VCTs and EIS for 2017-18
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A very enjoyable article thanks Mike.
I too invest in VCT’s and am waiting for the September & October offers. One point to note is that with the more popular offers, such as Baronsmead, they can be heavily oversubscribed. It can therefore pay to apply as soon as they open if you wish to subscribe. From memory, the last Baronsmead offer closed within days of it opening.
Yes, I’m worried about that.
Even worse, some of the better firms (eg. Northern) give early access to their existing investors, so there may not be anything left for the rest of us.
I think you will find that the Amati offer is an AIM offer.
You’re right – it might be clearer if they had kept AIM in the name of the fund.
Interesting user name – I’ll assume you must be a Charlton fan.
Mike, I enjoyed your article.
I too have reached my SIPP LTA and my IFA has suggested VCTs – after reading up on them I am about to embark.
The one question I have is do I need to use a Broker? or My IFA – as both come with ongoing fees?
Whats your opinion & why?
Hi Doug,
I used a broker in the end because of the up-front discounts. I approached a couple of the VCT managers and it was more expensive to invest directly through them (they obviously don’t want to upset their supply chain).
I haven’t had an IFA for decades, so I would never think about applying through one.
There’s not much you can do about the ongoing fees, but not all funds charge them (I think).
This is obviously not a personal recommendation, but I went with Wealth Club in the end because I was about to go on holiday, and they had the widest range of VCTs that you could apply for online (I hate all the VCT paperwork, and online was quicker).
Hope this helps,
Mike
Thanks for the analysis Mike. I’ve been investing in VCTs for about 8 years and have had good success (probably due to market timing rather than my share picking skill!). One key point that was missed in analysing brokers is that a few rebate annual trail commission (in part mainly). ClubFinance were a good pick for this but the rebate percentages have dropped a lot since Wealthclub bought them earlier in 2018). My last rebate cheque was £360, so not to be sniffed at.
That is certainly relevant. I am now fully committed to VCT for as long as this tax regime persists.
Perhaps you could be the trail commission monitor?
Wealth Club are slick. It’s a shame they haven’t maintained previous conditions. I like them otherwise.
Mike
To be fair to WealthClub, they have retained the terms for investments previously made via ClubFinance. It’s for new investments with them that the rebate percentages have dropped.
I will be doing an in-depth analysis of which VCTs are worth putting money in.
Watch this space.