Friends Ivory & Sime has introduced the public and private primary capital trust with two types of investor in mind.
The first is the experienced investor who is looking for growth by investing in companies that promise high growth. The second is the client who would normally invest in a venture capital trust, and who is looking to invest in something that has a similar risk level.
The investment trust will invest in a wide portfolio of UK companies in the smaller companies sector of the market. These will include biotechnology, pharmaceuticals, healthcare, computer software, telecommunications, and computer hardware.
This product has a high level of risk due to the nature of the companies that it invests in. Many small companies have good growth potential, but might not survive the initial years due to business pressures.
The trust is managed by the same team that is running the Friends Ivory & Sime AiM trust, which invests in the alternative investment market. The team includes venture capital and corporate finance specialist Bill Brown and smaller companies specialist Robert Mitchell, who have both been managing the Aim trust since 1995.
According to Standard & Poors the Friends Ivory & Sime Aim trust is ranked 1 out of 27 funds, based on £1,000 invested on a mid-to-mid basis over three years to March 12, 2001.