Octopus revamps discount policy across VCT range

Octopus Investments has overhauled the discount policy across its £350m VCT range, reducing the buyback discount to 5% of NAV rather than 10% for investors looking to sell their shares back to the VCT.

The change will apply to all Octopus’ VCT vehicles which are currently open for investment, including its Titan and Apollo products. Previously, Octopus bought shares back at 10% of NAV, but said it has made the move to benefit its longer-term shareholders, and to dissuade short-term investors seeking to exploit trusts’ discounts. Paul Latham (pictured), managing director at Octopus, said having a lower discount to NAV reduces liquidity risk and benefits shareholders investing on a longer time horizon. “The reality is every shareholder is going to be a seller at some point in time,...