Alternatives
Bestinvest awards Baronsmead VCTs offer highest rating
Ellie Duncan, 16 January 2012
A series of top-up offers launched by four Baronsmead venture capital trusts (VCTs) have been awarded five-star ratings by Bestinvest.
Senior research analyst at Bestinvest, Ben Seager-Scott, said the top-ups, which opened today, are likely to be filled quickly due to the popularity of the Baronsmead and Baronsmead 2, 3 and 4 VCTs among investors.
ISIS Equity Partners, which manages the Baronsmead VCTs, confirmed that each company is looking to raise £4.135 million from the offers in order to make further investments, maintain liquidity and enable payment of dividends and costs.
Investors will have the choice of allocating money equally across all the VCTs in the offer, or choosing between them, subject to a minimum investment of £1,000 per offer.
Seager-Scott said the investment management team behind the VCTs was experienced and ‘highly regarded’ within the industry, making use of a proprietary ‘origination’ system that monitors deal flows and identifies potential opportunities.
‘They also carry out extensive due diligence on investee companies and a superior level of ongoing monitoring, in my opinion.’
He continued, ‘Baronsmead VCTs have a strong track record of making solid deals and providing good returns to investors. Whilst past performance is no guide to future performance, it does add confidence in the investment management team’s ability to identify and execute good deals.’
Since their respective launches, the VCTs have paid average annual dividends of 6.1p per share, while over the last five years, they have paid an average annual dividend of 7.3p per share.
It is intended that shareholders in the VCTs receive dividends twice a year, which means that investors who put money in each of the four offers can expect to receive two dividend payments four times a year.
The closing date for the offers is 5 April this year.
Advertisement
Free Magazine: How To Invest For Income
Free Magazine: How To Invest For Income In this free edition of MarketViews, Peter Temple highlights key features that can make income-based investing generate such good results. Get your free copy here
Free Guide: 8 Common Trading Indicators
Get this free guide to find out how to use technical indicators to give you a sense of what the market will do next. Get your free copy here.
No hassle and no admin fees. Open an account now with The Share Centre. Find out more.
A free guide to Gold Investment
Physical Gold protects against global economic downturn by providing crucial portfolio balance. You can buy gold bars for your UK pension and receive up to 40% price discount via tax relief. Buy tax-free gold coins as an alternative to poor interest rates. Find out more and download this free guide to gold investment.
The TaxGuide.co.uk has a wealth of tips and advice from working out your tax bill, through to the latest personal tax rules. Get your personal tax tips today.
FREE Report: Inside Investment Trusts
Written by the team behind What Investment, this exclusive FREE report covers:
- Why Investment Trusts are better than Unit Trusts
- How new legislation is broadening the appeal of Investment Trusts
- Where to look for buying opportunities
- Why now is the time to buy Investment Trusts
- The Investment Trusts to invest in at the moment


Comments
Please register or login to comment on this article.