Puma VCTs

Puma VCTs adopt our established asset-backed investment strategy primarily investing in established businesses in the form of ordinary equity offered together with senior-secured loans.  

Our principal focus is on capital preservation, generating stable returns for our investors whilst seeking to offer robust downside protection by identifying businesses and opportunities with substantial asset-backing, including in the form of real estate, stock and contracted receivables. The primary benefit of funding businesses in this way is that should the underlying businesses not perform as anticipated, assets over which security has been taken may be liquidated to recoup amounts advanced. 

Please see the Risk Factors below.

£220m+

Raised across 12 Puma VCTs

£30.6m

The largest limited life VCT fundraised for 2015/16 by Puma VCT 11

What are VCTs?

Venture Capital Trusts (VCTs) were launched in 1995 to incentivise investment in smaller companies. Since then over £5 billion has been raised for VCTs and they have become an established fixture in the UK investment landscape. 

Tax Benefits:

Investing in smaller companies carries a higher level of risk than investing in more established companies. So to encourage investment in VCTs, tax incentives are available to investors. These tax incentives are currently:

Up to 30% income tax relief on the amount subscribed

Tax-free dividends

 

Tax-free capital gains

 

The maximum investment in a VCT is £200,000 per person per tax year. Whilst the tax advantages are very attractive, investors need to hold shares in the VCT for a minimum of 5 years to maintain the initial tax relief. As with all investments, VCTs do carry risk and therefore are not always suitable for all investors. Please see the Risk Factors below.

Investment Criteria:

Under the current VCT legislation, the Company has to hold 70% of its assets by value in qualifying investments within 3 years. The companies in which qualifying investments are made must have no more than £15 million of gross assets and 250 employees (certain trades do not qualify for VCT treatment). 

Structure:

All Puma VCTs are listed on the London Stock Exchange. 

£6.22bn

raised by VCTs since 1995

£3m

average size of VCT investment per company

85%

of companies have seen an increase in turnover since VCT investment

Track Record

The Puma Investments team has a 20 year track record of investing into smaller companies.

By following our asset-backed funding strategy, each of the first five Puma VCTs led their group for total returns. 

The first two VCTs were the first limited-life VCTs to return over 100p per share to investors and Puma VCT V delivered a total return of 106.3p per share, equivalent to a total return on the invested amount of 52.3% (equivalent to a 9.4% annual return), making it most successful limited-life VCT to date.

Past performance is no guarantee of future results.

£220m+

RAISED

£231m raised across 12 previous VCTs

£89m

RETURNED

Dividends in Puma VCTs to date

106.3p

PER SHARE

Return for Puma VCT V – best performing in this sector

70%

MARKET SHARE

Of Limited Life fundraise in the 2015/16 tax year

VCT Launched Net Cost of Investment Per Share Total Cash Distributions to date Net Asset Value per share1 Annualised Return
Puma VCT plc 2005 60p 101p Exited 11.60%
Puma VCT II 2005 60p 101p Exited 11.60%
Puma VCT III 2006 60p 94.60p Exited 9.90%
Puma VCT IV 2006 60p 93.30p Exited 9.80%
Puma VCT V 2008 70p 106.30p Exited 8.40%
Puma High Income 2010 70p 97.5p Exited 7.26%
Puma VCT VII 2011 70p 50p 46.36p 6.66%
Puma VCT 8 2012 70p 25p 77.87p 8.68%
Puma VCT 9 2013 70p 18p 86.04p 11.39%
Puma VCT 10 2014 70p 12p 85.09p 15.40%
Puma VCT 11 2015 70p NIL 97.66p 25.89%
Puma VCT 12 2016 70p NIL 95.38p 2

 

1Net Asset Value per share excluding distributions as at 28 February 2017

2Recent launch so not applicable

Please note, Puma VCT 8, 9 and 10 have made dividend payments following the calculation of the most recent NAVs at 31 January 2017. Dividend payments will reduce the net assets of the companies, and therefore will have a material impact on the NAVs per share.  These distributions will be accounted for in the calculation of the NAVs at the end of the period in which they were paid. Please contact Investor Relations on 020 7408 4101 should you have any queries relating to this.

Independent Reviews


"Puma VCT 12 should benefit from the significant structuring expertise of the Investment Managers qualifying team (which Puma claims will allow it to follow the same investment strategy as the previous Puma VCTs, notwithstanding the recent proposed changes to VCT legislation), coupled with the strength of its in-house asset management team." Tax Efficient Review, Martin Churchill. Review of Puma VCT 12

 

“Puma VCT V has beaten Puma VCT I & II by a considerable margin, and returned £106.3p per share to investors making it the best performing limited life VCT to date.”Tax Efficient Review, Martin Churchill. Review of Puma VCT 11

 

“Individuals may take encouragement from Puma's creditable VCT record to date, which we regard as very good .”Tax Shelter Report, Allenbridge. Review of Puma VCT 10

Score

86 / 100

Martin Churchill

Example Investments

Brewhouse & Kitchen

£3.1m investment in Brewhouse and Kitchen, a specialist pub owner/ operator developing pubs with on-site breweries in strong locations across Southern England. The Puma VCTs are supporting the roll out of this concept through the acquisition of selected freehold and leasehold pub sites.

The Brewhouse and Kitchen team has a strong track record in the sector with notable past successes. The investment is secured with a first charge on the business and each site acquired and is made available at 65% of the value of any approved freehold site acquired (or a proportionally lower percentage for leasehold units).

Opes Industries

£8m investment in Opes Industries, a clean technology and waste management  business, to facilitate the development of a materials recycling facility at an established landfill and aggregates business on a 76 hectare site in Oxfordshire.

Opes Industries has assembled an impressive team to oversee the development and operation of the facility, once completed. The investment is secured with a first charge on the business and the freehold site.

Chinook Urban Mining

£5m investment in Chinook Urban Mining, a developer and operator of gasification technology for energy from waste, to support the development of its flagship plant in the new Sustainable Industries Park in East London. The plant, utilising a leading technology, will generate electricity through the gasification of municipal solid waste and commercial and industrial waste. 

 

The management team has extensive experience in the development and operation of similar plants and the investment is secured with a first charge on the business and the long leasehold site on a very conservative basis.

Puma VCT 12

Puma VCT 12 is now closed for subscriptions. 

The Offer

Established Strategy

Implementing an established investment strategy primarily investing in established businesses in the form of ordinary equity together with senior secured loans

Target Dividends

Target average annual tax-free dividend of 5p per share commencing from April 2018 over the rest of the life of the fund

5 Year Life

It is envisaged that after 5 years, the Directors will propose a special resolution for shareholders to vote on the process of winding-up the Company or similar means of distributing shareholders’ capital and income

Tax Free

Dividends and capital gains

Both dividends received and any capital gains made upon the disposal of shared are tax free

Income Tax Relief

on up to £200,000 per tax year

Closing Date

31 May 2016

Summary of fees

Initial: PROMOTER FEE 3% of amount subscribed
Ongoing:   ANNUAL MANAGEMENT FEE 2% of net asset value p.a.
ADMINISTRATIVE FEE 0.35% of net asset value p.a.
PERFORMANCE FEE 20% of amounts realised in excess of 100p per ordinary Share

 

Note: Tax benefits are subject to personal circumstances, minimum holding periods and may be subject to change. Investors should take independent advice.

Risk Factors

An investment in Puma VCT 12 carries risk and you should take your own independent advice. You should only invest in Puma VCT 12 on the basis of the Prospectus which details the risks of the investment. Below are the key risks:

General

Past performance is no indication of future results and the forecasts in this documentation are not a reliable indicator of future performance. The payment of dividends is not guaranteed. Investors have no direct contractual right of action against Puma Investments. The Financial Ombudsman Service/ the Financial Services Compensation Scheme are not available. 

Capital at Risk

An investment in Puma VCT 12 can be viewed as high risk. Investors’ capital may be at risk.

Tax Reliefs

Tax reliefs depend on individuals’ personal circumstances, a five year minimum holding period and may be subject to change.

Liquidity

It is unlikely there will be a liquid market in the shares of Puma VCT 12 and it may prove difficult for investors to realise their investment immediately or in full.

Offers Documents


Puma VCT 12 plc - 2-page Summary

Puma VCT 12 plc - Investment Summary

Puma VCT 12 plc - Investment Details

Puma VCT 12 plc - Application Form

Puma VCT 12 plc- Prospectus

Puma VCTs - Investment Case Studies

Independent Reviews


VCT 12 plc - Allenbridge Tax Advantaged Investments, VCT Review, January 2016

VCT 12 plc - Martin Churchill Tax Efficient Review, December 2015