Venture Capital Trusts
Please download and read our VCT Guide 2010 before making your investment decision.
About VCTs
Structurally, VCTs are very similar to investment trusts. Money raised from individual
investors is pooled to acquire a portfolio of different investments to spread the
risk. The shares are quoted on the London Stock Exchange. Managers must invest at
least 70% of new proceeds within three years. VCTs offer a number of tax benefits,
including 30% Income Tax relief on new subscriptions if the shares are held for
at least five years. However, there are also a number of important disadvantages:
costs are relatively high, VCT shares are illiquid and almost invariably trade at
a wide discount to the underlying Net Asset Value and investment risks are usually
high. In our view VCTs should only be considered by experienced investors able to
take a longer term view and tolerate a high level of risk.
In terms of fund selection it is vital to identify managers with a strong long term
commitment to the market and trusts that have sufficient scale to be viable.
Our Pedigree
We have researched every VCT launched since 1995 and interviewed every manager.
Our analysis is thorough and completely independent Click on the name of a VCT to
view our Factsheet.
We were the Investment Adviser for one of the most successful VCT from 1996-2001.
We discount the standard charges on every VCT. On all VCT that meet our minimum
requirement for a recommendation (3 Stars) we aim to offer the most competitive
terms in the market.
We can help ensure that your VCT investment is compatible with your other investments.