Close Brothers Dev Vct Share Discussion Threads

[timbo003] 22/1/2004 18:12

UKNEONBOY

I too now have the prospectus for the "C" shares, I think I will miss out on this one, too long to wait for a divi and the divi is nowhere near as big as on the original CBD shares. I will however keep my eyes on CBD with a view to buying in the market should we see a dip (I better join the queque!)

I will now drip feed funds into a basket of new issue VCTs before the April deadline, Baronsmead 4 (BNS) will be my first purchase (£4K), I like 'em for a number of reasons; I will get a 2% refund through British taxpayers (bit like a very early divi) and they have more than one market maker, so a nice low bid-offer spread (85 -90p), I know this shouldn't make a difference as I don't ever intend to sell any of my VCTs, but it's comforting to know that if I had to get out for whatever reason, I could do so without getting ripped off.

[ukneonboy] 20/1/2004 11:54

I've got to give Close Bros Ventures 5* (five stars) for PROMPTLY sending me out a copy of the Prospectus and new "C" share application form.

Purely for info purposes, yesterday lunchtime, I phoned requesting the literature and amazingly it arrived this morning. Well Done, Close Bros.

UKNEONBOY

:-)

[a0002577] 20/1/2004 09:11

Got some bumf this morning in the post about Close Bros Aim VCT. They as usual are doing something clever for existing shareholders - limited tender offer to buy back shares and then limited sale of 'D' shares for this year and then a further limited offer of E shares in the next financial year. If of interest will post more info timbo.

[timbo003] 19/1/2004 21:01

UKNEONBOY

Thanks for the advice

I will probably purchase through



as they seem to give good discounts.

My current CGT liability is 40% tax on £6589.88, although I have plenty of opportunity to increase this...and I probably will, that is if Gordon Brown axes the VCT tax dodge in his budget in March

[ukneonboy] 16/1/2004 18:35

timbo0003

Once you are able to get hold of the new "C" share application form, don't forget to ask your stockbroker / financial adviser to put his / her Firm's stamp and SIB number on the applic. form, then hopefully he / she will rebate 50% of the 2.5% commission back to you.

You are making an excellent choice (I.M.H.O)

UKNEONBOY

:-)

[timbo003] 16/1/2004 16:26

UKNEONBOY

Thank you for your comments, I think I will have £10K of the C shares in the new subscription, after all this may be the last tax year where we can defer CGT through VCTs, and I like this one for all the reasons mentioned earlier, especially the divi and the progressive divi policy.

[ukneonboy] 16/1/2004 11:07

GHK

Yes, its a difficult one to call - hardly any CBD sellers in recent weeks and a market-maker (RSP) who is reluctant to go "short".

For the time being, I'm afraid patience may be the only answer.

I tried to buy at 60p and then again at 70p but to no avail, however at 72p I'd imagine you are probably ahead of me in the queue.

If I can find anymore info out, I'll post it here.

UKNEONBOY

:-(

[ghk] 16/1/2004 10:58

UKNEONBOY

I need your help here, because I've left a buying instruction with my stockbroker (T D Waterhouse) to buy some CBD shares at a limit of 72p, only to discover that the market do NOT want to sell any, simply because CBD "has apparently been tipped as a BUY".

What do you suggest now ??? I've followed your advice before and made pots of money so any help would be appreciated.

Thanks

GHK

[ukneonboy] 16/1/2004 09:46

maplinrover and others

Purely by chance, I recently found Close Bros "VCT" website, so if you want to find out more info about their range of VCT's visit:-

www.closeventures.co.uk

regards

UKNEONBOY

:-)

[a0002577] 16/1/2004 09:42

Has been one of the better ones : look at the RNS statements for it. I invested in this one and am not unhappy.

[maplinrover] 16/1/2004 09:37

Close also run an AIM VCT. Any views on that one?

[ukneonboy] 16/1/2004 09:32

TIMBOooo3

For prospective VCT investors wishing to defer C.G.T liabilities the forthcoming issue of new Close Bros Development VCT plc "C" shares would seem ideal for you.

As I understand it, the new "C" share offer begins on 21 Jan 2004 and will close on 02 Apr 2004.

The maximum subscription will be £100,000 and the minimum £1,000

2.5% Commission is payable to Authorised Financial intermediaries, so get the application form, ask your stockbroker to put his firm's stamp and S.I.B number on the form and see if you can persuade him / her to rebate 50% of the commission back to you.

(An investment of £10k in the new "C" share offer will generate £250 worth of commission, so I'm certain most good stockbrokers would be willing to rebate £125 and keep the rest).

UKNEONBOY

:-)

FOR INVESTORS WITHOUT C.G.T LIABILITIES, I ACTUALLY PREFER THE "OLD" CBD SHARES, WHICH CURRENTLY TRADE AT A SUBSTANTIAL DISCOUNT TO N.A.V AND HAVE A HIGH DIVIDEND YIELD.

[a0002577] 16/1/2004 09:06

Timbo - 20% IT relief and rollover as well up to the end of this taxt year. This is one of the better ones but have a look at BritishTaxpayers.co.uk for others or ask where you can get the best rebates from your existing IFA.

As a bonus of course, you get all divis tax free and they don't have to go on your tax return!

[timbo003] 15/1/2004 22:00

maplinrover

Indeed.

However, I also have a horrible CGT liability for this tax year, so the way I look at it is; if I invest £10K, I get £6K back in tax relief.

Well, anyway, that is how it all panned out last year after various correspondence with the Inland Revenue, I even got a rebate cheque, albeit a small one.

[maplinrover] 15/1/2004 21:41

timbo
Pse check but I believe income tax relief is at a rate of only 20% on the amount initially subscribed.

[timbo003] 15/1/2004 21:21

Can I assume that the new C share offer will be a new issue open to new investors? If so I think I will have some (for this tax year), as a 40% income tax payer with significant capital gains to shelter, this one looks good. I like the big divi and the progressive divi policy.

[ukneonboy] 15/1/2004 19:04

Existing investors and prospective investors should take enormous comfort from the fact that CBD's unaudited Net Asset Value, at the end Dec 2003, was still almost 80p per share.

(See R.N.S announcement 15-01-04)

Assuming you can persuade the (RSP) market-maker to sell you some of these beauties at say 70p per share, you are buying into a ready made portfolio of smaller companies, at a big discount to their N.A.V and with a prospective gross dividend yield of at least 6.4% (and this gross div. yield seems low, by historical standards).

IF YOU CAN GET HOLD OF SOME, DO SO.

[ukneonboy] 15/1/2004 12:29

"Outbid yet again" !!!

The L.S.E has today (15.01.04) confirmed that another small block of 2500 CBD shares were traded on 08 Jan 2004, and unfortunately, I didn't get them !!!

The actual purchaser paid just 70p per share, and picked up a real bargain.

UKNEONBOY

:-(

[ukneonboy] 08/1/2004 13:13

The L.S.E has today confirmed that a small block of 4250 CBD shares were traded on 30 Dec 2003. The seller actually received 55p per share, hence my attempts to buy them back from the market at 60p. Ultimately my buying order remains unfulfilled.

Unfortunately,now that the seller's order has been dealt and the stock overhang has apparently "cleared", the market price has today steadied at 60p (bid) - 80p (offer).

Potentially still attractive and still a strong buy - assuming Net Asset Value (NAV) is still at least 80p+

The company's progressive dividend policy is likely to be maintained and the prospective dividend yield is roughly 6.4% at 70p which also adds to CBD's attractions.

[ukneonboy] 05/1/2004 08:01

Zingaro:

Don't think the Close Bros Development VCT plc (CBD) is exempt from I.H.T but the people to ask and confirm this are the fund managers at Close Bros Ventures. (Mr Patrick Reeve & Mr Ole Bettum)

See my earlier post #3, for more contact details - 0207 422 7830

UKNEONBOY

[zingaro] 04/1/2004 19:51

is the close VCT exemt from Inheritance Tax (if held for 2 years)?

[a0002577] 04/1/2004 18:12

Good Luck - if you ever target GFV let me know - some of the other shareholders are pretty cross there at the moment

[ukneonboy] 04/1/2004 17:31

Quite rightly it is generally advisable for "smallish" investors to spread risk through diversification, but I've tracked Close Bros Development VCT plc since launch, and have gradually built up a reasonable sized holding at varying prices from 100p down to 55p - so unfortunately in my case, I think "spreading my VCT risk" MIGHT not now be in my best interests.

I've taken on board the points you've made about other VCT's but it is actually this one, (CBD) that "arbitrageurs" including myself are looking to exploit, either through corporate restructuring + share buy-backs or via an E.G.M break-up and orderly liquidation.

Events will become clearer in the next 4 - 5 weeks.

UKNEONBOY

:-)

[a0002577] 03/1/2004 10:53

Sorry - forgot to mention BSV as well : steep discount, portfolio coming along well and I bought these earlier and am 'in the money' with them.

Also (curiously) MYV - I don't rate Murray Johnstone generally - but these were on a very big discount when I bought a few in the last quarter of 2003. Very substantial discount to NAV but their record is not good and this seems to be the only one of theirs with any potential - maybe (just maybe) they will do better with this one than their earlier ones

regards


Also

[a0002577] 03/1/2004 10:20

Hi - The discount to NAV on this one is not as great as on some others. Have a look at GFV where the discount is huge and more importantly their portfolio is just about to take off. (could take off this year)

I see them (at last) making some capital distributions this year and therefore the price will rise (I hope substantially).

The attraction of the Close Bros VCTs is that they do seem very good at making a steady income.

I have been a long term supporter and buyer of VCTs - some good some not so good and this one is one of the better ones as has been CVC (now trading at a premium to NAV but all of mine were bought below 80 pence and their yield is 8 pence per year. The advantage of them is that they provide a steady tax free income which doesn't even have to be declared on tax returns. However they do have to be bought at a good price and I always keep an eye on all their prices - especially during the close period.

CPR was very good value but I missed the chance to buy at the price I intended due to a delay in the transmission of cash from one firm to another. The NAV is about 89 pence : bid offer 60-70 and yield about 1.5% BUT and this is a BIG but - they are revamping the trust to look like CVC so one should see a marked improvement.

As an aside - I have often thought that there should be an off market exchange for these. The spreads are so big and it is unfair to sellers - often forced sellers - and I for one would be happy to buy some of these at mid price but not at the offer. Indeed I have done so when I have known the deceased and his executors.