Octopus Investments has opened a new £20 million fundraise for its two Alternative Investment Market (AIM) VCTs.
The VCTs offer an easy way to access emerging AIM listed growth companies, through a diversified portfolio with investments across a range of sectors, from building materials, pharmaceuticals to software development.
Alongside growth, the VCTs also aim to provide investors with income through their established dividend policies.
Octopus AIM VCTs feature a range of AIM-listed businesses at different stages of maturity. This allows investors to benefit from owning established portfolios of around 90 AIM-listed companies, many of which have strong growth potential, with new investments added to the portfolio each year.
The Octopus AIM VCTs are managed by the Octopus Quoted Companies team. The new share offer for AIM VCT and AIM VCT 2 is open until 14 September 2024 for the 2023/2024 tax year. The offer will close earlier if it becomes fully subscribed.
Jess Franks, head of Investment Products, Octopus Investments said: “Increasingly, we are seeing financial advisers recommending VCTs to a broader range of their client bank, due to factors such as portfolio diversification and the attractive returns that can be targeted by investing in smaller companies with some risk mitigation provided by tax relief.
“The Octopus AIM VCTs offer the opportunity to invest in an established portfolio of smaller listed companies, which may be a good choice for investors who are new to VCTs or want to add something different alongside VCTs invested in predominantly unquoted companies.”
The Octopus AIM VCT and AIM VCT 2 both target a 5% tax free dividend yield every year. VCTs can enable investors to receive 30% income tax relief (as long as the shares are held for at least five years), tax free growth and tax-free dividends.
New investors have the option of buying shares in one or both of the Octopus AIM VCTs. They can split their investment 60/40 between Octopus AIM VCT and Octopus AIM VCT 2, or place 100% of their investment into either VCT.
