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Pembroke VCT interims

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
Kidman
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Pembroke VCT interims

#2265

Postby Kidman » November 8th, 2016, 4:07 pm

In the six months to 30 Sep 2016:-
Ord NAV from 111.24p to 120.89p
'B' NAV from 105.44p to 108.23p
in both cases prior to payment of a 2p divdend after the period end.

A new offer of 'B' shares is due later this month.

http://www.rns-pdf.londonstockexchange.com/rns/3867O_-2016-11-4.pdf

Retiringat51
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Re: Pembroke VCT interims

#2349

Postby Retiringat51 » November 8th, 2016, 6:07 pm

Kidman

As an enthusiastic advocate of Pembroke, would I be right to assume that you favour this offering over its peers Titan and Proven?

I'm sure I'm not alone here in respecting your past expressed opinions and in believing that the this re-constituted group would appreciate it if you be so kind as to elaborate on your reasoning if my assumption is correct. Pembroke has caught my eye but I have read mixed reports about them from both Allenbridge and TER.

Kidman
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Re: Pembroke VCT interims

#2655

Postby Kidman » November 9th, 2016, 8:55 am

I have a few reasons for favouring Pembroke at the moment, some 'push' and some 'pull'.

Their manager is a well-respected private equity house and so far they are keeping the VCT management in house whereas many of the others spun out their VCT managers.
The owner of the manager has a very significant stake in the shares (as noted previously). He also co-invests with each investment , if I remember correctly from last year's prospectus.
It is investing in start-ups so has had no problem with the November 2015 rules and business continues unaffected. They are ready to take more money in and invest it.
I would have happily sat back and sent cheques off to Northern, Yorkshire and Baronsmead for the next few years but I felt that there would not be any significant fund-raising from them so in order not to miss the boat I thought I had to choose something else.
I have been in one ProVen and four Octopus VCTs and have been satisifed by all of them but something about Pembroke appealed. I think it will be similar to ProVen in paying lumpy dividends based on exits whereas Titan is getting so big I've lost touch with it. My tongue in cheek view is that Octopus are only concerned with creating the first thousand million (US billion) pound VCT!

I expect to buy more Pembroke when the next prospectus launches, which I assume will use the NAV from the interims less dividend paid, and hopefully there will be an early subscriber discount to give me an extra per cent or two.
I had hoped to go to their AGM this year to check my views and get a better feel for the company but it would have meant an early start and it was on the day before Foresight 4 so I stuck with just F4. I'll look to go to Pembroke next year.

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Re: Pembroke VCT interims

#3615

Postby Karellan » November 11th, 2016, 8:59 am

I have had an eye on Pembroke and am appreciative of your posts THF , it is an attractive picture. I did contact them last year but they must have had the main people out as I recall the chat was a bit uninspiring. I hope that they have more fundraisings and do grow their portfolio , a bit more dividend would be good but it takes time and size I guess to get there. It would not be like the massive MBO VCTs of the past.

Fundraisings from the big boys is indeed an interesting issue at present. The repatriations that we have been enjoying will lead to lower future returns and I hope that we do not see a permanent loss of income as a result of it but its possible that the league tables will change. I have noticed for some time that my overall holdings capital value has fallen more than I can explain easily and believe this is a loss of NAV , shape of things to come. Some new blood is not a bad idea.

Retiringat51
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Re: Pembroke VCT interims

#101588

Postby Retiringat51 » December 4th, 2017, 8:48 pm

Kidman wrote:I'll look to go to Pembroke next year.


Still planning to top up?

The new prospectus has been published - the Offer is going unconditional on 8 January. Doesn't leave much time to bag the early bird offer- 12 January deadline according to the prospectus.

Sounds unlikely to be correct and a bit chaotic.

Kidman
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Re: Pembroke VCT interims

#101778

Postby Kidman » December 5th, 2017, 12:01 pm

I didn't go to their AGM this year as I had hoped as it was an early start and that would have meant me catching a coach in the middle of the night to get there. I wanted to meet the people and get more of an understanding of the company.

Howver, I am still interested in topping up my Pembroke 'B' holding and I noted the date for the early investor incentive. I was pleased to see that those early applications should be allotted on 15 January 2018 so one's subscription isn't hanging around for too long before the five year tax relief period starts.

They are only targetting an annual dividend of 3p but they haven't had time to build up revenue reserves and perhaps it is better to be realistic. I would hope to see an exit or two in the next couple of years to get a feel of how the company will develop and the potential for returns. I see Pembroke as somewhat similar to Octopus Titan in style but at the opposite end in terms of scale. I like the level of investment in its shares by the manager and board.

I don't see a problem with the General Meeting being on 8 January 2018, the offer is open now and the GM should merely be a formality to permit the allottment of the new shares. The same sort of timetable has been followed in many other offers for subscription.

Retiringat51
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Re: Pembroke VCT interims

#109804

Postby Retiringat51 » January 12th, 2018, 11:17 am

I note the early bird offer has been extended to 2 February.

The by now "dependable"? KID has also been produced, offering - on the premise of "medium" (category 4) risk - prospective outcome returns commensurate with dangling one's appendage in a meat grinder, to wit:

What you might get back after costs (Average return each year)

Favourable scenario: Moderate scenario: Unfavourable scenario: Stress scenario

Year 1 8.62% -2.10% -19.16% -89.67%
Year 3 3.43% -3.82% -13.13% -38.08%
Year 5 1.68% -4.16% -11.23% -31.68%

:?

BusyBumbleBee
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Re: Pembroke VCT interims

#109959

Postby BusyBumbleBee » January 12th, 2018, 5:02 pm

Retiringat51 wrote:prospective outcome returns commensurate with dangling one's appendage in a meat grinder

Brings a whole new meaning to shorting a stock.

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Re: Pembroke VCT interims

#109981

Postby UncleEbenezer » January 12th, 2018, 6:30 pm

Didn't someone post similarly-discouraging figures in the Foresight thread? Guess I should take a look at some more KIDs for my VCT and IT holdings, and see if they differ much!

Anyone know the basis for those calculations?

Retiringat51
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Re: Pembroke VCT interims

#110008

Postby Retiringat51 » January 12th, 2018, 9:17 pm

UncleEbenezer wrote:Anyone know the basis for those calculations?


Quote from the Pembroke KID itself

The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies, and are not an exact indicator. What you will get will vary depending on how the market performs and how long you keep the investment/product.


and

Performance has been calculated based on share price data, not net asset value data.


A self- inflicted wound then?

parallellines
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Re: Pembroke VCT interims

#110183

Postby parallellines » January 13th, 2018, 1:29 pm

UncleEbenezer wrote:Didn't someone post similarly-discouraging figures in the Foresight thread? Guess I should take a look at some more KIDs for my VCT and IT holdings, and see if they differ much!

Anyone know the basis for those calculations?


I believe it is this https://www.handbook.fca.org.uk/handboo ... tml#DES210

In summary
Method and assumptions mandated, not provider judgement
Gross returns:- one size fits all maximum rates which in practice will probably be a default for all "on risk" investments
Charges: As specific to product ( so VCTs will naturally look poor relative to eg tracker funds)

I didn't spot the share price vs NAV point drawn out, but I'd expect it is mandated tp use share price otherwise it won't give a common "point of investment to point of sale" indication of costs.

Retiringat51
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Re: Pembroke VCT interims

#110250

Postby Retiringat51 » January 13th, 2018, 5:39 pm

I'm none the wiser.

The Pembroke B VCT is just short of 3 years since launch since when it is down 10.67% by share price and up by 10.6% by NAV.
The respective figures for 1 year are - 1.03% and - 0.76%.

The Pembroke V VCT is just short of 5 years since launch since when it is up 18.05% by share price and up by 24.85% by NAV.
The respective figures for 3 years are +0.16% and + 21.50% and for 1 year is -1.81% and -0.14%.

Benign (favourable or moderate) conditions throughout? I would say so.

The actuality has been rather better than the Jeremiah-esque KID projections.

Kidman
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Re: Pembroke VCT interims

#154704

Postby Kidman » July 24th, 2018, 2:00 pm

Annual results for Pembroke VCT to 31 March 2018 have been published.

During the year, the total return (NAV plus cumulative dividends paid) of the Ordinary shares rose from 120.05 pence per share at 31 March 2017 to 132.63 pence per share at 31 March 2018. Over the year, the total return of the B Ordinary shares rose from 104.58 pence per share to 113.12 pence per share.


3p dividend proposed.
They obviously don't want any shareholders at their AGM as they have picked the extremely inconvenient time of 08:30.

UncleEbenezer
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Re: Pembroke VCT interims

#154718

Postby UncleEbenezer » July 24th, 2018, 2:43 pm

Kidman wrote:They obviously don't want any shareholders at their AGM as they have picked the extremely inconvenient time of 08:30.

Very egalitarian. Make it almost as inconvenient for you as for those of us outside the commuter belt.

The rule requiring all listed companies to provide online access to shareholder meetings is long overdue.

Kidman
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Re: Pembroke VCT interims

#154750

Postby Kidman » July 24th, 2018, 5:04 pm

UncleEbenezer wrote:Very egalitarian. Make it almost as inconvenient for you as for those of us outside the commuter belt.

When I travel to London I go by coach (National Express or Megabus), it turns out I would have to be up at 4 a.m. to get there on time for this AGM but the upside is that tickets are currently selling at one pound single plus booking fee!


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