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Investing in AIM quoted companies for inheritance tax planning purposes proved a winning investment strategy in 2011

It’s been a great time to invest in simple UK based businesses that one can more easily understand

Fundamental Asset Management a specialist investment house, reports that its portfolio service investing in AIM quoted companies for Inheritance Tax planning purposes continue to generate positive returns, significantly outperforming even the main UK equity market indices.

- About AIM for IHT planning

Investing in qualifying AIM quoted companies for the purpose of potential inheritance tax mitigation is an effective, proven and non-contentious tax planning method that avoids the costs associated with forming a trust, or the risks associated with gifts. Assets also remain under the control of the holder and are not outside the estate. The short 2 year qualification period make it a compelling tax planning tool but the recent capital growth experienced also means that it has proved highly attractive from an investment perspective as well.

Fundamental’s AIM portfolios invest predominantly in the shares of larger AIM quoted companies with market capitalisations typically greater than £50m, although there are exceptions. There is also notable exposure to oil equipment and services, industrial engineering and support services groups supplying into power and energy markets, including alternatives.

Christopher Boxall, Director of Fundamental, explains,

“In terms of our AIM portfolios, over the last few years we have tried to ignore the general noise of the main market, Eurozone worries etc. and simply focused on company specific fundamentals and sticking with our ideas. It’s been a great time to invest in simple UK based businesses that one can more easily understand.”

Some of the key attractions of the Fundamental AIM IHT planning portfolio service are:-

• Excellent investment performance to date.
• Simple, transparent investment strategy.
• IHT relief on the amount invested, after a qualifying 2 year period (if held on the date of death)
Unique Portfolio Protection can be added (using an investment based vehicle)
• Protection against an agreed percentage of potential Portfolio loss
• The level of Portfolio Protection can be changed at any time
• Portfolio Protection is available to clients of any age, regardless of health. No insurance company is involved
• The level of protection selected works throughout the term of the investment and not just on death.
• Instant access to capital should your circumstances change
• No complex trust arrangements that tie up your capital.
• Very competitive charging structure.
• Low cost trading commissions.

Boxall adds,

"We witnessed indiscriminate selling of equities a few years ago after the collapse of Lehmans and it ultimately demonstrated the benefits of simply doing nothing. The share prices of many of our energy and equipment services stocks were decimated in the first quarter of 2009 but {our patience has been richly rewarded}}. A prime example is AIM quoted Hamworthy plc, one of our AIM portfolio holdings. Hamworthy recently accepted a takeover by Finnish group Wärtsilä at a level nearly 5 times higher than the 2009 share price lows. Hamworthy has remained highly profitable and cash generative over the past 5 years yet the share price fluctuations suggested otherwise!”

The Fundamental IHT Planning portfolio service is available in either ‘Standard’ or ‘Protected’ variants with the initial minimum investment £30,000.

10th January 2012

For further information please contact:-

Fundamental Asset Management Ltd
Christopher Boxall, Director
Tel: 01923 713893


Stephen Drabwell, Director
Tel: 01923 713892

Notes to Editors:

Fundamental Asset Management Ltd is a firm of investment managers/analysts authorised and regulated by the Financial Services Authority.