to explain the commission rules applicable, but the part that interests me is

Peter Dubens, a director of the Company, has submitted an application to subscribe, in aggregate, £200,000 for B Ordinary Shares under the terms of the Offer

[Kidman]

I had assumed that special case on the commission was in place mainly for Peter Dubens. Good to see that the manager still has full confidence in the VCT he runs.

I also note that a one penny divdend has been declared for ordinaries and 'B' shares, xd 4 May and payable on 7 June.