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Octopus Aim VCTs seek £8.2m

Octopus Investments has launched a linked £8.2m top up offer for its two Aim venture capital trusts offering investors quarterly dividend payments. 

The Aim VCT 1 and Second Aim VCT, launched in 2004 and 2006, give investors tax-free biannual dividends and relief on capital gains and income tax while funding companies listed on the alternative investment market.

Octopus says it is the first time investors can top up across both VCTs in one offer. By investing in both, investors will receive a total of four dividend payments spread throughout each year. 

Octopus joint fund manager Andrew Buchanan says last year saw net asset values of the the two Aim VCTs each growing 30 per cent.

Buchanan says: “This can be attributed to rising profit expectations through the year and a growing interest in Aim companies, as it became progressively clearer that the UK economy was indeed growing and as investors searched for growth stocks.

“We expect there to be more acquisitions of Aim companies this year and the evidence points to a good flow of new issues.”

Plutus Wealth financial planner James Robson says dividend stream is well down the priority list in terms of what investors are want from VCTs.

He says many clients spread their investments across several VCTs in order to diversify, and believes the Aim class will help with that. 

Robson adds: “The fact Aim shares are now in Isas has raised its profile as a marketplace for investors.”

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