VCTs

VCT News

Ventus Director Changes following ShareSoc campaign

ShareSoc are pleased with the outcomes at Ventus and Ventus 2 VCTs. It appears that following difficult AGMs, the directors have listened to shareholders' concerns and have come up with a plan to address the many points raised. The campaign was led by Nick Curtis and supported by Sharesoc and seems to have had a good result. Ventus has now appointed Nick Curtis to the Board of Ventus VCT plc with effect from 1st October 2019. Chris Zeal and Lloyd Chamberlain will resign from the ...

City of London IT, Equals Interims, Paypoint CEO, Downing One VCT and Parliamentary Pandemonium

Having been away on holiday in the North of England last week, this is a catch up on news that impacted my portfolio. I received the Annual Report for...

3i – Well Managed and Well Incentivised

The 8 times increase in the 3i share price in the past 10 years means that 3i is one of the largest holdings in my portfolio. So I thought...

Albion Venture Capital VCT (AAVC) AGM Result and Actions

30% of shareholders opposed the increase in fees at the AAVC AGM. This is a remarkable result and sends a strong signal to the directors that they need to better engage with their shareholders. I think the % voting against would have been higher if: we had started our campaign earlier we had received the shareholder register earlier we had been able to get in touch with all shareholders prior to the AGM the directors had not sent out a letter to ...

Voting Problems, Computershare, Albion Venture Capital and PLAIN ENGLISH.

By Cliff Weight Computershare have refused to accept a vote instruction for the Albion Venture Capital AGM, because it was sent to them electronically. It was signed, scanned and sent to them by email. They say that the meeting notice says what form the instruction must be sent and this overrides the Companies Act, CA2006 S333. The notice says the instruction must be sent to Computershare, but does not say how (see below for the precise wording used). In this modern age, surely ...

Albion Venture Capital Trust PLC and Ventus funds

The Albion Venture Capital AGM is on Wed 21 Aug. Cliff Weight, Mark Lauber, Tim Grattan and others will be attending and asking questions. I finally received the Albion Venture Capital register on 16 August 2019. However, Albion Venture Capital VCT Chair Richard Glover wrote to all 5,300 shareholders on 15 August. Many were sent emails but the copy of the register we were given did not have email addresses, so we were unable to email shareholders. In the time available ...

Ventus VCT AGMs – A Disappointing Result, National Grid and Sports Direct

I have mentioned previously the attempt by a shareholder in the Ventus VCTs (VEN and VEN2) to start a revolution, i.e. replace all the directors and appoint new ones. See https://tinyurl.com/y6e5fafo . Nick Curtis was the leader of the revolt but at the AGMs on the 8th August the required resolutions were narrowly defeated with one exception. This was after the boards of these companies paid a proxy advisory service £38,000 to canvas shareholders, which of course shareholders will be paying ...

Albion Venture Capital VCT Blog number 2

Albion want to change the performance fee from the current arrangement (1.9% management fee, plus 8% of returns over a hurdle rate of 5% per annum with a high-water mark) to 20% of returns above a hurdle of RPI +2%p.a., from a new starting point of NAV at 1 April 2019. ShareSoc recommends shareholders vote against this proposal and other resolutions at the AGM on 21 August. 1.9% plus 20% is egregious, particularly when: it represents an increase from historically agreed arrangements and  ...

Ventus and Ventus 2 VCTs– obstacles to a level playing field in unseating directors

By Cliff Weight, ShareSoc Director I was pleased to see the highly respected and influential Investors Chronicle taking an interest in and writing a balance article on the Ventus funds, see https://www.investorschronicle.co.uk/comment/2019/07/18/limits-of-influence/ The IC seems to think ShareSoc is leading and driving the campaign, whereas the campaign leader is Nick Curtis, but other than this point I think it is a very good article. What is becoming apparent is how extremely difficult it is to unseat directors, because the playing field is tilted so ...

Albion – Yet another VCT problem case

Albion Venture Capital Trust plc is proposing to rebase the incentive fee for its investment manager. The proposal looks too generous and will result in far too much of the value going to the managers and too little to shareholders. The new proposed threshold of RPI plus 2% is too low and the 20% share is too high. It would be very bad precedent if this was passed and became the norm for other VCTs. I recommend shareholders attend the AGM ...

Bonmarché Update, FCA Grilling over Woodford and Amati AIM VCT AGM

Yesterday Bonmarché (BON) conceded defeat in its opposition to a takeover bid at 11.4p. On the 17th May it had rejected the bid because it “materially undervalues Bonmarché and its prospects”. The share price of this women’s clothing retailer was over 100p a year ago but the latest trading review suggests sales are dire because of underlying weakness in the clothing market and “a lack of seasonal weather”. Auditors might have qualified the accounts due to be published soon due to ...

VCT Investor Group – Ventus & Ventus 2 VCT Shareholder Resolutions

Examples of egregious fee structures and of passive directors are to be found in many VCTs (Venture Capital Trusts). ShareSoc and its members campaign to try to rein in the worst offenders, see https://www.sharesoc.org/campaigns/vct-investors-group/ Our principal objectives are: To provide best practice guidelines on management fees, performance fees, directors’ tenure and independence. To provide advice for investors on specific VCTs by Identifying existing holders willing to work with others to share knowledge, to identify areas of concern and to make ...