AIM Strategy

Our expert and dynamic team work on your behalf to conduct research on suitable stocks for inclusion in the AIM strategy with the following attributes:

• Quality companies operating in a market with long term structural drivers
• Credible management team
• Strong financials
• Attractive valuation
• Opportunity for M&A (mergers and acquisitions).
• Sufficient liquidity, to be relatively easily traded
• Qualify for business relief

Our research team performs a screen on AIM listed stocks with a market cap of at least £250m and a free float of at least 50% (free float represents the portion of shares a company that are readily transferable on the stock exchange). This list is then reduced to stocks that qualify for Business Relief (formerly Business Property Relief). These criteria reduce the list of stocks to c.100. From this potential buy list, the team then conduct in depth research on the characteristics of individual stocks sought for the portfolio.

Environment, Social and Governance considerations are fully integrated into our research process, which helps us identify and understand potential risks and opportunities. When we meet management teams, we actively discuss ESG issues. Within Quilter Cheviot, we have a Responsible Investment team, we work with them to engage with management to ensure they work towards positive change.

• Meet management before we invest
• Avoid loss making businesses
• Avoid “blue sky” companies
• Minimum market cap threshold is £250m
• Will not own more than 3% of a company’s free float

Business Relief was introduced in the UK in 1976 with the aim of protecting qualifying business assets from IHT, including 100% relief for shares held in qualifying unquoted trading companies. Unquoted shares for these purposes include shares quoted on AIM. If the company qualifies for relief and the asset is held for at least two years, the value of it is then exempt from IHT on the investor’s death (subject to potential restrictions where the company holds any ‘excepted’ assets, broadly meaning any investment assets not required for the company’s business).

The investee companies selected for inclusion within your Quilter Cheviot Discretionary Managed AIM Strategy will be subject to an annual, ongoing, independent review by tax experts engaged by Quilter Cheviot. This review examines the accounts of each investee company and provides a summary of the extent of the availability of Business Relief that can be expected to be made available to investors in that company. Investors should note that the final decision on whether the stocks qualify for Business Relief will always be made by HMRC at the time of probate and will be based on the circumstances of the investee company at the date of the investor’s death.

Initial charge: 1% + VAT (capped at £5,000)

This is based on the initial value of the funds invested into the strategy.

Annual Management Charge: 1.25% + VAT

Our annual management charge is based on the value of your portfolio at each month end, averaged over the charging period.

No dealing fees

Quilter Cheviot do not charge any dealing fees within the AIM Strategy. This allows for our charging to be more predictable and transparent to clients.