Downing AIM Estate Planning Service
From 31 May 2017, the Downing AIM Estate Planning Service (DAEPS) and Downing AIM ISA (DISA) will close to new investors.
The present size of our AIM IHT portfolios allows us to invest in companies that have lower market capitalisations, which we believe offers better value than their larger peers. In the current market, further fundraising in our AIM IHT portfolios would require a move into the more expensive investment universe which we believe would affect long-term performance and capital preservation. We have therefore taken the decision to soft-close our AIM IHT portfolios.
Our AIM IHT products are different in strategy and focus to our other micro-cap products (MI Downing Micro-Cap Growth Fund and the Downing Strategic Investment Trust) which focus on making substantial strategic investments. Instead, DAEPS & DISA rely on buying stocks on a regular basis and are therefore highly dependent on market liquidity and stock market pricing.
Our existing AIM IHT portfolios will continue to be proactively managed in line with the investment objective. We will review the position on a regular basis and re-open our portfolios to new investors when we believe market conditions make it more attractive for us to do so.
Obtain full IHT relief after only two years by owning a portfolio of AIM quoted shares. Our strategy should enable investors to maintain control of their assets (no need for trusts or to gift assets to obtain IHT relief) and to withdraw funds from their portfolio at any time, subject to liquidity. Please read the key risks below.
- Each portfolio will typically be invested in AIM quoted companies, within one month of receipt of a completed and accepted application form, subject to appropriate opportunities arising.
- Risk will be diversified by spreading funds across at least 20 companies from several different sectors.
- The Service will be actively managed.
- Investments will be purchased and sold based on investment considerations, whilst endeavouring to maintain IHT reliefs, where possible.
For past performance information please click here.
- IHT relief: to provide investors with the opportunity to obtain 100% relief from IHT after two years on the value of their portfolios of AIM traded companies.
- Ownership & control: to allow Investors to retain full ownership of the investments (no need for trusts or to gift assets to obtain IHT relief).
- Capital growth: to generate capital growth from the portfolio of investments. In order to achieve this objective, companies will be selected on the basis of thorough analysis of the operational business, longevity of earnings and alignment between management and equity shareholders. In addition, risk should be reduced by spreading the amount invested across at least 20 companies in several different sectors.
- Access: to enable investors to withdraw capital from their portfolio at any time, subject to liquidity.
|Minimum subscription: £50,000||Maximum subscription: no maximum|
|Further investments: Investors may make further investments to top up their portfolio at any time. Any such top up will be subject to a minimum of £10,000 and, once invested, will be eligible for relief from IHT after two years||Maximum Sum Insured by downside protection insurance: £100,000, which broadly corresponds to a maximum subscription of £530,000|
Method of payment for application
Payments for applications can be made by cheque, made payable to:
BMAM General Client A/C No 2, or by electronic bank transfer using the payment details below.
How to apply
If you would like to invest, please first read the Brochure and Memorandum before completing an application form.
- Investors' capital is at risk. Set out below are the key risks involved with an investment through the Service. Please see the Memorandum for a full list of the risk factors.
- An investment through this Service may not be suitable for all investors. We recommend that specialist independent tax, legal and financial advice is taken before investing and is not able to advise on your suitability for an investment in the Service.
- Past performance should not be used as a guide to future performance. The value of shares can go down as well as up and there is no guarantee that you will get back the amount you originally invested.
- Investing in smaller companies, which may include AIM quoted investments, is considered to have higher risks than many other investments. Investee companies may be significantly more volatile, carry higher risk and be materially less liquid than many other investments and in particular in comparison to larger securities traded on the London Stock Exchange Official List.
- This information is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. An investment through the Service should only be made on the basis of the information set out in the Memorandum. Opinions expressed, whether in general or both on the performance of individual securities and in a wider economic context, represents the views of Downing at the time of preparation. They are subject to change and should not be interpreted as investment advice.