Client money can stay ‘on platform’ with Fundamental AIM for IHT planning portfolios

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 continues to be a market for small, relatively early stage businesses but is also attracting a growing number of more mature, highly profitable, family or founder controlled companies.

There were only 1,000 companies on AIM at the end of September 2016 which is down from 1,044 at the end of 2015 (December or September?). Despite the declining numbers of companies the overall market capitalisation of AIM continued to surge higher to £82.98bn at the month end, compared with £80.57bn at the end of August and only £73bn at the end of 2015.

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.

Prudently managed, AIM for IHT planning portfolios have delivered outstanding investment returns over the past few years, significantly outperforming leading UK indices. To end September 2016, the standard Fundamental AIM IHT Portfolio has risen over 100% over five years.

The purchase and sale of AIM quoted securities often used to be the preserve of specialist brokers but Fundamental AIM IHT Portfolios can now be accessed through leading wrap platforms. This means that, in allocating money to a specialist manager, advisers aren’t 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 and Nucleus platforms.

To find out how you can access these compelling investment and tax planning solutions please contact Stephen Drabwell on 01923 713892 or email [email protected]