News & Insights

Sunak scraps the Budget – should AIM tax reliefs be enhanced?

The popular press had previously alluded to the potential withdrawal of Inheritance Tax/Business Relief on AIM shares. With Chancellor Sunak scrapping his autumn Budget, as he focuses on matters of more immediate concern to the economic welfare of the country, any adverse tax changes for holders of AIM shares therefore appear to be off the… Read more

Common AIM Myths Debunked!

AIM is often considered a higher risk market due to the increased volatility, but does heightened volatility really amount to greater risk? From our perspective the purest definition of risk is the likelihood of a permanent loss of capital and, over the last 10 years, AIM’s larger companies have been better at delivering capital growth… Read more

Watershed event for AIM

The proposed acquisition of main market listed SDL (LON:SDL) by AIM quoted RWS Holdings (LON:RWS) is, in our opinion, a watershed moment for AIM, as an AIM company acquires a sizeable main market listed peer, but the combined group reamins on AIM. RWS is one of the world’s leading language, intellectual property support services and… Read more

Did you know..

There were 830 companies listed on AIM at the end of July and approximately 70% qualified for the valuable Inheritance Tax reliefs. Fundamental Asset Management have been expertly running AIM for IHT portfolios for more than 16 years and have an in-depth understanding of the Inheritance Tax qualifying rules. Inheritance tax is the most hated tax… Read more

Good few weeks for our portfolio companies

Despite their obvious appeal and relevance in our lives, many UK investors surprisingly have little direct exposure in their portfolios to leading US technology groups, preferring instead to invest via a collective investment scheme. We find it surprising that while much of the UK population is happy to use Amazon, Google, Apple iPhones etc, it… Read more

In case you missed us..

Find out from our Co-founder Chris Boxall where the opportunities are in AIM and why this is a market you should be considering for growth and not just the Inheritance Tax planning benefits. Click anywhere on the picture below to take you straight to the recording. Derek McLay Fundamental Asset Management   You can find… Read more

In case you ask..

Since the start of lockdown the unemployment rate in the UK remains relatively unchanged. So far so good. However, scratch the surface and a far more worrying picture begins to emerge. Figures from the Office for National Statistics showed that UK company payrolls fell by 649,000 between March and June, a 16.7% fall. The reason… Read more

Opportunities on AIM market after Covid-19?

There is no doubt that Covid-19 has changed the way we view our future. Investors and financial advisers alike are looking for the answers and the way to move forward. One thing we do know is that the show will go on regardless, Covid or non-Covid. In the headlines this week, Boohoo Group reacted to… Read more

Value of AIM to the UK economy significantly outweighs cost of modest tax concession

An excellent report from specialist growth company research house, Equity Development, has highlighted the huge benefits AIM brings to the UK economy and how the mild encouragement provided by the Inheritance Tax concession to those considering an IPO onto AIM is a very large multiple of the cost in tax foregone by HMRC. We would… Read more

What is driving AIM’s outperformance?

The AIM index is up 30% since 1st April i.e. Q2 2020. Maybe this is not surprising when you consider that it fell by 29% in Q1 and, as has been widely reported in the mainstream press, markets have rebounded. However, when you compare to the UK main markets, AIM has massively outperformed in Q2… Read more

As AIM celebrates its 25th birthday, are the tax reliefs at risk?

A recent article in the popular press has alluded to the potential withdrawal of Inheritance Tax/Business Relief on AIM shares. As a well-established investor in AIM for Inheritance Tax (‘IHT’) planning purposes, we have become used to regular press mutterings over the 16 years we have been managing our AIM for IHT portfolios. The introduction… Read more

Health-care diagnostics are the pick of the week

Shares in high flying ITM Power (LON: ITM), the energy storage and clean fuel company, had an interesting week after announcing a distinctly underwhelming year end trading update.  It is quite staggering how a business with real annual sales revenue of only £3m can now be valued at over £1bn. There is clearly a huge… Read more

Airlines stocks continue their recovery and quality continues to shine

Wizz Air Holdings (LON:WIZZ), the largest low-cost airline in Central and Eastern Europe, announced fantastic results for the year to 31 March 2020. Despite the challenging environment WIZZ is committing to the purchase of plenty of new aircraft over the next few years and has also announced its first ever flights from London Luton to… Read more

Markets need to pause

With many stocks bouncing strongly over the past few weeks, you could be forgiven for thinking that the world was back to normal, coronavirus a minor concern and a recession firmly off the cards….if only! The FTSE100 index and its constituents of aged dinosaurs has risen 23% from the March lows, the S&P500 index has… Read more

A big week for fund raises on AIM

It was a big week for fund raises across AIM with one of our AIM portfolio constituents receiving strong support from its shareholders sending the shares significantly higher. Fundamental AIM portfolio constituent Watkin Jones (LON:WJG), the developer with a focus on the Build to Rent and student accommodation sectors, reported strong results for the 6… Read more

News of a big dividend hike for one of our AIM portfolio companies

Fundamental AIM portfolio constituent, Jarvis Securities, announced a 69% increase in its second quarterly interim dividend to 11p, reflecting continuing strong trading for the stock broker as it benefits from the volatile environment. While the full year forecast dividend remains unchanged at 30p, equating to a yield of more than 5%, the suggestions are that… Read more

Fundamental’s technology giants continue to shine

Having bounced strongly off lows, we are somewhat reassured that stock markets closed the week in more sceptical territory with some semblance of a return to normality as trade tensions between the US and China resurfaced, if one calls that normality. It was a big week of earnings announcements from the major technology groups, several… Read more

Encouraging news from AIM

While the prior week closed with stock markets buoyed by promising news of a potential Covid-19 treatment from Gilead Sciences (US: GILD) this week was different story, with trial results casting doubt on the effectiveness of its drug remdesivir. The quest to find a test, treatment or vaccine for coronavirus is certainly heating up. Academics… Read more

News from a single company lifts global stock markets

As another turbulent week came to a close, stock markets were lifted by news that a drug developed by US listed biopharma group Gilead Sciences (US: GILD) may be showing promise as a Covid-19 treatment. Of 125 patients recruited by the University of Chicago for Phase 3 Trials taking Gilead’s drug remdesivir, of which 113… Read more

Encouraging news from the week

Bioventix (LON:BVXP), the developer of high-affinity monoclonal antibodies for applications in clinical diagnostics, announced excellent interim results for the six months ending 31 December 2019. Revenue rose 21% to £5.3m and pre-tax profit was up 31% to £4.3m. The operating cash inflow was £4m boosting period end cash to £5.5m. Bioventix isn’t facing quite as… Read more

Bear Market or Bull Market?

Despite falling on the last day of the week, stock markets (notably the US) still registered decent gains, boosted by the huge $2Trillion package of support signed off by the House of Representatives. A manic rally during the week saw the US market climb more than 20% in 3 days, the best 3 day run… Read more

Dividends at risk: apply some cash flow common sense

During these testing times the dividend yield can often prove illusory. While many companies are well-placed to continue supporting their dividends, many others, burdened by high levels of debt and declining cash flow, will be struggling to support the cash payments with short term survival sadly the primary focus. Faced with a meaningful decline in… Read more

Why are Markets so Volatile?

An excellent article today in the Wall Street Journal ‘Why Are Markets So Volatile? It’s Not Just the Coronavirus’ commented how the stock market is now dominated by computer-driven investors that rely on signals such as volatility and momentum Since the mid-February market peak, the Dow Industrials have closed more than 1,000 points lower on… Read more

Our current thinking on the ‘Corona Crash’

This week’s stock market sell-off has been indiscriminate and, with a few rare exceptions, has materially affected the share prices of all companies, large and small. The Financial Times has highlighted how the S&P500 index, dominated by some fantastic cash rich companies, experienced its quickest fall into a bear market on record, taking just 16… Read more

Opportunity Knocks!

Saudi Arabia’s move to swamp the world with cheap oil has sent oil prices down as much as 30%, with global equities also crashing. As the stock market mayhem ensues, the 10-year US Treasury yield has fallen to a record low of 0.32%, ironically only adding to the appeal of good quality companies with robust… Read more

Coronavirus encourages stock markets to take a breather

The indiscriminate sell-off in global equities due to the spread of the coronavirus has, not surprisingly, resulted in material weakness across Fundamental portfolios in the current quarter. As is usual in these circumstances, the selling has been indiscriminate and even companies considered traditional safe havens have seen their share prices fall. Smaller companies as always… Read more

Why are UK investors reluctant buyers of US listed shares?

We are puzzled why many UK investors appear reluctant to acquire shares in some of the best known companies in the world, preferring to delegate responsibility to some mediocre fund manager via a collective investment vehicle, which often has hundreds of holdings, many of which are also mediocre. The US stock market’s considerable outperformance of… Read more

Fundamental’s elephants are galloping fast

It’s been a big week of announcements from many of our portfolio holdings and some our large cap companies are putting their smaller peers to shame, delivering stupendous growth. As the world’s largest online payments provider with the fastest growing mobile platform, Fundamental Ultimate Stocks Portfolio holding PayPal Holdings (US: PYPL) was bound to benefit…. Read more

AIM stocks rally on Conservative landslide

The Conservative election victory, supported by progress with the US/China trade negotiations, triggered a strong rally from stock markets, with the UK index of 100 leading shares up just over 1%, the UK mid-cap index surging over 3% and US stocks hitting record highs. The AIM index was up just over 2%, but who were… Read more

AIM, where patience brings big rewards

The share price of CVS Group (LON:CVSG), the UK’s leading veterinary services business, rose strongly this week on the back of another positive trading update. CVS has been a mainstay of Fundamental AIM portfolios for many years, although it’s tested our patience on numerous occasions. The dynamics of the UK veterinary market have changed significantly… Read more

Invest in what you know – know what you invest in

The nature of investing in AIM for Inheritance Tax planning purposes is that investors must directly hold shares in the underlying AIM companies, albeit via a broker’s nominee arrangement. The Inheritance Tax planning benefits would be lost should investment be made via a fund or investment trust arrangement where the investor simply holds shares or… Read more

AIM big guns falter; buying opportunity or better value elsewhere?

The shares of several of AIM’s largest, highest profile, companies have tumbled over the past few months. In this Blog, Fundamental’s Chris Boxall gives his thoughts on the lacklustre performance of some of AIM’s previous high-flyers. Could now be an excellent buying opportunity or were the share prices simply far too over-heated before. While the… Read more

Stunning results from this technology star highlight the potential for investment outperformance on AIM 

dotdigital Group plc (LON:DOTD) has rapidly become one of our small cap favourites and the latest results certainly didn’t disappoint. Founded in 1999 as a web design agency, dotdigital has developed a globally compelling product suite for email and digital marketing. Having grown significantly since admission to AIM in 2011, when it’s market capitalisation was… Read more

AIM – the Good, the Bad and the Ugly

Investing in the shares of qualifying AIM companies can attract 100% relief from inheritance tax and is a proven tax planning method, avoiding the costs associated with a trust, or the risks associated with gifts. It’s also been a rather good investment strategy to follow, as long as you know what you are doing! Fundamental… Read more

Crowdfunding continues to thrive, but the valuations look crazy – better value on AIM?

The latest news that leading UK based crowdfunding platform Seedrs raised a further £4.5m in a new funding round has highlighted the appeal of rapidly growing, early stage companies to UK investors, at least relative to the duller offerings on the UK stock market. However, while there is no doubting the growth appeal of early… Read more

Burford Capital, AIM’s largest company, underlines its support for AIM

The interim results statement from Burford Capital (LON: BUR), currently AIM’s largest company, provided an interesting commentary on its reasons for remaining on AIM, rather than consider a move to London’s Main Market. With a market capitalisation approaching £4 billion, Burford would be close to gaining entry to the FTSE100 Index should it be on the Main… Read more

Office of Tax Simplification Inheritance Tax Review – second report: what does it really mean for AIM?

The Office of Tax Simplification (‘OTS’) published its long-awaited review on reforming Inheritance Tax. A first report released in November 2018 dealt with the administration of estates while the latest report focuses on how Inheritance Tax could be made “easier to understand and more intuitive and simpler to operate”. The stand-out headlines in the latest report… Read more

Jeremy Corbyn’s ‘Land for the Many’ and Inheritance Tax relief on AIM shares

An independent report commissioned by the Labour party entitled ‘Land for the Many’ proposes, among other interesting suggestions, to replace the current system of Inheritance Tax with a “lifetime gifts tax” levied on the recipient of the gifts. The proposals give rise to obvious fears that children will be taxed for financial assistance given to… Read more

Enhanced investment growth, substantial tax savings and supporting UK business growth

According to the Office for Budget Responsibility’s ‘Economic and Fiscal Outlook’ report released in March 2019, the Government is forecast to collect £6.3billion from inheritance tax by the 2023-24 tax year. This is a £1billion increase from the last tax year ending 5 April 2019, when HMRC collected £5.3billion from inheritance tax. To put things… Read more

With yet another set of fantastic results AB Dynamics has become a poster child for AIM and small cap investing in general

AB Dynamics (LON:ABDP), the manufacturer of advanced testing systems to the global automotive sector, has issued yet another set of fantastic interim results. Our earlier Blog from April 2016 commented how this terrific little business had delivered consistent excellence since arriving on AIM in 2013, highlighting the potential to uncover some brilliant businesses on the… Read more

Results season offers plenty of encouragement for our AIM portfolios

Results and trading updates over the past few weeks from our AIM universe of companies have been generally encouraging, with growing profits and cash generation supporting investment in the business and raised dividends. Here is a brief summary of the highlights from some. Tristel (LON: TSTL), the manufacturer of infection prevention and contamination control products,… Read more

Looking for ISA bargains ?

With the end of the tax year fast approaching, many investors will be looking to use their ISA allowance. Here is our brief introduction to some potentially interesting ISA bargains. AIM shares have only been permissible investments in ISAs since August 2013, but since then they have proved a very popular choice, notably for those… Read more

Inheritance tax planning AIM favourite yielding 11% – what’s the catch?

The share price of AIM quoted Redde (LON:REDD), the provider of accident management services and an inheritance tax planning AIM favourite, has been in the doldrums ever since the announcement of its interim results at the end of February 2019. Recent news of its failure to secure the renewal of a sizeable contract has also… Read more

AIM needs more newcomers

A recent update from our associates Investor’s Champion highlighted how February 2019 was yet another poor month for new arrivals on AIM, with only 1 proper new arrival and 7 more departures. AIM certainly needs to be re-energised! While the quality of companies on AIM has improved considerably over the 15 years we have been… Read more

Quartix (QTX) – timely, clear reporting from this cracking AIM company

In a recent podcast with our associates Investor’s Champion, Chris Boxall of Fundamental Asset Management discussed some of the problems with company reporting, notably with reference to UK banks, and and why clear, easy-to-read financial statements, with a minimum of adjustments, can be good for your investment portfolio. In this regard, full year results from AIM quoted… Read more

AIM’s old guard continues to shine

With January 2019 being the first month we can remember no newcomers joining AIM, it’s reassuring to note that many of AIM’s longer established businesses appear to be in fine form. Our Blog here comments on two of our more mature favourites. Flooring manufacturer James Halstead (AIM:JHD) celebrated 70 years as a listed company in 2018…. Read more

Why we invested in Patisserie Holdings

Patisserie Holdings (AIM:CAKE), is a UK branded café and casual dining group offering cakes, pastries, snacks, meals and hot and cold drinks from over 200 stores in the UK. It currently operates under five different brands – Patisserie Valerie, Druckers – Vienna Patisserie, Philpotts, Baker & Spice and Flour Power City. The largest and best-known… Read more

Inheritance Tax bill cut by 12%, or £710m, through investing in unlisted companies including AIM – record high

A new report from national accountancy group UHY Hacker Young highlights the tax saving benefits of investing in AIM quoted companies – there are considerable investment benefits as well! According to UHY Hacker Young, HMRC forecasts show that the value of “Business Property Relief” is expected to rise 8% in 2017/18, from £655m in 2016/17. Taxpayers… Read more

The key to AIM success

Chris Boxall, co-founder of AIM specialist Fundamental Asset Management, writes in this week’s Investors Chronicle. The article ‘The key to Aim success’ suggests how the AIM Admission Document should be essential reading for any investor in AIM companies, yet large parts of this vital document are often ignored. The disastrous performance of Conviviality (CVR) and… Read more

A tale of investment in AIM – a disastrous start becomes highly rewarding!

A recent meeting with the management of AIM quoted CVS Group (AIM:CVS) offered a useful reminder of the benefits of patient investing and staying the course. Hopefully the veterinary group will offer plenty more excitement over the coming years as it dominates the UK market and expands overseas. We first invested in CVS Group at… Read more

Has AIM managed to shed its investing ‘Wild West’ image?

In an interview for Tax Efficient Spotlight, Chris Boxall, co-founder of Fundamental Asset Management, comments on the evolution of AIM in the 13 years since Fundamental launched its high performing AIM portfolio service. You can read the interview from the link here     

April sees AIM surge higher as London’s growth market approaches GBP100 billion value

It was encouraging to see AIM welcome several high growth new arrivals in April 2017 with the market value of AIM creeping ever closer to GBP100bn – good news for those investing in AIM for Inheritance Tax planning purposes At the end of April 2017 there were 967 companies on AIM with the total market… Read more

AIM for the end of the tax year

AIM, the London Stock Exchange’s international market for smaller growing companies has delivered terrific performance over the past 12 months, highlighting its growing maturity and the hugely improved quality of its constituent companies. We would strongly encourage investors seeking exposure to growing, profitable, cash generative, dividend paying smaller quoted companies to take a closer look… Read more

AIM’s big currency winners

Christopher Boxall, Manager of Fundamental Asset Management’s AIM portfolio service, has recently been featured in the Share Centre Blog and Yorkshire Post. ‘AIM’s big currency winners’ on the Share Centre Blog identifies four larger AIM companies with significant overseas earnings and predominantly UK based costs, who will be beneficiaries of Sterling’s current weakness. Click here… Read more

Client money can stay ‘on platform’ with Fundamental AIM for IHT planning portfolios

The improving quality of companies on AIM, combined with the Individual Savings Account (ISA) rule changes from August 2013 which allowed AIM shares to be held within ISAs, has seen a growing number of investors consider AIM for both its investment and tax planning attractions. The ability to invest in inheritance tax (IHT) qualifying portfolios… Read more

AIM breaches £80bn

The value of the AIM  market grew again in August reaching a level not seen for several years. At the end of August 2016 there were 1,007 companies on AIM with the total market value £80.568bn. This compares with 1,010 companies on AIM at the end of July 2016 when the market value was £77.396bn…. Read more

Do we really know what we are investing in? Time to reconnect with our investments

The latest investment fund offering from a company called Source, whose web site prattles on about something called Smart Beta, only serves to highlight to us the growing disconnect between investors and their investments. An investment maxim, followed by most of the great investors, was to always ‘invest in what you know’. Unfortunately, in today’s… Read more

Flawless performance on AIM from this lovely business offers a great guide of what to look for from a micro-cap

A manufacturer of advanced testing systems to the global automotive industry has just delivered yet another set of fabulous results. While many seem intent on criticising AIM for its looser regulation (and ‘occasional’ problem case) this little business has delivered consistent excellence since arriving on AIM in 2013, with little fanfare I should add. It… Read more

RWS Holdings (AIM:RWS) – whopping acquisition significantly earnings enhancing

The world’s leading provider of patent translations, international patent filing solutions and searches has announced a significant acquisition that is expected to be immediately and significantly earnings enhancing.  The AIM quoted Group has acquired Corporate Translations Inc (“CTi”) for a cash consideration of US$70 million. Based in Connecticut, USA, with 140 employees, CTi is the… Read more