Venture Capital Trusts Attract Record Inflows

Investors poured £731 million into VCTs in the 2018/19 tax year with various tax breaks on offer, but due to their higher risk they require a longer investment horizon

Holly Black 23 April, 2019 | 9:04AM

Cash

Venture capital trusts (VCTs) have had a record year for fund raising as investor interest in unlisted companies increases – but exactly what do these specialist investment trusts do and who might they suit?

VCTs are a type of investment company focused on investing in small, micro or early-stage businesses. These might be unquoted businesses, which are not yet listed on a stock exchange, or those listed on the junior Alternative Investment Market (AIM). This, of course, means that VCTs are inherently risky vehicles – small and early stage companies have a higher rate of failure and require a long investment time horizon.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Maven Income and Growth VCT 6 Ord  
Octopus Titan VCT Ord84.00 GBX0.00
Unicorn AIM VCT Ord119.00 GBX0.00

About Author

Holly Black  is Senior Editor, Morningstar.co.uk

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