AIM Report 2019

68 69 WALKER CRIPS IHT RELIEF PORTFOLIO AIM ABOUT THE MANAGER Rooted in tradition. Growing through innovation. Two simple phrases express the culture and exemplify what Walker Crips is; a group, able to provide a range of services for our clients and the financial industry. Walker Crips Investment Management has a 100-year track record in growing with clients to make investment rewarding. Given the resources to develop solutions to meet client needs, the York branch of Walker Crips Investment Management saw the requirement for a straightforward AIM portfolio. Clear in its intent, The Walker Crips IHT Relief Portfolio enables future beneficiaries to maximise their inheritance. OUR AIM OFFER Approximately 800 companies are screened on a monthly basis to ensure the most suitable collection of holdings within the portfolio. Whenever possible, the investment team meet with company management to assess the suitability of the holding for the portfolio. To the best of their knowledge, the team establish whether the holding qualifies for Business Relief (BR); continuing on to assess the company based on its market position, barriers to entry, pricing power, the sustainability of the business model, and more. Finally, the investment team evaluate the share price valuation; asserting the belief that avoidance of overpaying for stock is the first and foremost action towards limiting downside risk and increasing chances of long-term positive returns. CASE STUDY Dart Group, the owner of Jet2holidays as well as Fowler Welch Logistics, features as one of our AIM investments. We originally invested after assessing there was scope for growth in the area of low-cost air travel, in addition to the shares trading at an attractive valuation. Acting on our assessments we invested upwards of £50,000 in January 2007, and have made additional investments as and when necessary. Since originally investing, Jet2holidays has become one of the UK’s biggest tour operators, and Fowler Welch has expanded by opening new satellite depots. Our input in meetings with company management give us the opportunity to question or challenge when appropriate to do so, enabling us to defend the interests of our clients. PORTFOLIO CUMULATIVE RETURNS SINCE INCEPTION 2007 2007* 2019** 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% MEDIAN WCIM AIM PORTFOLIO (TR) FTSE AIM ALL-SHARE INDEX (TR) DISCRETE RETURNS 2014 2015 2016 2017 2018 2019 JUNE 28 Median WCIM AIM Portfolio (TR) -5.93% 23.16% 4.99% 10.38% -12.52% 12.80 FTSE AIM All-Share Index (TR) -16.53% 6.63% 16.07% 25.97% -17.12% 7.87% FTSE All-Share Index (TR) 1.18% 0.98% 16.75% 13.10% -9.47% 12.97% SOURCE: WALKER CRIPS INVESTMENT MANAGEMENT AND FE ANALYTICS * SINCE INCEPTION JUNE 25 ** CAPTURED JUNE 28 AIM SOLUTIONS COMPARISON BLACKFINCH ADAPT AIM IHT CLOSE INHERITANCE TAX SERVICE MANAGER NAME Blackfinch Investment Management Ltd Close Brothers Asset Management YEAR FOUNDED 2013 2001 AUM (IN TOTAL) / AUM (ON AIM) £316m / £21m £12bn / £275.5m DESCRIPTION OF OFFER A discretionary service where investors hold shares in AIM-quoted companies that meet the qualification requirements to obtain Business Relief for Inheritance Tax purposes The Close Inheritance Tax Service (CITS) is a specialist discretionary investment management service designed to provide accelerated relief from Inheritance Tax (IHT) by investing in Business Property Relief (BPR) qualifying shares quoted on the Alternative Investment Market (AIM) and the NEX Exchange Growth Market LAUNCH DATE Growth - 24/06/2016 Income - 15/07/2016 28/03/2001 TAX WRAPPER OR RELIEF Business Relief for IHT & ISA Business Relief for IHT & ISA NO. OF HOLDINGS 20-40 (Currently 32 - Growth; 23 - Income) 25-35 TARGET FUNDRAISE £30m N/A INVESTMENT OBJECTIVE Growth or Income available 1. To achieve a beneficial tax status by capitalising on Business Property Relief (BPR)* 2. To preserve capital** and achieve growth over the long-term within the context of BPR 3. To diversify risk TARGET ANNUAL RETURN (WHERE STATED) N/A To preserve capital and generate modest growth LIQUIDITY (DAYS TO EXIT) 14 days 10 days (depending on size of withdrawal) INCOME (Y/N) Y N MINIMUM INVESTMENT £15,000 £50,000 MIN INCREMENT £15,000 N/A INITAL FEE 0% £250 + VAT (one-off charge) AMC 1.5% + VAT 1.25% + VAT of portfolio value OTHER FEES Dealing fee of up to 1% Additional custodian and settlement charges may apply Dealing fee: 1% on the value of each transaction * Acompany that qualifies for BPR at the time of investment may cease to qualify for reasons outside our control at a later date, which means any tax benefits will be lost until the capital is reinvested in BPR qualifying company. ** This is not a capital protection service and your client’s capital is at risk.