Hargreave Hale is seeking to raise £20m for its two venture capital trusts, the Hargreave Hale Alternative Investment Market VCT 1 plc and Hargreave Hale Aim VCT 2 plc.
Launched in 2004, the Hargreave Hale Aim VCTs, which are co-managed by Giles Hargreave and Oliver Bedford, offer access to a portfolio of small companies listed on Aim, with a share buyback policy.
Oliver Bedford said: “We had a strong response to last year’s offer for subscription, raising £14.8m as our investors and their advisers responded to Aim’s growth story.”
Key Features
The VCTs target a tax-free income of 5 per cent and offer investors an upfront tax relief of 30 per cent, providing sufficient income tax is paid and the shares are held for at least five years
Hargreave Hale Aim VCT 1 returned 21.26 per cent in the 12 months to 31 August 2014
Hargreave Hale AIM VCT 2 returned 17.06 per cent in the 12 months to 31 August 2014
During the same period the FTSE All Share index rose by 7.8 per cent and the FTSE 100 rose by 21 per cent
Adviser verdict
Harry Driscoll, senior research analyst for London-based Chelsea Financial Services, said: “Aim VCTs have had a bit of a renaissance over the past couple of years. Those remaining have had good managers, such as the Hargreaves Hale VCTs, and more investors are returning to the market.
“However, £20m is quite a big number – it is possible that the team can get this number. Aim managers have to be more selective about what they invest in, but this team has a decent track record.”
