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Why more advisers are recommending Pembroke VCT

By 19th February 2018 No Comments

More and more advisers are recommending Pembroke VCT to their clients – find out why

Pembroke VCT is continuing to provide an attractive VCT diversification tool for advisers and clients and post the recent Budget announcements and there is good reason – the team have always focused on ‘risk to capital’ growth investing and hence they are one of the very few VCT managers with relevant track record post the 2015 and 2017 Budget changes. Therefore whilst some VCTs are struggling to deploy capital Pembroke’s deal flow is as strong as ever.

Also post the KID fiasco the one area that is still not transparent – portfolio fees.  These portfolio fees include arrangement and monitoring fees, that are charged to investee companies (and effectively paid for by the VCT investors), and are often overlooked by investors when choosing a VCT. However investors can be certain that Oakley Capital do not charge their portfolio companies any fees. The KID did at least confirm that Pembroke has one of the lowest Total Expense Ratio ratios for generalist VCTs in the market.

Pembroke VCT is managed by Oakley Capital, a successful fund management business with £1.2bn under management. It is the only new generalist VCT to have successfully launched in the last 10+ years, with good performance to date and a maturing portfolio, which is why advisers are continuing to recommend the fund.

But don’t take our word for it:

We reviewed the whole of the VCT market and selected 4 VCT funds to support – ones which we believe are not significantly impacted by the recent rule changes, and have the ability to deliver attractive growth and dividends to our clients. Pembroke VCT was one of those funds (alongside Titan, Proven and Albion). Oakley Capital, the manager, is an entrepreneurial driven investment firm with $1.5bn AUM with an impressive network attracting interesting deals.”

Neil Cole, head of tax efficient products at UBS

This is an opportunity to invest into a maturing portfolio and also to access new investments made by the Oakley team…we like that Oakley is not charging any portfolio company arrangement or monitoring fees which is sadly unusual in the industry – the Pembroke VCT fee structure is transparent and 2.3% TER is low for generalist VCTs

Tax Efficient Review January 2018

The VCT rules changes announced in 2015 and 2017 have moved the VCT industry towards Pembroke’s investment strategy. It is one of the very few VCTs whose track record is relevant under the new rules.”

Allenbridge review January 2018

Pembroke VCT is well worth considering. Its manager Oakley might be relatively new to VCTs, but has been managing money since 2002 and its founder has been a serial entrepreneur since the 1980s. Unlike most VCTs, which focus on consistent dividends, this one is much more growth-orientated with a focus on upmarket consumer brands.”

Ben Yearsley, co-founder of Wealth Club and ex head of tax efficient research at Hargreaves Lansdown

To find out more, please contact our sales team on 020 3743 3100.

Please note VCTs (Venture Capital Trusts) are high risk investments, please see our full risk warnings.