View more on these topics

Octopus picks up on bioscience

Octopus Asset Management

Bioscience VCT

Aim: Growth by investing in listed and unlisted bioscience


Minimum investment: Lump sum £3,000.

Opening-closing date: October 15, 2001-April 5, 2002 for 2001/2002

tax year, April 12, 2002 for 2002/2003 tax year.

Charges: Initial 5 per cent, annual 1.25 per cent.

Commission: Initial 2.25 per cent, renewal 0.25-0.4 per cent for first

four years.

Tel: 0800 2792501.

Broker Panel:-

Simon Burke – Managing director, Arctic Life &


Nick Upton – Consultant, Ian Cooke & Partners

Martin Dilke-Wing – Director, Morgans Independent Advisers

Broker Ratings:-

Investment philosophy: 7.3

Past performance: 5.7

Company&#39s reputation: 5.7

Charges: 4.7

Commission: 5.0

Product literature: 8.3

Octopus Asset Management has introduced the bioscience venture

capital trust, which invests in both listed and unlisted bioscience


Looking at how the trust fits into the market Burke says: "Within

the venture capital trust market, this will no doubt be regarded as a

very specialised and, therefore, potentially more risky trust. However,

there is no doubt that bioscience related investments have not

suffered the same backlash as technology funds in general. I

therefore think the fund will be well received in some


Upton agrees the trust will be seen at the upper end of the risk scale,

but adds that it presents an exciting opportunity.

Dilke-Wing says: "The venture capital trust market tends to be

split between various sectors, technology, generalist, hybrid, quoted,

unquoted, Aim etc. This is the only trust of which I am aware that

specialises in bioscience specifically and, as such, provides a useful

alternative to existing issues."

Moving on to the type of client that the trust will be suitable for Upton

says: "Mostly, I would say experienced investors with

reasonably large established and diverse portfolios. The ability to

defer capital gains tax liabilities using a venture capital trust is a

useful tax planning tool for the wealthy."

Dilke-Wing feels it would be suitable for clients with a capital gain

where they wish to defer paying tax, and/or have an aggressive risk


Burke adds: "Any client who is happy to accept the real or

perceived investment risks associated with this type of project,

especially those who can take maximum advantage of the tax

concessions available to venture capital trusts. Investors who need to

make use of the tax concessions may also prefer venture capital

trusts to enterprise investment schemes due to the greater

diversification of the underlying investment."

Turning to the marketing opportunities that could be provided by the

product Dilke-Wing says: "Difficult to say at present.

Traditionally, venture capital trusts are end of tax year planning

vehicles. I am not sure what the public demand for venture capital

trusts will be this year."

Burke cannot see that the trust will provide any marketing

opportunities. Upton says: "Bioscience is a very fashionable

investment area for specialist funds, so offering those within a

venture capital trust is another approach."

Casting an eye over the main useful features and strong points of the

product Upton says: "Generically there are the obvious tax

benefits, but looking specifically at this individual product, I was

extremely impressed by the vast wealth of knowledge and expertise

brought to this venture by the various personnel involved on all sides

of the project."

Dilke-Wing picks up on the fact that the trust occupies a niche in the

venture capital trust market, as well as commenting on the

credentials of the investment committee and managers.

Burke says: "As mentioned earlier, the fact that bio-related

companies have not suffered as badly as conventional IT related

business is helpful. With an ageing population, potential for new

businesses in health related research must be on the



Reforms will hit consumer access to financial advice says IFAP

IFAP has condemned the FSA&#39s polarisation reform proposals, saying they will exclude middle England from quality financial advice.IFA Promotion chief executive David Elms says: “The FSA&#39s consultation paper is called &#39making the market work for consumers&#39 – quite simply, these proposals won&#39t make the advice market work for consumers What they will do is make […]

&#39Business as usual for discount brokers&#39

Discount brokers say it will be business as usual in the post-polarisation era despite the FSA&#39s proposals to ban IFAs from using direct-offer financial promotions.Hargreaves Lansdown head of research Mark Dampier says under the new rules, discount brokers will simply need to change their status to “distributor”, form ties with every provider and carry on […]

Genesis Home Loans 2-year fixed

Genesis Home Loans, fixed rate mortgageFixed term: 2 yearsFixed rate: 5.45%Minimum loan: £25,001Maximum loan: £250,000 – up to 90% LTVIncome multiples: 3.25 +1 , 2.75 x jointArrangement fee: £325Redemption fee: 6 months interest at SVR during fixed periodConditions: max 80% LTV first time buyersIntroducer&#39s fee: refer to packagerTel: 01832 275 044

Research claims to show bond commission bias…

IFAs have shown significant evidence of commission bias when choosing between providers for with-profits and distribution bonds, according to an FSA report although it admits the markets is not riddled with bias.The research, by Charles River Associates in October last year, is published as part of consultation paper 121. It claims to reveal some evidence […]


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