Advisers should consider venture capital trusts as an income product as well as a growth investment ...
Advisers should consider venture capital trusts as an income product as well as a growth investment for their clients, according to Friends Ivory & Sime.
Bernard Henshall Friends I&S' investment sales manager said the trend towards VCTs paying dividends has widened their appeal to investors.
The group has just started raising £40m for the issue of its second Aim VCT, but its first trust in this market Friends I&S VCT I, which is less than two years old, has already starting making dividend payments.
Henshall said: "VCT1 has already paid out 4.9p per share and there is another 8p to be distributed in the near future. So its shareholders will have received 12p per share, tax free by way of dividends on top of their tax relief, within a few short weeks."
Friends I&S has positioned itself to be a major player in the Aim market.
The company runs a four strong team, led by fund managers Bill Brown and Robert Mitchell.
Of the 120 or so companies that have come to market over the past 12 months, Friends have invested in only 10.
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