Are VCT managers being over-incentivised?

Incentivisation is a much discussed issue in the investment industry, with most agreeing systems tha...

Incentivisation is a much discussed issue in the investment industry, with most agreeing systems that encourage managers to outperform can only be a good thing for end consumers. The debate over incentivisation has always been about how best to provide that drive. Enter venture capital trusts and the concept of sweet equity. When Investment Week first highlighted the issue at the end of September, many assumed the concept of a VCT manager investing PA alongside the trust itself was similar to the idea of dual-investing: having a smaller trust invest alongside a bigger one in order to re...