Amati’s AIM-focused venture capital trust could ditch the growth market as performance plummets
The Amati AIM VCT has begun a strategic review to decide whether it should be able to invest outside of London’s smallcap market due to its poor performance.
The venture capital trust, which launched in 2001, has seen its share price continue to shrink in recent years and credited this to “ongoing challenges in the AIM market.”
The AIM VCT’s net asset value has slumped 45 per cent over the last three years and 21.1 per cent in the last year alone.
Meanwhile, its share price has fallen 43.4 per cent in the last three years and 19.7 per cent over the last year.
This compares to a sector average of -38.1 per cent and -13 per cent, according to data from the Association of Investment Companies.
London’s AIM market in general has suffered significantly over the last few years, with 2023 being one of the worst years on record for the market.
The VCT also suffered last year when fund manager Anna Macdonald, who had worked at the firm since 2018, left Amati.
As a result of these challenges, the venture capital trust has said it would be considering shifting its investment strategy to “facilitate investment in a broader range of securities while continuing to comply with the rules applicable to VCTs.”
Additionally, the AIM VCT’s board said it had noted the recent buyout offer for Mattioli Woods by Pollen Street Capital, given that the firm owns a 49 per cent stake in Amati.
“The ongoing review of strategic options will take into account any possible impact of the offer on the company and the management of its investment portfolio,” it said.
The news comes amid a strong fundraising environment for VCTs in 2024.
Earlier this week YFM Equity Partners said it has closed its two British Smaller Companies Venture Capital Trusts with £90m raised while Unicorn’s AIM venture capital trust (VCT) just sold out in only seven days.