Maven Income & Growth VCT (MIG1)

Sector:

Investment Firms

 45.60p
   
  • Change Today:
      0.000p
  • 52 Week High: 46.35
  • 52 Week Low: 43.00
  • Currency: UK Pounds
  • Shares Issued: 92.88m
  • Volume: 4,749
  • Market Cap: £42.35m
  • Beta: 0.00

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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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

MIG1 Market Data

Currency UK Pounds
Share Price 45.60p
Change Today 0.000p
% Change 0.00 %
52 Week High 46.35
52 Week Low 43.00
Volume 4,749
Shares Issued 92.88m
Market Cap £42.35m
Beta 0.00

MIG1 Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
25.48% below the market average25.48% below the market average25.48% below the market average25.48% below the market average25.48% below the market average
70.41% below the sector average70.41% below the sector average70.41% below the sector average70.41% below the sector average70.41% below the sector average
Price Trend
3.76% above the market average3.76% above the market average3.76% above the market average3.76% above the market average3.76% above the market average
13.9% below the sector average13.9% below the sector average13.9% below the sector average13.9% below the sector average13.9% below the sector average
Income
17.80% above the market average17.80% above the market average17.80% above the market average17.80% above the market average17.80% above the market average
33.08% above the sector average33.08% above the sector average33.08% above the sector average33.08% above the sector average33.08% above the sector average
Growth
99.51% below the market average99.51% below the market average99.51% below the market average99.51% below the market average99.51% below the market average
98.23% below the sector average98.23% below the sector average98.23% below the sector average98.23% below the sector average98.23% below the sector average

MIG1 Dividends

  Latest Previous
  Interim 2nd Interim
Ex-Div 24-Oct-19 24-May-18
Paid 22-Nov-19 22-Jun-18
Amount 2.00p 5.10p

Trades for 18-Oct-2019

Time Volume / Share Price
14:48 3,599 @ 44.60p
13:17 1,000 @ 46.35p
13:00 150 @ 46.35p

MIG1 Key Personnel

Chair John D W Pocock

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