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WEBINAR: What does 2023 have in store for AIM?

Join Fundamental Asset Management’s Co-Founders Chris Boxall & Stephen Drabwell on Tuesday 31st January at 3pm as they look at the risks and opportunities for AIM in 2023.

They will review 2022 and look into their crystal ball for 2023. What happened to AIM in terms of its size and overall performance? The webinar is titled What does 2023 have in store for AIM? This webinar is CPD eligible.

To register your spot and to be able to watch it after the event, please click here.

TOPICS TO BE COVERED:
– Brief introduction to AIM for Inheritance Tax (IHT) planning
– Recap on performance in 2022
– AIM IHT investing universe 2023
– Company valuations
– Results and updates January 2023
– Growth or Income AIM IHT portfolios?

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

To find out more about the benefits of investing in AIM shares for IHT planning purposes, please get in touch via email at [email protected] or phone 01923 713 894


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Fundamental features in the Telegraph

 

As the provider of the best performing stock tip of 2022, a rare positive in a horrid year for AIM and client portfolios, the Telegraph’s Questor column once again turned to Chris Boxall, portfolio manager at Fundamental Asset Management, for their Questor AIM IHT share tip for 2023.

The latest request coincides with the launch of Fundamental’s new AIM IHT Income Portfolio service, so Chris thought it was appropriate to suggest an income stock and one of the new holdings in the new income portfolio for the “Tip of the Year” stock – the 8% dividend yield being the primary appeal in the short-term.

If you have a subscription, you can read The Telegraph article online here.

The new Fundamental AIM IHT Income Portfolio is available on Fundamental’s own designated broker platform or via a range of IFA wrap platforms including Abrdn (formerly Standard Life) Wrap & Elevate, Fidelity Funds Network, Nucleus, Transact, M&G Wealth and others. It is available in both an ISA and General Investment Account.

You can find out more about our AIM IHT Income Portfolio in our webinar here and video interview here.

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


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AIM: thoughts on 2022 and outlook for 2023

In this video interview to close the year, Chris Boxall, co-founder of AIM specialist investment manager Fundamental Asset Management, discusses some of the key developments on AIM in 2022 and considers the opportunities for investors in AIM in 2023.

You can watch the interview by clicking the image above.

Companies discussed include Abcam, CVS Group, EMIS, Impax Asset Management, Jet2 and RWS Holdings.

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.

Fundamental now offers its standard AIM IHT Growth Portfolio, as well as its new 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.


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AIM dividend yields highest we have seen

The AIM Dividend Monitor from Link Group suggests the total dividend payout from AIM companies will reach £1.22bn in 2022, which will be close to the record payout of £1.29 billion in 2019. Our assessment suggests that dividend payments may actually exceed this level.

Rising dividend yields

The strong rebound in dividend payments has coincided with a steep decline in the share prices of many AIM companies with the result that dividend yields of sizeable and well-established AIM companies have risen substantially, to levels not seen in the 18 years we have been managing AIM portfolios.

New AIM IHT Income Portfolio

We have been contemplating the launch of an income focused AIM IHT service for several months following discussion with advisers and clients. The quality of companies on AIM has improved considerably over recent years making this a far more viable AIM IHT planning solution than was previously the case.

Fundamental Asset Management’s new AIM IHT Income Portfolio will follow a fixed model, with equal investment in the shares of 30 Inheritance Tax qualifying AIM companies, well-diversified across sectors and industries. The current estimated forecast dividend yield from the portfolio is 5.25% (December 2022).

There is currently minimal cross-over with stocks in our long-running AIM IHT Growth portfolio. The average market capitalisation of stocks in the AIM IHT Income Portfolio is £269m compared with an average market capitalisation of £565m for the AIM IHT Growth portfolio.

Chris Boxall, co-founder of Fundamental comments:

“Up to now, our predominant focus when investing in AIM is on capital growth. However, our research has uncovered a large number of sizeable AIM companies, previously considered for their growth prospects, now offering compelling dividend yields. When we looked at this many years ago, higher-yielding AIM companies were firmly ex-growth and subscale, however, this is no-longer the case”.

The new Fundamental AIM IHT Income Portfolio is available on Fundamental’s own designated broker platform or via a range of IFA wrap platforms including Abrdn (formerly Standard Life) Wrap & Elevate, Fidelity Funds Network, Nucleus, Transact, M&G Wealth and others. It is available in both an ISA and General Investment Account.

You can find out more about our AIM IHT Income Portfolio in our webinar here and video interview here.

 

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


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Video interview – AIM IHT for income

In this video interview, Chris Boxall, co-founder of AIM specialist investment manager Fundamental Asset Management, discusses the opportunities for income investors in AIM IHT ISA portfolios.

With AIM companies set to pay out just over £1.2 billion in dividends in 2022 there are plenty of high yielding AIM stocks to choose from, although prospective investors need to be wary of certain factors as Chris highlights.

You can watch the interview by clicking the image above.

The interview coincides with the launch of Fundamental’s new AIM IHT Income Portfolio service which was also covered in a recent webinar here.

DIFFERENCES BETWEEN THE EXISTING AIM IHT GROWTH PORTFOLIO VS THE AIM IHT INCOME PORTFOLIO?

The existing AIM IHT Growth 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. Fundamental has been managing this portfolio since inception in 2004.

The new AIM IHT Income Portfolio is designed for clients to still take advantage of the potential Inheritance Tax relief afforded by the AIM market and retain control of their assets, at the same time as providing a greater level of dividend income.

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


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AIM IHT portfolios for INCOME? Is it worth it?

AIM isn’t a market that’s generally considered for its dividend and income attractions, and we have always expressed caution on AIM companies paying out high dividends, when they should be putting their cash to better use.  However, the steep decline in share prices of many good-quality AIM companies has seen dividend yields soar to levels not seen since we started managing AIM IHT planning portfolios back in 2004 and the AIM of today is thankfully a far better market than it was back then.

With many AIM companies sitting on plenty of supportive cash, but their share prices languishing, these high yielders also have growth attractions.

We therefore thought it was an appropriate time to reassess the dividend and income potential of AIM companies for IHT planning purposes.

Join us for our webinar AIM IHT portfolios for INCOME? Is it worth it? on 25th November at 3pm. We will discuss the benefits and potential pitfalls of investing in Inheritance Tax qualifying AIM companies for income generation and the potential yield available.

The webinar will cover a number of topics including:

  • State of the AIM market
  • The investable universe of big dividend paying AIM stocks
  • Dividend yields and dividend cover
  • Quality of AIM companies
  • Interest rate considerations
  • Fundamental Asset Management’s high yield AIM portfolio solution
  • Sectors and industries.
  • Portfolio management

 

Sign up to the webinar from the link here

 

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 18 years, from the link here.

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


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Webinar – AIM: cheap for good reason or bargains to be snapped up?

Is it time to be greedy when others are fearful?

It has been a painful time recently for AIM investors. In the upcoming Fundamental Asset Management webinar on Wednesday 12th October at 3pm we ask: AIM: cheap for good reason or bargains to be snapped up?

To register your spot and to be able to watch it after the event, please click here.

Fundamental’s portfolio managers Chris Boxall & Stephen Drabwell will be reviewing the last quarter as well as looking ahead to Q4.

AGENDA
– Q3 Review.
– What lies ahead for Q4.
– It has been a terrible time for AIM stocks; could now be the time to invest?
– Trading performance vs share price performance.
– Valuations.
– Impact of “mini budget”.
– Questions.

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

To find out more about the benefits of investing in AIM shares for IHT planning purposes, please get in touch via email at [email protected] or phone 01923 713 894


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Weak pound means opportunity for AIM’s exporters

The pound is trading near its lowest level against the US dollar since 1985, a year which also saw Mikhail Gorbachev become the leader of the Soviet Union, Boris Becker become the youngest winner of the Wimbledon Men’s singles title and England win the Ashes.

The popular press is revelling in the current gloomy economic backdrop and while times are indeed challenging, notably from an energy and inflationary perspective, the UK’s weak currency could offer a terrific opportunity for UK exporters.

Thankfully there are plenty of these on AIM, with many having seen their share prices and valuations tumble over recent months, offering a compelling buying opportunity for patient investors, particularly with those with an eye on the Inheritance Tax planning benefits.

One of our long-term AIM portfolio holdings AB Dynamics has seen its shares fall substantially from 2021’s highs. With its headquarters in Bradford-on-Avon, near Bath, AB Dynamics is a manufacturer of advanced testing, simulation and measurement products for the global automotive sector – we covered this excellent company previously in a Blog here. AB Dynamics is a major beneficiary of the transition to electric vehicles, supporting nearly all the world’s car manufacturers. In 2021 over 90% of its revenue was derived from outside the UK, including 24% from North America and 50% from the Asia Pacific region. With its main manufacturing facilities in the UK, the weak pound could therefore be helpful to business.

AIM going cheap, especially for US buyers

The weak pound and tumbling share prices also make UK listed companies more appealing to overseas buyers and there have been several offers and recommended bids for UK Technology companies over the summer, including two on AIM.

This week brought news that GB Group, experts in digital location, identity verification and fraud software and one of our newer AIM portfolio holdings, is currently considering a possible cash offer from GTCR, a US-based private equity business.

Shares in GB Group hit a 5 year low in early July, despite not having had any operational issues and meeting the market’s expectations.

The share price of GB Group leaped in response to the latest news, but still remains well down on year highs, with many anticipating that rival bidders will emerge.

If share prices remain depressed, we anticipate that many other good quality UK listed AIM companies, will be snapped-up by cash rich overseas buyers.

As we commented in our previous Blog here, 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 Webinar here 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.


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Inflation proofed returns from AIM

Since arriving on AIM in 2011 at 60p per share (currently 930p) and a market capitalisation of only £50m (currently £1.25 billion), Glasgow headquartered Smart Metering Systems (‘SMS’) has evolved into a fully integrated energy infrastructure company.

SMS is a long-term holding in Fundamental Asset Management’s AIM IHT portfolios.

The global energy market has changed rapidly over the last few months and the requirement for a low carbon, flexible and secure energy system has never been greater or more acute.  The core focus of SMS is to facilitate a lower cost, lower carbon energy future.

At the time of its arrival on AIM, SMS was primarily a provider of gas infrastructure connection services and gas meter asset management services. It had also developed advanced smart metering technology solutions. Fast forward to the present time and the enlarged group now provides total energy solutions for its customers, helping businesses and consumers use energy for the better, with the aim of achieving a greener and more sustainable energy system.

In addition to their core meter asset management business, SMS now independently develops, owns and operates Battery Energy Storage Systems (BESS) that serve a greener, resilient, and more flexible grid and independent Electric Vehicle (‘EV’) charging solutions.

Inflation proofed returns

A positive trading update for its first half to 30 June commented how the installation of smart meters continued to pick-up with 230,000 installed during the first half of 2022, and the average monthly installation rate rising to 40,000 meters. As a result, the Group’s total smart meter portfolio increased to 1.9 million meters, with the order pipeline c.2.42 million meters.

The Group’s growing portfolio of smart meters supports plenty of reliable, inflation proofed, Index Linked Annualised Recurring Revenue (‘ILARR’), to which an annual RPI adjustment of +4.3% was applied on 1 April 2022.

The UK smart meter rollout continues to present a significant opportunity to grow their ILARR, with Ofgem requiring energy suppliers to exchange at least 85% of all meters to smart by the end of 2025. Ofgem has also proposed mandatory settlement of energy on a half-hourly basis, which would significantly increase the market size for these services from c.300,000 electricity meters to over 26 million meters by 2026.

SMS’ first grid-scale battery site (Burwell, 50MW) commenced trading at the end of January 2022 and the site’s current performance is well ahead of expectations.

New developments

The Group’s new Solopower solution, which was launched in 2021, aims to radically reduce carbon emissions within the UK’s social housing stock using solar generation and battery storage. Pilot projects are being progressed in over 1,000 homes across the UK, as well as early-stage projects in the Republic of Ireland.

Sustainability

The SMS website highlights how their investment case is rooted in sustainability, with its Sustainability Report providing detailed disclosure on the practical steps being taken to progress Environmental, Social and Governance (ESG) responsibilities within their business strategy, culture, and everyday operations.

Their ‘net-zero by 2030’ target will see SMS drastically reduce their organisational carbon emissions to achieve a balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere.

Green Economy Mark

SMS carries the London Stock Exchange’s Green Economy Mark. This recognises London-listed companies and funds that derive more than 50% of their revenues from products and services that are contributing the environmental objectives such as climate change mitigation and adaptation, waste and pollution reduction, and the circular economy.

 

Inheritance Tax receipts hit another record

HMRC’s latest figures show that Inheritance Tax (IHT) receipts for April 2022 to July 2022 were £2.4 billion, that’s £0.3 billion higher than in the same period a year earlier.

The Office for Budget Responsibility (‘OBR’) forecasts that as many as 6.5 per cent of estates could be liable for Inheritance Tax by 2026 – 75 per cent more than the 3.7 per cent that the figures show for the latest financial year.

With the AIM market down substantially from 2021 highs, now could be a great time to consider investing in qualifying AIM shares as part of a sustainable Inheritance Tax plan.

To find out more about the benefits of investing in AIM for Inheritance Tax planning purposes, where sustainability is also a key consideration, please speak to our Business Development Manager Jonathan Bramall via email [email protected]  or phone 01923 713 894.

This video presentation here provides a brief introduction to the Fundamental AIM IHT portfolio service, while our webinar here reviews the second quarter of the year and discusses our ESG and PRI developments.

 

Fundamental Asset Management
www.fundamentalasset.com


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Will your money help HMRC break another record?

Will your money help HMRC break another record?

HMRC’s latest figures released today show that Inheritance Tax (IHT) receipts for April 2022 to July 2022 are £2.4 billion; £0.3 billion higher than in the same period a year earlier.

Will your family have to pay IHT to HMRC after you have passed on? If this is something you wish to help your loved ones avoid, investing in qualifying AIM stocks could be for you.

If a client invests in certain AIM shares that qualify for Business Relief for 2 years and provided they are still held at death, the estate will not pay Inheritance Tax on them – a saving of 40%. Fundamental Asset Management’s AIM Inheritance Tax portfolio can help you plan for your family’s future.

Inheritance Tax mitigation

A Fundamental AIM Inheritance Tax portfolio achieves 100% mitigation from Inheritance Tax after only two years. Not seven years as is the case through a gifting or trust approach.

Existing ISAs can also be transferred to Fundamental providing greater potential savings for your loved ones.

This video presentation here provides a brief introduction to the Fundamental AIM IHT portfolio service, while our webinar here reviews the second quarter of the year and discusses our ESG and PRI developments.

To find out more about the benefits of investing in AIM for Inheritance Tax planning purposes, where sustainability is also a key consideration, please speak to our Business Development Manager Jonathan Bramall via email [email protected]  or phone 01923 713 894.


Fundamental Asset Management
www.fundamentalasset.com