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VCT entices IFAs with trail increase
Shore Capital’s Puma VCT 8 team has added an incentive for advisers who recommend the trust to their clients by enhancing trail commission by 1 percentage point, its managing director has said.
Graham Shore said: “We are proud of the record of our previous venture capital trusts that have shown that we can make defensive investments in smaller companies and then return the cash to investors.
“We are confident we can continue to do this and know investors find this strategy attractive given the generous tax relief.”
Mr Shore said the 1 percentage point enhancement applied to applications received by Wednesday 29 February.
The enhancement is in addition to the standard commission of 4 per cent upfront, or 3.5 per cent upfront with a 0.35 per cent yearly trail. This can be reinvested in additional shares for clients.
Launched on 1 September 2011, Puma VCT 8 follows the same investment strategy as, and will build on the market-leading track record of, previous Puma VCTs.
The minimum investment is £5000 and the maximum is £200,000 and the focus is on alternative asset classes. Shore has funds under management of £1.2bn.
Puma VCTs have raised approximately £100m, returning £40m to investments as dividends.
Nick McBreen, IFA for Cornwall-based Worldwide Financial Planning, said: “People can get their heads turned by VCTs but they should never be solely about tax relief. This benefit is just one part of the picture.
“I would first be looking at why clients were considering VCTs at all.”
