Type: Venture capital trust
Aim: Growth by investing in companies listed on Aim
Minimum investment: Lump sum 2,500
Closing date: April 1, 2005
Charges: Initial 5.5%, annual 2%
Commission: Initial 2.25%, renewal 0.375%
Tel: 020 7295 3377
Matrix Money Management is promoting the Unicorn Aim VCT 2, a venture capital trust managed by Unicorn Asset Management which focuses on the Aim market.
Allenbridge Tax Shelter analyst Richard Allen feels Unicorn is now a strong brand within the Aim VCT market. He points out that there are now two Unicorn VCTs which will enable the manager to co-invest, giving access to larger deals. Allen says: “The fund manager has a good record with its first VCT, which has delivered NAV uplift and substantial dividends in a relatively short period of time despite declining markets.”
Allen points out that initially 50 per cent of the money raised will be invested in Unicorns collective funds which will provide market exposure. He says: “The dividends paid on Unicorns first VCT were made possible by the realisation of non-qualifying investments and increases in the NAV.” However, he points out that the flip side to this is that the VCTs shareholders will be exposed to the broader risks of market movements.
Allen highlights the incentive for the manager to pay average dividends of 6p each year and the intention to offer a 10 per cent discount to NAV buy-back policy.
On the downside Allen says: “The Aim VCT sector is becoming crowded with competition from the Artemis Aim, 2 VCT, Close Brothers Aim VCT D share issue, Invesco Perpetual Aim VCT, Framlington AIM VCT, the Aim VCT 2 top-up and Pennine Aim 5 VCT.”
He concludes by saying that investors are spoilt for choice Keydata, Singer & Friedlander, Cavendish and Rensburg also providing Aim VCTs.
Suitability to Market: Good
Investment Strategy: Good
Adviser Remuneration: Average