Released: 01 Nov 2004
The latest in the Pennine AIM VCT range - Pennine AIM VCT 5 PLC - was launched today. The trust will invest primarily in AIM companies and offer investors a unique exit strategy.
Pennine AIM VCT 5 PLC will focus on AIM companies and the portfolio will be broadly spread by sector and stage of development. The trust will adopt a conservative investment approach with the aim of delivering a steady performance. The trust is the latest addition to the established Pennine range, which includes the Pennine AIM VCT, the top-performing AIM VCT to date1.
Rathbones, a leading provider of discretionary fund management and wealth management services for private clients and trustees, is the appointed investment manager to the VCT. Rathbones already manages five AIM VCTs, with a total of £402 million under management in these VCTs. Pennine AIM VCT 5 PLC will be managed by Michael Cunningham, who heads Rathbones’ VCT and EIS team, supported by Ben Davies and Cheryl Vickers.
The exit strategy for Pennine AIM VCT 5 PLC features an innovative tender offer after three years. The intention is to give shareholders the option of withdrawing, tax free, 30p out of every £1 originally invested. Taking the 40% tax relief into account, investors will have the prospect of 70% of their original investment back after three years.
The trust is looking to attract a maximum of £30 million in investor funds before the closing date of 29 April 2005. The minimum investment in the VCT is £5,000 and the maximum is £200,000 per tax year. The tax reliefs on offer include income tax relief at 40% and tax-free dividends.
The initial charge will be 5.5% and investment management fees will be 1.8% per annum.
Michael Cunningham, Investment Director, Rathbones said:
“We will be targeting well-established AIM companies with consistent earnings growth and strong balance sheets. This is an exciting time for the VCT sector - the recent tax changes will make VCTs a compelling proposition for many investors. We believe that this VCT is the only one currently in the marketplace which is seriously addressing the issue of the exit route. We have a clear and innovative exit strategy which should attract significant interest.”
1Source: Allenbridge Group Plc, based on total return, 16 October 2004
2As at 30 September 2004
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For further information, please contact:
Michael Cunningham, Rathbones, 0151 236 6666
Mark Tierney/Andrew Marshall, Fishburn Hedges, 020 7839 4321
Matthew Brown/Tony McGing, Downing Corporate Finance, 020 7411 4700
Notes to editors:
Rathbones is a listed investment management company and a leading provider of discretionary fund management and wealth management services for private clients and trustees. It manages £7 billion of discretionary funds for individuals, their trusts, charities and pension funds, and for the professional advisers of these clients. This figure includes £700 million in Rathbone Unit Trusts**. The company provides tax, trust, financial planning and family office services through its trust division***.
**Rathbone Unit Trust Management Limited, authorised and regulated by the Financial
Services Authority
***Rathbone Trust Company Limited