View more on these topics

Julian Gibbs

I have often been asked what I consider to be the safest venture capital trust now raising money. In my opinion, Close Brothers Development VCT is the most secure because it invests in asset-backed investments such as freehold children&#39s nurseries and garden centres.

Forty-one per cent of its investments have a first charge over debtors and 47 per cent have a second mortgage over freehold or leasehold assets.

Most of its assets are invested in growth areas such as healthcare (26 per cent), leisure and retail (22 per cent) and education (10 per cent).

Those who invested three years ago have shown a profit on paper, taking into account 20 per cent tax relief, and have paid tax-free dividends each year, rising from 2.5 per cent in 1999 to 4.5 per cent in 2002.

Over the same period, the FTSE 100 has shown a fall of 27 per cent and the AIM index has fallen by 24 per cent, while other generalist VCTs launched in 1999/2000 have averaged a fall of 16 per cent.

The management is first class and Close Brothers&#39 other VCTs are also top performers. As capital gains can be distributed tax-free as dividends and because Close Brothers aims to raise the dividend each year, this VCT is an ideal pension supplement for those investors whose pension schemes are capped.

Two examples of the VCT&#39s successful investments include Careforce, which provides homecare services for the elderly with local authority funding. This company has made seven acquisitions to date, has a turnover of £7m and is strongly profitable. It aims to float later this year.

It also invests in Automotive Technik, which produces worldclass military vehicles.

The C-Shares now available in this VCT are an outstanding investment, especially for higher-rate taxpayers.


Royal Liver set for £17m deal to buy Park Row

Friendly society Royal Liver is poised to snap up IFA group Park Row for £16.7m in a deal that moves the society firmly into the IFA arena.Park Row will keep its own name and operate as a stand-alone business, continuing to offer a multi-platform distribution model.Royal Liver says it has struck the deal to expand […]

Out of context

•”Journalists always try and nick my nuts.” – iimia head of investment trusts Nick Greenwood after the mysterious disappearance of his cashew nuts.•”We can afford plastic spoons.” – Platform sales and marketing director Guy Batchelor.•”This is an anoraks&#39 convention.” – LibDem pensions trainspotter extraordinaire Steve Webb.•”Why ruin a good meal?” – Standard Life senior technical […]

Legal & General launches two new investment plans

Legal & General is offering two new capital protected investment plans. The protected index plan will provide growth in the FTSE 100 Index up to a maximum of 55 per cent. The index growth and protection plan is an index linked investment, that will provide 70 per cent of any growth in the FTSE 100 […]

Rovers and out…

At last Corrie&#39s evil IFA Richard Hillman has done the decent thing and driven into the Weatherfield canal in what looked like a Metro, surely not a suitable car for an IFA, even a serial-murderer IFA, but what a shame that Gail got out. I suppose she looks so much like a fish that she […]

UK housebuilders remain a value trap – despite post-Brexit falls

By Mark Martin & Holly Cassell, Neptune UK Equities As investors continue to digest the UK electorate’s vote to leave the EU, Neptune’s Mark Martin and Holly Cassell explain why they believe housebuilders remain dangerously overvalued Click here to view full article Important information  Investment risks  Neptune funds may have a high historic volatility rating and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm