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Your capital is at risk and you may not get back the full amount you invested. VCT investments are long term and high risk. Tax reliefs are subject to change and depend on personal circumstances. Past performance is not a reliable indicator of future performance. Please read full details of the risks here.

Your capital is at risk, and you may not get back the full amount you invested. Any investment should only be made based on the relevant product literature and your attention is drawn to the risk, fees and taxation factors contained therein.

Downing AIM ISA

Targets growth, while providing IHT relief to investors, in an ISA wrapper

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Downing AIM ISA provides full IHT relief after two years. We target growth by investing in a diversified target portfolio of 25-40 companies that are listed on the Alternative Investment Market (AIM). This is held in an ISA wrapper for further tax benefits.

The benefits of investing

A fast track to IHT relief while retaining access to your funds if needed in the future.

IHT relief

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

ISA tax wrapper & transfers

By transferring in the value of your existing ISAs, you can retain the normal ISA tax benefits and qualify for IHT relief after only two years (as long as shares are held at death). In addition, you can also put in the current tax year's ISA contribution allowance.

A diversified portfolio

We aim to spread your investment across 25 to 40 companies in various industries. We look to drive value in the portfolio by investing in companies which we believe have potential for growth.

The risks of investing

Before you put money into an investment it is essential that you consider the risks involved. For the full list, please refer to the brochure and terms & conditions.

Tax reliefs

IHT tax reliefs are not guaranteed, subject to change, and only apply if you hold your shares for a minimum of two years and at death.

Risk to your capital

The value of your capital may go down as well as up and you may not get back the full amount invested.

Liquidity

AIM listed shares tend to be higher risk than those traded on the main market of the London Stock Exchange. They are generally less liquid and have greater price volatility than their main market peers.

Essential reading

It's really important that you read these key documents, paying particular attention to the risk warnings. We recommend that you seek financial advice before investing.

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Brochure

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Terms & conditions

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Life cover booklet

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Target market

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Factsheet

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By transferring in the value of your existing ISAs, you can retain your normal ISA tax benefits and qualify for IHT relief after only two years (as long as shares are held at death).

In addition, you can also put in the current tax year's ISA contribution allowance.

Investments are made on your behalf by Downing Fund Managers, a specialist boutique of highly experienced investors.

We invest in 25-40 companies that are listed on AIM and we believe qualify for Business Relief (BR).

We focus on smaller companies that have a market capitalisation below £500 million at the time of initial investment. The key criteria we use to identify investee companies include the quality of the management team, the business’s ability to maintain an advantage over competitors, its valuation in comparison to similar companies, the growth potential of the business and its sector, and its profitability and free cashflow yield.

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 diligent investors.

We target growth over the medium to long term.

The minimum individual Subscription through the Service is £20,000.

For investors looking to invest in the ISA there is no limit to the transfer value of existing ISAs but for new lump sum payments.

Investors will be restricted by the maximum ISA annual allowance in the relevant tax year.


You can request access 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.


Downside protection 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.

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 conditions summarised in the life cover booklet and in the terms & conditions document.


Charges for managing your investment​:

Annual Management charge: 1.5%+ VAT per annum

Bargain fee: £35 per transaction (capped at 0.5% for the year)

Please note: further information on fees and charges are outlined in our product literature. The above charges are for advised clients.

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How to invest

The first step is to read the brochure and terms & conditions. When you’re ready to invest, complete the appropriate application form below. Send the completed application to us, making sure you've included the required forms of identification.

We recommend you speak to your financial adviser prior to making an application.

Frequently Asked Questions

Below are a series of questions to help you understand our product offering. If you have any additional questions, please do not hesitate to reach out to us.

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What are the key features of this offering?
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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.

ISA tax wrapper and ISA transfers: by transferring the value of your existing ISAs, you can retain ISA tax concessions and qualify for IHT relief after only two years (as long as shares are held at death). In addition, you can also put in the current tax year's ISA contribution allowance.

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.

Downside Protection 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 & conditions document.

Where is my money invested?
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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 qualify under business relief legislation.

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

- The quality of the management team

- The business’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 in a good place to deliver returns for investors.

As well as using their own expertise, Downing Fund Managers enlist Downing’s wider investment team and its 30-plus years’ experience of investing in small companies to really get to know and understand 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.


What are the risks?
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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.

- The 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

- 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

- The past performance of the service is not a reliable indicator of future results

- 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

- There is no guarantee that the Downside Protection Cover will continue after two years and if the conditions are not met in full then the cover will not pay out

- 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 & Conditions

- 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

- 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 Downing AIM ISA. Please read full details of all the risks in the brochure and terms & conditions, before investing.

What are the charges?
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Please see the terms & conditions for all the information on the costs and charges associated with the Service. Below is a summary example of the charges for investors who invest via a financial adviser.

Annual management charge: 1.5% + VAT per annum

Bargain fee: £35 per transaction (capped at 0.5% per annum)

What happens once I've invested?
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Once you've applied to invest in the Downing AIM ISA we'll send you an acknowledgment (within two business days) that your application has been accepted.

If you have selected Life Cover we will send you an insurance certificate.

We will endeavour to invest all of your funds within one week, although this may take longer and is not guaranteed.

You will receive quarterly valuations and updates on the performance of your investment. You'll also receive an annual cost and charge statement.

You can request to access your money at any time. We'll try and get funds to you within 15 business days of your request, although please note this may take longer. This is subject to our discretion and liquidity.  We will not charge or impose a penalty if you choose to take some or all of your money out of the Service. Note, withdrawals will no longer be IHT exempt.

Who is the team behind DAISA?
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Investments in the Downing AIM ISA are made on your behalf by Downing Fund Managers, our team who are highly experienced in unearthing and investing in AIM-listed companies at attractive valuations and with potential for long-term growth.

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

How is my investment insured?
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Downside Protection Cover: included as standard and if you're less than 90 years old, this policy is designed to reduce the impact of any potential losses during a minimum of the first two years (conditions apply).

It covers a loss in the value of up to 20% of your initial net investment - with no medical questionnaires or exclusions for pre-existing conditions and at no extra cost.

The policy is renewable (by the insurer) each year although we can't guarantee it will remain in place after the first two years.

The maximum benefit is £100,000 per investor (equivalent to an investment of £500,000).

Life Cover: this is optional for an additional fee and is available to investors under the age of 85 at the date shares are acquired.

It covers 40% of your original gross investment upon death in the first two years. Please note, the life cover policy is subject to conditions and if they are not met the policy will not pay out.

The maximum benefit is £100,000 per investor (equivalent to an investment of £250,000) across all Downing products.

We're here to help

If you are a financial adviser, or discretionary fund manager call  020 7630 3319 or email us at sales@downing.co.uk

If you are a private investor call 020 7416 7780 or email customer@downing.co.uk