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.