Ventus Vct Share Discussion Threads

[sharesoc] 16/8/2019 17:07

There is a detailed report on Ventus' recent AGM which can be found in our members area here:

To access the report, you'll need to be a full member of ShareSoc, which is a not-for-profit organisation that supports individual shareholders and campaigns for shareholder rights. If you're not already a member you can join here:

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[spectoacc] 16/8/2019 06:33

Lol no - definitely a scam.

AGM stuff all worth reading - Nick Curtis very nearly succeeded in getting on the Board (& deserved to IMO). Rare to see such a massive vote against incumbent directors, I reckon they've one more year at most.

[rbcrbc] 15/8/2019 20:05

Has anyone else received a phone call that sounds like a scam offering £6-£15 a share !!!

[spectoacc] 25/6/2019 19:41

Mixed feelings so far - they've addressed some of the headline issues, presumably to head off losing the vote, without dealing with some of the more insidious stuff, particularly the more "hidden" fees & conflicts.

Share classes to (finally) be merged, debt rescheduled and cheaper, small special divi.

[spectoacc] 25/6/2019 14:47

Thanks for that - I've a lot across the Ventus range but almost all in nominee a/cs. Charges have long been ridiculous.

Edit - oh! I need to read this morning's news from the co.

[sharesoc] 25/6/2019 12:28

Check out this recent blog post on "VCT Investor Group – Ventus & Ventus 2 VCT Shareholder Resolutions"

[a0002577] 15/6/2017 09:27

The final results are out and while the NAV has gone up (because they have upped the asset life from 20 to 25 years) - I am most displeased with these statements in the VEN2 report - and there are similar ones in the VEN1 report

information on the calculation of the management ‘bonus’

It is difficult to find the relevant info in the report but if you look at the VEN2 Annual Report (looking at the C class shares) you will find all the information you need as follows:

* start with Note 3 to the accounts (on page 48 of VEN2 report) which sets out the terms for the manager's bonus. i.e. once the total NAV return exceeds 160 pence then the manager is entitled to 20% of the amount by which the return exceeds 7 pence in the year.

* then find the total NAV return on page 9 - bottom line - and it is 158.83 pence - i.e. below the 160 pence threshold.

* then find the 'return per share’ - bottom line on page 40 – which is 15.92 pence for the C shares - so if target is achieved manager is entitled to 20% of 8.92 pence (the amount left after taking off the 7 pence).

* Finally look to page 3 where it says that if the dividend is approved the manager will be entitled to the performance related incentive fee.

The logic of the board seems to be that the fee is only paid if the dividend is counted twice - once because it is already in the NAV at the year-end – and again when it is paid. Scarcely in the shareholders’ interests.”

[a0002577] 28/5/2017 17:37

Hi

This is the letter I sent to the Chairman in early April

Dear Mr Moore

MANAGER’S FEES

I trust all is going well.

I, and a number of shareholders I have communicated with recently, am still very concerned by the high management charges levied on the assets of Ventus 2 VCT plc which is fully invested. The changes in the rules preventing any new wind farm assets being purchased means that the manager’s work load has been considerably reduced but as yet there has been no commensurate cut in fees.

Two announcements made this year by VCTs with a similar business model are interesting in context – and while I am sure you are aware of these I feel it is necessary to draw them to your attention

A. Hazel

The Hazel Renewable manager has offered a reduction in management fee from 1.9% to 1.4% now it is fully invested. See page 9 of the circular below.

... c_2016.pdf.

The rest of the document makes interesting reading as well.

B. Foresight Solar & Infrastructure VCT plc

The half yearly RNS states, inter alia, “The annual management fee of the Ordinary Shares fund is 1.5%.” and can be viewed in its entirety here ... 2157H8476/

It also includes these statements: “As outlined in my statement last October, the key focus of the Board and the Investment Manager is to optimise the portfolio's performance and valuation through a number of concurrent processes including optimising the debt content of investments through refinancing at historically low interest rates; extending leases and planning permissions from 25 years to 35 years to reflect the expected useful life of the plants; and to lock-in increased power prices by entering into power price agreements (PPAs) that maximise revenues...”

If you were to implement some or all of the changes being pursued by other similar VCTs it would a) considerably enhance the dividends and b) have a substantial effect on the NAV and so I – and other shareholders – really hope you are examining and implementing similar moves within Ventus VCT 2 plc.

I hope this is useful and shall look forward to hearing from you and seeing the full year results in due course – and, of course, attending the AGM

Yours sincerely

It looks as though the RNS should have been dated 1st April !!

[spectoacc] 28/5/2017 09:38

Cheeky sods!

"...The annual management fee will reduce from 2.5% to 2.25% of net asset value and will reduce further to 2.125% from 1 November 2020 and to 2% from 1 November 2021 onwards."

I'm all for a reduction, but exactly why does it take until "..From 1 November 2021" to drop to 2%?

[a0002577] 26/5/2017 18:33

So they have produced an RNS saying they have agreed a lower fee with the manager : dropping it from 2 and a half% to 2 and a quarter% Pathetic

The board should go and we will see what happens at the AGM.

[a0002577] 18/5/2017 09:30

I too have rather a lot - and have bought more recently - including a few D shares which are like hen's teeth. If they ever do something about the high charges NAV will go up and the dividend will also go up. Probably add 20% to share price if they ever get their act together. And all tax free income which supplements my pension nicely.

Will keep in touch - regards BBB

[spectoacc] 18/5/2017 09:11

Ah thanks @BBB, thought it had all gone a bit quiet over there!

I've considerably more Ventus than I had before, and happy to hear any proposals. Important we keep on at the Board.

[a0002577] 18/5/2017 08:48

Absolutely right, SpectoAcc.

I have written to the chairman about the high costs - and suggested that they reduce them in line with other green infrastructure VCTs - and got a non-committal reply. My letters also included an idea for merging the share classes and a progressive incentive for the manager. i.e. the hurdle increases every year.

With the closure of the Fool Boards, most of us have migrated to the Lemon Fool and kept our monikers. Worth a look. It is free and run by ex-Fools.

When the Ventus twins release their results, and they don't say they are reducing the costs to say 1 and a half percent, I shall write to the larger shareholders of VEN 2 ( i already have the register) asking them to support removing the whole board.

with kind regards - BBB

[spectoacc] 17/5/2017 14:06

Been waiting for merger of Ord & C-class of these - but seemingly now not happening. Main reason to look forward to it was a slight lowering of costs - no surprise to find them keeping the costs high!

[a0002577] 04/8/2016 09:32

SpectoAcc

Can you do a post on the Fool and then I will reply to you off board. You may just get a chance to vote before next AGM! Or you can do an off board reply to one of my Posts (or TImbo's) and we can tell you what is happening. - kind regards - BBB

[spectoacc] 04/8/2016 09:17

Some excellent points on those threads, will look forward to using my votes in just under a year's time.

[spectoacc] 04/8/2016 08:31

"Virtually dead" an understatement! Thanks for the Fool link, will take a look - big into the Ventus funds and was going to start a new thread, but only when I'd decided I had enough :) Will leave it if The Fool is the place to be.

[a0002577] 04/8/2016 08:02

This thread seems to be virtually dead here but over on the Motley Fool there is an active discussion going on : have a look at posted by Timbo003 which gives links to other relevant Ventus discussions. - Please join in

regards - A00 (aka BusyBumbleBee on the Fool)

[a0002577] 30/10/2014 14:42

Hello - long time since I have posted here. Back in the early days of this VCT I didn't invest as I had already done my share for that year but thought it was a good bet. I was wrong - terribly mismanaged at the beginning and didn't get anywhere near the yield of 8% they touted at launch - and it is still a long way off. However there does seem to be value emerging BUT there could be even more value emerging in Ventus 2. I bought into that heavily a few weeks ago when they were yielding close on 7%. The yield on my original investment is now up as they have increased the Dividend and I am sitting on a share price gain to boot - but I have no intention of selling.as the half year report was quite encouraging

[spin doctor] 30/7/2014 22:51

Extraordinary share price discount of ~23% to a conservative NAV.

At least with a stock like this one cannot justifiably be accused of ramping ;.)

[timbo003] 30/7/2014 20:22

It was the AGM yesterday, see my report over on the Motley Fool:

[freda] 01/11/2013 07:17

For me, probably the most interesting part of the interim figures is the upward visability of future dividends, 6-8p in the case of VEN. Either the dividend figure will not be met, or the share price will have to increase to make the yield sensible again. A nice long term hold, especially at the current NAV discount.

Steady as she goes but in the right direction.

[timbo003] 29/10/2013 10:02

Interim results (to 31st August) just out.

A very quick perusal, suggests that from the headline figures, it is very much a case of steady as she goes:

Ventus Ordinary shares: NAV 121.4p (up 2.71p since Feb 28th), divi 2.5p
Ventus C shares: NAV 106.5p (up 1.99p since Feb 28th), divi 2.5p

Ventus 2 Ordinary shares: NAV 71.5p (up 1.52p since Feb 28th), divi 1.75p
Ventus 2 C shares: NAV 107.0p (up 2.06p since Feb 28th), divi 2.5p


All four classes of shares go ex divi 13th Dec, with dividends payable on Jan 15th.

[freda] 08/10/2013 08:15

Electricity costs in the UK expected to double by 2020. This cannot do any harm to VEN whose costs are just the depreciation of the physical assets installed a few years ago. I do wonder when the market will wake up to this share currently yielding 6% tax free, with the yield only likely to go in one direction.

[timbo003] 21/8/2013 22:04

SD, I got the distinct impression at the AGM that Ventus 1&2 intend to trade some of the production assets, but they did not give any indications of which ones, or when, although I did pick up that VEN1 is in for a bit of a windfall, following on from Broadview's recent disposals.

I saw the Greencoat interim results last week (they are trading at a 6% premium to NAV, Ventus is at a circa 25% discount). There is a useful slide summarising their results on their web site which is worth a look:


Alas, I have now given up trying to do valuation comparisons for Ventus and Greencoat (other than published NAVs), there are just too many unknowns and differences in the two models, for example:

* Greencoat have a substantial amount of offshore generation capacity, Ventus do not.

* Greencoat windfarms do not have operational gearing, Ventus's do, although we do not know all the details.

* Greencoat don't have any early stage pre production projects, Ventus do.

* Ventus have some hydro (and landfill) projects, Greencoat do not.

etc....