By ADRIAN LOWCOCK 20/02/2012
Albion, the venture capital investor is offering the opportunity to acquire shares in seven Albion VCTs through this linked offer. The offer provides considerable diversification within an existing portfolio of 60 companies.
These underlying VCTs have arranged their interim and final dividends so that every month investors will receive at least one dividend payment, or if preferred, reinvest those dividends for greater capital growth.
A balanced investment strategy
Albion look to make both low risk asset-backed investments as well as investments with high growth potential. Around 70% of the investments made will be into deals with strong underlying assets such as freehold property. These types of deals tend to hold value well, and strong cash generation pays enables the payment of good dividends.
Diverse investments
‘Asset-backed’ investments comprise two thirds of the portfolio. A good example of this is Randor House in Twickenham being developed into a new independent school. The success of the school means Albion can sell the underlying property to recover investors money.
The other 30% of deals go into business with less security in place but superior growth potential; these include investments into business services, and medical technology. A good example here would be Dexela who have developed a new technology for low-dose X-rays for 3-D imaging. The company was eventually sold for a threefold return to a US based healthcare business.
Highly credible offer
Albion has a large team of 11 investment professionals. Most are partners in the Albion Ventures and as such are less likely to leave for a competitor. We have found the group works to a high professional standard and we are very confident in awarding a high 4 star rating.
Top fund idea
| Fund name | Minimum investment | Expected close date |
Our discount |
Star rating |
More information |
| Albion Linked Offer |
£10,000 |
5 April 2012 |
2.0% |
Four Stars |
Prospectus |
VCTs should be regarded as higher risk investments. They are only suitable for UK resident taxpayers who can tolerate higher risk and have a time horizon of greater than five years. Past performance is not an indication of future performance. Share values and income from them may go down as well as up and you may not get back the amount originally invested. Owing to the nature of their underlying assets, VCT's are highly illiquid.
Investors should be aware that they may have difficulty, or be unable to realise their shares at levels close to that that reflect the value of the underlying assets. Tax levels and reliefs may change and the availability of tax reliefs will depend on individual circumstances. You should only subscribe for new VCT shares on the basis of the relevant prospectus and must carefully consider the risk warnings contained in that prospectus. The information in this video is for educational and leisure purposes only and should not be taken as advice.
The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change.