The firm's latest offering seeks to exploit the tax advantages of AIM-listed holdings.

Chichester-headquartered Thesis Asset Management has launched a new portfolio service investing in the Alternative Investment Market (AIM) to help clients with inheritance tax (IHT) planning.

The new portfolio adds to the company’s range of active and passive model portfolios that invest in collectives and direct UK securities, the firm said in a statement.
 
Managed by Thesis’ head of research Matthew Hoggarth, it will hold a selection of 20-25 shares from the AIM all share market. The stocks are selected using Thesis’ system of six measures of financial strength (dividend yield, earnings, earnings to price, EBITDA to sales, return on assets and prior year’s total return), and will be rebalanced on a quarterly basis.

Companies on AIM have the potential for dramatic growth and rapid expansion, whilst also providing IHT exemption if they are held for more than two years. Holdings in the portfolio will be monitored both for their financial prospects and for their eligibility for tax reliefs.

The portfolio management fee is 1.2 per cent plus VAT, with no dealing costs or up front charges.

“Companies admitted to AIM can be young, growing and dynamic, and provide a great opportunity to help boost the UK economy from the ground up," said Hoggarth. "Coupled with the IHT benefits, it makes it a compelling proposition for investors wishing to pass on more of their wealth to loved ones. We believe we are in a great position to offer this service due to the genuine belief we have in our thorough UK equity selection process which we have been running for some time now to great success.”

This publication reported last week that Thesis AM had agreed to acquire Cambridge Fund Managers (CFM), a Bath-based discretionary investment manager.