Hargreave Hale has announced a new offer for subscription to raise GBP20 million into Hargreave Hale AIM 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 investors access to a diversified portfolio of small companies listed on AIM, with a competitive share buyback policy.
The VCTs target a tax free income of five 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, while Hargreave Hale AIM VCT 2 returned 17.06 per cent. Both funds outperformed the FTSE AIM All Share Index, which rose 3.71 per cent, and the FTSE 100, which rose 6.34 per cent over the same time period.
Bedford says: “We had a strong response to last year’s offer for subscription, raising GBP14.8m as our investors and their advisers responded to AIM’s growth story.
“Deal flow is strong, allowing us to invest GBP8.3m in 26 different qualifying companies in the past year. AIM VCTs offer an attractive structure through which investors can access a portfolio of dynamic British companies with the potential for tax free capital growth and income.
“VCTs play an important role in financing our country’s small companies as they seek to develop new and exciting technologies and products. Supporting these companies is an inherently risky business, something the government acknowledges through a series of generous tax reliefs.”
