Are your clients looking to reduce their inheritance tax (IHT) liabilities and gain exposure to exciting growth stories in the small cap space? If so, an AIM/IHT portfolio service may offer a solution.

Here are three things we believe are essential when looking to pick a service for your clients:

1. The expertise and experience of the team

Having the ability to navigate the AIM market is crucial. This market has been home to a number of fantastic success stories which have turned into multi-billion pound companies, such as ASOS and Fever-Tree. Some companies will also move from ‘AIM to the Main Market’ (i.e. FTSE 250). However, we’ve seen a fair share of failures too. With this in mind, it’s important to back an investment manager with experience and proven stock-picking ability. In addition, they must ensure that the AIM stocks selected for the portfolio qualify for business relief.

2. Competitive and transparent fees

Make sure you understand exactly what is and isn’t included in a headline fee that is quoted. The last thing you want is for your client to be hit with a raft of additional charges that you hadn’t accounted for.

3. Low minimums

Look for a service that will be accessible to a wide a range of your clients. Minimum investment thresholds of £100,000 and over can be restrictive.


RC Brown enters the market

Earlier this week we caught up with Robert Clark, Sales and Marketing Director at RC Brown Investment Management. Robert was pleased to announce that this week RC Brown have entered the IHT Portfolios space, in response to client and adviser demand. The launch of their new Inheritance Tax Investment Service has been in response to adviser demand – and while the firm’s proposition is new, the team draw on experience in the AIM market that spans more than 20 years.

For example, investment managers Oliver Brown and Neil Whelan, who both have more than 15 years’ experience in the space, are provided with access to IPOs and fund raisings that are typically the preserve of institutional investors. They have also helped companies with the transition from AIM to Main.

In their words, they are “aware of the potential for growth but also the pitfalls in the market”.

Any adviser who is looking at an AIM portfolio for their clients must factor in the risks associated with AIM stocks, particularly in comparison to holding FTSE 100 stocks. These include the potential for reduced liquidity and increased volatility.

With the potential risks in mind, we like that RC Brown – in line with its general ethos – provides transparent reporting that is far more detailed than its competitors. This means that you will know exactly what is in the portfolio. For example:

RC Brown AIM Holdings

RC Brown charges an annual fee of 1.25% plus VAT for running the AIM/IHT portfolio, with no upfront costs. This is competitive, but most of all we like that it is inclusive of all custody and dealing charges.

We also like that there is a low investment minimum for the AIM/IHT Service at £50,000.

If you are looking for an AIM/IHT investment service for your clients, we believe this is a good option to consider. You can download the AIM/IHT Service Summary here.


This article was created for the DISCUS website to announce the launch of RC Brown’s new AIM IHT Service. To find out more about RC Brown please visit their dedicated page here.