The Lemon Fool

So I’ve added to my main VCT holdings but something in Karellan’s post on another recent thread made me think:

“keep an eye out for the decent VCT players of tomorrow”

I am wondering about adding a couple of newer VCTs to the spread. I realise some of them are not dividend paying yet but don’t really need extra income and the thinking goes, successes in these smaller funds have a bigger impact for investors (in terms of share price, dividends). Whereas even a “home run” in a big VCT only adds pennies to NAV.

So I have started to browse the likes of Triple Point Venture Fund, Blackfinch, I know there are a few other smaller more recent VCTs. Just wondered what other Fools think.

mjames wrote:So I’ve added to my main VCT holdings but something in Karellan’s post on another recent thread made me think:

“keep an eye out for the decent VCT players of tomorrow”

I am wondering about adding a couple of newer VCTs to the spread. I realise some of them are not dividend paying yet but don’t really need extra income and the thinking goes, successes in these smaller funds have a bigger impact for investors (in terms of share price, dividends). Whereas even a “home run” in a big VCT only adds pennies to NAV.

So I have started to browse the likes of Triple Point Venture Fund, Blackfinch, I know there are a few other smaller more recent VCTs. Just wondered what other Fools think.

Some of the more recent launches have reached maturity and look good. Pembroke, and before that Titan, went from launch to profit in just a few years. Others have fared less well.

Check what the platforms - as well as the companies themselves - have to say about your candidates. One of the two you named is far from new: I recollect it being dubbed Totally Pointless back on TMF's VCT board sometime when I was new to investing.

UncleEbenezer wrote:One of the two you named is far from new: I recollect it being dubbed Totally Pointless back on TMF's VCT board sometime when I was new to investing.

I think OP must be referring to the new share class launched two or three tax years ago:

https://www.wealthclub.co.uk/venture-ca ... -2011-plc/

They are calling it 'Venture Fund'. Although the name of the VCT itself does hint at how long ago it was incorporated

There's also the Foresight Williams Technology shares (a share class of Foresight Solar and Technology VCT) which is 1% of the size of Octopus Titan (£12 mil possibly rising to £42mil after the current raise). They do look interesting and they invest in the kind of companies that VCTs should be supporting if they get tax benefits (in my opinion). They don't seem that popular maybe because they are two years away from paying dividends. Williams Advanced Engineering provide pro-bono advice to Foresight it seems. The VCT class seems to be an extension of the Foresight EIS fund that's been going since 2016.

Any thoughts?

I did consider Triple Point a while ago but felt that it was better to choose the more established VCTs first.

A good point, I will look at that too.

I don’t think Williams are doing anything pro bono, though.

Sorry, the pro-bono bit is some of Williams' advice to the investee companies, not to Foresight.

No exits yet from the EIS fund so a slight capital loss there (presumably roll up of charges) before tax relief.