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EPIC brings AIM IHT portfolio to IFA market

by | Dec 5, 2023

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EPIC Investment Partners (“EPIC”) has announced that the EPIC MPS AIM IHT Portfolio (the “Portfolio”) is now available to the IFA market through EPIC’s Model Portfolio Service (“MPS”).

The Portfolio is constructed to harness the potential for long-term capital growth and mitigate inheritance tax by investing in a concentrated selection of 20-30 Business Relief qualifying companies.

Following their success in managing the Portfolio for two and a half years, experienced managers Malcolm Schembri and Tim Hall have decided to make it available to the IFA market via a number of investment platforms. 

 
 

With an investment career spanning over 10 years, Malcolm is an accomplished equity fund manager with a strong track record in both global and UK fund mandates and has previously managed a mid-to-small cap UK equity portfolio.

Tim will assist Malcolm in portfolio construction, bringing over three decades of investment experience. Adding challenge to daily investment debate, Tim brings a broad experience of managing portfolios, investment professionals, and associated risk and trading desks. Malcolm and Tim have worked together for more than five years.

The team will conduct in-depth analysis to understand performance drivers and systematic risk within the Portfolio, which will have substantial diversification. The team maintains strict value disciplines to avoid speculation and premium pricing.

 

The actively managed, high conviction Portfolio has a focus on quality companies best positioned to generate outperformance with a lower risk profile. Specifically, they will be highly cash generative durable companies with strong management and a proven track record of being able to redeploy capital to deliver favourable returns. 

The Portfolio has an annual management fee of 1.30% but no initial charge. The Portfolio is available on the following investment platforms: abrdn, Fidelity, Fundment, Nucleus, Platform One and Transact.     

Tax benefits

 

The Portfolio has been established to invest in a concentrated selection of 20-30 AIM-listed Business Relief qualifying companies. Investments in Business Relief qualifying companies which have been held for more than two years at the time that IHT becomes payable are exempt from IHT.

By way of example, Harold is 75. His home is valued at £500,000 and he has investments of £250,000.  With the Nil-Rate Band of £325,000 and Residence Nil-Rate Band of £175,000, he can pass on his home free of inheritance tax. The £250,000 is currently invested in a UK OEIC fund meaning that a 40% rate (£100,000) is payable by his beneficiaries on his death.

By investing in the Portfolio, Harold’s beneficiaries could mitigate the entire IHT liability on his investment saving his beneficiaries £100,000.

 

Malcolm Schembri, Portfolio Manager, commented on the launch: “The AIM market has developed significantly since launching in 1995. It now has a combined market capitalisation of over £100 billion and is home to over 700 companies, of which nine are capitalised in excess of £1 billion. The potential for long-term capital growth is huge as we seek to identify those companies with quality management and proven business models. Companies like Fever Tree, for example, which is now a household name. 

“We avoid speculative investments and instead focus on the highest quality companies which have proven durability. There is currently compelling value available in the AIM market and we believe this is the right time to extend our offering to the public. Furthermore, the benefits of investing in AIM-listed companies extend beyond growth potential with investors being able to offset and mitigate inheritance tax.”

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