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The most common factor cited that would most likely make advisers hesitate about recommending VCTs is the manager’s performance
track record (59%). The economic sector the fund is exposed to (46%) is the second most common reason to make advisers hesitate in
recommending VCTs. The complex investment process is seen as another important consideration for advisers (41%). VCTs involve a lot
of paperwork which can put advisers off. Perhaps the move onto advisory platforms will address this. The poor quality of information
provided on the fund and the poor quality of the party review ratings were also concerns for 38% of respondents.
“The complex investment process is seen as another important consideration for advisers (41%).
VCTs involve a lot of paperwork which can put advisers off. Perhaps the move onto advisory
platforms will address this”
WHICH 3 FACTORS ARE MOST LIKELY TO MAKE YOU HESITATE ABOUT RECOMMENDING A VCT?
10%
30%
50%
70%
Manager’s
performance
track record
Economic
sector fund is
exposed to
Complex
investment
process
Poor third
party review
ratings
Poor quality of
info provided
on fund
Ease of
investment
Forecast level
of return
Forecast timing
of the exit
Other
60%
40%
20%
0%
Top factor
2nd top factor
3rd top factor
10%
18%
23%
18%
5%
13%
3%
5%
5%
5%
8%
5%
8%
8%
28%
15%
10%
10%
10%
13%
21%
13%
8%
10%
23%
5%
WHAT ARE YOUR TOP 3 CONCERNS WHEN RECOMMENDING A VCT?
Investment risk (90%), lack of liquidity (59%), lack of transparency (43%) and expense (28%) are the top concerns for advisers when they
recommend VCTs to their clients.
Investment
risk
Lack of
liquidity
Too
expensive
Lack of
transparency
/ Hard to
understand
Fear of investing
in non-mainstream
assets
Too much
regulatory
risk
Too hard to
explain to
clients
Too much
due diligence
required
Fear of investing
in tax avoidance
schemes
Other
10%
30%
80%
100%
90%
70%
60%
50%
40%
20%
0%
Top concern
2nd top concern
3rd top concern
49%
21%
10%
5%
5%
5%
31%
28%
18%
10%
5%
8%
3%
3%
3%
5%
5%
5%
5%
13%
5%
10%
28%
10%
10%