New Cent. Aim Vct 2 Strategy/Company/Operations Update
October 18 2016 - 11:35AM
UK Regulatory
TIDMNCA2
NEW CENTURY AIM VCT 2 PLC
4th Floor, 50 Mark Lane, London EC3R 7QR
Phone: 0203 216 2000
Registered in England under Company No. 5352611
Registered Office: as above
17 October 2016
Dear Shareholder
Your fund is approaching its tenth anniversary and your board
feels that it is now appropriate to offer you the opportunity to
decide your funds future direction.
Your fund has developed a diverse portfolio of Aim stocks and is
now performing reasonably well, in fact over the last 3 year period
it is the second highest performing fund out of 11 funds in the Aim
VCT sector.
We have had some success in reducing the discount the shares
trade at, compared to the Net Asset Value (NAV), by offering an
annual 10% buyback facility.
These buybacks arranged at just a 5% discount to NAV have helped
those shareholders wanting to realise some of their investment and
also helped the share price to rise to more fairly reflect the
underlying value of the assets in the fund. Nevertheless the board
realises that there might be shareholders who wish to fully realise
their investment and so we feel that now is the time to outline the
different options that we believe are available.
OPTIONS
1. To proceed with an orderly winding up of the fund and to
return any monies realised to the shareholders.
This process would take some time so as to ensure as far as
possible that fair values were achieved on disposal of the
portfolio.
In addition the process could not be started until at least
April 2017 at which time the last shares issued in the fund will
have existed for over 5 years, which is the minimum period that the
shares can be held to qualify for Income Tax Relief.
Any disposal of its investments that caused the percentage of
the fund invested in Qualifying Assets to fall below 70% would
result in the fund losing its VCT status and consequently the
Income Tax Relief mentioned above.
2. To continue with buybacks.
This option does return some of the shareholders' investments to
them but in a limited amount.
This is a compromise option but your board believes it does not
satisfy those shareholders who wish to fully realise their
investment, while it also reduces the cash available in the fund to
pay dividends.
3. To continue with the fund in its present form but to focus on
producing a bigger income stream for shareholders.
This is the option favoured by your board. We consider that a
progressive dividend policy aiming to achieve a yield of circa 5%,
tax free, is an attractive proposition, particularly in the present
low interest rate environment.
The Board of Directors and certain other individuals who in
total control 35.63% of the company's issued shares have undertaken
to vote for option 3.
With this letter you will find a prepaid card/envelope with the
voting options clearly shown.
We will write to the shareholders again after this exercise to
inform you of the outcome of the voting and let you know the
upcoming timetable of events.
Geoffrey Gamble
Chairman
New Century AIM VCT 2 Plc
View source version on businesswire.com:
http://www.businesswire.com/news/home/20161018006362/en/
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October 18, 2016 11:35 ET (15:35 GMT)
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