Safety first investors hit VCTs

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A LACK of investor risk-taking has been blamed for a tumble in the net asset value of First State's AIM VCT, which plunged 4.77pc between March 1 and August 31.

It compared, however, to a 10.8pc fall in the AIM All-Share Index and during that time and First State highlighted that the VCT had produced a total return of 14.8pc since launch in March 2005. Portfolio manager Paul Jourdan blamed the fall in NAV over the six month period on ‘subdued’ investor appetite for risky assets following the stock market correction in May and June. He said while small caps and large caps recovered most of their losses, the AIM remained more low key. Jourdan added that the company had managed to invest in a range of qualifying deals during that time and was optim...

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