Donate to Remove ads

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

Thanks to waiting4godot,yyuryyub,88V8,Anonymous,Fluke, for Donating to support the site

AIM VCT Funds

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
intrepidinvestor
Posts: 4
Joined: September 28th, 2022, 5:53 am
Been thanked: 1 time

AIM VCT Funds

#532881

Postby intrepidinvestor » September 28th, 2022, 5:58 am

Hi All - first post here but wondered if i could be so bold as to call upon collective experience....

I have been toying with he idea of increasing my portfolio exposure to small cap UK given the abismal time it has had as a sector this year to date. I am thinking of doing this via two VCT funds - Octopus AIM and Hargreave Hale AIM VCT funds. Given the tax break on the way in, tax efficient growth and dividends and relative liquidity after 5 years on the way out why would a person not invest in AIM/micro cap via one of these funds? I do not need access to the money in the medium term. I appreciate the sector could well feel further pain in the coming months and years but putting aside normal market risks surely this is an excellent way in which to invest in AIM?

I have done research into both of these funds and both seem well diversified with a history of ok(ish) stock picking.

Spet0789
Lemon Quarter
Posts: 1896
Joined: June 21st, 2017, 12:02 am
Has thanked: 241 times
Been thanked: 944 times

Re: AIM VCT Funds

#532904

Postby Spet0789 » September 28th, 2022, 8:10 am

intrepidinvestor wrote:Hi All - first post here but wondered if i could be so bold as to call upon collective experience....

I have been toying with he idea of increasing my portfolio exposure to small cap UK given the abismal time it has had as a sector this year to date. I am thinking of doing this via two VCT funds - Octopus AIM and Hargreave Hale AIM VCT funds. Given the tax break on the way in, tax efficient growth and dividends and relative liquidity after 5 years on the way out why would a person not invest in AIM/micro cap via one of these funds? I do not need access to the money in the medium term. I appreciate the sector could well feel further pain in the coming months and years but putting aside normal market risks surely this is an excellent way in which to invest in AIM?

I have done research into both of these funds and both seem well diversified with a history of ok(ish) stock picking.


This is precisely my view.

Over a 5 year holding period, the 30% discount offsets the various frictions (buying in at NAV, higher fees than small cap ITs), leaving one with a tax-free investment. I only invest in the U.K. shares via VCTs. (Excluding the small U.K. share in my global trackers).

barchid
Lemon Slice
Posts: 410
Joined: November 30th, 2018, 2:18 am
Has thanked: 133 times
Been thanked: 196 times

Re: AIM VCT Funds

#533245

Postby barchid » September 29th, 2022, 10:30 am

This is also my view, indeed I do wonder why any long term investor would buy shares in what can be an absolute cowboys market either directly or via a fund/trust when not only do you receive a 5% of nav of tax free divi from HHV (is Octopus similar, I have never looked at it) but a 30% discount on the way in.
Additionally you have a manager who is experienced in the AIM market,so will also likely be shown the best placings etc due to years of contact and exposure with the dealmakers in AIM.

james188
2 Lemon pips
Posts: 142
Joined: November 6th, 2016, 7:16 am
Has thanked: 3 times
Been thanked: 77 times

Re: AIM VCT Funds

#533405

Postby james188 » September 29th, 2022, 6:14 pm

AIM VCTs have a decent record, but I have avoided them completely. That is because they pretty much have to invest in new IPOs. The track record is just terrible, with very few exceptions. Complete dogs of late include Parsley Box and Music Magpie. There are many, many others (Entu, Made.com, InTheStyle etc). It is simply shocking. The IPO market needs to get its act together and stop sharking investors.

As a general rule, I will now not invest in IPOs other than when I am dragged into them when generalist VCTs which I hold retain a stake - step forward Mobeus and Northern as to a couple of the above dogs.

UncleEbenezer
The full Lemon
Posts: 10580
Joined: November 4th, 2016, 8:17 pm
Has thanked: 1440 times
Been thanked: 2929 times

Re: AIM VCT Funds

#533570

Postby UncleEbenezer » September 30th, 2022, 7:48 am

I've just this week subscribed to HH. Hoping to get them at a price that reflects market conditions, and that they'll use my money towards picking up some bargains!

Since I already hold Amati, Octopus 1 and Unicorn, this kind-of completes my mainstream AIM set.

sinterklaas
2 Lemon pips
Posts: 184
Joined: December 13th, 2016, 10:07 am
Has thanked: 86 times
Been thanked: 61 times

Re: AIM VCT Funds

#533593

Postby sinterklaas » September 30th, 2022, 9:42 am

james188 wrote:AIM VCTs have a decent record, but I have avoided them completely. That is because they pretty much have to invest in new IPOs. The track record is just terrible, with very few exceptions. Complete dogs of late include Parsley Box and Music Magpie. There are many, many others (Entu, Made.com, InTheStyle etc). It is simply shocking. The IPO market needs to get its act together and stop sharking investors.

As a general rule, I will now not invest in IPOs other than when I am dragged into them when generalist VCTs which I hold retain a stake - step forward Mobeus and Northern as to a couple of the above dogs.


Yep agree. It’s mostly the consumer businesses that have been shockers.

The B2B and life sciences companies on the other hand have contributed most of the positive performance.

I am obviously generalising, perhaps too much but this is my perception to date.

james188
2 Lemon pips
Posts: 142
Joined: November 6th, 2016, 7:16 am
Has thanked: 3 times
Been thanked: 77 times

Re: AIM VCT Funds

#533709

Postby james188 » September 30th, 2022, 2:52 pm

sinterklaas wrote:
Yep agree. It’s mostly the consumer businesses that have been shockers.

The B2B and life sciences companies on the other hand have contributed most of the positive performance.

I am obviously generalising, perhaps too much but this is my perception to date.


It is why I prefer to invest in the likes of the Albion VCTs, which resolutely avoid consumer facing businesses.

UncleEbenezer
The full Lemon
Posts: 10580
Joined: November 4th, 2016, 8:17 pm
Has thanked: 1440 times
Been thanked: 2929 times

Re: AIM VCT Funds

#535545

Postby UncleEbenezer » October 7th, 2022, 9:34 am

We have a straw in the wind. Octopus AIM RNS about opening up over-allotment could hint that they're filling fast. Still lots of money sloshing about, looking for a home!

intrepidinvestor
Posts: 4
Joined: September 28th, 2022, 5:53 am
Been thanked: 1 time

Re: AIM VCT Funds

#537406

Postby intrepidinvestor » October 14th, 2022, 4:24 pm

Thank you all for your thoughts, comments and musings. I have lined up an investment into Hargreave Hale AIM VCT which looks like it is going to be deployed next week. The NAV has ticked down this week another 3.5% which is good news ahead of the alotment :D

intrepidinvestor
Posts: 4
Joined: September 28th, 2022, 5:53 am
Been thanked: 1 time

Re: AIM VCT Funds

#645456

Postby intrepidinvestor » February 7th, 2024, 9:06 pm

Unicorn AIM VCT is launching tomorrow with a £15m fundraise. Is anyone getting involved? I am attracted by the decent dividend history and recent exists but I hear exiting is less favourable than some of its AIM VCT fund peers?

UncleEbenezer
The full Lemon
Posts: 10580
Joined: November 4th, 2016, 8:17 pm
Has thanked: 1440 times
Been thanked: 2929 times

Re: AIM VCT Funds

#645462

Postby UncleEbenezer » February 7th, 2024, 9:40 pm

intrepidinvestor wrote:Unicorn AIM VCT is launching tomorrow with a £15m fundraise. Is anyone getting involved? I am attracted by the decent dividend history and recent exists but I hear exiting is less favourable than some of its AIM VCT fund peers?

I'm not. Unicorn is already one of my biggest VCT holdings, so no more eggs in that basket for the foreseeable.

All AIM VCTs are volatile. Unicorn tends to be a big rollercoaster even in that company. Big ups, big downs.

As for exiting, you're locked in for five years - unless you want to lose all the tax breaks. That's time for what prevails today to change radically, for better or worse. But yes, the longer you expect to hold, the more sense it makes. If it helps, regard it as a micro-cap income&growth fund with tax advantages!

Karellan
2 Lemon pips
Posts: 203
Joined: November 4th, 2016, 2:42 pm
Has thanked: 83 times
Been thanked: 18 times

Re: AIM VCT Funds

#645589

Postby Karellan » February 8th, 2024, 1:47 pm

intrepidinvestor wrote:Unicorn AIM VCT is launching tomorrow with a £15m fundraise. Is anyone getting involved? I am attracted by the decent dividend history and recent exists but I hear exiting is less favourable than some of its AIM VCT fund peers?


I would have gone for these if it were not for the British Smaller earlier. Maybe next year , AIM NAV is weak I feel so its attractive. I read that there was not a strict share buy back policy at Unicorn which could lead to a poor exit if the discount drifts the wrong way.

mjames
Posts: 15
Joined: September 28th, 2021, 4:20 pm
Has thanked: 2 times
Been thanked: 5 times

Re: AIM VCT Funds

#645665

Postby mjames » February 8th, 2024, 5:03 pm

Small top up on Unicorn, I note it has filled the £15 million already today. One of the faster moving offers of the year

wanderer
2 Lemon pips
Posts: 170
Joined: September 17th, 2017, 2:44 am
Has thanked: 148 times
Been thanked: 104 times

Re: AIM VCT Funds

#645714

Postby wanderer » February 8th, 2024, 8:01 pm

Good luck to all the investors. My investments in AIM VCTs leave much to be desired.

I am sitting on a 60% loss on Amati from the 21/22 round and a 28% loss on Octopus aim from the 22/23 round.

In fact my most successful AIM VCT investment has been in the Downing AIM class (now known as Thames Ventures 2). The fund only raised £2m and so while they decide what to do with it they stuck all the cash in money market funds.

The pitiful rate of interest hasnt quite matched the management fee. The same managers who have been doing a fine job of messing things up by depositing the assets with a custodian that has now been forcibly wound up by the FCA, leaving the assets uninvested and at serious risk of losing their VCT status.

However, at least this means the value might be pretty flat and close to a nil percent return if the money ever gets back to me!

I am concluding the best thing to do as far as AIM is concerned is just to keep the cash stashed under the mattress.

mjames
Posts: 15
Joined: September 28th, 2021, 4:20 pm
Has thanked: 2 times
Been thanked: 5 times

Re: AIM VCT Funds

#645941

Postby mjames » February 9th, 2024, 4:19 pm

wanderer wrote:I am concluding the best thing to do as far as AIM is concerned is just to keep the cash stashed under the mattress.


The best thing to do is to examine your expectations. Investing at the top of the market and still expecting a favourable return in these market conditions ?

Charlottesquare
Lemon Quarter
Posts: 1757
Joined: November 4th, 2016, 3:22 pm
Has thanked: 104 times
Been thanked: 557 times

Re: AIM VCT Funds

#646618

Postby Charlottesquare » February 13th, 2024, 11:24 am

mjames wrote:
wanderer wrote:I am concluding the best thing to do as far as AIM is concerned is just to keep the cash stashed under the mattress.


The best thing to do is to examine your expectations. Investing at the top of the market and still expecting a favourable return in these market conditions ?


Catch is the top of the market is only visible from the following valley.


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

Who is online

Users browsing this forum: No registered users and 3 guests