VCT fundraising hits second highest level on record

The Association of Investment Companies (AIC) has revealed the VCT sector’s findraising figures were the second highest on record for the 2016/17 tax year, at £542m.

The venture capital trust (VCT) sector raised £542m during the tax year, representing an 18% increase on the previous year’s figure of £458m….

Meanwhile, demand for Enterprise Investment Schemes (EIS) and Seed EIS has also been high.

Tax-efficient investments service Wealth Club said these schemes are useful alternatives for the right type of investor.

It said: “Unfortunately there are no statistics showing how much has been invested thus far this tax year as it takes HMRC about a year to release initial numbers. However, anecdotally demand has been high.

“Pubs and self-storage have been popular EIS investments but the breadth of offer is much larger from crematorium to high tech, shipping and films.”

Online investment platform SyndicateRoom today announced its passive EIS fund, Fund Twenty8, had closed at £4.5m with a total of 233 investors, 70% of whom are new to the platform.

CEO and founder Gonçalo de Vasconcelos said: “I am incredibly proud of the portfolio of companies SyndicateRoom has built, and Fund Twenty8 will be a fantastic route for investors wishing to access a diversified EIS portfolio.

“We have harnessed technology in a unique way, and it has truly challenged the traditional fund management model of today. Seeing such a positive response has been an incredible endorsement of our belief in offering choice to investors, catering to all risk appetites and both passive and active investors.”

The high interest in Fund Twenty8 also emphasises the increasing popularity of passive funds, which some investment trust commentators believe are becoming a more dominant threat to the sector.

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