TIME Investments has launched a smart passive AIM offering with a focus on tax efficiency.
The service, TIME:AIM, only invests in AIM-listed businesses that qualify for Business Property Relief (BPR), which makes them exempt from inheritance tax after two years.
The portfolio will invest in 25 of the largest and most profitable AIM companies and will be rebalanced annually to maintain even weightings and minimise volatility.
TIME, which has run a capital preservation BPR service for over 20 years, uses financial, commercial and performance criteria to select companies in the AIM 100 index.
Stephen Daniels, head of investments at TIME, says: “We are addressing advisers’ criticism of traditional AIM BPR services that they are expensive and their returns are unpredictable. TIME:AIM provides investors with a unique way to access mature AIM-listed businesses with strong fundamentals thanks to our innovative smart passive investment strategy.
“We have been focused on reducing the risk associated with AIM shares and improving the consistency of returns but in a service with a significantly lower AMC than competing AIM services.”
The initial charge for TIME:AIM is 1 per cent plus VAT with an annual management charge of 0.8 per cent plus VAT. Rebalancing will not incur a fee. The minimum investment is £25,000 or £15,000 for an ISA investment.