Investment manager Hargreave Hale has launched a GBP20m fundraise for its AIM VCT range.
The offer for subscription, which is available to both new and existing investors, aims to raise GBP10m of new ordinary shares in both Hargreave Hale AIM VCT 1 and Hargreave Hale AIM VCT 2.
First launched in 2004, the Hargreave Hale AIM VCTs, which are co-managed by Giles Hargreave and Oliver Bedford, offer investors access to a diversified portfolio of small companies listed on AIM, with a history of strong performance and a competitive share buyback policy. The VCTs target a tax free income of five per cent based on the year end NAV 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.
The AIM VCTs have identical investment policies that seek to maximise shareholder returns through a diversified portfolio of equity investments in small UK based qualifying companies which are primarily traded on the Alternative Investment Market (AIM). Both trusts operate a flexible investment mandate that allows Hargreave Hale to make targeted and opportunistic investments into non-qualifying equities and fixed income. To maintain the VCT’s exposure to small companies, up to 75 per cent of the net proceeds of funds raised may be invested into the Marlborough Special Situations Fund pending investment into qualifying companies.
Giles Hargreave says: “Our flexible investment strategy, which allows us to make targeted investments in non-qualifying equities, funds and bonds, helps us to drive investor returns in a variety of market conditions. We have established a good track record of paying out tax free dividends, and operate what we believe is one of the best share buy-back policies. “
Bedford says: “Many AIM-listed companies are young and dynamic, and often operate in new and emerging sectors. However, AIM offers much more than 'frontier investing', it is also home to numerous established and more traditional businesses such as Abcam, Advanced Computer Software and Vertu. Our VCTs offer investors not only the associated tax benefits, but an exciting opportunity to participate in growth stories and support entrepreneurial development over the medium to longer term.”
Hargreave Hale provides discretionary investment management and stockbroking services to private clients, intermediaries, corporates, charities and trusts. The firm employs over 170 employees based across six offices with GBP2.7bn under management.