Woodford's Patient Capital draws comparisons with VCTs

Alice Rigby
clock

News of Neil Woodford's forthcoming trust investing in early stage companies has prompted comparisons with venture capital trusts (VCTs), but analysts say they are unlikely to appeal to the same kinds of investors.

His Patient Capital trust will invest in early stage quoted and unquoted companies as well as a bulwark of mature companies. Woodford said investors in the trust should have a five-year time horizon. For some commentators, the offering brings to mind VCTs, which can invest a similar 30% of their portfolios in non-qualifying investments and target a five-year turnaround for their investments. Notably, the average return for funds in the AIC’s VCT Generalist sector over the three years to 30 January is 30%, according to Morningstar – equivalent to the 10% per annum which Woodford is tar...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Insight: Private markets myth-busting - Valuing private businesses

Partner Insight: Private markets myth-busting - Valuing private businesses

While private equity holdings are not valued in the same way as public companies, there are several different ways to arrive at an accurate valuation picture. James Lowe talks to Citywire Wealth Manager about the different approaches.

James Lowe, Director, Private Markets, UK Wealth at Schroders
clock 05 November 2024 • 3 min read
Partner Insight:  It's time to lock in these yields… while you still can

Partner Insight: It's time to lock in these yields… while you still can

Ben Deane, Investment Director, Sterling Investment Grade, Fidelity International
clock 05 November 2024 • 6 min read
Partner Insight: Economic payoff of AI is coming – but it's not here yet

Partner Insight: Economic payoff of AI is coming – but it's not here yet

Despite the long-term potential of artificial intelligence (AI), it will be many years before it realises its full potential.

Joe Davis, Chief Economist and Head of Investment Strategy Group, Vanguard
clock 04 November 2024 • 8 min read
Trustpilot