AIC introduces sector classification system for VCTS

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

The new system also distinguishes between VCTs according to the three year investment requirement rule, and should enable investors and advisers to differentiate more easily between VCTs.

The new classification system will, from this month, be published in the monthly ‘AIC Stats’ booklet and included in the AIC’s online statistics, available on aicstats.co.uk.

Daniel Godfrey, Director General, Association of Investment Companies said: ‘‘The AIC is pleased to be playing a key role in the development of the VCT sector and these changes should give investors and advisers alike the appropriate tools to help distinguish between different VCTs.

“In addition to the expanded sector classifications, 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 will allow 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."