Woodford's Patient Capital draws comparisons with VCTs

Alice Rigby
clock

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on VCTs / EIS

Why a 'wait and see' Budget approach could cost clients

Why a 'wait and see' Budget approach could cost clients

'Some of the most impactful changes to the tax landscape have already been announced'

Andrew Aldridge
clock 08 October 2025 • 4 min read
Why financial advisers need to embrace EIS or risk being left behind

Why financial advisers need to embrace EIS or risk being left behind

'Let's address the elephant in the room: yes, EIS investments are high-risk'

Andrew Aldridge
clock 22 September 2025 • 5 min read
Portfolio construction in 2025: The importance of diversification extends beyond asset classes

Portfolio construction in 2025: The importance of diversification extends beyond asset classes

Diversification must go beyond spreading investments across equities, bonds, and cash

Andrew Aldridge
clock 09 September 2025 • 4 min read