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VCT fundraising for 2017/18 close to all-time high

10 April 2018

VCT sector raises second highest amount since 1995.

The Association of Investment Companies (AIC) has today published the fundraising figure for Venture Capital Trusts (VCTs) for the 2017/18 tax year. The sector has raised £728 million, the second highest amount since VCTs’ inception and an increase of 34% on last year’s figure (£542m). It is also the highest amount ever raised at the current level of 30% upfront tax relief.

 

The highest VCT fundraising figure was in the 2005/6 tax year when the sector raised £779m, when the initial tax relief on investments was 40%.

VCT assets under management at 5 April 2018 were £4.3bn, up from £3.9bn at 5 April 2017.

Commenting on this year’s fundraising figures, Ian Sayers, Chief Executive of the Association of Investment Companies (AIC) said: “The 2017/18 fundraising figure is testament to the demand for VCTs from investors. It is the second highest fundraising amount since VCTs were introduced in 1995 and significantly more than in 2016/17, which was the previous second-highest total of £542m. This year’s bumper fundraising has been boosted by the Government’s recognition of VCTs as effective providers of patient capital in the November 2017 Budget, as well as the pension rule changes and VCTs’ strong long-term growth and income record.

“VCT fundraising is vital to UK smaller companies, as they will benefit from the VCT investment and expertise they need to grow. VCT-backed businesses deliver vital economic benefits, with jobs more than doubling after VCT investment. I am confident that VCTs will continue to be a vehicle delivering transformational change for some of the UK’s fastest growing businesses.”

Historic VCT fundraising figures excl. enhanced share buy-backs

Tax year

Fundraising (£millions)

2017/18

728

2016/17

542

2015/16

457

2014/15

429

2013/14

420

2012/13

269

2011/12

267

2010/11

354

2009/10

338

2008/09

154

2007/08

220

2006/07

267

2005/06

779

2004/05

505

2003/04

50

2002/03

65

2001/02

125

2000/01

433

1999/2000

270

1998/99

165

1997/98

190

1996/97

170

1995/96

160

-Ends-

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Notes

  1. VCT fundraising figures are excluding enhanced share buy-backs.
  2. 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 346 members and the industry has total assets of approximately £173 billion.
  3. 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.
  4. To stop receiving AIC press releases, please contact the communications team.

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