Calculus VCT 'D' Share (top-up)

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
pbarne
Posts: 18
Joined: November 4th, 2016, 7:03 pm

Calculus VCT 'D' Share (top-up)

Postby pbarne » January 11th, 2017, 2:34 pm

I was trawling through the top-up offers on Clubfinace and came across this.
I can't recall much (?any) discussion of the soundness of the Calculus VCTs?

Looking at the detail, they have already raised funds for the D share but the
vast majority of this seems to be sitting in money market accounts so far.
They say the aim is to pay a divi of 4.5% of NAV - but as a relative novice at
this it strikes me that unless this money gets properly invested that they
could fall foul of the rules governing VCTs?

Any holders / experiences / views on this one?

P

Kidman
Posts: 34
Joined: November 6th, 2016, 1:10 pm

Re: Calculus VCT 'D' Share (top-up)

Postby Kidman » January 12th, 2017, 11:15 am

I associate Calculus with Neptune with regard to VCTs but I think that connection stopped some years ago. Looking at the Calculus website I see that the current VCT used to be called Investec Structured Products Calculus VCT plc until October 2015.
Since then there appears to have been a bit of 'tidying up'. The ordinaries shares appear to have returned about 77p of dividends and the 'C' shares 22.5p on a run-off basis so with remaining investments they may return somewhere in the 90s of pennies per share. They plan this year to merge the ordinaries and 'C's into the 'D's which may help the 'D' shares ability to pay dividends as they haven't been in issue long enough to make profits on their own account.

It is a remarkably small VCT and they have taken the trouble to issue a full prospectus for their current issue even thought they are only looking to raise £4m. Quite intriguing.

I believe they did the rounds of financial advisors a couple of years ago so perhaps that is where they get most of their shareholders. Certainly Calculus has a history of small company investing but I would want to dig a lot deeper into their accounts for such figures as total expense ratio and to try to understand where they think they are going before I considered investing in them.

pbarne
Posts: 18
Joined: November 4th, 2016, 7:03 pm

Re: Calculus VCT 'D' Share (top-up)

Postby pbarne » January 12th, 2017, 1:05 pm

Kidman wrote:I associate Calculus with Neptune with regard to VCTs but I think that connection stopped some years ago. Looking at the Calculus website I see that the current VCT used to be called Investec Structured Products Calculus VCT plc until October 2015.
Since then there appears to have been a bit of 'tidying up'. The ordinaries shares appear to have returned about 77p of dividends and the 'C' shares 22.5p on a run-off basis so with remaining investments they may return somewhere in the 90s of pennies per share. They plan this year to merge the ordinaries and 'C's into the 'D's which may help the 'D' shares ability to pay dividends as they haven't been in issue long enough to make profits on their own account.

It is a remarkably small VCT and they have taken the trouble to issue a full prospectus for their current issue even thought they are only looking to raise £4m. Quite intriguing.

I believe they did the rounds of financial advisors a couple of years ago so perhaps that is where they get most of their shareholders. Certainly Calculus has a history of small company investing but I would want to dig a lot deeper into their accounts for such figures as total expense ratio and to try to understand where they think they are going before I considered investing in them.


Thanks for the response and information about the history. Good point about the
small size of this VCT - probably one to avoid for now.


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