Chrysalis Name Confusion?

[scotia]

I was reading a note issued by HL today on fund manager Merian, and I came across the following:-
In 2018 Merian launched an investment trust, called Chrysalis, to invest in promising companies that want to remain unquoted for longer than they would have historically.
Merian plans to grow Chrysalis by raising more money from investors later this month, some of which will be used to buy some unquoted investments from their other funds.
Now Chrysalis VCT is also an IT - so there seems to be room for confusion. You would have thought that a fund manager operating in the unquoted companies area would have been aware of VCTs, and would have avoided the obvious naming confusion. If they were unaware of Chrysalis VCT, then it suggests they have a lot to learn in this area.

[BusyBumbleBee]

Interesting, Scotia. I take it you hold Chrysalis VCT and what a good name it is with the aim of picturing Butterflies and beautiful Moths hatching after a period of incubation.

The company web site shows this

ABOUT MERIAN CHRYSALIS INVESTMENT COMPANY LIMITED
Private companies that exhibit long-term growth prospects are hard to reach for most investors. Not anymore.

The opportunity

Looking to invest in the fastest-growing, often tech-enabled, private companies in the UK and Europe
Exposure to mature, high-quality and high-growth businesses that are hard to access
Management team boasts vast investment experience, proven expertise and an enviable long-term track record

Its EPIC is MERI

Its SP has risen since launch and fallen back a bit recently despite a rise in NAV of 11% (ish) in 12 months.

Looking forward - CYS, Chrysalis VT is in wind down mode really and maybe MERI is the natural home for the rump of the investee companies when CYS is too small to continue, Looking at what they have done so far I would be happy to accept shares in MERI in exchange for my CYS shares.

[scotia]

BusyBumbleBee - Chrysalis VCT has performed well in my spouse's portfolio.
It was a market purchase in 2013 (at a discount) then was subject to a "Share Realisation and Reinvestment Program" which resulted in an enhanced tax relief. And it currently is paying substantial tax free dividends. Looking at the (Current Value + Dividends - Cost)/Cost I see that it is standing at 140% - where the Cost is the price originally paid minus the tax relief. Very satisfactory!

[Kidman]

Looking at what they have done so far I would be happy to accept shares in MERI in exchange for my CYS shares.

But any dividends you receive and any capital gains you make would be taxable. MERI is not a VCT.

[BusyBumbleBee]

Looking at what they have done so far I would be happy to accept shares in MERI in exchange for my CYS shares.

But any dividends you receive and any capital gains you make would be taxable. MERI is not a VCT.

So TRUE but what I said was:

Looking forward - CYS, Chrysalis VCT is in wind down mode really and maybe MERI is the natural home for the rump of the investee companies when CYS is too small to continue, looking at what they have done so far I would be happy to accept shares in MERI in exchange for my CYS shares.