View more on these topics

Quester searches for top-up

QUESTER CAPITAL MANAGEMENT

QUESTER 5 VCT

Type: Venture capital trust

Aim: Income and growth by investing in unquoted companies

Minimum investment: Lump sum £3,000

Opening/closing date: November 17, 2003/March 31, 2004 for
2003/04 tax year, April 30 for 2004/2005 tax year

Charges: Initial 5%, annual up to 2.5%

Commission: Initial 3%

Tel: 020 7227 3333

Quester 5 was established in December 2001 and started investing
in unquoted companies in May 2002. It currently is seeking top-up
investments and holds 17 unquoted companies at different stages of
development. Most of these companies are involved in technology
and related areas such as telecommunications.

Looking at the pros and cons of investing in Quester 5, TBO
Corporate Benefit investment director Godfrey Bloom says: “There is
nothing specifically right or wrong about this issue. It is impossible to
assess where small unquoted companies may be in five years&#39 time.

However, although technology stocks have a volatile background, it
seems they remain popular with the investing public even now.”
Bloom thinks potential investors need to ask themselves why are
they going into the issue. He says: “If they are getting 40 per cent
capital gains tax relief and 20 per cent income tax relief this is a very
clear tax advantage. However, it is always regarded as dangerous to
invest for tax relief only.”

Bloom suggests that advisors and their clients should ask
themselves whether it would be preferable to invest in a VCT which
has 10 per cent in Aim investments, which will enable them to know
the net asset value. He also points out that the share price of VCTs
can be lower than the underlying asset value.

He asks: “In short, can one ever get out of the investments? Advisers
knew that when VCTs were invented, this would be a problem and it
has not yet been solved.”

BROKER RATINGS:

Suitability to market: Average
Investment strategy: Average
Charges: Average
Adviser remuneration: Average

Overall 5/10

Recommended

Pitfalls for small insurance brokers in FSA authorisation

Small insurance brokers need to be careful when completing their applications to become authorised by the FSA as the compliance burden is more onerous than it first appears, says insurance law firm Reynolds Porter Chamberlain. According to RPC, although the new high street firms application pack is “relatively straightforward” to complete for small firms with […]

NDF Administration – Secure UK Options Plan

Type: Capital-protected bond Aim: Growth linked to investors&#39 choice of the FTSE 100 index and Halifax House Prices index Minimum-maximum investment: £10,000-no maximum, Isa £7,000 Return: Up to 100% growth in indices at end of term Guarantee: Original capital returned in full regardless of performance of indices Closing date: January 16, 2003 Commission: Initial 4% […]

Scouting for boys

In the first of an occasional series, the Diary sets about finding out the deepest darkest secrets of the PR fraternity. Although most would think butter would not melt in her mouth, we can reveal the scout hut shame of Aegon&#39s consummate PR professional Ms Lesley “leisurely” McPherson.Entrusted as a girl guide patrol leader to […]

A close rung thing

It will be a pressured year for mortgage brokers because regulatory changes will pile on the workload and costs.The economic outlook is favourable as we believe low interest rates and low unemployment will be sustained well into 2004. Mortgageforce predicts that house price inflation will be between 7 and 10 cent. HBOS suggests that the […]

Industry under fire over pension freedoms

By Jamie Clark, Business Development Manager, Royal London Recent articles in the media have raised concerns about the new pension freedoms. One perceived problem is that across the industry, trustees and providers are not necessarily allowing people to take full advantage of the pension freedoms in situ. This is backed up by a recent survey by […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com