News

Northern 2 VCT launched

28 November 2011

New £15 million offer now open for subscription

Northern 2 VCT PLC has just launched a new £15 million offer. For full details click here.

Here are some of the key points of the offer:

• Strong track record: Northern 2 is a 'Generalist' VCT established in 1999 with substantial assets (over £45 million). It has paid dividends of at least 5.5p per share in each of the last seven financial periods.
• 9.7% p.a. target tax-free yield: the Board's stated objective of paying an annual dividend of at least 5.5p per share represents a tax-free income of 9.7% per annum (based on 56.7p, being the current offer price of 81p less 30% income tax relief).
• Asset allocation & diversification: subscriptions into this Ordinary Share top-up will be invested in a VCT already comprising 43 different companies. This will diversify risk and provide immediate exposure to the private equity asset class.
• 30% income tax relief: subject to five year holding period and personal circumstances.

Early Bird Offer - up to 2% in extra shares
If you are an existing shareholder in NVM managed VCTs, you qualify for an extra 2% in shares of the amount subscribed if your application is received and accepted by 6 February 2012. All other investors can still receive an extra 1% in shares if an application to subscribe is received and accepted by this date.

Risk Factors
Your attention is drawn to the risk factors set out on page 1 of the Securities Note. An investment in a VCT is only suitable for investors who are capable of evaluating the risks and merits of such an investment and who have sufficient resources to bear any loss which might arise. Before making any decision to invest contact your financial adviser. The key risks are set out below:

• Tax reliefs: the availability of the tax reliefs depends on the companies invested in maintaining their qualifying status. If the Trust does not maintain VCT qualifying status investors could lose the upfront 30% income tax relief and all other tax reliefs. All tax reliefs are subject to change in the future and personal circumstances. Please refer to HM Revenue & Customs' website for further guidance on the tax reliefs available on VCT investments.
• Liquidity: it may prove difficult for shareholders to sell their shares at a fair price, or at all. 
• Investment performance: the Trust will invest in small unlisted companies which, by their nature, are higher risk than larger "blue-chip" companies. Shares in such companies may be difficult to sell. Past performance is not a reliable indicator of future performance.
• Investment restrictions: the Trust's ability to obtain maximum value from its investments may be limited by the VCT rules. Changes in the VCT rules may be applied retrospectively and may reduce the level of returns for investors.
• Speculative risk: the value of shares may go down as well as up and shareholders may not receive back the full amount invested. In addition, there is no certainty as to the level of dividends.