Venture capital trusts perform in 2011, finds AIC
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Venture capital trusts (VCTs) were among the best performing closed-end funds during 2011, according to research by the Association of Investment Companies (AIC).
The research revealed that half of the top 10 performing funds were VCTs in the 12 months to end of December 2011.
However, the general VCT sector was down by 3% at the end of 2011 compared with an 11% drop for the average closed-end fund.
The best performing fund was the Foresight VCT up 51% during 2011, and has risen by 81% over three years.
It was joined by the Maven Income & Growth VCT 4, which increased by 46% in the year to December 31, 2011.
David Hall, manager of the British Smaller Companies VCT, says: “The outlook is really positive. VCTs invest for the medium term, five to seven years – a period over which we have seen consistent returns. (article continues below)
“The current environment sees good value with asset prices at the lower end and great medium term growth prospects – that is quite a compelling combination.”
Annabel Brodie-Smith, communications director of the AIC, says: “The VCT sector held up relatively well last year and as the VCT sector matures into its sixteenth year the longer term performance record is encouraging for much of the sector.”
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