Introducing the Stellar AIM Inheritance Preservation Service

Posted on November 21, 2011

About AIM

AIM was launched in June 1995 by the London Stock Exchange plc, as the Alternative Investment Market, and provides relatively small, growing and occasionally new companies with a relatively inexpensive and flexible method of gaining a stock market quotation.

There are now around 1,250 companies quoted on AIM with a total market value of almost £62 billion: the average size of an AIM company is approximately £49 million.

Hargreave Hale is the investment manager, and they have been managing AIM portfolios for private clients since 2005. Hargreave Hale is one of the UK’s best performing AIM portfolio managers and has continually outperformed the FTSE AIM All-Share Index. Over the last twelve months the Hargreave Hale AIM IHT portfolios have returned 30.3% compared to a 17.4% return from the FTSE AIM All-Share. See below.

Hargreave Hale also manages the Marlborough Special Situations Fund. This fund has a five-star rating from Morningstar and the second highest Lipper Leaders rating for total return, consistent return and capital preservation as at 1 April 2010. Since July 1998 the fund has returned 759% compared to the Morningstar (IMA) UK Smaller Companies sector average of 89% and is rated first out of 34 in this sector (as at 1 April 2010).

Investors can gain access to AIM IPS through an authorised financial adviser and by completing an application form.

Objectives

AIM IPS has been designed to offer investors the opportunity to invest in a portfolio of AIM companies which will provide 100% relief against Inheritance Tax (“IHT”) once the shares have been held for two years, as they will then qualify as Business Property.

To minimise the risk associated with an investment in equities, a life assurance policy can also be put in place for each investor which will cover any loss in value of the portfolio either through market movement or fees and charges.

Advantages

Once the AIM shares have been held for two years, the investment through AIM IPS will be fully exempt from IHT, unlike trust planning or gifts which will be exempt after seven years.

All investments are made in the investor’s name and they will have access to their portfolio at all times, therefore retaining full control.

Other Information

There is no minimum term, however for the investment to qualify for Inheritance Tax relief, the investor must maintain the holding at death and must have held the investment for at least two years.

Investors retain full beneficial ownership of their portfolio; if you need access to your funds, Hargreave Hale can sell part, or all, of your portfolio and remit the proceeds to you at any time.

The minimum investment is £30,000 and there is no maximum.

The initial charge is 5% of which 3% is payable as commission to advisers. The annual management charge is 2%, of which 0.5% is payable as trail commission to advisers.

AIM IHT Portfolios Performance Summary to 5 April 2011

Index Returns over Period	Performance % YTD	Performance % 1 year	Performance % 2 year	Performance % 3 year	Performance % 4 year	Performance % 5 year
AIM IHT Portfolios	4.45	41.7	107.8	55.5	34.7	42.8
FTSE AIL All - share	-3.3	28.9	115.5	-5.1	-21.6	-24.6
FTSE SmallCap	-0.2	12.6	73.9	5.0	-19.7	-7.4
FTSE 100	-0.6	4.6	49.1	1.0	-6.1	-0.6