Fundamental Asset Management was recently featured in What Investment after our decision to broaden our investment mandate and introduce positive & sustainable growth into our AIM IHT portfolio. (Read the full article here).
There are two improvements this brings. Firstly, it widens our remit and therefore our opportunity for growth. And secondly, it allows us to create a dedicated positive & sustainable version of our AIM IHT portfolio for clients that require this type of mandate (subject to a minimum).
The opportunity for growth
It’s important to understand that this is not a change of the management style of our successful AIM for IHT portfolio service which has recently had its top quartile performance over 1,3,5 & 10 years confirmed by MICAP (Read the full report here). Instead, it is a broadening of our investment remit to take advantage of the growth opportunity which positive and sustainable investing presents.
There are many examples of the opportunities to be found here including within healthcare, energy storage and renewables. We have, up to now, avoided earlier stage, smaller, non-profitable companies in these sectors, due to the perceived heightened risk of these types of business. However, these types of ‘new economy’ businesses have performed strongly over recent years, have attracted significant amounts of capital and are therefore well-funded to commercialisation. Importantly, we consider that investors’ enthusiasm for supporting more innovative companies in fast growing sectors may continue to deliver outperformance.
We should emphasise that companies of this nature will only form a very small component of IHT portfolios, sitting within our ‘satellite’ basket of holdings, which typically represents approximately 20% of the overall portfolio and where individual stock holdings are approximately 2% in size on inception. The average market capitalisation of our AIM IHT portfolio holdings is currently in excess of £700m and we anticipate that this will remain the case.
Positive & sustainable AIM IHT portfolio
From discussions with clients and advisers we see a growing enthusiasm for supporting companies making a positive commitment to society. We agree with this principle and the decision to broaden our investment mandate to include earlier stage, smaller, non-profitable businesses showing positive and sustainable change gives us the flexibility to invest line with these principles.
If you have a client who is looking to mitigate an Inheritance Tax issue but who also has ethical principles to consider then a bespoke positive and sustainable AIM IHT portfolio could help. Please Contact us to discuss further.
The Fundamental AIM IHT Portfolio is a discretionary investment management service where clients can obtain 100% mitigation from Inheritance Tax, benefit from the capital growth afforded by the AIM market and retain control of their assets.
You can find out more about Fundamental Asset Management’s high performing AIM IHT ISA and AIM Inheritance Tax portfolio service, which has been delivering exceptional investment returns for more than 17 years, from the link here.