Are monthly instalment VCTs the new alternative to pensions?

Octopus Investments has launched a new £70 million fundraise for its Titan VCT, which it says is currently the largest on the market.

Octopus says that since new restrictions on lifetime and annual pension investment limits came into force in April, many investors and advisers have asked for a VCT which could accept monthly contributions.

The fund management firm believes that with buy-to-let investments also coming under pressure from the chancellor, many will be looking to VCTs as a complementary option for their retirement portfolios.

Paul Latham, Managing Director at Octopus Investments, said: "This fundraise comes at an inflection point for the industry. Against the backdrop of significant pension reform, we are seeing more and more people looking for ways to complement their existing retirement planning. Many of these customers have asked us to design a VCT which could accept monthly contributions to complement how most people manage their existing retirement plans. With shares allotted quarterly, we are delighted that Titan VCT will be the first VCT to offer this service to customers.
 
“Last year's fundraise saw unprecedented interest from investors with Titan VCT seeing a record £100 million raised, closing five months early. VCTs are now seen by many as a powerful planning tool and can be an attractive way to gain access to the growth potential of smaller, early stage companies."