Selling a VCT

traceyaj

We have both have had Baronsmead  VCTs for over 10 years. Hargreaves Lansdown hold one electronically and we both have paper certificates for another two. They have provided a good tax break and decent dividends. 
We will be looking to sell them at some point but note that this does not seem as simple as selling normal shares. 
Has anyone sold VCTs? Any advice would be most welcome.  

wmb194

traceyaj said:

We have both have had Baronsmead  VCTs for over 10 years. Hargreaves Lansdown hold one electronically and we both have paper certificates for another two. They have provided a good tax break and decent dividends. 
We will be looking to sell them at some point but note that this does not seem as simple as selling normal shares. 
Has anyone sold VCTs? Any advice would be most welcome.  

Given they're listed on the LSE - Baronsmead appears to have two - it shouldn't be too difficult. The only issues might be that a broker doesn't want to deal in them and a lack of buyers in the market, particularly if we're talking about selling a large quantity of shares.

https://www.londonstockexchange.com/stock/BVT/baronsmead-venture-trust-plc/company-page

https://www.londonstockexchange.com/stock/BMD/baronsmead-second-venture-trust-plc/company-page

george4064

Your best bet would be to lodge the share certificates into an electronic Fund & Share Account (I.e. not ISA or SIPP) and then either try to sell them online or  if you have a large no. of shares you'll need to phone their dealing line and leave an order with them to sell X number of shares for no less than Y per share.

With that order, they'll ring round the market makers to see who's buying and hopefully fill your order.

Reaper

There are 2 companies that trade them - Panmure Gordon and Winterflood Securities [source]. As long as your broker deals with either of them you should be able to sell.

Note the spread (the difference between buy and sell prices) on VCTs can be large as they are thinly traded on the second hand market.

traceyaj

Reaper said:

There are 2 companies that trade them - Panmure Gordon and Winterflood Securities [source]. As long as your broker deals with either of them you should be able to sell.

Note the spread (the difference between buy and sell prices) on VCTs can be large as they are thinly traded on the second hand market.

We don't have a broker to deal with the paper certificate shares. Do you think I could sell by contacting either of the two trading companies directly?  

wmb194

traceyaj said:

Reaper said:

There are 2 companies that trade them - Panmure Gordon and Winterflood Securities [source]. As long as your broker deals with either of them you should be able to sell.

Note the spread (the difference between buy and sell prices) on VCTs can be large as they are thinly traded on the second hand market.

We don't have a broker to deal with the paper certificate shares. Do you think I could sell by contacting either of the two trading companies directly?  

The companies Reaper mentions are stockmarket market makers. If you already have an account with HL and HL will deal in them I'd just lodge your share certificates and sell via it.

https://www.hl.co.uk/help/transferring-investments/shares/share-certificates/can-i-add-share-certificates-into-my-vantage-fund-and-share-account

mostwelcome

Or you can just put in for a share buyback from the respective VCTs.

Might have to wait a bit longer, but you also might end up with a fairer price (narrower discount to NAV) than a broker sale.

wmb194

mostwelcome said:

Or you can just put in for a share buyback from the respective VCTs.

Might have to wait a bit longer, but you also might end up with a fairer price (narrower discount to NAV) than a broker sale.

This isn't something you can rely on, though, and recently it looks like BVT has been selling new shares rather than buying them back.

It looks like BMD has occasionally bought back shares this year but in the market rather than directly from shareholders.

https://www.investegate.co.uk/Index.aspx?searchtype=3&words=Bvt

https://www.investegate.co.uk/Index.aspx?searchtype=3&words=Bmd

Reaper

mostwelcome said:

Or you can just put in for a share buyback from the respective VCTs.

Not possible in this case. A quote from the same site I linked to earlier:
Shares are bought back through the market rather than directly from shareholders

traceyaj

Reaper said:

mostwelcome said:

Or you can just put in for a share buyback from the respective VCTs.

Not possible in this case. A quote from the same site I linked to earlier:
Shares are bought back through the market rather than directly from shareholders

I wonder if the VCT's ever mature? This would be one way around things, any suggestions welcome.

wmb194

traceyaj said:

Reaper said:

mostwelcome said:

Or you can just put in for a share buyback from the respective VCTs.

Not possible in this case. A quote from the same site I linked to earlier:
Shares are bought back through the market rather than directly from shareholders

I wonder if the VCT's ever mature? This would be one way around things, any suggestions welcome.

Doesn't look like it with these Baronsmead ones: according to the LSE quote BMD listed in 2001 and BMT in 1999.

They're just a special type of Investment Trust. They shouldn't be difficult to sell via a stockbroker.

https://greshamhouse.com/strategic-equity/private-equity/baronsmead-vcts/