There’s nothing like an upcoming budget and scheduled tax rises to channel money into venture capital trusts (VCTs). As at 11 October, VCT sales for the 2021-22 tax year hit £181m, according to broker Wealth Club. That compares with £41.5m over the same period in the 2020-21 tax year.
The VCT fundraising season got into full swing in September and, at time of writing, there are 12 offers open to invest in. Among the more attractive offers, says Jason Hollands, managing director at Tilney Smith & Williamson, is Hargreave Hale AIM VCT (HHV), set up in 2004 and run by the same team who manage the highly rated Marlborough open-ended funds. This VCT has delivered a net asset value (NAV) total return of 80 per cent over the past five years and has an ongoing charge of 2.25 per cent, according to the Association of Investment Companies.
Alex Davies, founder of Wealth Club, highlights Pembroke VCT (PEMB), which he describes as “coming of age". This year it achieved its first two profitable exits from fresh pasta delivery service Pasta Evangelists and cold-pressed juices and nut-based milks producer Plenish. Davies says that “the portfolio looks very promising, with a number of fast-growing companies that have fared very well during the pandemic”.