By Annabel Brodie-Smith
Last week the Alps came to Oxfordshire for a couple of days and much to my children’s delight, it was lovely sledging weather! Snowballs rained down and a snowman took pride of place in our garden.
It was a welcome relief from the never-ending Brexit negotiations… This month we are looking at Venture Capital Trusts, more commonly known as VCTs. VCTs’ perspectives on Brexit are thought-provoking as they are at the coalface of the UK economy investing in small, unquoted companies which are high risk but can grow into household names generating economic growth and jobs. VCTs are concerned about the status of Europeans working in the UK but generally are not so worried about exporting to the EU as they believe it has always been difficult to sell to EU countries.
Please do watch the video where I talk about the potential effects of Brexit and where VCTs are investing with John Glencross from Calculus VCT, Ian McLennan from Triple Point VCTs, and Rodney Appiah from Foresight VCTs. We also have an article gathering VCT manager views on smaller company opportunities and the outlook for the sector. Of course, it’s important to understand that VCT investors who invest in high risk young companies are compensated by the Government with generous tax breaks. It won’t surprise you that our savvy investment expert, Ian Cowie, has been making full use of these VCT tax benefits. He analyses the benefits and risks of investing in VCTs in his column this month.
John Glencross - Calculus VCT, Ian McLennan - Triple Point VCTs, and Rodney Appiah - Foresight VCTs, discuss the impact of Brexit and the themes in their portfolios.
Finally, with Chinese New Year ushering in the year of the pig we have taken a look at China, the second biggest economy in the world. We have spoken to investment company managers with significant holdings in the region about trade wars, slowing growth and the prospects for China.
Hope the year of the pig proves a lucky one for you.
Annabel Brodie-Smith Communications Director, AIC
