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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.

This service provides a flexible estate planning solution. You can obtain full IHT relief after only two years* by owning a concentrated portfolio of at least 20 AIM quoted companies, while maintaining access to, and control of, your assets. AIM launched in 1995 as the London Stock Exchange’s junior market and provides smaller, growing companies with access to capital.

*so long as shares are held at death

 

Key points

  • IHT relief should be available after only two years because we only invest in the shares of companies listed on AIM, which we understand qualify under Business Property Relief (BPR). 
  • In addition to the IHT benefits, the Service aims to generate capital growth from the underlying companies (please note, this is a target only and is not guaranteed).
  • We have arranged an insurance policy covering the first 20% of any net loss on your investment on death up to the age of 90. The insurance is available for a minimum of two years from the date your shares are purchased, at which point the IHT relief should be available (so long as shares are held at death). The policy comes at no extra cost, with no medical questionnaires or exclusions for pre-existing conditions.

 


Why we’re different

Our experienced team will invest your capital into a concentrated portfolio of at least 20 AIM listed companies. We do this across a variety of sectors to provide diversification in order to manage risk.

We conduct in-depth analysis and research to find the most attractive companies to invest in, focusing on those with a market capitalisation below £150 million – also known as ‘micro-cap’ companies.

Market inefficiencies – such as a lack of analyst coverage, low volumes and prices that aren’t transparent – in the micro-cap sector that we target can provide opportunities for diligent investors like us to find hidden gems.  At the end of August 2016, 87%* of the companies listed on AIM were micro-caps, providing us with a wide range of potential investment opportunities.

 

*Source: LSE, List of All Companies, 31 August 2016

 


Our typical investment process

Set out below is our typical investment process for the Downing AIM Estate Planning Service.

 


Meet the Managers

Judith MacKenzie

 

Important Notice

Investing in our products will place your capital at risk and you may not get back the full amount invested. Any tax treatment may be subject to change and the availability and value of the reliefs depend on the individual circumstances of each investor. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status.

Further information can be found at HMRC’s website. Neither past performance or forecasts are reliable indicators of future results and should not be relied upon. Unquoted or smaller company shares are likely to have higher price fluctuations and are likely to be more difficult to sell than shares quoted on the London Stock Exchange Official List. Website content is not intended to constitute investment, tax or legal advice. We recommend you seek independent advice before investing in any of our products.

Important Notice

Downing’s investments place your capital at risk and you may not get back the full amount invested. Past performance and forecasts are not a reliable guide to future results. Tax treatment may be subject to change and depends on individual circumstances. Smaller company shares are likely to have higher volatility and liquidity risks than other types of main market listed instruments. We recommend that you seek professional independent financial advice before investing. We do not offer investment or tax advice.

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