The Octopus AIM VCT
Fund Overview
Octopus AIM VCT provides investors access to a portfolio of high-growth companies listed on the Alternative Investment Market (AIM). The fund seeks to invest in small and medium-sized UK businesses with significant growth potential.
As of 2024, the combined Octopus AIM VCT funds have net assets exceeding £200 million. The fund targets a dividend yield of 5% per annum, offering regular, tax-free income.
The minimum investment is £5,000, making it accessible to a wide range of investors.
Investment Strategy
The AIM VCT is designed to provide investors with exposure to dynamic growth companies listed on AIM. Key features include:
- Portfolio Focus: Small and medium-sized AIM-listed companies with strong growth potential.
- Sector Diversity: Investments span various sectors including healthcare, technology, and financial services.
- Active Engagement: The Octopus team actively supports portfolio companies to maximize their growth potential.
Recent highlights include investments in businesses driving innovation in digital healthcare, renewable energy, and fintech solutions.
Performance Metrics
| Year | NAV Total Return (%) | Dividends Paid (p/share) |
|---|---|---|
| 2024 | 3.8 | 4.50 |
| 2023 | 2.7 | 4.00 |
| 2022 | 5.2 | 4.75 |
Five-Year Performance Summary: The fund has demonstrated consistent returns with cumulative dividends exceeding 25p per share in the last five years.
Tax Benefits
Investors benefit from:
- 30% income tax relief: Available on investments up to £200,000 annually.
- Tax-free dividends: 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: 0800 316 2295
- Email: [email protected]
- Website: Octopus AIM VCT
Why Consider Access EIS Instead?
Both Octopus AIM VCT and Access EIS provide tax-efficient investment opportunities, but they cater to different investor needs:
| Feature | Octopus AIM VCT | Access EIS |
|---|---|---|
| Investment Focus | AIM-listed growth 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 |