Hardman & Co Summary – How much should clients invest in Venture Capital?

investment summary

Which of your clients should be investing in Venture Capital?

If we asked this question to most financial advisers we would probably be told that ‘it is too risky for my clients’. If we then asked you whether you wanted better returns for your clients, you would almost certainly say ‘yes’.

Hardman & Co are one of the most respected firms of equity analysts in the country, and now also a reviewer of tax efficient products. Their senior analyst, Dr Brian Moretta has just published a paper tackling these issues. His findings are very clear. They suggest that an investment portfolio should include around 10-15% of venture capital for investors with average risk appetites. And that by including venture capital it is likely to increase the return to the investor by 0.5-1.0% pa. Which is before the generous tax benefits offered by EIS and SEIS. Lastly, the paper highlights that this can be achieved without massively increasing the risk of the overall portfolio.

You can see our summary of this paper here.

The paper shows the benefits of building a diversified portfolio of investments including venture capital, which is where Nova comes in. We are one of the leaders in diversified portfolios, investing in more than 20 different companies a year in our SEIS fund. And since Nova Group started investing in SEIS 13 years ago, we have seen our group portfolio grow in value by an average of 36.5% year on year for 11 years.

If you would like a copy of the full paper by Dr Brian Moretta you can download it here.


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