Stellar Asset Management has launched a new AIM ISA portfolio, which aims to help investors minimise IHT obligations while investing in smaller UK-listed companies.

Stellar Asset Management, the London-headquartered
investments specialist, has launched a new AIM ISA portfolio, which aims to
help investors minimise IHT obligations while investing in smaller UK-listed
companies.

The vehicle combines the tax advantages of an individual
savings account wrapper with an alternative investment markets portfolio, and
provides investors with two insurance options in order to reduce risk.

The first insurance option protects against loss from the
AIM ISA investor passing away within the two-year minimum holding period
required for the shares to become IHT-exempt; the second offers downside
protection on the amount invested, so that the beneficiaries are protected from
falls in the market.

“AIM shares are now one of the most tax-advantaged of all
investments since the majority of them benefit from business relief or business property relief. This means that qualifying shares are IHT-exempt once they
have been held for two years. Importantly, it also leaves investors with access
to income and capital should they need it in the future,” said Jonathan Gain,
chief executive at Stellar.

The portfolio will be managed in partnership with
stockbroker and specialist AIM investment manager Pilling & Co, helping
advise investors looking to participate in the growth of smaller companies in
the UK.

“Many AIM companies have tremendous growth potential but
also greater volatility than, for instance, the FTSE 100. Specialist expertise
is therefore ideally required to find the stocks with the most attractive
risk/return characteristics. Because this is an IHT portfolio, a conservative
investment strategy to reduce volatility is a fundamental principle,” said Gain
when commenting on the partnership.