REPORT: In case you missed it, we thought you might be interested in a recent report commissioned by the London Stock Exchange that looked at the economic impact of AIM.

Amongst other findings, the report found that in 2023, AIM companies contributed £35.7 billion gross value added to UK GDP.

These findings highlight the potential for AIM to make a valuable contribution to the Labour Government’s mission to support the economy. However, the report emphasises that if AIM is to play a part in this, the Government needs to ensure that the comprehensive and well-calibrated package of fiscal incentives and reliefs are maintained.

The Economic Impact of AIM report was commissioned by the London Stock Exchange and written by Grant Thornton UK LLP. It highlights the significant contributions of AIM companies to the UK economy. Despite challenges such as the COVID-19 pandemic, AIM has continued to support business growth by providing access to capital for smaller, ambitious companies. Since its inception in 1995, AIM has supported over 4,000 companies, raising a total of £135 billion.

The report emphasizes AIM’s role in fostering a diverse and resilient business environment. It notes that 83% of new admissions since 2015 have been UK-incorporated companies.

AIM’s contribution to the UK economy is substantial, with the market enabling companies to achieve significant growth and development. The report also compares the latest data (2023) with pre-COVID figures (2019), providing a comprehensive view of AIM’s performance and resilience.

Overall, AIM continues to play a crucial role in supporting the UK economy by facilitating business growth, providing investor opportunities, and contributing to economic stability and diversity. The comprehensive and well-calibrated package of fiscal incentives and reliefs play a key role in spurring these achievements on.

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

CEO of the London Stock Exchange, Dame Julia Hoggett, has spoken to the Treasury in favour of AIM and why Business Relief has become an important source of “capital for AIM companies”.

Sky News reported that Dame Julia told the Treasury what immense value AIM brings to this country and why Business Relief should continue.

Chris Boxall, portfolio manager at Fundamental Asset Management, welcomed Dame Julia’s intervention. “We have been calling for the LSE to begin shouting about the merits of AIM and the value that Business Relief delivers for the UK economy for some time.

“Back in February, I wrote to Dame Julia and made four recommendations, including to ‘Run a dynamic marketing campaign highlighting the success of companies on AIM – aimed at private investors and the public at large (not just institutional investors).’ This intervention is definitely filed under ‘Better Late Than Never’.”

To read the Sky News article, click here.

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

With the Bank of England cutting their base rate for the first time in over 4 years; how does a Bank of England base rate cut help small caps?

1. Lower Borrowing Costs: When the base rate is cut, it generally leads to lower interest rates on borrowing. This makes it cheaper for small-cap companies to borrow money for expansion, operations, or other investments. This can lead to increased productivity, job creation and growth more generally. It also makes it cheaper for consumers and other businesses encouraging spending and investment.

2. Increased Consumer Spending: Lower interest rates can boost consumer spending as people have more disposable income due to lower mortgage and loan payments. This can increase demand for products and services offered by small-cap companies, increasing demand and helping businesses grow.

3. Improved Investor Sentiment: Lower interest rates can make equities more attractive compared to fixed-income investments like bonds or savings accounts that are attractive when interest rates are high. This can lead to increased investment in small-cap stocks, driving up their share price.

4. Improved Confidence: A rate cut can signal that the Bank of England is taking action to support the economy, which can boost confidence among consumers and businesses. This increased confidence can further stimulate spending and investment.

5. Weaker Currency: Lower interest rates can lead to a depreciation of the national currency, making exports cheaper and more competitive internationally. This can boost export-driven growth. The Fundamental Asset Management AIM portfolios have many exporters who do well when sterling is weaker.

The latest Fundamental Asset Management webinar also covers the impact of falling interest rates on small caps. You can watch it by clicking here.

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

Recent research has provided compelling evidence that within each tax year, early ISA (Individual Savings Account) investors significantly outperform those who invest in their ISA later in the tax year.

THE POWER OF DAY ONE INVESTMENTS
New data is clear; early investments in ISAs significantly outperform according to recent research from Hargreaves Lansdown. The research looked at a decade of investing clearly showed, individuals who maximised their ISA allowance on the first day of the tax year every year have seen their investments soar to a superb £360,500.

PROCRASTINATION COSTS RETURNS
In contrast, those who waited to invest until the last day of the tax year, accumulated a lesser £322,500. The substantial difference, highlighting the cost of delay.

TIMING MATTERS
The conclusion from the research was unequivocal: timing matters. By investing early, you’re putting your money to work sooner, capitalising on a full year’s worth of potential growth. As we embark into the new tax year, let’s keep this lesson in mind and wherever possible be the early birds of the ISA world.

HOW HAS THE MARKET BEEN?
With the research in mind, it is also a good time to review what the market did in the 1st Quarter of 2024. Join us for our next free webinar on Wednesday 24th April at 3pm “Q1 REVIEW – WHAT HAPPENED TO AIM?” Click here to register. The webinar is CPD eligible. Submit your questions to [email protected]

THE PROFESSIONAL INVESTOR PODCAST – EPISODE 2
In Episode 2 of The Professional Investor Podcast; Fundamental Asset Management’s Chris Boxall explains how a professional investor constructs an investment portfolio (which could be held in an ISA). Listen to it here or subscribe wherever you get your podcasts so you don’t miss a future episode.

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

The Professional Investor is a new podcast series which goes inside the mind of a UK based professional investor. It explores; the secrets of asset management, gives the inside scoop on the latest developments from the front line of the investment industry as well as analysis and opinion on what is going on in the economy.

For Episode 1 of The Professional Investor Podcast; the professional investor is Chris Boxall. Chris is co-founder and portfolio manager at Fundamental Asset Management.

Chris gives his opinion on the Budget and explains some of the changes he would like to see at the London Stock Exchange.

Chris has 25 years as a professional investor under his belt having worked in New York as well as the UK. Back in 2004, Chris and his colleague Stephen Drabwell brought an American approach to investing over to the UK when they founded Fundamental Asset Management. The firm as well as managing general portfolios, has a focus on smaller companies on AIM including running a specialist AIM for Inheritance Tax Portfolio Service. Chris is the long term editor of the popular research site Investor’s Champion.

Key topics:
• The Budget
• The London Stock Exchange
• The Financial Times coverage of Chris’ recommendations

Webinar: “How Do You Use AIM For Inheritance Tax Planning?”

Previous Fundamental education webinars

Follow Fundamental Asset on Twitter

Chris Boxall on LinkedIn

Fundamental Asset Management on LinkedIn

Disclaimer: This podcast, all opinions and information are for educational purposes only and do not constitute investment advice. Trading and investing carries a high level of risk and are not right for everyone. If you need financial advice, consult with a regulated financial adviser in your country before making any decisions.

FURTHER INFORMATION

Fundamental’s AIM IHT ISA and General portfolio is a discretionary investment management service where clients can obtain 100% mitigation from Inheritance Tax, benefit from the capital growth and income afforded by the AIM market and retain control of their assets.

You can find out more about AIM ISAs here: ‘AIM ISA Explained’.

Fundamental now offers its standard AIM IHT Growth Portfolio, as well as its newer AIM IHT Income Portfolio service.

All portfolios are managed by the same team of managers and researchers that have delivered exceptional returns since the firm’s founding in 2004.

You can find out more from the link here or by contacting [email protected] or calling 01923 713894.

The Professional Investor is a podcast series which goes inside the mind of a UK based professional investor. It explores; the secrets of asset management, gives the inside scoop on the latest developments from the front line of the investment industry as well as analysis and opinion on what is going on in the economy.

For Episode 1 of The Professional Investor Podcast; the professional investor is Chris Boxall. Chris is co-founder and portfolio manager at Fundamental Asset Management.

Chris gives his opinion on the Budget and explains some of the changes he would like to see at the London Stock Exchange.

Chris has 25 years as a professional investor under his belt having worked in New York as well as the UK. Back in 2004, Chris and his colleague Stephen Drabwell brought an American approach to investing over to the UK when they founded Fundamental Asset Management. The firm as well as managing general portfolios, has a focus on smaller companies on AIM including running a specialist AIM for Inheritance Tax Portfolio Service. Chris is the long term editor of the popular research site Investor’s Champion.

Key topics:
• The Budget
• The London Stock Exchange
• The Financial Times coverage of Chris’ recommendations

Webinar: “How Do You Use AIM For Inheritance Tax Planning?”

Previous Fundamental education webinars

Follow Fundamental Asset on Twitter

Chris Boxall on LinkedIn

Fundamental Asset Management on LinkedIn

Disclaimer: This podcast, all opinions and information are for educational purposes only and do not constitute investment advice. Trading and investing carries a high level of risk and are not right for everyone. If you need financial advice, consult with a regulated financial adviser in your country before making any decisions.

FURTHER INFORMATION

Fundamental’s AIM IHT ISA and General portfolio is a discretionary investment management service where clients can obtain 100% mitigation from Inheritance Tax, benefit from the capital growth and income afforded by the AIM market and retain control of their assets.

You can find out more about AIM ISAs here: ‘AIM ISA Explained’.

Fundamental now offers its standard AIM IHT Growth Portfolio, as well as its newer AIM IHT Income Portfolio service.

All portfolios are managed by the same team of managers and researchers that have delivered exceptional returns since the firm’s founding in 2004.

You can find out more from the link here or by contacting [email protected] or calling 01923 713894.

With ISA season 2024 upon us and people looking to do more with their money; a “Bed and ISA” could be just the ticket. We look at what it is and how it can help with Inheritance Tax (IHT) Planning.

A Bed and ISA transfer is a process in which a client moves their non-ISA investments into an ISA. The term “Bed” refers to the process of selling the investments and then using the proceeds from the sale to purchase equivalent investments within the ISA. This transfer enables clients to take advantage of the tax benefits provided by an ISA, such as tax-free income and capital gains. On top of this; when using a service such as Fundamental Asset Management’s AIM IHT portfolio service, the ISA can also be used to reduce IHT.

Fundamental Asset Management’s AIM IHT portfolio service is designed to deliver 100% IHT relief on the investment by purchasing Business Relief qualifying AIM shares on behalf of a client. For the client’s investment to qualify, the following is necessary:

1) qualifying shares must be held for at least two years and still be held on death;
and
2) the company must still qualify for Business Relief at the time of the investor’s death

Another advantage of a Bed and ISA transfer is that it can help investors simplify their investment portfolio. By consolidating their investments within an ISA, investors can reduce the number of accounts they need to manage and keep track of. This can save time and effort and make it easier to monitor the performance of their investments.

Overall, a Bed and ISA can be a useful tool for clients who want to take advantage of the tax benefits offered by an ISA while combining this with investing through an AIM IHT portfolio service, has additional IHT planning benefits.

ISA ACCOUNT DEADLINE FOR FUNDAMENTAL

Existing clients: 5th April.
New clients: 2nd April at the latest (assuming all information needed has been provided).

We spoke about Bed and ISA transfers in a past webinar which can be watched here.

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

• In episode 6 of The Fundamental Asset Podcast, Chris Boxall, co-founder of Fundamental Asset Management and the Director of the Institute for Fiscal Studies, Paul Johnson, discuss the true cost of running Britain.

  Paul and Chris explore taxes, pensions including auto-enrollment, the ageing population, and the future of the state pension.

  Paul is perhaps one the UK’s best-known economists, a regular on BBC Radio 4, and writes a column for the Times Newspaper. He is also a published author with a Times bestseller Follow the Money, How Much Does Britain Cost.

  Key topics discussed:

  • Are we receiving good value for our taxes?
  • Will our taxes keep on rising?
  • Should we just tax the rich?
  • Is growth the answer, or raising taxes?
  • How much does the state pension cost?
  • Does auto-enrollment solve the problem of funding one’s retirement?
  • Does the risk measurement process need an overhaul?

  Listen to the podcast by clicking the play button at the top of this page or from the link here (Note: this links you to the Fund Your Retirement site).

  Fundamental Asset Management’s AIM IHT ISA and General portfolio is a discretionary investment management service where clients can obtain 100% mitigation from Inheritance Tax, benefit from the capital growth and income afforded by the AIM market and retain control of their assets.

  Webinar: “AIM TO SOAR IN ’24?”

  Fundamental’s Co-Founders Chris Boxall & Stephen Drabwell look at the topic “AIM to soar in ’24?”. The webinar is CPD eligible.

  You can find out more about Fundamental Asset Management’s AIM portfolio service from the link here or by contacting [email protected] or calling 01923 713894