Buybacks inject value into VCTs

VCTS which are utilising share buyback schemes are offering greater shareholder value, according to John Gregory, director at Noble & Co and fund manager of the Enterprise VCT. There is a definite drive to improve market liquidity and give shareholders a better deal when exiting a fund, said Stephen Edwards, managing director at ProVen. VCTs offer a number of tax benefits on new issues provided the shares are held for three years. As a result, few investors want to sell for a number of years and even less want to buy old issues, which miss the tax reliefs. This supply/demand imbalan...