AIM Report 2019

50 51 INDUSTRY ANALYSIS This section takes a look at the current market of AIM-based tax-advantaged offers. Unless otherwise stated, the analysis is based on data obtained from the MICAP platform and is correct as of June 2019. Our intention here is to give advisers data on key investment metrics – such as costs, minimum subscription and target returns – so that they have a reference point when reviewing the market and can understand the levels of returns to expect and at what prices. TERMINOLOGY WHAT ARE WE TALKING ABOUT? OFFER STATUS Open Offers AIM offers that are raising money at June 2019 New Offers AIM offers that launched in the 12 months to end of May 2019 Historical Offers AIM offers that launched before May 2018 INVESTMENT STRATEGY Growth Investment into trading companies for long-term capital growth Growth & Income Investment into trading companies for long-term capital growth and income INVESTMENT TYPE Alternative Investment Fund A collective investment undertaking which raises capital from a number of investors with a view to investing it in accordance with a defined investment policy for the benefit of those investors, but does not require authorisation pursuant to the UCITS directive. Whoever is responsible for arranging the investment must complete an appropriateness test on the investor Discretionary Portfolio Service Investors contract with an investment manager who will invest their funds on their behalf. The FCA Authorised Manager must complete a suitability test on each holding and have permission to manage investments PRODUCT TYPE EIS Enterprise Investment Scheme (EIS) is a government-backed investment scheme that is designed to help smaller trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in these companies BR Business Relief (previously Business Property Relief) reduces the value of a business or its assets when working out how much Inheritance Tax has to be paid VCT A Venture Capital Trust is a company, broadly similar to an investment trust, which subscribes for shares in, or lends money to, small unquoted companies. A range of tax reliefs are offered to VCT investors to compensate the risks associated with this type of investment.