BVT Barronsmead

[yieldhog]

I had a limit sell order on BVT for over a month. The limit was well within the indicated price at the time but BVT has been sliding lately so my limit order looked out of line with the market. I called my broker today to ask for my limit order to be changed to a market order and after a conversation with the broker they eventually came back with a bid for all of my shares. They indicated that Barronsmead are intending to announce a buy-back soon and I had the option of waiting for that, bur I chose to sell and move on. I've got no doubt the buy-back will offer better terms than the price I received today but I've been disappointed with the way Barronsmead has run this fund and believe I can find a better home to the proceeds.

Y

[Karellan]

How things change. 20 years ago this fund had few equals.

[Kidman]

I've had Baronsmead since the early days but am now in a quandary.

Do I sell like yieldhog or hang on in the hope of recovery?
While I have been mulling this over in recent years the value has gone nowhere.
Looking at the last annual report for Baronsmead 1 I see that the NAV total return was the same at year end 2022 as year end 2017. All the dividends paid out equalled NAV loss. I hang on to get my money back in divdends as it feels easier than selling but maybe I should cut my losses.

Maybe most VCTs are past their best? They are subject to far more restrictions and rules than 20 years ago and now we can get a better post-tax return on gilts than we can from Baronsmead VCTs.

[Karellan]

My feeling is that a lot of the NAV loss is due to a general decline in the AIM market. I have seen the same as you describe in my VCT holdings.

[Vulgaris]

Indeed -- Baronsmead have far more (historically around 25%, tho' it will vary with market and valuation shifts) in AIM, whereas the likes of Northern, Albion and Mobeus has little or none. The really bad performers over the past 12-24 months have been the pure AIM trusts (Amati especially).