Having initially invested in a wide spread of companies, Quester VCT1 has become an increasingly t...
Having initially invested in a wide spread of companies, Quester VCT1 has become an increasingly tech-based fund over the course of its four year life.
Investments in the trust's wide-ranging portfolio have included Wentworth, a company making high quality laser-cut wooden puzzles, Linguaphone and HMV.
Director John Spooner said the majority of investments are now in the information technology and communications sectors.
Spooner said the trust, which holds between 30 and 40 unquoted investments a year, will raise its number of healthcare, life sciences and new materials investments over the next six months.
He said information technology and communications will remain the main investment area as it offers a more sound risk and reward balance and a better investment time cycle.
With an optimistic outlook, Spooner said there will continue to be good quality, sensibly-priced opportunities in the tech sector, over the next six months. He said: "Where there are investment opportunities, we are buying more cheaply, and although the new issues market has become more difficult we are still managing to float companies.
"For example, we floated Orchestream in the summer and it did very well."
Spooner said the trust's largest holding, at £10m, is Orchestream, which makes software that helps large global businesses get more out of their existing IT network by allowing the prioritisation of urgent traffic. Quester VCT1's investment in this company was originally £1m.
One of Spooner's favoured investments is Opsys, a company involved in flat screen technology, which spun out of an Oxford University research department project, and in which the trust has a £500,000 stake.
He said: "With an increasing number of mobile phones and an increasing amount of internet access available, the old liquid crystal display may not be adequate, which is why this company will profit.
"There is a fast-growing global market for this technology, and the company is run by a first-class team."
The trust, which was launched for the 1996-97 tax year, has a team of 10 which control the investments.
The company aims to provide shareholders with an income and capital return by investing about 80% of its funds in a broad spread of unquoted UK companies, which meet the relevant criteria for venture capital trusts.
Quester VCT1 has an NAV per share of 150p.
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