View more on these topics

Quester VCT merger is beginning of a trend

Following shareholder approval last month, Quester has successfully merged its three venture capital trust offerings into one vehicle with combined assets of 53.8m.

Investors in Quester VCT 2 are to receive 1,024 new VCT shares for every 1,000 shares they previously held, while Quester VCT 3 shareholders will get 981 new shares for every 1,000 they held.

According to the group, the mergers of Quester VCT, Quester VCT 2 and Quester VCT 3 into one enlarged vehicle is beneficial as it increases the range and diversity of the investment portfolio and spreads the risk. Additionally, by spreading the cost base there will be a reduction in annual running costs as a percentage of net assets. The new portfolio consists of 34 investments: 10 quoted and 24 unquoted.

All three VCTs invested in life science, healthcare and technology-related companies. Consequently Ben Yearsley (pictured), senior investment manager at Hargreaves Lansdown, says their merger is a good idea.

He says: ” Following the merger of four Chrysalis VCTs, this is the second set of mergers to have taken place this year and I think it is the beginning of a trend. If a group is managing a number of venture capital trusts that use the same manager and have similar mandates, a merger makes sense. Indeed, the boards of Murray VCTs 1, 2 and 3 have indicated they too would like to merge.”

The board of the enlarged Quester VCT intends to declare a special dividend to all shareholders this September, which will be paid out of the surplus assets of the merger.


Capita set to make bid for Webline

Capita is thought to be lin- ing up a bid for IFA portal Webline to create a complete package of outsourcing for advisers. The outsourcing firm rec-ently acquired adviser back- office firm Quay and industry insiders believe that a move for the portal would fill in the gaps in Capita’s adviser offering. Webline executive chairman […]

Retirement fund - thumbnail

What price (more) freedoms?

George Osborne will make his last Budget speech of the current parliamentary term this week, and the early media briefings suggest that pensions will again feature heavily in that statement. So what are we able to learn from the weekend’s coverage?


News and expert analysis straight to your inbox

Sign up


    Leave a comment