Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Artemis at a premium

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
scotia
Lemon Quarter
Posts: 3561
Joined: November 4th, 2016, 8:43 pm
Has thanked: 2371 times
Been thanked: 1943 times

Artemis at a premium

#130917

Postby scotia » April 9th, 2018, 2:10 pm

Artemis VCT now seems to be running at a premium - highly unusual for a VCT.
The RNS of 6th April quotes a NAV of 75.49. Todays's price is 77/80.
I know that there is an 8p dividend due on 11/5/18, with an ex div date of 12/4/18, but this shouldn't affect the above figures.
Any ideas on why there is apparently a premium - apart from simply accepting that it is currently a well-run VCT?
My wife will be pleased - she is a holder since 2005.

rhowitt
Posts: 9
Joined: November 7th, 2016, 7:51 am
Has thanked: 1 time
Been thanked: 4 times

Re: Artemis at a premium

#131027

Postby rhowitt » April 9th, 2018, 11:59 pm

I also am a long term holder of Artemis. If you look at a graph of share price v NAV you will see that prior to special dividend payments historically the share price has gone up to close to or above NAV only for the discount to widen again afterwards. Could this be for tax planning reasons? The dividend would be tax free and then a subsequent sale of the shares might generate a capital gains loss.

Kidman
Lemon Slice
Posts: 438
Joined: November 6th, 2016, 1:10 pm
Has thanked: 22 times
Been thanked: 136 times

Re: Artemis at a premium

#131247

Postby Kidman » April 10th, 2018, 5:03 pm

There have been previous references on this board to the practice of buying shares cum-dividend and then selling them ex-dividend.
This allows the buyer to take the dividend to their revenue reserves which are then distributable to their shareholders.
There will be an associated realised capital loss but this doesn't matter as the key reason is to be able to pay a certain level of dividend.


Return to “Venture Capital Trusts (VCT's)”

Who is online

Users browsing this forum: No registered users and 8 guests