Octopus AIM VCT 2 non-qualifying firms' performances behind 2025 lag
Octopus AIM VCT 2 PLC on Wednesday announced it returned to parity after a slightly negative total return to investors last year in its 2025 full-year results.
The trust’s net asset value on November 30, when the financial year ended, was £77.4 million, slightly down from £79.1 million a year prior, equating to a NAV per share of 36.9 pence from 40.5 pence 12 months prior.
Total return was zero for the full year, compared to negative 0.4% at the end of November 2024.
The venture capital trust trailed similar indexes, like the FTSE AIM All-Share, which returned 4.9% in the same period, or the FTSE SmallCap excluding investment companies, which returned 8.1%.
The lagging performance was partly due to broader market caution around smaller companies amid tariff uncertainties, and partly to its positioning with limited exposure to mining and financial companies, which are two of the strongest sectors but are ‘typically outside VCT qualifying criteria’, Octopus’s Quoted Companies team, acting as investment manager, said.
The trust’s shares also maintained a 4.5% discount to the NAV in the year, despite buying back 8.8 million shares for a total consideration of £3.2 million.
The dividend remained unchanged, with a final 1.8 pence dividend for a yearly total of 3.6 pence, plus a special 3.6 pence dividend to be paid next month thanks to disposal proceedings, matching last year’s and in line with the trust’s policy of maintaining a minimum dividend of 3.6 pence a year.
From now on, however, it will target an annual dividend of 6% of the opening NAV ‘with the flexibility to pay additional special dividends where there are significant portfolio realisations’, the board said.
Chair Keith Mullins said: ‘The year...was shaped by ongoing global uncertainty, yet the UK economy proved resilient...Despite the impact of geopolitical upsets, domestic growth proved stronger than expected, and consumer and business sentiment improved accordingly.’
‘Equity markets performed well overall, with UK valuations continuing to draw interest from strategic and private equity buyers, particularly among smaller growth companies on AIM where valuations remained at historic lows throughout the year. Initial public offering activity regained momentum...most strongly in the final quarter of the financial year. Additionally, secondary fundraising activity also strengthened over the period, reflecting growing investor appetite and entrepreneurial confidence. AIM companies raised approximately £2.7 billion during the year, which represents around 50% more than the prior year,’ he added, saying that the board is cautiously optimistic looking ahead.
Octopus AIM VCT 2 last traded at 36.00 pence in London.
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