The diversification of VCTs will be a big trend in the upcoming year as its popularity soars, explains Triple Point’s retail strategy director, Diana French, in the above interview for UK Adviser.
“What is really interesting is that clients who use VCTs for the first time are continuing to use them and it becomes part of their annual planning. So, whilst they are making the pension contribution whilst they’re doing their ISA, they’re also thinking about their VCT as part of that.”
A trend French has noticed – and predicts will be a key area this coming year – is a focus on the diversification of VCTs.
“There has been anecdotal feedback for looking at different areas of the market. There is a wide variety of VCTs out there and for people that are interested in that particular space, there are teams that focus on very different areas that can suit a client’s particular needs,” French said.
See also: Understanding Venture Capital Trusts
In this interview, French also explains why investors should be interested in VCTs, why it offers a valuable planning opportunity for IFAs, and the challenges and opportunities that accompany the investment approach. You can view the whole video by clicking on the picture above, while the timecodes for each question are set out below:
0:16 – How are VCTs supporting smaller companies to find the next so-called unicorns?
2:51 – Why should investors consider VCTs? What can they offer in terms of financial planning and exposure to different companies?
6:01 – How does Triple Point work with advisers and what tools/support do they provide?
7:23 – What trends do you expect to see in the VCT market in 2024? Where are the challenges and opportunities?
