In the seventh of our series – The Fundamentals – about going back to the basics of investing in AIM shares for Inheritance Tax (IHT) planning purposes, we look at  reasons to invest with Fundamental Asset Management.

If you or your client already invests with us, we hope you don’t mind us reminding you what makes us different.

10 Reasons to invest with Fundamental

1. Same portfolio managers since founding in 2004.

2. Our in-depth research seeks out the best investment opportunities on AIM.

3. Experience and expertise, gained through several stock market cycles, along with our outstanding customer service, makes Fundamental Asset Management one of the most successful AIM managers for tax efficient investing in the UK.

4. Personal service with resources such as market insights and direct contact with our portfolio managers.

5. “Core and Satellite” investing approach provides exposure to larger AIM stocks as well as smaller companies with higher growth potential.

6. Excellent value for our clients; a fully tailored portfolio service.

7. Client retains access – assets remain in client’s own name – so no loss of control and client has freedom to redeem part or all if needed.

8. Significantly outperformed the AIM market since inception in 2004, but monthly returns have exhibited less volatility.

9. Support to estates after a client has passed away. At a difficult time, we provide the information HMRC requires at no additional charge.

10. One of the most competitively priced products in the market providing excellent value.

For more information about reducing Inheritance Tax by using Business Relief (also know as Business Property Relief) click here.

If you have any questions, please do not hesitate to contact our Business Development Manager Jonathan Bramall via email [email protected] or phone 01923 713 894

The Fundamentals Series

• Introducing The Fundamentals series
• The Fundamentals #2: How to use ISAs for Inheritance Tax (IHT) planning?
• The Fundamental #3: The perils of exit fees & support for a client’s estate
• The Fundamentals #4 – What is the Fundamental AIM Inheritance Tax Portfolio?
• The Fundamentals #5 – How to use AIM to stop HMRC taking money from your family?
• The Fundamentals #6: How long do you need to hold a qualifying stock for to receive IHT relief?

Our Educational Webinars also provide plenty of further information.

Fundamental Asset Management
www.fundamentalasset.com

The recent stock market sell-off has resulted in several private equity groups taking a close interest in AIM quoted companies. We aren’t surprised given the quality on offer from AIM’s proven performers, nearly all of which are now trading at significantly lower valuations than they were a few months ago.

At the end of April, Baring Private Equity Asia (‘BPEA’), confirmed that it was in the preliminary stages of considering a possible offer for RWS Holdings, one of AIM’s largest companies, valued at over £1.5 billion.

RWS has not received any formal approach from BPEA, which may never materialise, but we aren’t surprised they have made a move given RWS’ declining share price over recent months and the highly cash generative nature of this world-leading provider of technology-enabled language, content and intellectual property services.

BPEA is required, by not later than the close of business 19 May 2022, to either, announce a firm intention to make an offer, or announce that it does not intend to make an offer. The deadline may be extended with the consent of the Panel on Takeovers and Mergers.

Matters have progressed even further with Ideagen, a provider of compliance software for regulated industries. In the middle of April, private equity group Cinven confirmed that it was in the early stages of considering a possible offer for the Company. While Cinven subsequently pulled out, two other private equity groups, Astorg and Hg, then stepped in.

Hg has now offered to pay up to 350 pence per share, a premium of about 52% to Ideagen’s closing price on April 11, valuing Ideagen at just over £1 billion..

Shares in Ideagen currently site at 352 pence, above Hg’s offer price, suggesting that investors are expecting a counter bid from French rival suitor Astorg.

UK-based Ideagen is a leader in the +$30 billion regulatory and compliance software market, serving highly regulated industries such as life sciences, healthcare, banking and finance and insurance. More than 8,000 customers use Ideagen’s software, including 9 of the top 10 UK accounting firms, all of the top aerospace and defence companies and 75% of leading pharmaceutical firms.

Ideagen’s board plans to unanimously recommend the Hg deal to shareholders, considering that it “represents value for shareholders”.

Since moving to AIM from Plus Markets in July 2012, when its market capitalisation was only £11m, Ideagen has been a strong performer on AIM, acquiring a large number of businesses along the way. Given the recent de-rating of technology stocks, the acquisition multiple of 48x adjusted forecast earnings for the year to April 2022 looks quite full to us, so we aren’t surprised the board are enthusiastic supporters of the deal.

Not only will we be sad to see another high-quality AIM company leave the junior market, but, if share prices of AIM companies continue to languish, we fear that cash-rich private equity buyers will acquire several other AIM companies by the time the year is out.

AIM’s well-established technology related companies, notably in the software arena, look particularly vulnerable to approaches, given their proven business models, cash generative attributes and largely debt-free balance sheets.

To find out more about the benefits of investing in AIM, please speak to our Business Development Manager Jonathan Bramall via email [email protected]  or phone 01923 713 894

Our recent Webinar covered many of the key questions clients ask when considering investing in AIM shares for Inheritance Tax Planning purposes. You can watch a recorded version of the webinar from the link here.

This video presentation here also provides a brief introduction to the Fundamental AIM IHT portfolio service. 

Fundamental Asset Management
www.fundamentalasset.com

In the sixth of our series – The Fundamentals – about going back to the basics of investing in AIM shares for Inheritance Tax (IHT) planning purposes, we look at How long do you need to hold a qualifying stock for it to receive IHT relief?

We recently ran a webinar for financial advisers where we answered questions on How to use AIM for Inheritance Tax Planning? We received a number of questions regarding the length of time shares must be held to benefit from IHT relief. With the risk warning that we are not tax advisers as well as that tax benefits depend on circumstances and tax rules can change, we have put our understanding of the rules below.

What is the length of time a Business Relief (BR) qualifying stock must be held so a client’s estate does not need to pay Inheritance Tax?

• A share (and any replacements) must have been held for at least a total of 2 years and still be held on death.
• The company must still qualify for Business Relief at the time of the investor’s death.

Does the overall AIM portfolio need to be held for 2 years to claim BR or is it on a share by share basis?

• It is on a share by share basis.

If a qualifying stock is sold and new qualifying stocks are purchased, does that reset the clock?

• As long as the whole of the money from the sale of the stock is reinvested, the calendar does not reset.

Does HMRC publish a list of qualifying AIM stocks which, if held for 2 years, would qualify for IHT relief?

• No, HMRC doesn’t produce a list but this is where using experts such as Fundamental Asset Management comes into play. Not only do we select stocks based on the qualifying criteria but we also keep them under review in case their Business Relief qualifying status changes. It is also worth noting that as well as the potential of saving 40% on IHT, our AIM for IHT portfolio service has seen historical growth that has outstripped other indices and competitors over many years.

For more information about reducing Inheritance Tax by using Business Relief click here.

If you have any questions, please do not hesitate to contact our Business Development Manager Jonathan Bramall via email [email protected] or phone 01923 713 894

The Fundamentals Series

• Introducing The Fundamentals series
• The Fundamentals #2: How to use ISAs for Inheritance Tax (IHT) planning?
• The Fundamental #3: The perils of exit fees & support for a client’s estate
• The Fundamentals #4 – What is the Fundamental AIM Inheritance Tax Portfolio?
• The Fundamentals #5 – How to use AIM to stop HMRC taking money from your family?

Our Educational Webinars also provide plenty of further information.

Fundamental Asset Management
www.fundamentalasset.com