News of Neil Woodford's forthcoming trust investing in early stage companies has prompted comparisons with venture capital trusts (VCTs), but analysts say they are unlikely to appeal to the same kinds of investors.
His Patient Capital trust will invest in early stage quoted and unquoted companies as well as a bulwark of mature companies. Woodford said investors in the trust should have a five-year time horizon. For some commentators, the offering brings to mind VCTs, which can invest a similar 30% of their portfolios in non-qualifying investments and target a five-year turnaround for their investments. Notably, the average return for funds in the AIC’s VCT Generalist sector over the three years to 30 January is 30%, according to Morningstar – equivalent to the 10% per annum which Woodford is tar...
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