View more on these topics

Track record is key for Baronsmead

ISIS ASSET MANAGEMENT

Baronsmead VCT 2 C Shares

Type:
Venture capital trust

Aim:
Growth by investing in established unquoted UK companies

Minimum investment:
Lump sum £3,000

Closing date:
January 28, 2005

Special offer:
Extra 1% allocation of shares

Offer period:
Until October 15, 2004

Charges:
Initial 5%,
annual 2%

Commission:
Initial 3%

Tel: 0845 799 2299

Isis Asset Management is issuing C shares for the baronsmead 2 venture capital trust, established in 1998. This will expand the portfolio from 60 to 80 holdings.

Allenbridge Tax Shelter analyst Richard Allen highlights baronsmead&#39s strong, established brand within the VCT market. He says: “It has a good private equity VCT track record. The fund managers have performed well in the past, producing consistent returns. There is a dividend re-investment scheme, whereby investors may elect to have their dividends reinvested.”

Allen likes the bonus share allotment available for early subscriptions and points out that a larger fund size will yield cost efficiencies. He adds: “The baronsmead series of four VCTs gives access to larger deals through co-investment, which is not normally available to VCTs. This is an advantage in the private equity sector where syndication is common.”

Considering the drawbacks of the VCT Allen says: “The C share issue means investors may wait nearly three years before gaining access to the existing portfolio. There is no instant spread of risk as there is no access to dividends from the ordinary share portfolio in the intervening period.”

He also regards the size of the fund &#45 potentially incorporating 80 companies with total net assets valued at approximately £62 million if fully subscribed &#45 as a potential disadvantage.

BROKER RATINGS

Suitability to Market: Good
Investment Strategy: Good
Charges: Good
Adviser Remuneration: Good

Overall 8/10

Recommended

Norwich & Peterborough – 10 Year Fixed Rate

Type: Fixed rate mortgage Fixed term: 10 years Fixed rate: 5.57% Minimum loan: £1,000 Maximum loan: Up to 90% of valuation subject to a maximum of £250,000, up to 85% of valuation subject to no maximum Income multiples: Up to 4.5 times principal income plus second or 3.4 times joint Arrangement fee: £399 Redemption fee: […]

FMO offers rolling deal for loan advisers until they get authorisation

First Mortgage Options is offering a rolling monthly deal to mortgage brokers who want direct authorisation but fail to get their FSA authorisation by October 31. Your Mortgage Options, the mortgage network within the FMO group, will allow mortgage brokers of any size to operate as authorised representatives on a rolling mon-thly contract until their […]

Fast-track approval process from First4Brokers for ARs

First4Brokers is launching a fast-track approval process for broker firms of any size. With the creation of this process, F4B says it will confirm within 48 hours whether a due diligence process is required for the firm. Following completion of the full application form, F4B will then undertake the due diligence procedure and give full […]

Analyst says move is halfway house

Witan&#39s move to a multi-manager structure has been described as a halfway house by one of the investment trust sector&#39s leading analysts. Close Wins investment trust research argues that a true best of breed vehicle would be unlikely to hold 50 per cent of its assets in tracker funds, as is the case with the […]

UK housebuilders remain a value trap – despite post-Brexit falls

Despite the sharp drop in housebuilders following the Brexit result, valuations in the highly illiquid market are still at elevated levels. And whilst some investors may take comfort from superficially low price/earnings multiples, are earnings sustainable over the long term, asks Holly Cassell, Assistant Manager of the Neptune UK Mid Cap Fund. Click here to […]

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