View more on these topics

Smith & Williamson opens VCT portfolio

Smith & Williamson has established a venture capital trust portfolio service for the IFA market.

The portfolio service is part of the tax efficient solutions business Smith & Williamson acquired from Teather & Greenwood last September. Investors will need to have a minimum of 25,000 to invest in a portfolio of at least five VCTs selected by Smith & Williamsons financial planning team.

The team will look at all the VCTs in the market, interview the managers and grade them before making a final selection for a clients portfolio. They will select the VCTs drawing on in-house research, market knowledge and their relationships with VCt managers and management teams.

According to Smith & Williamson, a portfolio of VCTs will add further diversification into the portfolio by providing access to a wider spread of investments and different management styles, which should reduce risk.

Another benefit the company cites is that income
streams will be smoother because dividends from each VCT will be distributed at different times. No charge is made to the client for this service but IFAs will bear the costs as commission on each VCT is split equally with Smith & Williamson.

The service offers VCT selection and execution of the investments but does not provide a monitoring service. Smith & Williamson says VCTs have high standards of reporting and it would be unfair to charge a fee for something investors are already getting.

This service could be useful for IFAs who do not have the specialist knowledge, the time to reach the market or the authorisation for recommending VCTs to clients with income tax liabilities. However, the relative lack of liquidity in the VCT market means that unlike more conventional portfolio management services, scope for active management is limited.

Recommended

Aifa looks at customer care staff for networks

Aifa is experimenting with the idea of providing customer care managers for the major networks and support services grounds as a way of promoting Aifa and allowing a better flow of information to members. David Severn responded to a query from a network member at the roadshow by saying that Aifa was piloting a customer […]

Standard offers online view on Sipps

Standard Life has set up an online client view service to include its Sipp and mutual funds and allowing advisers to view all client policies in one window.

Coventry appoints new head of intermediary sales

Coventry Building Society appoints a new head of intermediary sales in the form of Julie Jones, who has worked at the society for 21 years.Jones is receiving a promotion from senior sales manager, where she oversees the entire branch network. The new role sees Jones responsible for the intermediary sales function heading up 14 UK […]

Investment

The Brunner Investment Trust – April 2017

Welcome to the latest update for The Brunner Investment Trust PLC from the Trust’s portfolio manager, Lucy Macdonald. Market Review Global equities have rallied over the first quarter of 2017, buoyed by signs of strengthening growth and optimism over company earnings, although this rally has faded towards the quarter end. US equities posted their strongest […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment