The Baronsmead VCTs have launched an offer for up to £50 million (£30 million + £20 million overallotment).
The VCTs have total net assets of £432.1 million and a portfolio of over 85 companies.
The Baronsmead VCTs are probably the most diversified of all VCTs, with exposure to AIM listed and private companies, as well as a big allocation to main market listed UK companies through Gresham House managed funds.
Over the five years to June 2025 the VCTs delivered an average NAV total return of 9.4%.
The VCTs target an annual dividend equal to 7% of NAV.
Nicholas Hyett, Investment Manager at Wealth Club said, “An analyst once described Baronsmead VCTs as the ready salted crisps of the VCT world – they’re arguably a bit bland, but have near universal appeal.
The trusts’ portfolio is well diversified, with dedicated teams covering both AIM listed and private companies. The trusts also have nearly a third of their money invested in Gresham House managed mainstream equity funds – an unusually large allocation to a comparatively low risk asset class for a VCT. That diversity should help to mitigate the volatility you see in more concentrated VCTs, though might also reduce the potential for really outsized returns.
The Baronsmead VCTs also target a tasty 7% dividend yield – one of the most generous dividend policies in the sector and a target they’ve hit for each of the last ten years. It’s not hard to see why the VCTs are perennially popular.”
Leave a Comment