The Lemon Fool

So, all four Mobeus VCTs have declared very decent dividends today, payable on 7 January 2022.

I am guessing this means that the new fundraising will be launched on or around Monday 10th January (same date as the Northern VCTs) and that the Mobeus VCTs are ensuring that existing shareholders get the full benefit of these returns before the new launch, rather than using them to sweeten the pill for new shareholders - as we have seen elsewhere (no names mentioned, but I don't like that one bit and we know who they are).

I think that Mobeus are doing the right thing.

Yes I've had numerous discussions about it with other investors. Nobody feels good about their VCT offering divis as 'instant cashback' to newcomers.

Particularly special divis, which some shareholders wait years for, having invested in that VCT when times were less good.

Leaves a bad taste doesn't it?

I believe Baronsmead started the practice a few years ago, though I could be wrong.

The recent prospectus for the two Baronsmead VCTs (I hold both as well as Mobeus) is a case in point. Different VCT boards to Mobeus, but a common manager which will be very influential on this issue. Needs to sort itself out on this PDQ, in my view.

sinterklaas wrote:Yes I've had numerous discussions about it with other investors. Nobody feels good about their VCT offering divis as 'instant cashback' to newcomers.

I never really understand this as the instant return of cash reduces the long term return over many years.

Karellan wrote:

sinterklaas wrote:Yes I've had numerous discussions about it with other investors. Nobody feels good about their VCT offering divis as 'instant cashback' to newcomers.

I never really understand this as the instant return of cash reduces the long term return over many years.

I suppose if you instantly reinvest there's a tax benefit.

ukfire wrote:

Karellan wrote:

sinterklaas wrote:Yes I've had numerous discussions about it with other investors. Nobody feels good about their VCT offering divis as 'instant cashback' to newcomers.

I never really understand this as the instant return of cash reduces the long term return over many years.

I suppose if you instantly reinvest there's a tax benefit.

There's a tax benefit regardless.

Reductio ad absurdum, if I invest £5k in a VCT offer and there's an instant £5k divi, that's an instant £1.5k profit. So now I have £6.5k to invest for that long term return.