Investec Structured Products is planning to launch its first VCT in February.
The VCT will invest in a combination of structured products and venture capital investments. It will be run in partnership with Calculus Capital.
Its initial aim is to achieve an annual dividend for five years of 5.25p per share plus a return of 43.75p per share after 5.5 years by way of a special dividend or a cash tender offer for shares.
The structured products within the portfolio will be managed by Investec and have simple defined returns based on the FTSE 100 index with pre-determined risk profiles and a diversified range of counterparties. Calculus Capital will manage the venture capital investments.
Investec Structured Products head of intermediary sales Gary Dale says the VCT is aimed at the wealth management space, and is part of its plan to broaden its product range.
"VCTs have the ability to offer excellent tax-planning opportunities and with the combined expertise of Investec Structured Products and Calculus Capital, this first issue aims to deliver strong investment returns as well as an element of capital protection. Initial feedback tells me that this first launch will be incredibly popular."
Calculus Capital has been investing in small unquoted companies since 1997. It launched its first EIS scheme in 2000 and has since launched and closed for subscription another eight EIS funds and two VCT issues.
The VCT will adopt a disciplined investment strategy combined with a policy of minimising fees and will be available for investment in both the 2009/2010 and 2010/2011 tax years.
It offers the potential of tax relief of 30% on the initial investment, with all subsequent dividends and capital gains tax free.
£1bn business since inception
Considered doing so in 2015
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