VCT providers are trying to create transparency for the sector with the creation of standardise...
VCT providers are trying to create transparency for the sector with the creation of standardised performance tables for investors. A working party has been set up and one of the main issues to be resolved is how frequently the net asset value (NAV) of the trusts should be published.
Criteria for producing accurate valuations of NAV is also to be set down as each VCT portfolio consists of unquoted investments, which are difficult to value.
While there is currently no agreement on how frequently published NAVs will be updated, a timeframe of every three months has been proposed.
Some providers, such as Friends Ivory & Sime, do publish a daily NAV, while others, such as 3i, only update every six months. The decision to work towards presenting performance data in a standardised way was taken at a recent meeting of the External Relations Committee, an informal committee whose members are drawn from trust providers in the venture capital industry.
It comes after the perceived success of AITC initiatives on raising the profile of investment trusts and in dealing with transparency issues in the split capital trust market.
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