Investments in VCTs dropped by more than two thirds last year as returns from equities plummeted, bu...
Investments in VCTs dropped by more than two thirds last year as returns from equities plummeted, but Bestinvest still does not believe in a rebound during the current tax year.
The IFA says the £130m total invested in VCTs in the last tax year is only slightly below the long-term average between 1995-9, with the 1999-2001 period being the anomaly - 2000-1 alone saw £450m invested.
Another factor likely to keep VCT fund growth down is the continued strong showing from property investments as house prices keep rising.
The net asset values from VCTs have meanwhile declined significantly during the past year.
Bestinvest says VCTs need to cut running costs and consider mergers to take advantage of economies of scale to make themselves more attractive to investors.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
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