A view by Martin Wood, senior analyst at Financial Express Research
It has been the case so far that many potential investee businesses have been preferring to ‘wait and see’ what happens with the economy, rather than accept lower prices in a deteriorating climate. But many small company owners will have to face facts as their traditional sources of funding become harder to access, and will need to turn to VCTs for investment. Against this background, investment opportunities are plentiful, and declining net asset values for existing funds in the near term mean that there are many worthwhile investments in the AIM sector particularly.
After a difficult year, and despite the gathering economic storm clouds, some VCTs continued to deliver strong performance in 2008. In its report, the AIC quotes Mark Wignall, chief executive at Matrix Private Equity Partners: “The VCT sector shrank in 2008, but the performance of the tried and tested Generalist VCTs held up well and showed resilience. In 2009, Matrix sees the VCT sector shifting further in favour of traditional Generalist VCTs with established track records. The AIM VCT sector will continue to be under great pressure and the new limited life segment will be looking to establish its performance credentials.
The full piece is HERE
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