The Baronsmead VCT
Fund Overview
Baronsmead Venture Capital Trust (VCT) focuses on building a diversified portfolio of unquoted and AIM-listed companies. With a strong track record, Baronsmead VCT has delivered consistent shareholder returns through capital growth and regular tax-free dividends. As of November 2024, the fund has raised up to £50 million, with an additional over-allotment facility of £25 million.
The minimum investment is £5,000, and the fund targets a dividend yield of approximately 7% of NAV annually.
Investment Strategy
Baronsmead VCT combines investments in early-stage growth businesses with established, income-generating companies. The key highlights of the strategy include:
- Portfolio Composition: Unquoted and AIM-listed businesses across multiple sectors.
- Focus Areas: Growth potential and innovative business models.
- Active Management: Close collaboration with management teams to unlock value.
- Targeted Outcomes: Capital growth and steady dividend payments.
Recent highlights include investments in digital services, healthcare, and sustainable energy sectors.
Performance Metrics
Year | NAV Total Return (%) | Dividends Paid (p/share) |
---|---|---|
2024 | 6.0 | 7.0 |
2023 | 5.8 | 6.5 |
2022 | 5.5 | 6.2 |
Cumulative Dividends: Over the last 10 years, Baronsmead VCT has delivered a 7% annual dividend yield based on NAV.
Tax Benefits
Investors benefit from:
- 30% income tax relief: Available on investments up to £200,000 annually.
- Tax-free dividends: Receive regular income payments without tax obligations.
- Capital gains tax exemption: No CGT on share disposals.
Tax treatment depends on individual circumstances and may change.
Fund Documents
Contact Information
- Phone: 020 3875 9862
- Email: [email protected]
- Website: Baronsmead VCT
Why Consider Access EIS Instead?
Both Baronsmead VCT and Access EIS offer tax-efficient investment opportunities, but they cater to different investor needs:
Feature | Baronsmead VCT | Access EIS |
---|---|---|
Investment Focus | Unquoted and AIM-listed companies | Early-stage, high-growth UK startups |
Minimum Investment | £5,000 | £5,000 |
Tax Benefits |
- 30% Income Tax Relief - Tax-Free Dividends - Capital Gains Tax Exemption |
- 30% Income Tax Relief - Capital Gains Tax Deferral |
Liquidity | Limited liquidity through buyback schemes | Illiquid, with returns realized after ~5–7 years |
Dividends | Regular, tax-free dividends | No dividends; all profits reinvested |
Risk Level | Moderate to High | Very High |