Some VCT performance comparisons
Posted: September 15th, 2023, 5:45 pm
I thought it might be useful to have a look at the relative performance of a number of VCTs which I hold, or have held in the past. I have chosen the 5 year total return percentage from Hargreaves Lansdown as my indicator. I should stress that this is not the return that I would necessarily expect - since normally I purchased new issues - which are priced slightly above NAV, and obtained the 30% tax rebate before selling them after 5 years, usually at slightly below NAV. But it does provide a comparative rank of expected (less tax rebate) returns.
First, looking at Aim VCTs, which can be compared with AIM indices
FTSE AIM 100 Index -35.1% | FTSE AIM All Share Index -27.8%
Octopus AIM VCT1 -21.7% | Octopus Aim VCT2 -18.1%
Amati AIM VCT -22.3%
Hargreave Hale VCT -22.7%
It has clearly not been a good 5 years for the AIM market. The VCTs have done better than the Indices, but they are still all substantially negative. However given the 30% tax return, and the Buy/Sell margins, they probably all at least broke even. There are no clear winners
And now for the VCTs which do not have the word AIM in their titles - although they may contain a substantial AIM component
Baronsmead 1st VCT -4.9% | Baronsmead 2nd VCT -1.9%
Proven VCT -2.2%
Octopus Titan VCT 10.2%
Maven 4 VCT 20%
Northern Venture VCT 23.6% | Northern 2 VCT 31.6% | Northern 3 VCT 31%
Pembroke B VCT 50%
British Smaller Cos VCT 71.9%
Mobeus Income & Growth 4 VCT 92.1% | The Income & Growth VCT 91.6% (also Mobeus)
There is a considerable range in the performance, and its tempting to choose a winner. But these are results over the past 5 years - and they may bear no relation to the next 5 years. Many of us will remember, in past years, the rush to get new Issues from Baronsmead and Northern, because of their superior performance at that time . I don't think they will be troubled by a rush now.
(I checked the figures - but please report any errors)
First, looking at Aim VCTs, which can be compared with AIM indices
FTSE AIM 100 Index -35.1% | FTSE AIM All Share Index -27.8%
Octopus AIM VCT1 -21.7% | Octopus Aim VCT2 -18.1%
Amati AIM VCT -22.3%
Hargreave Hale VCT -22.7%
It has clearly not been a good 5 years for the AIM market. The VCTs have done better than the Indices, but they are still all substantially negative. However given the 30% tax return, and the Buy/Sell margins, they probably all at least broke even. There are no clear winners
And now for the VCTs which do not have the word AIM in their titles - although they may contain a substantial AIM component
Baronsmead 1st VCT -4.9% | Baronsmead 2nd VCT -1.9%
Proven VCT -2.2%
Octopus Titan VCT 10.2%
Maven 4 VCT 20%
Northern Venture VCT 23.6% | Northern 2 VCT 31.6% | Northern 3 VCT 31%
Pembroke B VCT 50%
British Smaller Cos VCT 71.9%
Mobeus Income & Growth 4 VCT 92.1% | The Income & Growth VCT 91.6% (also Mobeus)
There is a considerable range in the performance, and its tempting to choose a winner. But these are results over the past 5 years - and they may bear no relation to the next 5 years. Many of us will remember, in past years, the rush to get new Issues from Baronsmead and Northern, because of their superior performance at that time . I don't think they will be troubled by a rush now.
(I checked the figures - but please report any errors)