Amati AIM VCT

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Amati AIM VCT is the new name for Amati VCT 2 plc which merged with Amati VCT plc in May 2018. It is raising up to £10 million through its over-allotment facility.

Highlights

  • Mature AIM-focused VCT
  • Target dividend of 5%–6% of NAV (dividends variable and not guaranteed)
  • Diversified portfolio, plus exposure to TB Amati UK Smaller Companies fund
  • No performance fee
  • Minimum investment £4,000

The manager

Amati Global Investors, based in Edinburgh, is a specialist smaller-companies fund manager. It was founded in 2010 as a management buyout of Noble Fund Managers. The fund managers of the VCT are Paul Jourdan, Douglas Lawson and David Stevenson.

In February 2017, AIM-listed wealth manager Mattioli Woods took a 49 per cent stake in Amati Global Investors. This entitles it to acquire the remaining shares of the company between 2019 and 2021.

The Amati VCT has a focus on AIM-listed companies. It will also make the occasional unquoted investment. The VCT aims to pay dividends at a level of between 5% and 6% of the year-end net asset value. Dividends are variable and not guaranteed.

Risks

Please remember capital is at risk. VCTs are high risk investments and are not suitable for everyone. Investors should not invest money they are not prepared to lose. 

As with other AIM-listed VCTs, the net asset value may fluctuate more than with unquoted VCTs. In addition, even though the underlying companies’ shares may have a listing, there is no guarantee of liquidity. The difference between the buying and selling price of AIM-listed companies is often wider than fully listed ones.

The prospect of a change to the Inheritance Tax rules concerning AIM shares could also be a concern. If BPR rules were to change and Inheritance Tax exemptions were to be removed from large AIM-listed companies, demand for these stocks could be reduced and therefore valuations on AIM could suffer. Tax rules can change and tax benefits depend on circumstances.

Fees & charges

A summary of the fees and charges is shown below. 

Full initial charge 3%
Wealth Club initial saving 2%
Net initial charge through Wealth Club 1%
Annual charge 1.75%
Performance fee nil

More detail on the charges

Share buy backs

Amati AIM VCT operates a share buy-back facility at a discount to net asset value. This is subject to availability and Board and shareholder approval. Please see the offer documents for details.

Dividend Investment Scheme (DRIS)

There is a Dividend Investment Scheme which 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.

Wealth Club aims to highlight investments we believe have merit, but you should form your own view. You should decide based on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 04 July 2018

The details

Type
AIM
Target dividend
-
Initial charge
-
Initial saving via Wealth Club
-
Net initial charge
-
Annual rebate
-
Funds raised / sought
£30 million / £30 million
Deadline
CLOSED

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