The Octopus Apollo VCT
Fund Overview
The Octopus Apollo VCT, managed by Octopus Investments, offers a diversified portfolio of over 45 high-growth UK companies. As of July 2024, the VCT had net assets of £439 million and targets a dividend yield of 5% per year. The fund primarily invests in business-to-business (B2B) software companies with proven market propositions.
Investment Strategy
The Apollo VCT focuses on scaling established UK businesses with high growth potential. Key features include:
- Sector Focus: Predominantly invests in B2B software and technology sectors.
- Diversified Portfolio: Maintains a broad range of investments to mitigate risk.
- Active Engagement: Provides strategic and operational support to portfolio companies.
Recent Highlights:
- Investments in companies like Switchee, VaultSpeed, and SOVA.
- A defensive investment structure ensures resilience against market volatility.
Performance Metrics
| Year | NAV Total Return (%) | Dividends Paid (p/share) |
|---|---|---|
| 2024 | -1.3 | 5.1 |
| 2023 | 8.2 | 5.0 |
| 2022 | 12.2 | 11.2 |
Note: NAV Total Return combines NAV growth and dividends paid.
Tax Benefits
Investors benefit from:
- 30% income tax relief: Available on investments up to £200,000 annually.
- Tax-free dividends: Regular income 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 Apollo VCT
Why Consider Access EIS Instead?
Both Octopus Apollo VCT and Access EIS provide tax-efficient investment opportunities, but they cater to different investor needs:
| Feature | Octopus Apollo VCT | Access EIS |
|---|---|---|
| Investment Focus | Established high-growth companies with proven business models | 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 |