VCTs / EIS

Venture capital trusts (VCTs) aid economic growth through their investments in small businesses, according to Albion Ventures.

ISIS Equity Partners, supported by promoters RAM Capital Partners, has launched a joint offer for Baronsmead VCT plc and Baronsmead VCT 2 plc, the first offer open to new investors since 2005.

Octopus Investments has confirmed that it will takeover management of all three AIM VCTs managed by Close Investments - representing around £65m of total assets - as of 1 August.

Octopus Investments has launched a new Portfolio Service which aims to generate an average total return in excess of 10pc per annum.

Octopus Investments is seeking to raise up to £25m for its latest launch, Titan VCT 3, which is designed to deliver strong returns through investment in to smaller unquoted UK companies.

THE VCT sector surpassed market expectations at the end of the last tax year, according to research from the AIC.

THE directors of Baronsmead VCT 2 have announced interim results for the 12 months to 31 March 2007, which show growth in the net asset value of the ordinary shares of 7.5pc to 123.27p per share.

VCT funds raised for the tax year 2006-2007 have fallen to just over a third of the amount raised the year before, according to research by Allenbridge Group.

VENTURE Capital Trust (VCT) and EISs could be forced into "riskier" company selections after the Chancellor slashed investment limits four-fold for the second year in a row.

THE ISIS-managed Baronsmead AIM VCT says it has already raised £6.4m despite launching its C share issue just ten days ago.