Octopus Future Generations VCT
closed
Closed for new investment
Octopus Future Generations VCT
closed
Closed for new investment
Octopus Future Generations VCT invests in businesses that are helping to build a sustainable planet, empower people, or revitalise healthcare.
We think these businesses have the potential to transform the world for the better as well as delivering the best returns for investors over the coming decades. Why?
- Because tackling society’s biggest challenges means there is a huge market opportunity for those who can tackle them
- Because the demand for solutions to the planet’s challenges is urgent and growing
- And because people increasingly want to buy from and work for businesses that make a positive difference in the world
The VCT is managed by Octopus Ventures, one of Europe’s most experienced venture capital investment teams1 and manager of the UK’s largest VCT, Octopus Titan VCT2. Octopus Ventures have built a reputation for backing innovative businesses that have gone on to be household names, including Depop, Graze and Zoopla.
Reasons to invest
Growth potential
VCTs invest in early-stage companies at the beginning of their growth journey. These have the potential to grow faster than larger companies.
Proven management
We work with the companies we back to support their growth, whether that’s taking a seat on the board, helping them expand overseas or introducing them to industry experts.
Diversification
Through a VCT investors gain access to unquoted smaller companies. Unquoted businesses have a unique profile and can diversify an investment portfolio.
Tax reliefs
Income tax relief equal to 30% of the amount invested up to the first £200,000 of investment.
Tax-free capital gains and dividends. Find out more.
Risks to bear in mind
Capital at risk
The value of an investment, and income from it can fall as well as rise. Investors could end up getting back less than they invest.
Tax treatment
Tax treatment depends on individual circumstances and tax rules could change in the future.
Volatility and liquidity
VCT shares could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
VCT qualification status
Tax reliefs depend on the VCT maintaining its qualifying status.
Risks to bear in mind
Capital at risk
The value of an investment, and income from it can fall as well as rise. Investors could end up getting back less than they invest.
Tax treatment
Tax treatment depends on individual circumstances and tax rules could change in the future.
Volatility and liquidity
VCT shares could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
VCT qualification status
Tax reliefs depend on the VCT maintaining its qualifying status.
Specific risks of a new VCT
Octopus Future Generations VCT is a young VCT. There are additional risks you’ll want to consider before deciding to invest:
- As this VCT is at the beginning of its journey, it will take time to deploy the money raised into companies we consider to be good investment opportunities.
- The VCT doesn’t have as many investments in its portfolio as older VCTs do, but this will increase over time.
- While the VCT is building up its investments, the portfolio will naturally be more concentrated in fewer companies. This means that the performance of the VCT will be more sensitive to the success and/or failure of these investments than if the portfolio of investments was greater in number.
- Most investments are made into companies of similar age and size. This differs from established VCTs which often gives investors exposure to a mixture of new, maturing and mature companies.
- The long-term target is to pay an annual dividend of 5% of the NAV however, given the expected holding period of target investee companies and changes to VCT rules in 2014, it is very unlikely the Octopus Future Generations VCT will be able to pay dividends before 1 July 2025. During this time any growth will increase the value of the VCT.
Specific risks of a new VCT
Octopus Future Generations VCT is a young VCT. There are additional risks an investor will want to consider before deciding to invest:
- As this VCT is at the beginning of its journey, it will take time to deploy the money raised into companies we consider to be good investment opportunities.
- The VCT doesn’t have as many investments in its portfolio as older VCTs do, but this will increase over time.
- While the VCT is building up its investments, the portfolio will naturally be more concentrated in fewer companies. This means that the performance of the VCT will be more sensitive to the success and/or failure of these investments than if the portfolio of investments was greater in number.
- Most investments are made into companies of similar age and size. This differs from established VCTs which often gives investors exposure to a mixture of new, maturing and mature companies.
- The long-term target is to pay an annual dividend of 5% of the NAV however, given the expected holding period of target investee companies and changes to VCT rules in 2014, it is very unlikely the Octopus Future Generations VCT will be able to pay dividends before 1 July 2025. During this time any growth will increase the value of the VCT.
Meet the fund manager
Hear from fund manager Simon King – find out what drives him, what Octopus Future Generations VCT is investing in, and what Simon’s excited about right now.
Investing across three themes
Octopus Future Generations VCT benefits from the same deal pipeline and assessment process as some of our existing venture capital investment products. The VCT also ensures that businesses we back fall within one of its three core investment themes.
Building a sustainable planet
These businesses aim to reduce carbon emissions, protect a range of ecosystems, or create a circular economy that removes waste.
Empowering people to create a fairer and more equitable society
These businesses aim to improve access to digital learning, make financial advice available to the masses, or provide valuable cybersecurity solutions.
Revitalising healthcare
These businesses aim to help people conquer addictions or create software that will help to make essential healthcare and digital services more efficient.
Example portfolio companies across the three themes
Neat
Neat provides embedded insurance. That’s the kind that’s bundled with a product, for example if you buy from an online retailer and choose to add accidental damage cover. Neat also makes sure the products it protects are repaired or reconditioned, not automatically thrown away or replaced, reducing the environmental impact.
Secfix
Secfix automates the work required for IT security compliance audits and attain ISO 27001 standards. It helps businesses organise their people, processes, and technologies to ensure the confidentiality, availability, and integrity of information.
Skin+Me
Skin+Me is a pioneering skincare company which combines medical expertise and technology to offer customers a bespoke treatment plan and a fully customised skincare routine, without requiring a trip to the dermatologist. Skin+Me uses recycled packaging and offer personalised solutions that are made-to-order, ensuring not a drop of product goes to waste.
Discover some of the other companies that Octopus Future Generations VCT has backed.
Fund highlights
Net asset value (NAV)
As at 30 June 2024
86.8p
Funds under management
As at 30 June 2024
£46m
Number of holdings
As at 30 June 2024
36
Fees and charges
If you are investing in Octopus Future Generations VCT through a financial adviser, you can ask for an initial advice charge for the investment ⁴ to be paid on your behalf through the VCT. For other options on ways to invest, view page 27 of the brochure.
| Upfront charges | Initial fee (to Octopus) | 3% |
| Ongoing annual charges | Effective annual management charge (to Octopus) | 2% |
| Non-investment services fee (to Octopus) | 0.3% | |
| Performance fees ⁵ | 20% |
If you’re investing through a financial adviser, the VCT can facilitate an initial advice fee of up to 4.5%. Please note that any initial advice charges you pay to your adviser will not be eligible for income tax relief.
⁴ Please note the VCT is unable to facilitate ongoing adviser charges.
⁵ We want our investments to do what we say they will and we want to align ourselves with the long term investment objectives of shareholders. A way in which we do this is by applying a performance fee on the gains made. In order for Octopus to receive this performance fee we must meet three conditions. Firstly, the performance fee cannot be paid until 1 July 2025. Secondly, the VCT’s Total Return (NAV plus cumulative dividends paid) at the previous year-end must exceed 120p and thirdly shareholders must have received cumulative dividends of a minimum of 12p. If all of these conditions are met, then 20% of the excess above the starting NAV of 97p will be paid to Octopus. For full details on the performance fee and other fees please see the prospectus and Key Information Document (KID).
Fees and charges
For Octopus Future Generations VCT, we’re able to facilitate an initial advice charge for the investment ⁴. This can be paid on your client’s behalf through the VCT.
| Advised (initial only) | ||
| Upfront charges | Initial fee (to Octopus) | 3% |
| Adviser charges | Up to 4.5% | |
| Ongoing annual charges | Effective annual management charge (to Octopus) | 2% |
| Non-investment services fee (to Octopus) | 0.3% | |
| Performance fees ⁵ | 20% |
Please note that any initial advice charges your client pays you will not be eligible for income tax relief.
⁴ Please note the VCT is unable to facilitate ongoing adviser charges.
⁵ We want our investments to do what we say they will and we want to align ourselves with the long term investment objectives of shareholders. A way in which we do this is by applying a performance fee on the gains made. In order for Octopus to receive this performance fee we must meet three conditions. Firstly, the performance fee cannot be paid until 1 July 2025. Secondly, the VCT’s Total Return (NAV plus cumulative dividends paid) at the previous year-end must exceed 120p and thirdly shareholders must have received cumulative dividends of a minimum of 12p. If all of these conditions are met, then 20% of the excess above the starting NAV of 97p will be paid to Octopus. For full details on the performance fee and other fees please see the prospectus and Key Information Document (KID).
Key documents
| Octopus Future Generations VCT Prospectus | Download |
| Octopus Future Generations VCT Brochure | Download |
| Octopus Future Generations VCT Product Overview | Download |
| Octopus Future Generations VCT Key Information Document | Download |
| Octopus Future Generations VCT Responsible Investment Policy | Download |
| Octopus Future Generations VCT Supplementary Prospectus | Download |
| Octopus Future Generations VCT Plc AIFMD Supplement | Download |
How to invest
Minimum investment is £3,000.
Clients can choose to invest via bank transfer, cheque or banker’s draft.
Clients can only claim tax relief on VCT investments of up to £200,000 in any single tax year.
We will allot clients’ VCT shares at the next available allotment date.
How to invest
Minimum investment is £3,000
You can choose to invest via bank transfer, cheque or banker’s draft.
You can only claim tax relief on VCT investments of up to £200,000 in any single tax year.
We will allot your VCT shares at the next available allotment date.
12022 Annual Interactive Global League Tables, Pitchbook, 9 February 2023
2The Association of Investment Companies, January 2024
Contact our team
Get in touch
If you have a question about Octopus Future Generation VCT or an application,
call us on 0800 316 2295.
Read our FAQs
If you have a question about an existing VCT, please visit our FAQ page.
Contact our team
Get in touch
If you’ve got a question about any of our products or services, please get in touch.
Read our FAQs
If you have a question about an existing VCT, please visit our FAQ page.
Please read: We do not offer investment or tax advice, and we always recommend investors talk to a financial adviser before making investment decisions. This advertisement is not a prospectus. Investors should only subscribe for shares on the basis of information contained in the prospectus and Key Information Documents (KID), which are available in the document section of this page.