Octopus AIM VCTs

Octopus AIM VCT and Octopus AIM VCT 2 are two of the longest-running AIM VCTs and benefit from a large and well-resourced investment team.

They provide exposure to a portfolio of more established AIM companies alongside earlier-stage businesses from newer investments, and a small allocation to the Octopus suite of UK equity funds. As at November 2025, 64% of the portfolio companies were profitable and 36% paid dividends.

Over the 10 years to 31 December 2025, the VCTs delivered a NAV total return (including dividends) of -6.1% for Octopus AIM VCT and -0.2% for Octopus AIM VCT 2. Shorter term, in the five years to December 2025, the VCTs’ performance has suffered: they produced a NAV total return of -37.1% and -35.0% respectively, including cumulative dividends equivalent to 28.3% and 27.7% of starting net asset value. Recent performance reflects the challenging times that AIM as a whole has faced since 2020. Past performance is not a guide to the future.

The VCTs have combined net assets of £190.4 million, with around 80 investments across the two VCTs (November 2025).

• Seeking to raise up to £30 million, with a £30 million overallotment facility
• Target an annual dividend of 6% – variable and not guaranteed
• Available in the 2025/26 tax year
• Minimum investment £5,000
• Deadline: 4 March 2026 for 2% early bird saving and up to 4.6p declared dividend

The Octopus AIM VCTs are managed by the Octopus Quoted Companies team, which includes some of the most experienced AIM-focused fund managers in the market. Together, they look after nearly £1.5 billion across all Octopus products (September 2025).

Headed by Richard Power and Kate Tidbury, the team of 14 conducts hundreds of company meetings each year – a level of activity competitors might struggle to match and which could be an advantage in sourcing and analysing new investment opportunities.

Overall, the wider Octopus Group manages £10 billion on behalf of over 75,000 investors (September 2025). Octopus is the UK’s largest VCT manager, with over £1.5 billion across its VCTs.

Octopus AIM VCT launched in 1997 (originally as Close Brothers AIM VCT plc) and Octopus AIM VCT 2 in 2005 (originally as Close IHT AIM VCT plc). Since 2010, the VCTs have followed the same investment mandates, investing alongside each other in every deal. Today, the portfolios are near identical with similar performance and dividend track records. Investors can choose one or the other or split their investment.

The VCTs’ managers will consider all qualifying sectors for new investments. In particular, the team looks for companies with one or more of the following:

• strong management
• healthy and largely debt-free balance sheet
• a niche product taking a growing share of a growing market
• a clear path to profitability

Most of the VCTs’ deal flow is expected to come from AIM IPOs – though activity has been muted in recent years – and existing holdings. It will on occasion take small positions in pre-IPO companies, either to secure the ability to follow on at IPO or when opportunities are concentrated in that part of the market.

The team is willing to hold investments for the long term, providing it sees the business has potential to grow. Indeed, some of the companies have been in the portfolios for over a decade. If the managers believe a holding has become too large (greater than 5%–6% of the portfolio) the team may reduce the VCTs’ position to maintain balanced weightings.

In The Style was a fast-fashion retailer which marketed styles selected by a network of social media influencers. At its peak, the company had sales in 100 countries to over 1.5m customers.

The Octopus AIM VCTs invested in March 2021 at a price of 200p. The self-funded, founder-led business had delivered rapid growth since launch in 2013 and targeted 50% a year revenue growth over 2021–2023.

Unfortunately, it warned on profits in September 2021 as shipping and freight costs rocketed. In July 2022, the business reported flat sales for the year and a loss. Ultimately, In The Style’s board launched a strategic review in December 2022, and the business was taken private. The Octopus AIM VCTs opted to sell its shares at 0.42p.

Most of the companies in which AIM VCTs invest are quoted on AIM, so shares can be bought and sold more easily than is the case with private (unquoted) companies. Realisations – particularly partial ones – are common with AIM VCTs, for instance, to rebalance the portfolio. We do not believe they are indicative of a manager’s performance and for this reason we don’t focus on them. 

Dividend reinvestment scheme

There is a Dividend Reinvestment Scheme that allows shareholders to reinvest future cash dividend payments in new shares if desired. As these are new shares they should be eligible for tax relief (you will need to claim this on your tax return or directly with HMRC) and the shares will count towards the VCT annual subscription limit. 

Share buy-back policy

The boards intend to buy back shares at up to a 5% discount to the prevailing net asset value. This is not guaranteed – please see the offer documents for details. 

Discount history

VCT shares are traded on the London Stock Exchange. Similar to investment trusts, the share price can fluctuate and can be different from the VCT’s net asset value (NAV), i.e. the value of the VCT’s underlying investments. The difference between the share price of a VCT, and its net asset value per share, is called a discount.

Based on data from Morningstar, the average discount to NAV as at 31 December 2025 was -4.0%. Over the previous five years the average discount to NAV was -5.1%.

The discount history is based on the closing share price of the VCTs at the end of each month, divided by the latest net asset value at the time. Past performance is not a guide to the future. Investors looking to sell their VCT shares may get a better price using the VCTs’ share buyback facilities, although this is not guaranteed.

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. 

To retain the tax benefits, VCTs should be held for at least five years. If you sell VCT shares and reinvest in new shares of the same VCT (including any mergers) within six months, tax relief can be restricted. Tax rules can change and benefits depend on circumstances.

The quantity and quality of investment opportunities available to AIM VCTs is dependent on sufficient VCT-qualifying fundraising activity on the AIM market, which will fluctuate. 

AIM shares can be very volatile and could suffer extreme volatility if the market falls sharply. The difference between the buying and selling price of AIM-listed companies is often wider than those listed on the main market. 

Annual rebate

The offer includes an annual rebate for Wealth Club investors, payable for the first three years. This is a rebate of our renewal commission and should be equivalent to a percentage (shown in the table above) of the net asset value of the offer shares issued to you when you invest. Terms and conditions apply.

Deadlines

• Deadline for 2% early bird saving and up to 4.6p declared dividend: 4 March 2026 (5pm)
• Deadline for 1% early bird saving and 2025/26 allotment: 30 March (5pm)

The Octopus AIM VCTs benefit from being managed by a well resourced and experienced team with access to companies' management teams and deal flow.

Over the long term, the Octopus AIM VCTs have been able to sustain a dividend yield in the middle-single digits or higher, and they target a yield of 6% going forward – not guaranteed. Past performance is not a guide to the future.

As an AIM VCT, the trusts are subject to market volatility. Growth companies on the AIM market have endured a period of challenging performance, and this has taken its toll on the VCTs. However, the investment team believes this has created an environment of excessive pessimism and has left many of its portfolio companies trading at attractive valuations.

Fundraising on AIM has also declined significantly in recent years, resulting in limited new investment opportunities. However, the manager expects this to change – with opportunities arising both from existing portfolio companies looking to raise new capital and new ones coming to market.

The Octopus AIM VCTs are two of the more diversified AIM VCTs and, in our view, the offer could appeal to experienced investors aiming to back high-quality growth-orientated UK small companies in a tax-efficient manner.

This financial promotion has been communicated and approved by Wealth Club Ltd on 12 January 2026

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.