Downing AIM ISA
Invest in a portfolio of 20-30 AIM-quoted companies, to combine IHT relief after two years with ISA tax benefits. Please read the key risks below.
Please note, applications for the 2017/18 tax year are now closed.
Investors can transfer part or all of their existing ISAs to Downing. Our experienced investment team will then invest the funds in a portfolio of AIM-quoted shares. These new investments will be contained within the ISA wrapper and become exempt from IHT once they have been held for two years.
Benefits of the service
It is anticipated that each portfolio will typically be invested in AIM quoted companies. We aim to fully invest portfolios within three months of receipt of a completed application form and cleared funds, however, this is not guaranteed and it may take longer to fully invest your subscription.
We aim to manage risk by spreading funds across at least 20 companies from several different sectors. Start-up and loss-making companies will generally be avoided.
Downing's AIM-quoted investments are managed by our Public Equity team, headed by Judith MacKenzie. The team deploys a very focused approach, investing in a maximum of 30 companies. This diligence process is akin to a private equity methodology, which we also apply to our IHT AIM portfolios and small-cap OEIC.
The ISA will be actively managed. Investments will be purchased and sold based on investment considerations, whilst endeavouring to maintain IHT reliefs, where possible. However, investments will generally not be sold unless there are suitable re-investment opportunities, in order to maintain investors' IHT reliefs.
We know inheritance tax can be a difficult subject for your clients to understand, so we have created this IHT calculator to provide you with an estimate on the tax that may be due on your client’s estate.
For past performance information please click here. Please note, past performance is not a reliable indicator of future results.
- Downside Protection: an insurance policy covering the first two years (up until the point the portfolio should become exempt from IHT). The policy covers the first 20% of any net loss in value (after charges) on death under the age of 90 years.
- IHT relief: to provide investors with the opportunity to obtain IHT relief from after two years on the value of their portfolios of AIM traded companies (so long as shares are held at death).
- 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, we aim to manage risk 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 initial lump sum or in specie valuation: £100,000 across Downing AIM ISA and Downing AIM Estate Planning Service||Maximum ISA investment in the 2017/18 tax year: £20,000|
Method of payment for application
Payments for applications can be made by cheque, made payable to:
BMAM General Client A/C No2, or by electronic bank transfer using the payment details below.
How to apply
Please read the product literature below before completing an application form.
- The favourable tax treatment given to ISAs may not be maintained. The rates of and reliefs from taxation may change over time and apply directly to you as a UK investor.
- Your capital is at risk. Please see the Brochure for a full list of the risk factors.
- An investment through the Downing AIM ISA may not be suitable for all investors. We recommend that specialist independent financial and tax advice is taken before investing. Downing is not able to advise on your suitability for an investment in the Downing AIM ISA.
- 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.
- Smaller companies are high risk. Investing in smaller companies, such as 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 Downing AIM ISA should only be made on the basis of the information set out in the Brochure and Terms & Conditions. 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.