Investment managers Singer & Friedlander is to make its first foray into the world of Venture Capital Trusts, with its AIM VCT.
The VCT is designed to attract investors who are more sophisticated than the average investor, but who are not prepared to take the risk associated with a normal VCT.
It will lower the risk by investing in companies quoted on the alternative investment market. This means the selected companies have passed through the embronic stage in thier development and have an established platform. Singer & Friedlander reckon the risk associated with VCTs is further dissipated by its intention to invest in up to 24 different companies.
The AIM VCT will be managed by Singer & Friedlander's UK small companies investment team. The team is currently responsible for its offshore AIM fund. According to figures from Standard & Poor's Micropal, as at September 22, 1998, based on £1,000 invested on a bid-to-bid with net income re-invested the offshore AIM fund has experienced a good level of performance over the last year and is ranked 19th out of 126 in its sector.