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ProVen VCT 3 is pulled and others are set to follow

ProVen VCT 3 has become one of the first VCTs to effectively withdraw from the market this season and is offering investors a switch into the original ProVen VCT through top-up shares.

ProVen VCT 3 was set up last November and increased its minimum investment threshold from 1m to 5m.

Fund managers believe this could be the first of a number of VCT closures.

The ProVen VCT is the best-performing VCT laun-ched in the 2000/01 tax year, with a total return to January 2005 of 114.4p calculated by NAV plus dividends per share.

This represents a return of over 20 per cent on the initial NAV per share.

Beringea managing director Stuart Veale, who heads the ProVen VCT investment team, thinks other VCTs that have raised less than 5m will also need to consider similar steps.

An industry source says: “There are several VCTs that at current levels of funds raised will struggle to take in a big enough sum to have a diversified portfolio.

“ProVen VCT 3 and Pro-Ven VCT have acted responsibly by offering ProVen 3 customers access to the diversified ProVen portfolio. It is much better than crossing their fingers and hoping to raise the cash.”

Calculus chairman Susan McDonald, who runs the Neptune Calculus VCT which was launched in January this year, says: “I do think that a number of VCTs will make the decision not to go ahead.”

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