Investments  

Launch Pad: Venture capital trusts

The VCTs will involve investments in UK wind farms, with both existing holdings and a pipeline of farms in development.

Through investing in these VCTs, Matt Ridley, partner at Temporis Capital, said investors would benefit from diversification, strong tax advantages and government support for the sector, as well as a target 7p per share dividend.

Key features

Article continues after advert

Minimum investment: £5000

Initial charge: 3%

AMC: 2.5%

Hurdle rate: Only if shareholders have a total return (net asset value increase and 160p dividends) and the 7p per share dividend a year is surpassed. For every 1p earned on top of the 7p target dividend, Temporis managers will take 0.2p.

Closing date: 4 April for current tax year; 31 May for 2014/2015 tax year

Adviser verdict

Mark Hoskin, partner at Holden & Partners, London: “We are recommending this to clients and like it a lot. We invested in the C-share class, which was in 2009. Clients have just received their first 5p dividend on the VCT, which combined with the 30 per cent upfront tax break, is a nice return. We think the D-share class is a much better offer, as Temporis already has the sites and is building the wind farms, so basically this is a VCT that is offering investors a strong yield with tax relief for what is essentially a construction product.”