You are here: Home - Investing - Experienced Investor - News -

Fund of the Fortnight: British Smaller Companies VCT

0
Written by: Sophie Muller, research analyst at Tilney Bestinvest
12/02/2015
Venture Capital Trusts (VCTs) are currently seeking a significant amount of fresh investment from long-term investors comfortable with higher risk investments.

However, given the current pace of fund raising, it is expected that the most popular will be closed before tax-year end as significant reductions in both annual and lifetime personal allowances, together with investors’ on-going search for yield has meant demand has surged.

YFM Equity Partners have currently raised over half of their £30 million target across their two VCTs: British Smaller Companies VCT & VCT 2. This offer gives investors the opportunity to gain immediate exposure to established and mature portfolios, investing predominantly in unquoted growing companies across a broad range of sectors, funding management- buy-outs and growth capital opportunities. The focus is on companies worth £5-15 million, with profits of between £0.5 million and £3 million.

A key differentiator of the British Smaller Companies VCTs is their focus on opportunities in the UK regions, made possible by their “regional footprint”, rather than concentrating all of their time and efforts in London and the South East, where competition is typically much higher. The combined portfolio currently holds 40 investments, with top holdings including GO Outdoors and DisplayPlan Holdings.

Although the VCTs do not have an explicit annual dividend target, they aim to pay an attractive and rising level of dividends while maintaining capital preservation. In recent years, the VCTs have paid dividends in the region of 4.5p – 5.5p, plus special dividends.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
shutterstock_228901486
Product analysis: Woodford Patient Capital

We look at a new investment trust launched by legendary fund manager Neil Woodford.

Close