What your investment has achieved and deciding what’s right for you

If you’d like to review your investment and consider your options, we can help. Remember, VCT shares need to be held for the minimum five-year holding period in order to retain the upfront income tax benefits.

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The impact of Octopus Titan VCT

Small and medium enterprises (SMEs) are crucial to the UK economy, contributing 52% of private sector turnover and 60% of UK jobs in 2020¹. That’s why Octopus Titan VCT has spent the last fourteen years backing some of the UK’s most pioneering businesses such as Depop, Elvie and Bought by Many. Learn more about the portfolio companies.

Octopus Titan VCT is the UK’s largest VCT² and it’s made an important impact to the entrepreneurial landscape and economic growth of the UK.

126%

Portfolio companies revenue growth in 2020.

108

Number of companies backed by Octopus Titan VCT in the last five years.

As at 30 June 2021

880+

New jobs created by Octopus Titan VCT in 2020.

Performance

A positive impact on the UK economy isn’t the only benefit from your investment in Octopus Titan VCT. The VCT has also paid out regular dividends and seen a strong increase in total value over the last five year period.

Net asset value (NAV)

105.9p

As at 2 December 2021

Funds under management (FUM)

£1.3 billion

As at 30 June 2021

Cumulative dividends

84.0p

Since launch, last updated 6 May 2021

The growth of £10,000 invested in Octopus Titan VCT five years ago

Let’s say you invested £10,000 five years ago, here’s what your investment would have achieved. This assumes that £10,000 was invested on 1 July 2016 until 30 June 2021.

Past performance is not a reliable indicator of future results.

5 year total return

45%

Tax free dividends

£2,468

Total return of investment over five years up to 30 June 2021

Octopus Titan VCT five-year performance

Year to 30 June	2017	2018	2019	2020	2021
Annual total return¹	4.7%	4.3%	3.3%	2.3%	32.8%
Annual dividend yield ²	5.2%	5.3%	5.3%	5.4%	5.6%
NAV (p) ³	95.2	94.3	92.4	89.5	113.9
Total value (p) ⁴	159.2p	163.3p	166.4p	168.5p	197.9p

How we calculated this

The Value of the investment is the value of £10,000 invested on 1 July 2016. It assumes upfront fees have already been taken from the value of the initial investment and that the investment on 1 July 2016 was held for five years to 30 June 2021 – the VCT’s latest interim accounting period. The 5 year total return shown above is the change in NAV from 1 July 2016 to 30 June 2021 plus any dividends paid out. This takes into account all ongoing fees and costs relating to Octopus Titan VCT. It does not include any upfront income tax relief claimed by the investor.

This is a representative example.

¹ The annual total return for Octopus Titan VCT is calculated from the movement in NAV over the year to 30 June, with any dividends paid over that year then added back. The revised figure is divided by the NAV at the start of that year to get the annual total return.

² The annual dividend yield is calculated by dividing the dividends paid per annum by the NAV at the start of the period.

³ The NAV is the combined value of all the assets owned by the VCT after deducting the value of its liabilities. The performance shown is net of all ongoing fees and costs

⁴ Total value shows the sum of the NAV per share in pence and cumulative dividends per share in pence since inception for the last five years to 30 June.

Risks to bear in mind

Capital at risk

The value of a VCT investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.

Tax treatment may change

Tax treatment depends on individual circumstances and may change in the future. Tax reliefs depend on the VCT maintaining its qualifying status.

Five-year minimum holding period

Investors need to hold shares for a minimum of five years. If you decide to sell your shares before then, you will be required to repay to HM Revenue & Customs (HMRC) any upfront income tax relief you’ve claimed.

Volatility and liquidity

VCTs invest in smaller companies that are often not listed on the main market of the London Stock Exchange. Investments in smaller companies can fall or rise in value much more sharply than shares in larger, more established companies. They can also be harder to sell.

Your options after five years

VCT shares need to be held for the minimum five-year holding period in order to retain the upfront income tax benefits. If you’ve met this minimum holding period and are considering your next steps, you have three options. We always recommend talking to a financial adviser before making any investment decision. Octopus can’t offer you financial advice, but if you have any questions, please call us on 0800 316 2295.

Hold or add to your investment

If you choose to continue holding onto your shares, there’s no need for you to do anything.

Your VCT investment will continue to target tax free dividends and growth.

If you choose to add to your investment, you’ll receive a 1% loyalty discount as a thank you for your continued support.

To add to your investment, contact your financial adviser or apply online.

Add to my investment

Sell and reinvest in another VCT

If you’d like to reinvest the proceeds into another Octopus VCT, you can:

Claim up to 30% income tax relief on your new investment*.
Benefit from tax free dividends and growth.
Receive a 1% loyalty discount as a thank you for your continued support.

If you have a financial adviser please ask them to contact our business development team.

If you’d like to sell and reinvest directly through Octopus, please follow the ‘Contact us’ link below.

Contact us

Sell your shares

You can either sell your shares back to the VCT or on the secondary market.

To understand how to sell your shares please read our share buyback guide by clicking the link below.

The VCT will only purchase shares from you at certain times of the year and this is at the discretion of the board.

If you’d like to sell your shares directly back to the VCT through Octopus, we recommend submitting your forms as early as possible. You may still benefit from tax free dividends and growth until your shares are sold.

Titan VCT share buyback deadline: Expected in October 2022

Read the share buyback guide

* If you sell shares in a VCT within six months of buying new shares in the same VCT, you will not be able to claim any income tax relief on these shares.

Reminder of the benefits

Income tax relief

Investors can claim upfront tax relief equal to 30% of their investment on the first £200,000 per annum invested. Dividends and capital gains are also tax-free.

Tax-free dividends

The tax-free dividends paid by a VCT can provide a supplementary income, which could be useful, especially if investors are approaching or in retirement.