Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

VCT buybacks

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
Walkeia
2 Lemon pips
Posts: 134
Joined: April 27th, 2019, 8:03 am
Has thanked: 35 times
Been thanked: 69 times

VCT buybacks

#475262

Postby Walkeia » January 22nd, 2022, 8:38 am

Hi all,

Principal question: does anyone know any brokers who will re-materialise shares into certificated form please?

Reason: I have VCT shares coming up to the 5y mark in March 22 (Titan), April (Mobeus) and May 23 (Downing). I like things tidy so de-materialised my VCT share certificates into HL so they didn't get lost etc. It appears this was an admin mistake. Octopus are saying I can only participate in their buyback if I have certificates on the register (this is 5% discount to NAV so ~100p). HL say they could work to sell the holding in the market at 97.5 but cannot speak with Octopus to sell the shares at the Octopus buybacks. I used up my full VCT allowance so this 2.5p is a decent amount of cash. HL do not re-materialise shares so to sell my VCT holding I will have to transfer to a new broker which can re-materialise the shares and then sell them via the buyback process - what a headache.

As an aside I am a still a bit flabbergasted that I seem to be in a pretty silly situation and such a big providers as HL & Octopus has not encountered this and have a system in place for selling. I've called both sides twice now to politely confirm this is definitely the case - please let me know if this is wrong and there is any easier way of doing this.

Many thanks

walkeia

barchid
Lemon Slice
Posts: 411
Joined: November 30th, 2018, 2:18 am
Has thanked: 133 times
Been thanked: 196 times

Re: VCT buybacks

#475271

Postby barchid » January 22nd, 2022, 9:36 am

Walkeia
This has come up before in a slightly different format but if you use a platform that allows you to put on a limit order which they then inform the buying in market maker of you can participate in buy backs.
I use Jarvis for this and I leave a limit sale on for 3 months and have always participated in the buy back I wanted, they email me on the day of the buy back asking if I am happy to sell at the price they are being bought in at.
They have 2 accounts which do this, Share Deal Active where you can talk to a dealer on a phone or X-O which is cheaper but email only.
I use active but fellow posters use x-o and also reported that they participated in buy backs.
Good luck on your sales, always nice to recycle a vct.

Walkeia
2 Lemon pips
Posts: 134
Joined: April 27th, 2019, 8:03 am
Has thanked: 35 times
Been thanked: 69 times

Re: VCT buybacks

#475435

Postby Walkeia » January 22nd, 2022, 9:04 pm

Thank you Barchid.

This answers my question fully and thankfully means I do not have to go through the process suggested by HL of re-materialising my VCT shares. They mentioned this buyback service but said it was 'market base' which I found somewhat confusing. So confirmation from yourself that this is effectively the same as participating in the direct buyback (just via the listed market) is comforting. I will speak with HL in March and place my a limit order / my details into the buyback pool.

deltrotter
Lemon Pip
Posts: 63
Joined: November 22nd, 2016, 7:01 am
Has thanked: 54 times
Been thanked: 5 times

Re: VCT buybacks

#475903

Postby deltrotter » January 25th, 2022, 8:15 am

As a new VCT investor this year I have been buying through Wealth Club and then transferring certs into X-o.

Wealth Club have been great but WOW X-o have been fantastic. All four certs I have posted have been in my general investment account the following day.

Set up of the account was easy and the platform is no frills, which I like.

Thanks for the recommendation on here for X-o. Hoping they are as good in 5 years time when I need to sell.


Return to “Venture Capital Trusts (VCT's)”

Who is online

Users browsing this forum: No registered users and 8 guests