EII - anyone invested in a fund?

Chev2010

Hi,

Been reading a few posts about the EII scheme here but finding it hard to get actual experience of returns from schemes like BDO or BVP - even after calling them to ask.

Wondering if anyone out there invested in EII or BES in the last 10 years, specifically using a fund?
Did you get 100% of your capital back?
Any issues getting the capital back on time at the end?
Other issues you had?

The schemes seem good if you're willing to pay them 4.5% or 3% respectively for them to manage it but it's really hard to get any solid info on actual returns - which makes me think they're not achieving their goals... would assume if they're making an extra x% a year there would be neon signs about it

Goal here would be to put spare money into a fund each year to start reducing tax and getting 6-7% net return on savings. Looking at the funds to diversify and reduce the time taken to learn about single companies then invest in multiples of those.

Thanks!!

CIARAN_BOYLE

BVP tend to get a return of about 3-4% pa.

My previous employer was an accountancy firm and tax advisors with some sort of arrangement with BVP where they recommended BVP to clients who wanted to reduce their Tax liability.

Chev2010

3-4% isn't great, but then it's a tax relief to there's no tax to come out of that, unlike a return from other things that incur the higher rate of tax for me.

Out of interest, is that 3-4% including all the tax reliefs? You should get around 6-7% return from EII if you get all of your capital back..

CIARAN_BOYLE

Chev2010 wrote: »

3-4% isn't great, but then it's a tax relief to there's no tax to come out of that, unlike a return from other things that incur the higher rate of tax for me.

Out of interest, is that 3-4% including all the tax reliefs? You should get around 6-7% return from EII if you get all of your capital back..

3-4% pa is the fund return the tax relief was separate and is dealt with through income tax.

30% in year 1 and 10% in the final year is the tax relief. 3-4% pa was the fund return.

Gman1987

Anyone sign up to any schemes for 2017 yet? I'm just looking at these now for the first time.

Chev2010

Ger1987 wrote: »

Anyone sign up to any schemes for 2017 yet? I'm just looking at these now for the first time.

After chasing a few fund companies for months on the specifics of their returns I didn’t get a single official answer or anyone willing to share past results.
I did get an unofficial answer that the fund typically returns between -30 to +20% and they sometimes run for 7 years of the companies don’t have money to pay back your capital... any of the returns possible makes this a horrible choice
In honesty, I’m still trying to figure out how I can report the companies for what appears to be a government sponsored scam.

If a sales guy has a good story they typically hassle you to death with it, so the complete silence from the entire industry says more than enough for me to steer clear.

May be worth looking at ETFs that track an index like the S&P500 or just start buying shares in companies directly and build a portfolio over a few years with the intention to keep for 5+ years.

Prezatch

Ger1987 wrote: »

Anyone sign up to any schemes for 2017 yet? I'm just looking at these now for the first time.

Wouldn't bother. I emailed BDO in September 16 asking for historical returns data along with some other queries and received the following response in relation to returns:

The first EII Tax Relief Fund was raised in 2011 and subsequently exited during 2015. The returns on this investment are currently being prepared and I can circulate this to you once finalised.

Going by other posts here, there is still nothing publicised about returns. Added to that the fact that the 3% passive management fee is bonkers.

Steer clear.

EIIS

I know of a company looking to raise investment through the EIIS, their rate of return offered is very good and, along with the 30% tax back in Year 1 and 10% tax back in Year 4, is very attractive as an investment. Anyone who's genuinely interested, up to a maximum investment of €150,000 per person, can send me a message for a one-pager outline of the investment.