Recent years have been challenging for AIM investors.
Volatility, policy changes, and global uncertainty have all weighed on sentiment — and we fully recognise that many portfolios remain below previous highs.
But it’s in exactly these environments that long-term opportunities begin to emerge.
A strong recovery — despite global uncertainty
Chris Boxall, Portfolio Manager at Fundamental Asset Management, comments:
“Quarter to date, AIM portfolios are up around 8% on average – a strong result given the level of uncertainty we’ve seen, particularly around the Iran conflict and wider geopolitical risks and well ahead of UK main market indices”
This resilience is not accidental.
As we highlighted in our recent Blog “Buy to the Sound of Cannons?”, periods of maximum uncertainty have historically created some of the most compelling entry points for long-term investors.
Looking beyond the noise
Markets are currently being driven by:
- Geopolitical tension
- Changing interest rate expectations
- Ongoing evolution of UK tax policy
But underneath that noise, we are seeing signs of opportunity:
- Attractive valuations across AIM
- Increasing realisation around AIM’s unprecedented value
- Improving sentiment following prolonged weakness
These are the conditions where disciplined investors are often rewarded.
The IHT backdrop is only becoming more important
At the same time, the need for Inheritance Tax planning continues to intensify:
- Record £8.5 billion in IHT receipts last tax year
- More families expected to be drawn into the tax net this year
- Further changes coming, including pensions entering estates from 2027
Despite reforms, Business Relief eligible AIM portfolios remain an appealing offer for IHT mitigation within a two-year timeframe and for growth.
The key decision: react or position?
For investors who have experienced recent declines, the instinct can be to reduce exposure.
But history consistently shows that:
- Recoveries can be fast and difficult to time
- Selling after weakness often locks in losses
- Periods of uncertainty often mark the beginning — not the end — of opportunity
Chris Boxall adds:
“Our focus remains on identifying fundamentally strong, qualifying companies and positioning portfolios to benefit when sentiment improves — rather than reacting to short-term market noise.”
Why act now?
For existing investors:
This may be the moment to reassess your allocation and consider whether increasing exposure could enhance long-term outcomes.
For new investors:
This is a very different entry point to recent years — with valuations reset and opportunities emerging.
Take the next step
In a world of rising Inheritance Tax and shifting markets, standing still can carry its own risks.
Whether you’re looking to review your portfolio or invest for the first time, our team is here to help you navigate the opportunity ahead, contact Jonathan Bramall via email [email protected] or phone 01923 713 894
