I notice the current offer for the Octopus AIM VCTs has filled up pretty quickly, though still has some capacity.
Does anyone have any view on why it is proving more popular than other AIM VCTs such as Amati and Unicorn? In weighting the AIM Vcts, as i see it currently
1. Of all AIM VCTs, Amati AIM possibly has the best quality companies inside it e.g. AB Dynamics, Ideagen, GB Group etc etc but may be overly dependent on one individual (Dr Paul Jordan). It trades at a fairly wide NAV discount about 8%
2. Unicorn suffers from the issue of not being able to sell your shares after 5 years at a decent price. There is a big discount to NAV of c10%, hence I'm not that interested
3. Octopus may be better at marketing and also have a decent portfolio though it is more diversified with less % of the portfolio in companies which are known "winners". their discount to NAV seems to be under 5%
4. Enthusiasm for AIM stocks may be on the rise into the upcoming budget and expected fiscal stimulus
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Popularity of Octopus AIM VCTs
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Re: Popularity of Octopus AIM VCTs
My Spouse purchased Octopus AIM (OOA) and Octopus AIM 2 (OSEC) in August 2017 - so its a bit early to come to any firm conclusions. However I like to look at the percentage gain on the investment = (Current Bid Price + Dividends - Original Net Cost)/ (Original Net Cost) where the Original Net Cost is the price originally payed, minus the tax rebate. So if the Current Bid Price + Dividends is equal to the Original Gross cost (i.e. the VCT has not lost any of your cash) , then this figure will be 42.8%. Of course the initial purchase overheads and the discount to NAV will ensure that this figure starts off lower, but how long does it take to climb back to the 42.8% mark?
Currently looking at a number of VCTs purchased around the same time as Octopus, my computations (which I hope are OK!) show:-
Octopus Aim, purchased 4/8/17, 38.9%
Octopus Aim 2, purchased 4/8/17, 31.8%
The Income & Growth VCT, purchased 20/10/17, 47.25%
Mobeus Income & Growth 4 VCT, purchased 20/10/17, 50.8%
Northern 3 VCT, purchased 3/11/17, 40.7%
Baronsmead 2nd VCT, purchased 26/10/17, 37.6%
The closest purchase dates I have for AMATI are DRIS purchases at NAV. So I have modified my calculation to add an initial charge of 1% and I get:-
Amati, purchased 21/7/17, 64.5%
Amati, purchased 24/11/17, 38.2%
And this indicates as I have previously stated - Amati is very volatile.
Currently looking at a number of VCTs purchased around the same time as Octopus, my computations (which I hope are OK!) show:-
Octopus Aim, purchased 4/8/17, 38.9%
Octopus Aim 2, purchased 4/8/17, 31.8%
The Income & Growth VCT, purchased 20/10/17, 47.25%
Mobeus Income & Growth 4 VCT, purchased 20/10/17, 50.8%
Northern 3 VCT, purchased 3/11/17, 40.7%
Baronsmead 2nd VCT, purchased 26/10/17, 37.6%
The closest purchase dates I have for AMATI are DRIS purchases at NAV. So I have modified my calculation to add an initial charge of 1% and I get:-
Amati, purchased 21/7/17, 64.5%
Amati, purchased 24/11/17, 38.2%
And this indicates as I have previously stated - Amati is very volatile.
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