by Nick Britton
Last week brought a rude reminder to investors that markets can resemble roller-coasters rather than staircases. It’s unlikely to have disturbed the average Spotlight reader, but it may have rattled some clients.
It could be worse, though. You could be an investor, or should I say speculator in bitcoin. I can’t begin to imagine the feelings of those who borrowed money to buy at the top of the market, just as many Americans did in the 1920s in the mania that led up to the Wall Street crash. There are other striking parallels too, such as the belief that crypto in 2018 (or stocks in 1929) is a great leveller that will finally give the ordinary person their chance to get rich – as long as they continue to believe. Or there’s the anger directed against naysayers, which is very evident from the average crypto fan’s Twitter account.
As I’ve tried to answer questions from friends and family about bitcoin, I’ve become aware that many intelligent people don’t see a clear dividing line in risk between a speculative asset, like crypto, and a collective investment, like an investment company or tracker fund. Financial advisers clearly have a key role to play in educating clients, while remaining sympathetic to their worries about losing money.
This month in Spotlight, we focus on venture capital trusts (VCTs). Fundraising so far this tax year has been roughly double the figure for the same period of the previous tax year, clearly driven by worries about the Autumn Budget, which encouraged advisers to get their clients invested early. But while the Budget didn’t change the tax reliefs available to investors, it did introduce new rules for VCT managers, sharpening the focus of the VCT scheme on growth-oriented companies. Several VCT managers give their views on these changes here while Andy Gray of Artemis VCT provides a clear and useful guide to how a VCT manager selects investments. Also on the theme of VCTs, our regular columnist Ian Cowie explains why they can be an attractive opportunity.
After a flurry of VCT-related events in January, we are now gearing up for a tour round the country in April and May, visiting 12 locations with our investment trust workshops. Details are below. (If you’re in Scotland, don’t fear, we’ll be up there in September for a seminar – more details soon).
More generally, It’s a year of celebration as investment companies turn 150 – you might have noticed the new logo. Among other festivities, we’ll be inviting all Spotlight readers to a big party on Thursday 27 September: please save the date and a formal invitation will be issued in due course.
Nick Britton, Head of Training, AIC
Click on the links for more information and to book 25 April AIC workshop (Preston) Time: 14.00 - 16.15
26 April AIC workshop (Warrington) Time: 09.45 - 12.00
2 May AIC workshop (Bournemouth) Time: 14.00 - 16.15
3 May AIC workshop (Guildford) Time: 14.00 - 16.15
9 May AIC workshop (Lincoln) Time: 14.00 - 16.15
10 May AIC workshop (Leicester) Time: 09.45 - 12.00
16 May AIC workshop (Plymouth) Time: 09.45 - 12.00
17 May AIC workshop (Taunton) Time: 09.00 - 11.15
17 May AIC workshop (Bristol) Time: 14.00 - 16.15
22 May AIC workshop (Hemel Hempstead) Time: 14.00 - 16.15
23 May AIC workshop (London) Time: 08.45 - 11.00
24 May AIC workshop (Norwich) Time: 14.00 - 16.15