The Lemon Fool

Some recovery in Baronsmead net asset values as at 30 November 2019 and forthcoming dividends (which will reduce the stated NAVs)

BVT NAV 77.1p, dividend 3.5p payable 06 March 2020
BMD NAV 79.3p, dividend 3.5p payable 06 March 2020

Any thoughts about how to signal "unhappyness" at the deteriorating position ? (for what its worth).

Karellan wrote:Any thoughts about how to signal "unhappyness" at the deteriorating position ? (for what its worth).

I think the very slow take up of their current offer has probably already signalled investors displeasure.
After writing the above, I came across a recent Baronsmead RNS:-
Under the Offer the second allotment of new Shares is scheduled to take place on 10 January 2020. However, following consultation with the Company's investment manager, the Board have resolved that the second allotment will be moved to 24 January 2020 to allow investors more time to submit their subscriptions following the Christmas period. In order for New Shares to be allotted to investors under the second allotment
"more time" - I suspect that improved investment news would be more appropriate

I was thinking that the December NAV might show a healthy uplift from the recent rally, but looking at the FTSE AIM indices they are pretty much where they ended November after dipping mid-month.

Nevertheless, it was encouraging to see the NAV recovering a little from 74.7p at end Oct to 77.1p at end Nov.

This morning I received a FATCA/CRS form from Baronsmead Venture Trust. I promptly filled it in and put it in the post box.

Later I wondered why they had sent this to me when all the information such as our NINos are provided by us when we buy new-issue VCT shares. After some more time I remembered their ridiculous merger where Computershre had to set up a dummy company to send out aggregate holding share certificates instead of doing a normal merger. We lost the dividend history and I now assume they lost the information that we had provided them for tax purposes.

Kidman I just got a bunch of similar FACTA type re-certifications to do for the 5 x Albion shareholdings I have.

Not sure why as I did this a all a couple of years ago - is this going to be a "regular" thing?

I threw mine in the bin. Waste of paper.

When I had opened the 12th one yesterday I gave up. Didn't bother opening any more and stuck them ALL in the recycling bin.

I have just had a couple of Albions to do.

Kidman wrote:Later I wondered why they had sent this to me when all the information such as our NINos are provided by us when we buy new-issue VCT shares.

quite - perhaps this is an overzealous way of using the GDPR - throw away any bit of information that isn't needed now - and then ask for it again when they need it again.

Solution : put all shares in nominee accounts.

And the guy in charge of the FCA is now promoted

Baronsmead VCT (BVT) and Baronsmead 2nd VCT (BMD) allocated further shares in their current offer on 24/1/20, further to their first allocation on 20/11/19. The Statistics are (which I hope I have correctly copied):-
BVT 20/11/19 13.99M shares at 76.8p (NAV 74.68p); 24/1/20 8.07M shares at 82.4p (NAV 80.06p); Current Bid Price 75.5p
BMD 20/11/19 11.60M shares at 78.9p (NAV 76.71p); 24/1/20 5.98M shares at 84.8p (NAV 82.4p); Current Bid Price 77.5p
By my calculations this is a sale of £17.4M for BVT and £14.2M for BMD (Baronsmead give figures of £17.5M and £14.5M approx.)
So neither have reached the proposed sale of £20M each - however they have both decided to raise this target to £25M - presumably they think that there will be a lot of late VCT purchases in this financial year which they hope to sweep up. This is certainly nothing like the mad rush of earlier years for Baronsmead VCTs.

They will probably fill it by the end but you're right its a rather sluggish raise

They are trying to do it themselves now, not putting it on Wealth Club, HL etc

They didn't completely fill the year before either. Last year they filled quickly but there was the tempter of an already declared dividend a.k.a. 'instant cashback'

I have never owned it. Dont like the unquoted portfolio, and AIM meh – if I wanted that I'd buy a specialist.

I do find this quite funny though

https://www.investegate.co.uk/baronsmea ... 57463280F/

- paid dividend
- forgot to adjust NAV before allotting new shares under the current offer
- had to issue a load of additional shares to account for people allotted shares at the wrong price

How it all changes after a lifetime of never putting a step wrong. Thankfully my Baronsmeads owe me nothing now.

A new fundraise from Baronsmead, for a total of £40M plus an over-allotment of £35M. The offers are now open - for a minimum of £3000 in both of Baronsmead Venture Trust and Baronsmead 2nd Venture Trust. The prospectus is dated 16th September 2020 and is available, along with a subscription form on the Baronsmead Web Sitehttps://www.baronsmeadvcts.co.uk
The performance in recent years of our Baronsmead purchases has been far from impressive. I won't be rushing (if at all) to purchase more.

scotia wrote:I won't be rushing (if at all) to purchase more.

I've already recycled my application form.

Kidman wrote:

scotia wrote:I won't be rushing (if at all) to purchase more.

I've already recycled my application form.

Moi aussi!
And looking at my Northern purchases, they seem to be in the same (underperforming) boat as Baronsmead
Yet its only a few years since there were stampedes for Baronsmead and Northern VCT issues.
I think its very likely that I'll be reducing purchases of VCTs this year. Maybe the last set of changes to VCT investment regulations have made it significantly more difficult to produce attractive returns. Yet the major VCT companies still seem to be offering large new issues - and in the main, they seem to be filling them, albeit more slowly than before. So there still appears to be an appetite - but not from me.

They've shifted about 40% of the stock so far https://www.bestinvest.co.uk/research/v ... t-launches.

They're more invested in AIM than other generalists but don't seek to have shared the rally that has taken the pre AIM VCTs (Amati especially) upwards. Has anyone been tracking whether the NAV has been widening, or if its just a case of wrong AIM stocks?

Kidman, Vulgaris & Scotia
I fear you are all correct in suggesting that perhaps VCT's are not such a great idea since the new rules, it may be useful to note that Amati, with good performance realistically, has just 2 days left to fill their £20mill over allotment and as of tonight they have almost £5mill to go.
This is unusual for them as their offers are invariably filled in good time & probably is a very good pointer to current sentiment towards the sector.

barchid wrote:Kidman, Vulgaris & Scotia
I fear you are all correct in suggesting that perhaps VCT's are not such a great idea since the new rules, it may be useful to note that Amati, with good performance realistically, has just 2 days left to fill their £20mill over allotment and as of tonight they have almost £5mill to go.
This is unusual for them as their offers are invariably filled in good time & probably is a very good pointer to current sentiment towards the sector.

Both myself and spouse are well loaded with previous years Amati VCT purchases and we also have Amati UK Smaller Cos shares in our ISAs - so probably not Amati purchases this year. And we won't be rushing for any other of the current offers. We'll think about it, and maybe make modest purchases later in the financial year, if there are more tempting offers. But only maybe