Stellar AIM ISA

This Aim IHT ISA offer from Stellar Asset Management invests in AIM stocks which qualify for Business Property Relief. After two years the investment should become IHT free. An optional insurance policy offers protection against falls in value. 

Highlights

  • Long-standing AIM IHT managers – the portfolio has been operating since 2008
  • 40-stock portfolio
  • Optional insurance policy option can protect against market falls
  • £20,000 minimum

Important: The information on this website is for experienced investors. It is not advice nor a research or personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value, so you could get back less than you invest.


The manager

Founded in 2007, Stellar is an independent firm, wholly owned by its directors and staff. They have over 10 years’ experience in mitigating inheritance tax and focus solely on estate and succession planning. 

Investment Strategy

ESP AIM is a simple estate planning solution. Stellar invest in a diversified portfolio of 40 AIM quoted companies, all of which should qualify for Business Relief. 

The portfolio aims to provide investors with a blend of capital preservation and growth whilst reducing volatility. However, please note that AIM ISAs invest in small companies, which are generally more volatile and illiquid than larger companies and much higher risk. 

Portfolio

Stellar looks to hold 40 companies across eight sectors. The only sectors they exclude are Utilities and Oil and Gas. The full sector breakdown can be seen below, as based on valuations as at 5 October 2018.

Source: Stellar, valuations as of 5 October 2018

Performance

Annual performance (%)

  2013 2014 2015 2016 2017 2018
Stellar AIM IHT Portfolio 38% -2% 30% 10% 12% -1%
FTSE AIM All-Share 20% -19% 4% 17% 24% 0%

Source: Stellar, to 5 January each year, ending 2018. Shows total return, inclusive of dividends, net of management fees and commission. Past performance is not a guide to the future. Note this is the model portfolio performance: every client's portfolio will be slightly different


Risks – important

This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.

AIM IHT portfolios are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks. 

AIM stocks can be hard to sell, particularly at the smaller end of the market, and can be illiquid. AIM shares can be very volatile especially if the market falls sharply. The difference between the buying and selling price of AIM-listed shares is often wider than the spread for shares listed on the main market.

Tax rules can change and benefits depend on circumstances. Eligibility for BPR is assessed at the date of death and will depend on the companies in the portfolio remaining qualifying.  Broadly speaking, you will need to have held a BPR qualifying stock for at least two years and still hold it on death to qualify.

Fees and charges

An overall summary of the charges is shown below.

Full initial charge 0.5%
Annual management charge 1% plus VAT
Dealing fees 1%
Insurance charge variable
Performance fee nil
Exit fee nil
Minimum investment £20,000

See example of the total charges over 5 years

Wealth Club aims to highlight investments we believe have merit, but you should form your own view. You should decide based on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 12 November 2018.

The details

Portfolio size
£50.4 million
Average market cap
£675.0 million
Initial charge
0.5%
Saving via Wealth Club
-
Net initial charge
0.5
AMC
1.0%