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STRUCTURE ANALYSIS
SECTOR SPLIT BY STRUCTURE:
VCT STRUCTURE:
All of the AIM VCTs are Evergreen and Generalist VCTs are evenly split between Limited Life and Evergreen (49% and 51% respectively).
Among the five main sub-sectors of Specialist VCTs, Technology and Healthcare VCTs are Evergreen. Environmental focused VCTs
are mostly Limited Life (68%) as many green energy projects have a predictable investment life. Lastly, Media focused VCTs are
overwhelmingly Limited Life at 94%, with only 6% being Evergreen. Again, media investment has a predictable life cycle, productions
can be resold and projects return to cash very quickly. Technology and Healthcare require longer investment horizons to achieve
sustainable profits.
Unlike Limited Life, Evergreen have no set wind-up date but most offer a share buyback policy after the minimum five years holding
period or investors can look to sell on the secondary market. In 2015, the market was split 48% Evergreen and 52% Limited Life.
PRODUCT LAUNCHES BY STRUCTURE
(1995-2015)
48%
EVERGREEN
52%
LIMITED LIFE
Evergreen
Limited life
TECHNOLOGY
HEALTH
CARE
ENVIRONMENTAL
GENERALIST
AIM
MEDIA
LEISURE &
EVENTS
INFRASTRUCTURE
68%
94%
50%
49%
50%
51%
100%
100%
100%
6%
32%
Evergreen
Limited life
18
16
14
12
10
8
6
4
2
0
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
3
4
2
4 4
4 4 4
5
7
17
15
13
4
3 3
4
2
2 2
7
11
1
1 1
1
1
6
6