The Downing One VCT is currently open for investment, so I am interested to check it out.
A generalist VCT giving you the opportunity to invest in over 90 companies from software & services to education. This VCT has an existing track record from income-generating, ventures and quoted companies.
Downing ONE VCT already has a diverse portfolio of 93 carefully selected companies across a range of sectors (as at 31 July 2020). Examples are software & services, healthcare services, education and alternative energy.
At Downing, we believe a great investment opportunity isn’t just financial, it’s a chance to invest in things that matter – our environment, our health, our society, our local communities and our economy. We were founded in 1986 and we’ve been working this way ever since.
Sounds ok, what are they invested in?
- Pilgrim Trading Ltd operates two children’s nurseries
- Parsable is empowering today’s frontline employees
- Anpario are a world leader in producing Specialist Feed Additive Technologies
YES
HMM
HMM
So far so vague … if I was already in the Downing universe perhaps I’d be more amenable but I’d like assurances on the ethical nature of this investment. Money Week has nothing on that, just calling it “well diversified”. The Wealth Club review is a bit more illuminating:
The VCT in its current form is the product of a series of mergers. The most recent was in November 2013, when Downing Distribution VCT 1, which dates back to 1997, merged with five other VCTs (which had themselves previously merged with other VCTs) and changed its name to Downing ONE VCT.
At the point of the merger, the portfolio included investments made by Downing, as well as by previous managers of the VCTs Downing took over, including Rathbones, Framlington, and Legg Mason.
Historically, the portfolio was split between yield-focused unquoted investments (typically asset-backed companies, such as pubs and care homes, and companies with predictable revenue streams, such as renewable energy plants) and listed investments (typically established, cash-generative businesses listed on AIM).
Following the introduction of new stricter VCT rules, Downing has had to tweak its approach. Whilst its existing portfolio can still include its historic holdings, new investments need to be in growth opportunities.
That’s worrying. Wealth Club gives the biggest unquoted investments:
- Tracsis – scheduling and rostering software for trains
- Downing Care Homes – residential care homes with the smae name as the fund errrr
- Parsable – as above
WEAK YES
hmm
At this point I am unsure on this one… how much has well-meaning intention been polluted over time?
—
To continue, is it worth pulling out of Jupiter Responsible
and investing in this instead?
I found a top10 and even a top22:
Doneloans Limited – sinister, no info, 5% – NOPE
Tracsis – as above, WEAK YES
Downing Care Homes Holdings Limited – still dodgy second time round? – NOPE
Baron House Developments Llp -property developers, NOPE
Downing Strategic Micro-Cap Investment Trust PLC – NOPE
Cadbury House Holdings – hotel and spa? not 100% sure, NOPE
Pilgrim Trading – nursery group? – PASS
Inland Homes plc Ordinary 10p – property developers NOPE
Xupes Limited – “Curated pre-owned and hard-to-find watches, handbags, jewellery and artworks from selected brands or artists we know, love & stand behind” – WOT
Leytonstone Pub
Verdict = BAD … but then again, probably better than Jupiter Income …
Finance with Ethics 