Thesis Asset Management has launched a new portfolio service investing in the Alternative Investment Market (AIM) to help clients with inheritance tax (IHT) planning.
The new portfolio adds to the company’s extensive offer of active and passive model portfolios that invest in collectives and direct UK securities.
Managed by Thesis’ head of research Matthew Hoggarth, it will hold a diverse selection of 20-25 shares from the AIM All Share market. The stocks are selected using Thesis’ proprietary system of six measures of financial strength (dividend yield, earnings, earnings to price, EBITDA to sales, return on assets and prior year’s total return), and will be rebalanced on a quarterly basis.
Companies on AIM have the potential for dramatic growth and rapid expansion, whilst also providing IHT exemption if they are held for more than two years. Holdings in the portfolio will be monitored both for their financial prospects and for their eligibility for tax reliefs.
The portfolio management fee is 1.2% plus VAT, but with no dealing costs or up front charges the service is competitively priced in a growing market.
Matthew Hoggarth said: “Companies admitted to AIM can be young, growing and dynamic, and provide a great opportunity to help boost the UK economy from the ground up. Coupled with the IHT benefits, it makes it a compelling proposition for investors wishing to pass on more of their wealth to loved ones.
“We believe we are in a great position to offer this service due to the genuine belief we have in our thorough UK equity selection process which we have been running for some time now to great success.”
Director of Marketing and Business Development Lawrence Cook added: “We are delighted to be able to expand our proposition and are really excited about the new AIM portfolio. Initially we are focusing on distributing this service only through IFAs. Added to the existing service we have a very extensive range to meet a variety of client needs and objectives”.