Review: Blankstone Sington Inheritance Tax AIM ISA

Archived article

Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.

If you are looking to pay for a piece of art below its true value, would you go to an auction hall with standing room only or one where the staff outnumbers the bidders?

This is how Stephen English, manager of the Blankstone Sington IHT Portfolio, describes his investment approach. Like other AIM portfolios, it invests in BPR-qualifying stocks, but this is where the similarities end. 

A focus on smaller stocks

Mr English focuses on smaller companies and places greater emphasis on value investing, targeting firms worth £150 million or less. 

He believes these might be one of the last bastions of market inefficiency. They receive little analyst coverage and are likely to be shunned by large fund groups – usually until they get bigger.

Once again, Mr English describes this with a striking analogy: it is akin to shunning a potential life partner, despite their many attractions, because they are below a certain height and suddenly being enamoured with them when they don a pair of (Cuban) heels.

K3 Capital Group – Blankstone SingtonSearching for the hidden gems

The portfolio looks for growing companies and tries to avoid cyclical businesses. Investors can expect 25 to 40 holdings across a range of sectors.

One example is K3 Capital, which listed on AIM in 2017 and has a market cap of £106.8 million (2 Nov 2018). It acts as a corporate finance matchmaker: if you want to sell your business, K3 Capital will help you find the right buyer. The management has a significant stake in the firm so its interests are aligned with those of shareholders.

Who is behind the portfolio?

Blankstone Sington is a Liverpool-based manager with over 30 years’ experience in smaller-companies investing. The portfolio track record is excellent (it has returned 153% from 2013 to June 2018) but past performance is not a guide to the future.

Source: Blankstone Sington. Past performance is not a guide to the future. Dividends are not guaranteed. Chart shows cumulative performance to 30 June 2018. Based on a weighted average. The performance of individual discretionary managed portfolios may vary.

No initial charge, low annual charges

The fee structure is highly competitive. There is no initial charge, just dealing fees apply. For larger investments, the annual charge on part of the portfolio can be as little as 0.5% and 1.25% at the most. 

The minimum investment is £50,000. Blankstone Sington believes this is the minimum to allow sufficient diversification. So, ISA investors will need to also transfer existing ISAs if investing new money.

Remember, AIM investments are high risk but the small cap nature of these stocks increases risk further: you should not invest money you cannot afford to lose. The investments are also likely to be more volatile. 

Risks - important

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

VCTs are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value. Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks. 

Tax rules can change and benefits depend on circumstances.

VCTs can now only invest new money in growth capital deals. Management buyouts/replacement capital deals and investments in mature companies are no longer permitted. This results in considerably higher risks. 

What to consider next

Please visit the offer page using the link below to download the provider documents, read more (including risks and charges) and apply online.

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