Asset Backed VCTs

[Cookie]

I have received a fair bit of interest from P2P investing and consequently a fair income tax bill outside of savings and personal allowances

I regularly max my pension contributions and ISA, having some funds left

Although still far off, at current contributions and returns, I am likely to reach the pension lifetime allowance prior to taking a pension

I am considering VCTs for the IT break but also in addition to pension and ISA

I have previously used Albion VCT, but note they weren't on offer. I liked the high proportion of asset backed and loan stock as it matched my interest in P2P and added further diversification

I realise there are governmental changes to VCTs, but affecting future investment and feel established VCTs could still utilise their existing asset backed investments

I am looking at the rest of the Albion VCTs, however the dividend average seems low and I have missed EB discount and there is no rebate from execution only providers I can see

I also looked at Downing One VCT with around 60% asset backed. The dividends are around 7.5p after increasing over the last few years, with target of above 4p. There are discounts to initial and AM charges, making it similarly priced to Albion. Though Albion seems to maintain the NAV, Downing seems to be slowly eroding and pay more in dividend than make, so slowly returning capital. Due to increased dividend, I am leaning towards Downing

Any experience with either?
Any other asset backed VCTs?
General thought?

[BusyBumbleBee]

Welcome to Lemon Fool - and this board.

See you joined yesterday and posted here almost immediately. It is worth reading some of the articles on this board - there is a lot on the two groups you mention and you will get fair view of the potential of both and the management. For what it's worth I prefer the Albion stable.

[Mainwaring]

I would echo BBB research comments, and of the 2 houses mentioned Albion has the better track record. I can see some attraction to starting over with the perceived comfort of asset backing...but this is not a one way bet. However, if an asset backed business trades poorly or not at all the Property asset might not protect the downside. I don’t know the Downing holdings but the Albion assets come in all guises including some debt free balance sheets, some trading profitably, some excellent IP, etc. All assets and IMO probably better than some bricks and mortar.
Obviously the new rules are designed towards increased risk to new monies being invested. No issue with that as asset backed, limited life, etc seemed to game the old rules. As you will know many general and Aim VCTs are sitting on large mature portfolios invested under old rules and these seem to me to offer another way forward to simple asset backing. Sadly there are not many offers left with those credentials and next year might have few openings for new money. Good luck and DYOR.