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Fund raising 2017 /2018

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
Retiringat51
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Re: Fund raising 2017 /2018

#80366

Postby Retiringat51 » September 11th, 2017, 10:38 am

A cautionary note for any Fools contemplating submitting applications for popular VCTs via Hargreaves Lansdown.

Mine was received there on Thursday, and there it remains as of this morning!

Mañana will suffice, according to the hapless personnel concerned. :roll:

sinterklaas
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Re: Fund raising 2017 /2018

#80562

Postby sinterklaas » September 12th, 2017, 9:04 am

Retiringat51 wrote:A cautionary note for any Fools contemplating submitting applications for popular VCTs via Hargreaves Lansdown.

Mine was received there on Thursday, and there it remains as of this morning!

Mañana will suffice, according to the hapless personnel concerned. :roll:


Could opt for Wealth Club – a bit more oriented towards VCTs – they are doing online applications for Albion, Mobeus, Octopus AIM and Titan, and Unicorn.

sinterklaas
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Re: Fund raising 2017 /2018

#80563

Postby sinterklaas » September 12th, 2017, 9:09 am

Hmm this is messy… AAVC has pulled out of the Albion VCTs joint offer for subscription, as of about half an hour ago.

Reason given: because it invests solely in asset-based businesses, it has “decided to suspend its offer until it is clearer as to what categories of investment by VCTs will be permitted in the future”

The other five Albion VCTs remain open.

Presumably the prospectus is now out of date. The announcement was made by their PR firm not Albion themselves.

james188
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Re: Fund raising 2017 /2018

#80571

Postby james188 » September 12th, 2017, 9:40 am

The timing of this AAVC announcement somewhat surprises me - as I remember, the August consultation paper simply included a fairly wide question as to whether it would be more cost effective to remove support for lower risk capital preservation schemes. It rather suggests that consultation discussions have revealed a more settled intention by HMT to crack down on this area, which to my mind has always been a likely target.

BusyBumbleBee
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Re: Fund raising 2017 /2018

#80585

Postby BusyBumbleBee » September 12th, 2017, 10:30 am

james188 wrote:The timing of this AAVC announcement somewhat surprises me - as I remember, the August consultation paper simply included a fairly wide question as to whether it would be more cost effective to remove support for lower risk capital preservation schemes. It rather suggests that consultation discussions have revealed a more settled intention by HMT to crack down on this area, which to my mind has always been a likely target.

Well said - let's be frank about VCTs - they are not a cost effective way of getting capital to small firms. But have been profitable for managers and for some investors who have played the tax rebate game effectively.

Interesting to see if their DRIS goes next.

Kidman
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Re: Fund raising 2017 /2018

#80591

Postby Kidman » September 12th, 2017, 10:51 am

marktristan wrote:Hmm this is messy… AAVC has pulled out of the Albion VCTs joint offer for subscription, as of about half an hour ago.

I see one big positive in this. It appears that a VCT board has made a decision which the manager might not like.
I am assuming that in line with other managers, Albion steam-rollered all the boards into taking part in the fund-raising so they could have more funds under management with the resulting fees. The board has thought again and decided they may not get a reasonable return on their money for shareholders so has pulled out. At last it looks like a board has made a decision that is pro-shareholder.

sinterklaas
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Re: Fund raising 2017 /2018

#80639

Postby sinterklaas » September 12th, 2017, 1:48 pm

Kidman wrote:
marktristan wrote:Hmm this is messy… AAVC has pulled out of the Albion VCTs joint offer for subscription, as of about half an hour ago.

I see one big positive in this. It appears that a VCT board has made a decision which the manager might not like.
I am assuming that in line with other managers, Albion steam-rollered all the boards into taking part in the fund-raising so they could have more funds under management with the resulting fees. The board has thought again and decided they may not get a reasonable return on their money for shareholders so has pulled out. At last it looks like a board has made a decision that is pro-shareholder.


I hear your point and would agree that's a positive angle. However has there been a board meeting that you know of? They had an AGM on 14 August and the offer prospectus was launched three weeks later. Maybe they thought it would be OK in the budget but have since changed their minds?

Kidman
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Re: Fund raising 2017 /2018

#80671

Postby Kidman » September 12th, 2017, 3:52 pm

marktristan wrote:I hear your point and would agree that's a positive angle. However has there been a board meeting that you know of? They had an AGM on 14 August and the offer prospectus was launched three weeks later. Maybe they thought it would be OK in the budget but have since changed their minds?


I do not know of an AAVC board meeting but in terms of logistics I feel all that was needed was a skype or telephone conference call.

I suspect the change of mind was very shortly before the RNS release. Albion have managed to include a couple of sentences reflecting it into their current offers page but haven't yet made any changes such as dropping the minimum subscription to £5,000, i.e. five companies at £1,000 each rather than six.

https://www.albion.capital/current-offers

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Re: Fund raising 2017 /2018

#80936

Postby onslow » September 13th, 2017, 7:50 pm

Hi all

Does anybody know what will happen to applications for AAVC? Will current applications be held(along with our money!) until and if they decide to proceed with the offer?

Or when/if they decide to proceed new applications will need to be submitted?

Curious if I should include AAVC in my current application for other Albion VCTs, or keep the money in the bank until we get clarity - and potentially use elsewhere.

(not sure if anybody here will know the answer - if not I'll call Albion myself and report back!)

Dave

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Re: Fund raising 2017 /2018

#80959

Postby SpinDoctor » September 13th, 2017, 10:12 pm

My working assumption is that the clause on the application form "in the event that one or more of the Offers chosen are closed or has insufficient shareholder authority .... what do you want us to do" will apply. In my case, that means the money destined for Venture will be directed to the Crown Place and Development funds.

Let us know if the Company says differently.

IJ49
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Re: Fund raising 2017 /2018

#81043

Postby IJ49 » September 14th, 2017, 10:56 am

Albion have just added an update as a FAQs on the news page.

The link to the FAQs which is a pdf is https://www.albion.capital/sites/defaul ... t/FAQs.pdf

You can also click on the first News item on the Albion Home page and find the pdf there as well.

Apparently, any applicants to date are to be contacted and asked what they want to do with any monies for AAVC.

Hope this helps.

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Re: Fund raising 2017 /2018

#81196

Postby onslow » September 14th, 2017, 10:52 pm

HI all

I called Albion today and spoke to a very helpful lady. Applicants for AAVC will be contacted and they have the usual options - reinvest in other offers, or monies returned.

No word on if/when AAVC will be reopened for offers, IMO given they are returning monies for current applicants any new AAVC offer will need to be completely separate.

Retiringat51
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Re: Fund raising 2017 /2018

#81737

Postby Retiringat51 » September 18th, 2017, 11:34 am

I contacted Albion directly to enquire whether the early bird discount would still apply for any pre- 31 October AAVC applications that are resubmitted post 22 November, assuming the outcome of the Autumn Statement will not be prohibitive of the asset-backed strategy.

They have replied;

"This scenario is unlikely to occur as we do not currently believe that AVVC will re-open."

Shucks, they do seem confidently pessimistic- and I had fancied some "differentiated" AAVC in this of all years.

naflod
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Re: Fund raising 2017 /2018

#82106

Postby naflod » September 19th, 2017, 5:31 pm

Add Pembroke to the list of VCTs announcing fund raising intentions this autumn with a further tranche of £20m B shares with an over-allotment facility of another £10m expected to be available in November.

http://www.londonstockexchange.com/exch ... 68206.html

naflod

UncleEbenezer
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Re: Fund raising 2017 /2018

#82138

Postby UncleEbenezer » September 19th, 2017, 8:35 pm

Retiringat51 wrote: "This scenario is unlikely to occur as we do not currently believe that AVVC will re-open."

Shucks, they do seem confidently pessimistic- and I had fancied some "differentiated" AAVC in this of all years.

Sounds like it could be heading the way of the renewable energy VCTs.

If it is then they may need to stop supporting the share price. Or else wind down the VCT. With no new investment, every share bought back is money out and not replaced. AIUI Ventus makes no attempt to support its share price, and has crept up as the secondary market values them.

Perhaps we'll get a vote on the fund's future once they're clearer on the rules?

Kidman
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Re: Fund raising 2017 /2018

#83304

Postby Kidman » September 25th, 2017, 11:06 am

One more new offer announcement, Pembroke 'B' planned for November, £20m plus possible over-allotment £10m.

As this is one that has sold slowly in the past it may give investors a chance to hear any budget changes before submitting an application.

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PEMV/13368206.html

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Re: Fund raising 2017 /2018

#84063

Postby SpinDoctor » September 27th, 2017, 9:36 pm

The TER page providing regular updates on fundraising quanta is useful. Hardly a stampede to Mobeus, first out of the blocks:

https://www.taxefficientreview.com/vct/open-vct-funds.html

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Re: Fund raising 2017 /2018

#84184

Postby Kidman » September 28th, 2017, 12:53 pm

SpinDoctor wrote:The TER page providing regular updates on fundraising quanta is useful.

I note that Octopus Titan has raised 5% of their initial offer before over-allocation but wonder whether this is less than Octopus had hoped for. On page 17 of this week's Financial Adviser magazine, Octopus have a full-page colour advertisement to get intermediaries more interested in pushing Titan.

UncleEbenezer
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Re: Fund raising 2017 /2018

#84234

Postby UncleEbenezer » September 28th, 2017, 3:30 pm

Kidman wrote:
SpinDoctor wrote:The TER page providing regular updates on fundraising quanta is useful.

I note that Octopus Titan has raised 5% of their initial offer before over-allocation but wonder whether this is less than Octopus had hoped for. On page 17 of this week's Financial Adviser magazine, Octopus have a full-page colour advertisement to get intermediaries more interested in pushing Titan.

Octopus AIM has raised quite a bit more - as has Unicorn. In fact, right now AIM seems to be the VCT sector where one might legitimately want to hurry to get in before the offers start to close.

Sad to say, I wouldn't buy Titan any more. I could live with the level of dilution in a big, high-throughput fund, but they really need to put in a realistic hurdle for that performance bonus.

Retiringat51
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Re: Fund raising 2017 /2018

#84285

Postby Retiringat51 » September 28th, 2017, 5:55 pm

Proven and Proven Growth and Income have decided to seek modest amounts (£4M each) in this year's round.

Commendable.


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