View more on these topics

Investec and Calculus go for C shares

Investec Structured Products and venture capital specialist Calculus Capital are raising up to £25m for a C share offer in the Investec Structured Products Calculus venture capital trust

The companies believe that playing to their respective strengths by investing in structured products and VCT qualifying unquoted companies will potentially enhance returns and provide a degree of protection from potential loss.

The strategy is designed to produce five annual dividends of 4.5p and a 47.5p interim target return by March 2017. It also aims for a further return of 45p per C Share, providing a total return of 115p for each C Share by March 14, 2019.

The structured products portfolio, managed by Investec, will be linked to structured products with maturities of six months to six years. The products will provide a full return of capital providing the underlying indices do not fall by more than 50 per cent without returning to at least its initial value. Capital will be at risk on a one-for-one basis if this safety net is breached and up to 20 per cent of the portfolio can be linked to global indices such as the S&P 500 and Eurostoxx 50.

Around 30 per cent will initially be invested in structured products with a maturity of more than three years to meet the 47.5p interim target return. The remainder will be invested products with maturity dates of less than three years and other near-cash investments. This part of the portfolio will gradually be reinvested in VCT qualifying unquoted companies to meet the five annual dividend payments, the annual running expenses and the further target return of 45p per C Share by March 14, 2019.

The venture capital part of the VCT is managed by Calculus, which prefers more mature unquoted companies. Calculus has particular expertise in energy, energy services, energy technology, leisure/catering, transportation and healthcare investments, but will also include undervalued firms from other sectors

The ability to invest up to 20 per cent in structured products linked to global indices gives the C shares have a wider remit than the ordinary shares, which invest only in FTSE 100 linked products. However the wider geographical net potentially leaves investors relying on several indices to remain above the 50 per cent barrier rather than just one.

Recommended

St James’s Place looks to double assets over the next five years

St James’s Place chief executive David Bellamy says the firm expects to double its funds under management over the next five years. SJP has seen its funds under management increase by £5.6bn in 2010 to reach a high of £27bn. He says: “Our business model has meant the run rate of asset growth has tended […]

1

HMRC warns businesses over tax registration

HM Revenue & Customs has warned business owners they could be fined if they fail to register for a particular tax or pay tax on undeclared income. Under the regulations, which took effect from April last year, business owners are required to tell HMRC if their business is liable to pay tax because it has […]

9

FSA fines lead to fall in costs for advisers

The FSA has announced its costs for 2011/12 will go up 10 per cent, from £454.7m to £500.5m, but costs paid by firms will fall as a result of fines levied during the last year. The net minimum fee paid by 43 per cent of the FSA’s authorised firms, including many IFAs, will fall by […]

Bolton: “Things will go too far” in Hong Kong

Anthony Bolton, the president of investments at Fidelity, has told investors to “expect the unexpected in Hong Kong”, pointing out a clash between its peg to American monetary policy and its links with China. Bolton says Hong Kong is on a “tectonic plate” between China and the developing world and more advanced economies, particularly America, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment