Mumford to manage Aim VCT offering Oeic rollover

strategy

Paul Mumford, manager of the Cavendish Opportunities fund, is to run an Aim VCT, that will provide ...

Paul Mumford, manager of the Cavendish Opportunities fund, is to run an Aim VCT, that will provide investors the option to roll it into an Oeic at the end of its investment term. By converting to an Oeic, the problem of the VCT maturing at a discount, which occurs in a number of instances when trusts have realised their small cap stocks for cash at their end of their term, would be removed. However, if investors do vote for an Oeic conversion, dividends would lose their tax-free status and so any subsequent gains would be subject to CGT. Further income from the vehicle would also become ...