Change of tack for Invesco Perpetual AIM VCT
Article Date: Sep 04 2007Invesco Perpetual AIM VCT, which focuses on investments in the junior market, may change its rules to allow it to invest up to 20 per cent of its portfolio outside VCT-qualifying investments. The proposal, announced in the company’s annual report, will be put to its shareholders at the AGM next month.
The move is intended to maximise returns, and will allow shareholders’ money to be invested in main market companies, non-qualifying AIM stocks, other securities and cash. It is in line with VCT rules, which require 70 per cent of funds to be invested in qualifying shares within three years of being raised.
The company’s annual report announces a total dividend payment of 5p per share for the year. The net asset value of shares has increased by 5.9 per cent over the year, or 9.3 per cent on a total return basis (with dividends reinvested). Since its launch in May 2004, the VCT has delivered total returns of 17.9 per cent.
The report also notes that the VCT is now three years old, which allows original investors to withdraw their funds without having to repay income tax relief. To encourage shareholders to remain invested, the board has announced that it expects to be able to pay a minimum dividend of 5p per share until 2011, when a vote will be held to determine whether the VCT will continue.
To read about why some VCT managers are focusing increasingly on non-qualifying investments, click here.
