Downing AIM Estate Planning Service

IHT relief: we invest in companies listed on AIM that have passed our investment selection criteria and currently qualify for business relief. If you hold these shares for two years and at the time of death you can obtain IHT relief.

‍Capital growth: one of the objectives of this service is to generate long-term capital growth from the underlying AIM companies it invests in.

‍Control your capital: you can request access to your investment at any time. We’ll try and get funds to you within 15 business days of your request. This is subject to liquidity and cannot be guaranteed.

‍Wealth Guard Cover: included as standard if you're under the age of 90, this policy protects your initial net investment of a loss in value of up to 20% (conditions apply). The cover is for a minimum of two years. The policy is renewable (by the insurer) each year although we can't guarantee it will remain in place after the first two years.

‍Life Cover: this is an optional feature, which covers 40% of your original gross investment (before charges) if you die within the first two years. This is subject to the information found within the terms and conditions document.

We invest in 25-40 companies that are listed on AIM and we believe qualify under business relief (BR) legislation.

We focus on smaller companies listed on AIM that have a market capitalisation below £500 million at initial investment and that currently qualify under business relief legislation.

The key criteria we use to identify companies to invest in are:

- The quality of the management team
- The company’s ability to maintain an advantage over its competitors
- The company’s valuation in comparison to similar companies
- The growth potential of the company and its sector
- The profitability of the company and its cash flow yield

Our approach is to take strategic, long-term investment positions in companies that have passed our rigorous due diligence process.

Market inefficiencies in the smaller companies sector such as lack of analyst coverage, low volumes and prices that aren’t transparent, can provide opportunities for investors.

The businesses in the portfolio have been extensively researched in-house to ensure they are positioned well to deliver returns for investors.

As well as using their own expertise, Downing Fund Managers enlist Downing LLP’s wider investment team and its 30-plus years’ experience of investing in small companies to really get to know the portfolio companies and take a proactive role in helping them thrive.

Downing considers environmental social and governance (ESG) factors during each stage of our investment process from initial selection and evaluation through to active ownership of the companies within the portfolio.

Investments in the Downing AIM Estate Planning Service are made on your behalf by Downing Fund Managers, our team who are highly experienced at unearthing and investing in AIM-listed companies at attractive valuations and with the potential for long-term growth.

Our investment committee draws on a significant number of years investment experience to provide oversight on new investments and portfolio management.

Investments in estate planning solutions are not suitable for everyone, so we recommend seeking financial advice before investing.

As with all investments, there are risks you should be aware of before you invest.

- Value of your portfolio can go up and down, so your capital is at risk

- IHT tax reliefs are not guaranteed, are subject to change and only apply if you hold your shares for a minimum of two years and at death
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- Business relief (BR) qualifying companies may lose their status if BR rules change, which means IHT relief may no longer apply to the money you have invested in that company
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- The past performance of the service is not a reliable indicator of future results
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- Investing in smaller companies generally carries higher risk because their shares are less liquid and harder to sell than those in blue chip companies on a main stock exchange
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- There is no guarantee that the Wealth Guard Cover will continue after two years and if the conditions are not met in full then the cover will not pay out
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- The Life Cover policy is subject to conditions. If the conditions are not met in full then the policy will not pay out. Please ensure that you read the terms and conditions
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- We aim to invest your money in between 25 and 40 companies, which may vary by sector and value. The relative concentration in your portfolio can create more risk compared to investing in a wider portfolio of companies

- The shares of AIM companies may be illiquid and tend to be harder to sell than those of large companies. This means that if you want to make a withdrawal or transfer funds from your portfolio, you may not be able to sell the shares immediately and you may have to accept a price that is less than the real value of the companies
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- There could be a delay in returning cash in the event of significant demand for withdrawals or distributions. Investors may, therefore, not receive cash for a period of 12 months or more

- The ESG strategy may result in companies and sectors that may underperform against the market or other services that consider ESG factors in their investment decisions. Also, investments selected may not have positive ESG characteristics or practices at the time of investment or later

Please note this is only a brief overview of the risks involved with investing in the Downing AIM Estate Planning Service. Please read full details of all the risks in the brochure and terms and conditions, before investing.