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VCT investment opportunities ‘reduced’

Article Date:  Sep 29 2008

Andrew Boyle, chairman of the Apollo VCTs, says that there are fewer opportunities matching the funds’ investment criteria due to the economic downturn. The statement comes as the VCTs report ‘stable’ performance in the six months to July.

Boyle attributes the lack of investment opportunities to a number of possible factors. ‘This might be because company managers have been required to focus on their existing businesses rather than on acquisitions,’ he states.

‘Similarly to the housing market, it might also reflect limited availability of bank finance and the need for vendors to adjust their price expectations.’

Apollo VCTs 1 and 2, twin trusts with combined net assets of more than £16 million, made one new investment in the six months to July. The VCTs committed a combined £394,000 in debt and equity to Hydrobolt, a manufacturer of fasteners for the oil and gas industry.

The funds have seen a year-on-year decline of 1.3 per cent in their net asset value per share, to 93.2p. The share price stands at 89p and Boyle says Octopus, the manager of the trusts, ‘is working towards developing strategies to increase liquidity in the [secondary VCT] market.’

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