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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 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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Fear vs greed

It has been a painful time for AIM investors across the board. Fundamental Asset Management portfolio managers have been giving their thoughts and insights into where the market is, how we got here and where it might be going. In addition, in a recent interview with Jeremy Naylor on IGTV, co-Managing Director Chris Boxall talks about specific stocks, the potential bargains and things to watch out for.

FUNDAMENTAL ASSET MANAGEMENT WEBINAR OCTOBER 2022

To view the new webinar please click on the following link – AIM: cheap for good reason or bargains to be snapped up? In the webinar, AIM in Q3 as well as Year To Date is reviewed, why we are where we are and what lies ahead.

IGTV INTERVIEW

For the interview with Jeremy Naylor click on Bargain hunting on AIM. In the interview, Jeremy Naylor of IGTV and Chris Boxall of Fundamental Asset Management, discusses potential bargains on AIM following recent falls.

AIM IHT PORTFOLIO

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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Storms continue to batter global markets

Global Markets Continue to Struggle

The outlook for global economies continues to look challenging, with high inflation and rising interest rates potentially tipping many countries into recession.

As a result, global stock markets, led as usual by the US, have been suffering for quite a while. Unfortunately AIM has not been immune to this, with the AIM index now down over 33% year to date.

The bear market since the summer of 2021 is one of the longest we have seen in our 30+ years in investment management. Even the financial crisis of 2008 did not last as long as this and we can only hope that we are somewhere near turning the corner.

Certainly, the recent updates from our core portfolio holdings have been largely positive, despite the challenges they face, although this has not been reflected in their share prices!

What do we do we do at the moment? 

As we have previously mentioned, with the market not reflecting the general positive performance of many of the companies in our portfolios, the simple answer is, we do very little, other than drill down into the many results and updates being reported by companies and keep a very close eye out for bargains.

During previous periods of excessive volatility we recommend clients ignore the manic movements of share prices and unless there is a need to sell, the best cause of action is to continue wait for things to turn around, knowing we are well invested when the turnaround occurs.

It is worth remembering that in February 2020, the AIM market fell 36% in a month but it finished the year up 20%. A similar recovery took place after the Financial Crisis of 2007/8. We expect something similar in the near future, with the AIM of today a far higher quality market than it was in 2008.

During periods like this, we consider long-term holders of small cap shares should view the stock market as effectively closed, unless they are looking to buy a potential bargain.

Potential light at the end of the long tunnel?

Despite all of the negative news, today the Office for National Statistics announced that rather than contract as their previous reading suggested, the UK economy grew in the second quarter of this year by 0.2%. Whether this is the start of things beginning to improve remains to be seen.

Upcoming webinar

The next Fundamental webinar on Wednesday 12th October at 3 pm is called AIM: cheap for good reason or bargains to be snapped up? It will be on looking back at the last quarter and reviewing the outlook ahead; including a focus on how have companies really been performing vs their stock price? To register for the webinar and to be able to view it after the event, click 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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AIM – Q2 review – what has gone wrong and what are the opportunities?

Watch our  webinar where we consider AIM in second quarter of 2022 – what are the opportunities? Where and why did things go wrong and when will things get back on track?

Join Fundamental Asset Management’s co-Founders Chris Boxall & Stephen Drabwell on Wednesday 20th July at 2pm as they look at what happened to AIM in the second quarter of the year.

They will review the second quarter and look into their crystal ball for the rest of 2022. What happened to AIM overall. Have all companies been performing badly? What is causing the issues?

TOPICS
– Quick refresher – what is AIM?
– Quick refresher – using AIM for IHT planning.
– What happened to the market in Q2 of 2022?
– What has gone wrong and why?
– What does the rest of 2022 have in store?
– Other times AIM has fallen.
– What are the opportunities?
– ESG & PRI developments.
– Questions.

 

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


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The Fundamentals #6 – How long do you need to hold a qualifying stock for it to receive IHT relief?

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

Our Educational Webinars also provide plenty of further information.

Fundamental Asset Management
www.fundamentalasset.com


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More AIM Success- but what are the drivers of return?

AIM continues to be the market of choice and the envy of growth markets around the world. It has comfortably outperformed London’s main market in all key areas during the Covid-19 crisis so far, one of the worst periods of economic uncertainty and downturn in our economic history. But where has its success derived?

The make-up of AIM has changed since it began back in 1995 when it was considered the wild west of investment markets. Today is a very different picture. AIM now has many businesses valued at over £1billion! Making up a significant share of the market’s overall capitalisation and a key driver of AIM’s overall return.

The two largest companies on AIM are ASOS and Boohoo and well-known online retailers. AIM has many highly profitable companies but at the other end of the spectrum it has some with no revenue or earnings to speak of. However, these are not laggards but some of the most exciting prospects for future growth covering sectors including hydrogen fuel cells and early-stage pharma.

AIM has become more of a rounded market, with many well-established businesses (some over 100 years old). But it is also a marketplace for many innovative and fast-moving business. AIM has a large exposure to some of the economy’s best-performing sectors, such as technology.

Interested in hearing more? Join us on Tuesday 29th June at 2pm for our session Is AIM heading for a fall…or is its outperformance set to continue?

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 through many leading wrap platforms now makes it even easier for clients and advisers.

AIM is no longer the high-risk market of former times, where speculative resource stocks and unknown international companies proliferated. It is now home to a large number of well-managed, profitable, dividend yielding UK based business.

As the market has improved it has also become much easier for investors to buy and sell AIM shares and for advisers to offer access to these exciting companies to their clients, many of which come with attractive inheritance tax planning benefits.

The purchase and sale of AIM quoted securities often used to be the preserve of specialist brokers but AIM IHT Portfolios can now be accessed through leading wrap platforms. This means that, in allocating money to a specialist manager, advisers are not forced to direct money off platform, which can cause unnecessary monitoring and administrative burdens, not to mention a fear of the unknown. Advisers can keep everything in one place maintaining the same pricing structure.

Investing via platforms can also expedite investment without the need to complete lots of paperwork, which is particularly important for AIM for inheritance tax planning purposes with the short, two-year, qualifying period a key attraction.

Fundamental AIM IHT Portfolios can currently be accessed on the Transact, Elevate, SL Wrap, Funds Network, Ascentric and Nucleus platforms.

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.

To hear the many other ways BPR qualifying assets can help your clients’ Inheritance Tax planning watch our session How can AIM help you and your clients?

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.

Enjoy your weekend,

The Fundamental Asset Team


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Should I Transfer my ISA?

It is not long until the end of this tax year. This is always a good time to sit down and assess your financial situation and evaluate your existing ISAs.

Many people consider switching their ISA provider due to poor performance or a lack of expert guidance and switches often occur towards the end of the tax year to make use of any remaining ISA allowances going in the new financial year.

Why should I transfer my ISA?

There are a few key reasons you might want to transfer an existing ISA between providers. These include:

Performance

Performance is key. If your ISA is not performing, it might be time to move it. Keep an eye on the performance of your provider relative to its peers and regularly weigh up whether better returns could be found elsewhere.

Performance over recent years would certainly have been enhanced if your ISA had been invested in AIM shares, with the FTSE AIM Index yet again massively outperforming the main UK stock market.  Our Blog here covered AIM’s outstanding performance in 2020.

Cost

This is another key factor when deciding who manages your ISA. It is important to compare the costs you are paying for your ISA against those you would be paying with another manager.

Service

Not all wealth managers offer the same level of service. You might be looking for a provider who you can talk to directly when needed and not a call centre or mailbox. There are plenty of reasons you could be happier with a new provider.

Consolidation

Having your ISAs in one place can help you take advantage of fewer costs standalone costs for administration. It is also easier to keep track of your progress with everything under one roof.

Does transferring affect my ISA allowance and is there a limit on how much I can transfer?

Transferring an ISA to another provider will have no impact on your allowance for that tax year. The £20,000 limit is consistent across all providers and part of the transfer process includes sending your contribution history.

An ISA transfer lets you move money built up in previous years to a new provider without losing the tax-free status of that money. There is no limit on the amount or share of previous years ISA money that can be transferred. You can transfer all or part of it.

If you are transferring an ISA with contributions made in the current tax year, you will have to transfer the whole amount of those contributions. This is essentially to stop you having contributed to two separate ISAs of the same type within the same tax year.

How do I transfer an ISA?

Transferring an ISA is easier than you might think. Initiating an ISA transfer can be as easy as requesting it from your new provider. You will be asked to fill out a short form, which is then signed and sent back to the new provider. From there, they will liaise with your current provider to make the transfer happen.

ISA Transfer Form

You will need to complete this form before you are able to move your money. This may be a form that is included on their website, on a platform or they may be directly in touch with you to sort out the details.

Do not withdraw this money to move it. Doing this will void the tax-efficient status of your savings and it will count against your tax-free allowance if you choose to reinvest in an ISA. If you are transferring from one Stocks and Shares ISA to another, then you should have the option to move the investments you hold to your new provider without selling them. This is often called an ‘in specie’ or ‘re-registration’ transfer.

Transferring

This is when your new provider moves the money away from your old provider. The process can take from 4-6 weeks but there is nothing for you to do here. Your new manager will manage this process on your behalf.

Transferring to an AIM ISA brings more than CGT and Income tax benefits. AIM shares also bring 100% mitigation from Inheritance Tax if held for two years and until death.

 

You can find out more about Fundamental Asset Management’s high performing AIM Inheritance Tax ISA portfolio, which has been delivering exceptional investment returns for more than 16 years, from the link here. We also have an Adviser Centre with a wealth of information to support financial advisers including case studies, adviser webinars, guides and platform partners.

Derek McLay

Business Development Manager

Fundamental Asset Management Ltd.


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AIM for Inheritance Tax planning is not early stage investing

Many are attracted to invest in AIM for the Inheritance Tax planning attractions yet are fearful of the perceived extra risk of investing in smaller quoted companies and the notion that they will have their money locked up in early stage businesses.

While the vast majority of AIM companies are smaller than their peers on the main market, there are now many large companies on AIM, with nineteen valued at more than £1 billion each at the end of October. AIM’s largest company ASOS, which is valued at more than £4 billion, would gain it entry to the FTSE100 index of the UK’s largest companies.

Our philosophy for investing in AIM for Inheritance Tax planning purposes is to stick to well-established, proven and profitable businesses, many of which are often run by their founders who continue to own significant equity stakes. Our AIM for Inheritance Tax portfolios include several companies that have been controlled by the same founding families for several generations.

In eschewing small, early stage ventures, with unproven business models and negligible revenue, we may miss out on the occasional star performer, however, experience has also shown that we also avoid the numerous failures.

Investing in early stage companies requires a large degree of patience. New concepts and technologies take many years, and often decades, to come to commercial fruition. AIM previously attracted many small early stage business, often in the healthcare sector, some of which have seen great success over the pandemic. Rather than raise new capital via a listing on AIM, early stage companies now have access to start-up capital through venture capital, private equity or crowd funding routes. This means that new arrivals to AIM in recent years have largely been better-established businesses, the majority of which are revenue generating and profitable.

The primary attraction for those investing in AIM for Inheritance Tax planning purposes is often the short 2 year qualifying period for assets to fall outside the estate, following the Business Relief rules. Accordingly, while investing in equities should always be viewed as a long-term exercise (5 year plus), the window of investment opportunity for Inheritance Tax planning is somewhat shorter than would normally be the case.

Our webinar ‘The truth about risk in AIM’, highlights the more pertinent risks associated with investing in AIM for Inheritance Tax planning purposes. You can watch the webinar from the link here.

 

Chris Boxall

Cofounder & Co-Managing Director

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 16 years, from the link here.