British pounds

Octopus launches GBP8.2m fundraising for AIM VCTs

Octopus Investments has opened both of its AIM venture capital trusts (VCTs) for further investment.

The latest fundraising provides investors with the opportunity to invest in the Octopus AIM VCT and the AIM VCT 2.
The combined which seeks to raise up to GBP4.1m in each VCT. Both VCTs have established dividend policies, each paying twice a year, meaning that an investor participating in the combined offer should expect to receive a dividend approximately every three months.
This is the first time investors have been offered the opportunity to invest in a combined fundraising offer across both Octopus AIM VCTs. The VCTs have been reopened following continued investor demand for access to investment opportunities available on the Alternative Investment Market (AIM).
The new offer follows a period of strong fundraising across the VCT industry as a whole, with the Association of Investment Companies (AIC) recently reporting an increase in inflows into VCTS of 69 per cent from 6 April to 31 December 2013, compared with the same period last tax year.
Andrew Buchanan, joint fund manager of the Octopus AIM VCTs, says: “2013 was a great year for both the Octopus AIM VCTs as their net asset values grew strongly, both rising by around 30 per cent each. This can be attributed to rising profit expectations through the year and a growing interest in AIM companies, as it became progressively clearer that the UK economy was indeed growing and as investors searched for growth stocks. We believe that will continue to be the case this year. We have already seen some profits expectations being upgraded for holdings in the AIM VCTs’ portfolios. We expect there to be more acquisitions of AIM companies this year and the evidence points to a good flow of new issues.”
Octopus specialises in investing in smaller companies and is the largest provider of VCTs in the UK. It currently manages over GBP3bn of funds on behalf of more than 50,000 UK investors.
The share offer is expected to remain open until 30 May 2014, or until the fundraising capacity is reached.

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