There is continued confidence in the venture capital trust (VCT) sector with fundraising for the 2016/17 tax year to 31 December 2016 up 53 per cent on fundraising to 31 December in the 2015/16 tax year, according to data published by the Association of Investment Companies (AIC).
Some GBP169.5 million was raised at 31 December 2016 compared to GBP110.8 million at 31 December 2015.
The increased level of fundraising reflects early VCT offers being launched in the 2016/17 tax year, continuing demand for VCT offers that were open up to the end of 2016 and strong support for VCT dividend reinvestment schemes in the 2016/2017 tax year.
Ian Sayers, chief executive, AIC, says: “This fundraising data is a real vote of confidence in the VCT sector. The pension rule changes and reduction in the lifetime allowance have clearly acted as a boost to investor interest along with its established track record both from a growth and income perspective.
“It is hard to predict what the final fundraising total will be for 2016/2017, as managers come to terms with recent rule changes. But what is not in doubt is that demand for VCTs remains strong.”
