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Northern confirm small fund raise plans

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oxmatt
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Northern confirm small fund raise plans

#4817

Postby oxmatt » November 14th, 2016, 2:12 pm

Northern 1/2/3 reports just posted. They confirm a small (non-prospectus) fund raise for Jan 2017. £4m per fund with priority to existing investors.

BusyBumbleBee
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Re: Northern confirm small fund raise plans

#4825

Postby BusyBumbleBee » November 14th, 2016, 2:35 pm

Actually - all in all - the results confirm the fine record of NVM - dividend remains high and valuations creeping upwards. Good flow of new investments and the prospect of more sales of investee companies in the near future. We shall have to wait and see (probably 3 to 4 years) to see if their new investment policy works out as well as their historic performance. I am, as always, optimistic. - BBB

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Re: Northern confirm small fund raise plans

#4857

Postby thebarns » November 14th, 2016, 3:48 pm

£4M per fund with priority to existing investors.......

I'm guessing they will raise that within 1-3 days of issue and before some existing investors receive paper notification !

There will be an almighty scramble for these.

Lemon Fool members will know within minutes of the relevant RNS release and will have their chequebooks at the ready !

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Re: Northern confirm small fund raise plans

#5184

Postby Kidman » November 15th, 2016, 11:34 am

£4M per fund


Presumably it would have been smaller had the referendum result been 'remain' and the pound/euro rate stayed as it was?
I believe the limit is the sterling equivalent of EUR 5m.

It's nice to see one of my preferred managers raising some funds, but as thebarns said, it will be a scramble, and perhaps we all need to have a plan 'b'.

james188
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Re: Northern confirm small fund raise plans

#5338

Postby james188 » November 15th, 2016, 5:36 pm

I am assuming that they decided to go for around the maximum permitted under current law - certainly hope so! My understanding is that the non-prospectus limits apply on an individual company basis (one reason for a group preserving more than one VCT). They refer to raising approximately £4 million per company, which gives them headroom unless the pound appreciates considerably against the euro - when they will simply adjust. I quite agree that, whatever the prevailing exchange rate, the offers will be snapped up very quickly.

Langbarb
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Re: Northern confirm small fund raise plans

#6666

Postby Langbarb » November 19th, 2016, 3:53 am

I only own Northern VCT shares in an online account (AJ Bell You Invest). I suppose I will have to rematerialise some of them or buy a few in materialized format in the secondary market to have priority as currently northern would not see me on the register? If so, how can I purchase them in materialized format on the secondary market?
Thanks

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Re: Northern confirm small fund raise plans

#6697

Postby BusyBumbleBee » November 19th, 2016, 10:46 am

Northern (etc) runs a very good DRIS - so you can always buy more this way if you already own them. I am a bit overweight in this so apart from the DRIS I don't wish to take up any more. DRIS advantage includes buying at NAV not NAV plus 5%

UncleEbenezer
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Re: Northern confirm small fund raise plans

#6785

Postby UncleEbenezer » November 19th, 2016, 5:18 pm

Langbarb wrote:I only own Northern VCT shares in an online account (AJ Bell You Invest). I suppose I will have to rematerialise some of them or buy a few in materialized format in the secondary market to have priority as currently northern would not see me on the register? If so, how can I purchase them in materialized format on the secondary market?
Thanks

AJ Bell will probably supply you a to whom it may concern letter confirming your holding.
NVM will probably accept such a letter.

Asking them might (or might not) be your line of least hassle.

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Re: Northern confirm small fund raise plans

#7101

Postby timbo003 » November 20th, 2016, 6:01 pm

I suppose I will have to rematerialise some of them or buy a few in materialized format in the secondary market to have priority as currently northern would not see me on the register? If so, how can I purchase them in materialized format on the secondary market?


AJ Bell will materialise some or all or your nominee holding in Northern for a small charge (£25), all you need to do is send them a secure message from your account and they will take the transfer charge directly from your account. I have done this a number of times in the past and the process is generally complete within around 10 working days

https://www.youinvest.co.uk/dealing-acc ... -and-rates

Alternatively, you could buy a few more Northern shares directly using a broker who will do certificated dealing, I have used Jarvis a number of times for this, they charge £19.50 per deal (online or over the phone)

http://www.sharedealactive.co.uk/our-charges.html

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Re: Northern confirm small fund raise plans

#8064

Postby runnygum » November 23rd, 2016, 9:44 am

The question is.. with other VCT's indicating a 20% cut in returns in the short term due to the new rules.
Will the Northern funds fare much better? That surely suggests a 20% cut in capital values to reflect lower yield.

The fund raising will no doubt be based on current "NAV" which may not yet have been fully repriced to take into consideration wider (& Northern future) VCT industry cuts.


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