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Article: VCT managers believe a secondary market is vital.
- Article from:
- Investment Adviser
- Article date:
- October 15, 2007
CopyrightCOPYRIGHT 2007 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The vast majority of venture capital trust managers believe it is important that a secondary market is developed, but are divided about the ease with which it could be created.
According to a survey conducted by the Association of Investment Companies, 42 per cent of VCT managers thought developing a secondary market was feasible, however 37 per cent said it would be difficult.
The managers said a secondary market's key benefits would include allowing investors to sell more easily, reduce discounts, gain tax-free dividends and get the opportunity to invest in a mature portfolio.
Simon Rogerson, chief executive of Octopus Investments, said an ...