VCT News
ProVen VCT launches a new £15m Ordinary Share Offer
Beringea LLP is pleased to announce the launch of a new £15 million Ordinary Share Offer into its generalist ProVen VCT.
ProVen VCT has an outstanding track record, with its Ordinary shares being among the top performing VCT funds since the asset class was first introduced in 1995. Recent research1 conducted by the Association of Investment Companies has shown the Ordinary share class to be the second top performing VCT shares over past decade, with a return of 168%2.
The research also confirmed that ProVen VCT Ordinary shares have returned the highest amount of tax-free dividends to shareholders over the last ten years – a total of 107.7p per share.
This Offer will enable investors to subscribe to a fund with an existing and mature portfolio, managed by Beringea, an experienced investment manager with over 25 years experience of investing into smaller UK unquoted companies, and which has managed VCTs since they were first launched in 1995. The Group currently has £225 million of funds under management.
The funds raised will be invested in a portfolio of small and medium private companies with the potential for rapid growth. As these companies tend to focus on specific high-growth sectors, their performance is much less dependent on the performance of the whole economy than larger, quoted companies. An example of the type of company in which ProVen VCT invests is Saffron Digital Limited, whose technology enables the delivery of video content to personal mobile devices such as smartphones and tablets. ProVen VCT sold its investment in Saffron in February 2011, generating a return of nearly six times its original investment in less than four years.
Stuart Veale, the Managing Partner of Beringea commented: "In these times of economic uncertainty, an investment in ProVen VCT, with its focus on smaller, high growth companies, complemented by an attractive range of tax breaks, has the potential to significantly outperform an investment in a portfolio of quoted stocks. This is illustrated by the historic performance of the Ordinary share class since launch, which has recorded a return of 9% p.a2, significantly higher than the 2.7% return on the FTSE All Share Index over the same period."
VCT industry expert Martin Churchill, of Tax Efficient Review, said: "ProVen VCT's historic performance has been excellent. The existing mature portfolio will provide investors with immediate access to a potential dividend stream. This is a highly rated generalist offer."
Offers for subscription opened on 8 December 2011, and are expected to close on 5 April 2012, in respect of the 2011/2012 tax year, and 31 May 2012 in respect of the 2012/2013 tax year. The Offer price will be based on the latest net asset value, with a minimum investment of £5,000. Existing shareholders will benefit from a 2% discount to the Offer price for all applications received by 31 January 2012, while new investors will receive a 1% discount.
This Ordinary Share Offer will be accompanied by a Tender Offer for ProVen VCT Ordinary Shareholders. Shareholders are invited to sell up to 20 per cent of their Ordinary shares at net asset value, and automatically reinvest the proceeds into the new share Offer. Shareholders will be eligible for 30% income tax relief on the amount reinvested.
- Source: "Dividends come of age in VCT sector". AIC Press Release, 4 October 2011.
- Based on mid-market share price with net income reinvested and a 3.5 per cent deduction for charges, stamp duty and market spread. Source: AIC using Morningstar.
- From 10 April 2000, the initial launch date of ProVen VCT, to 31 August 2011, the latest date to which results have been released to the Stock Exchange, including initial income tax relief.
About Beringea
Beringea is an international venture capital firm with offices in London and Detroit. In the UK Beringea manages ProVen VCT, ProVen Health VCT, ProVen Growth & Income VCT and Global Rights Fund II. Beringea launched its first VCT in 1996, making it one of the most experienced VCT managers in the UK. ProVen Growth & Income and ProVen VCT are highest performing VCTs of their launch years, respectively, according to www.taxefficientreview.com. For more information please visit www.provenvcts.co.uk.