Review: Maven Income and Growth VCTs

Maven is one of the most highly regarded VCT managers – and for good reason, in our view. At the core of the Maven portfolios are some really good, mature, if sometimes unglamorous, businesses – from the UK’s number one manufacturer of shower trays to a company that provides services to refineries and chemical and petrochemical plants around the world. These businesses are unlikely to make headlines in the national news, but have helped reward investors over the years. 

Maven Income & Growth VCT – Crawford ScientificA history of exits and generous dividends 

Since 2015 Maven completed 11 profitable realisations, delivering returns of up to 7.1x cost.

One of the most recent, in October 2017, is Crawford Scientific, a leading supplier of chromatography products and analytical services to the laboratory research and testing sectors. 

The sale to Limerston Capital Partners realised a return for Maven clients of 4.5x the initial investment in just over three years. Past performance is not a guide to the future. 

These exits have helped support dividend payments. In the past five years, Maven Income & Growth VCT (MIG) has paid out an average annual dividend of 7.9p. Over the same period, Maven Income & Growth VCT 5 (MIG5) has delivered an average annual dividend of 3.2p. Dividends are not guaranteed.

“Different beasts” – same strategy 

Historically, these two VCTs are “very different beasts”, in the words of Bill Nixon, the fund manager. 

MIG has always been a traditional generalist VCT. MIG5 started as an AIM VCT. After Maven took it over, it has gradually increased the number of unquoted investments and reduced AIM exposure whilst seeking to hold onto AIM investments that show promise. 

Currently the same investment strategy applies to both VCTs, which typically co-invest – often alongside the other Maven VCTs – in the same deals. Maven focuses on regional opportunities, which London-centric VCTs might miss. It targets established entrepreneurial businesses, led by proven management teams which Maven believes have robust growth prospects.

Performance

Source: Maven. Past performance is not a guide to the future. Dividends are not guaranteed. Chart shows Net Asset Value and cumulative dividends paid to 28 Feb (MIG1) and 30 Nov (excluding 2018, MIG5) each year, pence per share.

Risks - important

This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice. 

VCTs are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value. Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks. 

Tax rules can change and benefits depend on circumstances.

VCTs can now only invest new money in growth capital deals. Management buyouts/replacement capital deals and investments in mature companies are no longer permitted. This results in considerably higher risks. 

What to consider next

Please visit the offer page using the link below to download the provider documents, read more (including risks and charges) and apply online.

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