Enhanced classifications for VCTs

The Association of Investment Companies (AIC) has introduced a new classification system for Venture Capital Trusts, creating six new sub-sectors which expand on the current ‘specialist’ and ‘generalist’ categories.

VCTs will also be divided according to whether they meet the three year investment rule, namely that they must have at least 70% of their investments in qualifying investments, which must be invested within three years of a VCTs’ launch.

This new classification is intended to help investors to distinguish more easily between VCTs that are fully invested and avoid the distortions that VCTs that have not yet met the investment criteria can have on performance averages. New VCT Sectors are: VCT Generalist, VCT AIM Quoted, VCT Specialist: Healthcare & Biotechnology, VCT Specialist: Environmental, VCT Specialist: Media, Leisure and Events, VCT Specialist: Technology.