55 / 92
55
“Greater diversification will protect investors should one company perform poorly. While
diversification cannot protect against systematic risk, it can protect against systemic risks”
TOP 10 HOLDINGS
(% OF TOTAL ASSETS)
(2015)
TOP 10 HOLDINGS BY SIZE OF FUND
(% OF TOTAL ASSETS)
(2015)
TOP 10 HOLDINGS BY LAUNCH YEAR
(% OF TOTAL ASSETS)
(2004-2015)
TOP 10 HOLDINGS IN SPECIALIST
VCTs
(% OF TOTAL ASSETS) IN 2015
It is also important to take a view on the underlying investee companies. Greater diversification will protect investors should one company perform
poorly. While diversification cannot protect against systematic risk, it can protect against systemic risks. It is easier for Generalist and AIM sectors to
diversify across a large number of companies with 25 and 56 investee companies being the averages across the sectors respectively.
Specialists will obviously have a more difficult task of diversification and will be more susceptible to industry specific risks. In addition, as we noted
earlier capital preservation and asset backed VCTs with lower levels of diversification may not have enough growth potential in the portfolio to
overcome any losses.
Concentration of top 10 holding (%)
LIMITED LIFE
AIM
GENERALIST
SPECIALIST
86.5%
MEDIA, LEISURE & EVENTS
81.5%
ENVIRONMENTAL
87%
TECHNOLOGY
0
% Of total assets
Size of fund (m)
10
0.00
2004
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
100+
75-100
50-75
25-50
10-25
5-10
<5
10.00
20.00
Concentration of top 10 holdings (%)
30.00
40.00
50.00
60.00
70.00
20
30
40
50
60
70
80
90
100
Minimum
Median
Average