Close VCT Management, the venture capital trust arm of Close Brothers is offering a new share issue in its Close technology & general venture capital trust (VCT).
This VCT invests in technology and unquoted companies in other sectors and is divided between an income portfolio and a growth portfolio.
The growth portfolio focuses on European and US technology stocks that are quoted on international stocks exchanges and unquoted UK technology stocks. The income portfolio invests in unquoted UK companies and some of these may be listed on the alternative investment market (Aim).
The inclusion of technology, which is likely to represent 20 per cent of the overall portfolio, may seem surprising at present because investors are wary of taking risks as the war on terrorism heats up.
Although technology can be a risky area to invest in, those companies who are surviving in the current conditions are more likely to have the resilience needed to become successful companies than the dotcoms which flourished during the technology boom then vanished when the bubble burst
They are also more likely to be undervalued than overvalued and investors could capitalise on this. However, the difficulty lies in convincing investors that the timing is right to invest if their instincts are to avoid anything remotely adventurous.
According to Standard & Poor's, the Close Brothers Aim VCT is ranked 13 out of 27 trusts based on £1,000 invested on a mid-to-mid basis with net income reinvested over three years to October 8, 2001.