AIM Industry Report 2017/18

72 73 AIM COMPARISON AIM INVESTMENT OPPORTUNITIES BLACKFINCH INVESTMENTS AIM PORTFOLIOS CLOSE BROTHERS IHT SERVICE GUINNESS AIM EIS PSIGMA AIM IHT PORTFOLIO SERVICE MANAGER Blackfinch Investment Management Ltd. Close Brothers Asset Management Guinness Asset Management Psigma Investment Management DESCRIPTION OF OFFER A discretionary service where investors hold shares in AIM (Alternative Investment Market) quoted companies that meet the qualification requirements to obtain Business Relief for Inheritance Tax purposes. CITS is a specialist, discretionary portfolio management service aiming to provide accelerated relief from Inheritance Tax by investing in Business Relief qualifying shares quoted on the Alternative Investment Market or the NEX Exchange Growth Market. Our specialist Smaller Companies team aims to build a portfolio of well managed companies which they believe hold the potential to generate good returns over two to five years. Guinness AIM EIS closes on 6 April each year and is invested in a 12 month period. Whilst we aim to invest in at least 10 holdings per year, in reality this tends to be 20+ to provide diversity across a range of sectors. EIS Advance Assurance is sought at the time of investment. This is a discretionary managed service. Our AIM IHT Portfolio Service aims to reduce IHT liability by taking assets outside of an individual’s chargeable estate after a holding period of just two years, instead of the typical seven year period when making a gift. This is achieved by holding assets that qualify for Business Relief, which can include shares in qualifying companies quoted on AIM.  In addition to the tax benefits the portfolio has the potential to provide long-term growth. YEAR FOUNDED Blackfinch founded 2013 AIM IHT portfolio 2016 1878 2003 2002 AUM (IN TOTAL) £590m (at 30.09.17) £11.7 bn (at 31.10.17) £1.1bn £2.84bn AUM (ON AIM) £5,868,720 (at 30.09.17) £272m (at 31.10.17) £15m £38m LAUNCH DATE Growth 24/06/16 Income 15/07/16 March 2001 November 2013 October 2013 TAX WRAPPER OR RELIEF(S) ISA and Business Relief for IHT Business Relief EIS BR/ISA INVESTMENT OBJECTIVE Growth or Income available The main investment objectives are: to achieve the correct tax status by capitalising on Business Relief (BR); to aim to preserve invested capital and achieve some growth over the long term within the context of BR (please note that this is not a capital protection service); and to provide diversification from company, sector and geographic risk, where possible. Capital growth Growth TARGET ANNUAL RETURN N/A N/A £1.30 per £1.00 invested over a four year time horizon (net of all fees) N/A NO. OF HOLDINGS 20-40 (currently 38 Growth, 30 Income) 25-35 Approximately 20 per tranche 20-30 MININVESTMENT £15,000 £50,000 £20,000 No minimum requirement MIN INCREMENT £15,000 £50,000 £20,000 £100,000 (recommended limit of 25% client’s wealth) LIQUIDITY (DAYS TO EXIT) 14 days Target 10 days Discretionary to preserve EIS reliefs Immediate, subject to prevailing market liquidity INCOME? (Y/N) Yes No No Yes INITIAL FEE 0 £250 + VAT 2% (deferred until exit) 0 AMC 1.50% + VAT 1.25% + VAT 1.75% + VAT (deferred until exit) 1% + VAT (if introduced by professional adviser) OTHER FEES 1% dealing fee 1% dealing fee on all transactions 20% performance fee + VAT for returns over £1.00 per £1.00 invested Sundry AIM INVESTMENT OPPORTUNITIES