AIC recommends Patient Capital ISA

The AIC has suggested the creation of a Patient Capital ISA in its response to the Government’s Patient Capital Review.

View the AIC's Patient Capital Review response

It’s therefore encouraging that Neil Woodford urged the Government to create a Patient Capital ISA to boost investment in early stage science and technology companies at a House of Lords science and technology committee hearing yesterday.

The AIC also recommended that the Patient Capital Review should reconfirm the positive role that Venture Capital Trusts (VCTs) play in providing development capital to small UK businesses. In addition, the AIC proposed the removal of regulatory barriers to investment advisers recommending funds that provide patient capital.

Ian Sayers, Chief Executive of the Association of Investment Companies (AIC) said: “The creation of a Patient Capital ISA would encourage retail investors to provide much-needed long-term capital for companies. It’s encouraging that this idea has also been suggested by Neil Woodford - the phrase ‘great minds think alike’ comes to mind!

“Investment companies with their closed-ended structure, which provides stable long-term capital, are the ideal vehicle for providing patient capital to companies. They have a long and proud history of providing long-term finance and delivering strong performance.

“Venture Capital Trusts have played a vital role in providing finance and support to SMEs, the backbone of the UK economy. They have an excellent track record of providing scale-up capital to smaller companies, creating growth, jobs and innovation.  This review is an excellent opportunity for the Government to strengthen its commitment to the long-term future of VCTs.”

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Notes

  1. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment.  Today, the AIC represents a broad range of closed ended investment companies, incorporating investment trusts and other closed ended investment companies and VCTs.  The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help Members add value for shareholders over the longer term. The AIC has 345 members and the industry has total assets of approximately £163 billion.
  2. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance.  The value of investment company shares, and the income from them, can fall as well as rise.  You may not get back the full amount invested and, in some cases, nothing at all.