Baronsmead VCT 4

Generalist VCT with highly regarded manager.

  • 0.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 2.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 3.65%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Fund data last updated 31 March 2003

There seems to be no need to change a winning formula. Earlier Baronsmead funds have recorded above average returns and the balanced portfolio approach makes this trust suitable for most VCT investors. However, unlike many top-up issues, the current portfolio is still quite immature. Based on the track record and the considerable attention given to ensuring an orderly and efficient market in the shares, we are happy to award the issue a three star rating.

Fund summary

Sector VCT Generalist
Structure X-VCT
Launched December, 2001
Size £67m
Yield 0.00%
Charging basis
Dividends paid

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 2.50%
Ongoing charges figure 3.65%

Allocation

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Investment process

Initially all funds are invested in fixed interest (managed by Cazenove). The qualifying portfolio will contain a mixture of unquoted and AiM companies, typically with smaller individual amounts being invested in the latter. The unquoted portfolio will be constructed using similar criteria to the earlier funds but these have evolved over the years, and the past emphasis on a minimum profit level of £500,000 has been relaxed. The manager adopts a topdown sector driven approach to investment selection. Key factors for current investment selection at present are an established and deliverable growth strategy, as well as exhibiting a competitive advantage derived from barriers to entry or imitation. The five sectors the manager has identified as offering good prospects are healthcare, media, consumer markets, technology and business services. The companies within these sectors will need to be able to show pricing power and scalability. The average investment will range between £300,000 and £1m and the portfolio should consist of at least 30 companies when fully invested. At 31st May 2003 less than £3.5m had been invested in qualifying companies, although this had increased to £6m by 31st October.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

David Thorp

Track record

The track record of David Thorp in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

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Relative 0.00% ()

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 30 September 2015

5.9% Nexus Vehicle Holding Limited
3.6% Netcall
3.3% Crew Clothing Holding Limited
2.9% Tla Worldwide Plc
2.8% Tasty Plc
2.6% Idox
2.4% Create Health Limited
2.1% Pho Holdings Limited
2% Cablecom Ii Networking Holdings Limited
2% Kingsbridge Ltd
Source: Trustnet

Sector breakdown

Business Services 32.00%
Telecom, Media & Technology 23.00%
Money Market 23.00%
Consumer Goods 15.00%
Health Care 8.00%

Portfolio

ISIS Equity Partners are one of the largest players in the VCT market and attract one of the strongest deal flows from their offices in London, Birmingham and Manchester. There will be the opportunity to fund large transactions through co-investment with other Baronsmead VCTs and ISIS non-VCT investors, with Baronsmead typically being the lead investor. Any arising conflict of interest with ISIS will be resolved by an independent board. Progress in investing the current portfolio has been slow, although there has been an acceleration over the last six months.

Key Investor Information

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