How generalist VCTs measure up

vcts

Aim VCT valuations rely on share prices, but generalist VCTs rely on company performance making it harder for them to mark up an investment

The arguments often put forward in favour of Aim venture capital trusts (VCTs) are not, I believe, supported by the facts. Generalist VCTs have the edge in terms of past performance, the level of dividends paid to investors and the lower level of volatility in their share prices. Looking ahead I think the weight of money from Aim VCTs focused on the Aim market is likely to lead to managers paying higher prices for VCT qualifying investments, which will in turn depress returns. The current crop of recently launched VCTs contains a variety of generalist, specialist and Aim VCTs, both from fa...