11 February 2022 - The current tax year is likely to set a new fundraising record for venture capital trusts (VCTs), according to the Association of Investment Companies.
VCTs have been supporting cutting-edge UK businesses for more than 25 years, and the sector is seeing significant investor appetite, including a large element of repeat investment from longstanding shareholders.
The Amati AIM VCT – which is run by the same team behind Chelsea Selection favourite TB Amati UK Smaller Companies- is opening at 10am on Wednesday 16 February 2022 and looking to raise £25m.
The application process will be online only, the minimum investment is £4,000, and Chelsea clients will be able to benefit from a 2% discount.
Amati is a popular VCT and, in the past, fund raisings have reached capacity and closed within a day.
Please email email@example.com to register your interest as soon as possible and we will send you an online application and offer documents as soon as the VCT opens. If you require help applying online, Chelsea is happy to assist you.
Amati AIM VCT invests into early-stage AIM businesses, and also has exposure to more mature AIM companies. The VCT has an excellent track record both in terms of share price returns and consistently paying tax free dividends equal to around 5% of the company’s net asset value (NAV).
The top 10 holdings currently comprise 40% of the portfolio*. 6 out of 10 of these companies are dividend paying and 8 out of 10 are profitable*. Examples include video game company Keywords Studios, which has achieved a 1,910% return since investment*, and Water Intelligence, a water damage prevention business. Amati invested £0.45m into Water Intelligence and the holding was recently valued at £8.8m, representing a 1,862% return*.
It's important to understand that not all investments go well, and Amati recently sold out of software company, i-nexus Global and Genedrive, a biotech firm, after disappointing performance. However, overall performance has been strong and Amati's ten-year NAV total return is 211.2% (as at 8 February 2022).
You can find out more about the Amati AIM VCT in this fund brochure.
VCTs provide tax free dividends and capital gains. If you subscribe to a new offer you can also receive 30% income tax relief on your investment if you hold the shares for at least five years. The maximum allowance to qualify for income tax relief is £200,000 per year. If you sell within five years you have to pay the tax back.
* Source: Amati Global Investors as at 31 December 2021
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. The views expressed are those of the author and do not constitute financial advice.