Maven Income & Growth VCT (MIG1)

Sector:

Investment Firms

 40.00p
   
  • Change Today:
      0.000p
  • 52 Week High: 43.60p
  • 52 Week Low: 39.00p
  • Currency: UK Pounds
  • Shares Issued: 91.63m
  • Volume: 0
  • Market Cap: £36.65m

VCTs brace for flood of cash

Date: Tuesday 02 Mar 2010

Venture Capital Trusts look set to bounce back with a bang this year.

Unlike the last two years, when new investors were scarce, VCTs could be in the envious position this year of having to turn money down because there are not enough companies deemed good or small enough to back.

“The VCT market has raised approximately £100m to date during 2009/10 compared to £45m at the same point in 2008/09,” Tony McGing, Director, Downing Corporate Finance Limited said.

McGing expects the total market-size to reach £300m this tax year compared to £135m last tax year – a projected increase of 122%. “This is being driven by the changes to pensions, increases in tax rates and better investor sentiment compared to last year,” he says.

Changes to the tax laws for the UK’s high earners are undoubtedly a major factor behind this surge. From April, there are restrictions on pension relief and 50% income tax above £150,000.

But another reason is that by and large the VCTs have had a decent recession, especially when all of the associated tax breaks are included.

Current tax relief on a new VCT investment is 30%, so an investor only has to put up £70 for every £100 invested.

According to the Association of Investment Trusts, the average return from all VCTs for last year was 3.9%, but including the tax relief this rises to 48%. Over three years the average return is about 12% including the tax relief and 39% over five years on a similar basis.

Admittedly, shares in a VCT now have to be held for five years, or some of the tax relief has to be returned, but the nature of these types of trusts is supposed to be long-term investments in small companies and start-ups.

The secondary market in VCT shares is very illiquid, as the tax reliefs do not apply, but investors seem prepared to overlook this as they look for ways to offset the new tax rules.

“Changes to the rules related to investments in SIPPs have resulted in people needing to find other tax efficient investment opportunities and VCTs, with their income tax relief on investment and dividends paid tax-free, are an obvious choice” adds Tim Levett, chairman of Northern Venture Managers.

Andrew Garside at Baronsmead VCTs injects a word of caution about the amount of cash that could come the way of the sector.

“The relative merits of VCT tax reliefs will drive significantly increased inflows into VCTs in 2010 and 2011. But there should be a word of warning here. The demand for VCT investment may not grow proportionately and managers should only raise quantums of capital that they are confident of delivering attractive returns to shareholders. Performance has to be judged on shareholder returns not funds raised,” he says.

Some fund managers, such as Downing and Foresight, have already said they will not increase the size of their planned fund raisings whatever the demand, raising the prospect of some VCT fund raisings being heavily oversubscribed especially for the best performing trusts.

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MIG1 Market Data

Currency UK Pounds
Share Price 40.00p
Change Today 0.000p
% Change 0.00 %
52 Week High 43.60p
52 Week Low 39.00p
Volume 0
Shares Issued 91.63m
Market Cap £36.65m

MIG1 Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
65.5% below the market average65.5% below the market average65.5% below the market average65.5% below the market average65.5% below the market average
43.64% below the sector average43.64% below the sector average43.64% below the sector average43.64% below the sector average43.64% below the sector average
Price Trend
37.26% below the market average37.26% below the market average37.26% below the market average37.26% below the market average37.26% below the market average
58.77% below the sector average58.77% below the sector average58.77% below the sector average58.77% below the sector average58.77% below the sector average
Income
16.55% above the market average16.55% above the market average16.55% above the market average16.55% above the market average16.55% above the market average
39.37% above the sector average39.37% above the sector average39.37% above the sector average39.37% above the sector average39.37% above the sector average
Growth
72.76% above the market average72.76% above the market average72.76% above the market average72.76% above the market average72.76% above the market average
70.37% above the sector average70.37% above the sector average70.37% above the sector average70.37% above the sector average70.37% above the sector average

MIG1 Dividends

  Latest Previous
  Interim Final
Ex-Div 22-Oct-20 02-Jul-20
Paid 20-Nov-20 31-Jul-20
Amount 1.00p 2.00p

Trades for --2020

Time Volume / Share Price
0 @ 0.000p

MIG1 Key Personnel

Chair John D W Pocock

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