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Private investors

Artemis VCT plc

All data as at 31 August 2016 except where specified
  • Summary
  • Performance
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The fund’s aims

The company’s objective is to achieve long-term capital and income growth and to generate tax free capital and income distributions.

Investment policy

The company's policy is to invest in a diversified portfolio of growth orientated companies across a broad range of industries, with a particular emphasis on companies whose shares are traded on AiM. Investments will also be in companies whose shares are traded on ISDX markets and unquoted companies. The company's portfolio is managed in order to meet the requirements of section 274 of the Income Tax Act 2007 that, inter alia, require at least 70% of the investments to be qualifying holdings, of which 30% must be in eligible shares. Subject to maintaining a prudent margin of safety over the 70% level, the company's remaining assets may be invested in cash or money market deposits, fixed interest securities, unit trusts or UK listed securities without regard to the market capitalisation of such companies.

Ordinary shares

Share price (ordinary)59.00p
Net asset value68.43p
(Discount)/Premium on diluted NAV(13.8)%

Important security alert

Artemis has been made aware of some shareholders receiving telephone calls from individuals claiming to be brokers who wish to purchase VCT shares at a significant premium in exchange for a bond. So far as Artemis is aware, this offer is not genuine.
Should you receive any calls similar to this, please let us know by calling our Client Services Team on 0800 092 2051.
You may also wish to notify the Financial Conduct Authority or the Metropolitan Police.
For more information on share fraud and boiler room scams please see the following from the FCA.'Important security alert

http://www.fca.org.uk/consumers/scams/investment-scams/share-fraud-and-boiler-room-scams

Fund manager’s update

While the word 'uncertainty' is one of the most overused words at present, the trading updates from our investee companies show them largely to be in rude health.

Take Keywords Studios … confirmed that the first-half of revenues and profits were "comfortably ahead of expectations".

Take Keywords Studios, the videogames company, for example. Their trading update at the start of the month summarised the four acquisitions made so far in 2016 and confirmed that the first-half of revenues and profits were "comfortably ahead of expectations". The traditional second-half weighting of profits at Keywords means that we should not get carried away, but momentum within the business is clearly strong as the strategy of “buy and build” undertaken since its flotation is working.

As the funding of acquisitions is no longer allowed under VCT rules, we were unable to participate in the placing by Nasstar. The company raised £13.3m to acquire Modeus, thereby adding further scale and breadth to their hosted desktop offering.

This limitation in our ability to provide backing for our investments may prove to be a recurring theme. It follows on from Instem’s placing in February, which was also to fund further acquisitions within the life science software market. We heard in August that Instem’s overall trading remains in line with expectations, with management reporting positive trends across their target markets.

Elsewhere, we had a reassuring trading update from Proactis. However, Pressure Technologies’ management were cautious in their update as the oil and gas market remains tough.

If we have a worry in the current environment, it is that, in our view, valuations are looking full in many cases and so profit taking has continued in August.

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Risk warnings

Please ensure that you understand whether this fund is suitable for you. We recommend that you get independent financial advice before making any investment decisions.

This information does not constitute an offer, invitation or solicitation to deal in the securities of this fund.

The value of any investment, and any income from it, can rise and fall with movements in stockmarkets, currencies and interest rates. These can move irrationally and can be affected unpredictably by diverse factors, including political and economic events. This could mean that you won’t get back the amount you originally invested.

The fund’s past performance should not be considered a guide to future returns.

The fund may have a concentrated portfolio of investments. This can be more risky than spreading investments over a larger number of companies.

The fund may invest in the shares of small and medium-sized companies. Shares in smaller companies carry more risk than larger, more established companies because they are often more volatile and, under some circumstances, harder to sell. In addition, information for reliably determining the value of smaller companies – and the risks that owning them entails – can be harder to come by.

Investing in a venture capital trust (VCT) carries a higher risk than many other forms of investment. Potential investors are therefore strongly advised to seek professional advice. In particular, shares in a VCT may be difficult to sell. Tax policy towards VCTs may change and any tax relief may depend on an individual's circumstances.

Any research and analysis in this communication has been obtained by Artemis for its own use. Although this communication is based on sources of information that Artemis believes to be reliable, no guarantee is given as to its accuracy or completeness.

Any forward-looking statements are based on Artemis’ current expectations and projections and are subject to change without notice.

Issued by Artemis Fund Managers Ltd which is authorised and regulated by the Financial Conduct Authority.

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