Foresight aims to turn round Acuity VCTs after 70% falls

Advisers are hoping that Foresight will turn around two venture capital trusts it bought from Acuity Capital in April after a 70 per cent drop in net asset value.

Last week, Foresight published half-yearly reports for the Foresight 5 VCT and the Acuity 3 VCT for the six months to March 31, which include revaluations for both funds.

Foresight 5, formerly Acuity Growth VCT, saw a 67 per cent drop in value to £10.6m, down from £32.1m on September 30, 2010.

Acuity 3 suffered a 70 per cent drop in value, equating to a fall in funds under management from £21.3m to £6.4m over the same period.

Bestinvest senior research analyst Ben Seager-Scott says: “We are in close discussions with the management at Foresight and we are asking serious questions about what is going to happen in the portfolios.

“There is a question mark over the valuation method used by Acuity.”

Hargreaves Lansdown inv-estment manager Ben Yearsley says: “A possible merger of the two funds would be in the interests of investors in terms of economies of scale, and a further fundraising could help create a more diverse portfolio.”

A Foresight spokeswoman says: “With careful management, Foresight believes that the net asset value of each VCT can be increased.”