Teather & Greenwood and Close offer Aim portfolio management services
Teather & Greenwood has launched a discretionary investment management service for private clients investing in Aim.
The move comes at the same time as Close Fund Management relaunches its own Aim portfolio management service.
Substantial differences exist between the two. The Teathers product has a minimum investment of £100,000 while Close has dropped its to £50,000.
In addition, Teathers guarantees investment in at least 10 stocks while Close is looking to run portfolios of around 30 holdings.
Both groups are keen to promote the strong potential returns available from Aim and both services offer investors Accelerated Taper Relief, by which CGT can be reduced to as little as 10% if stocks are held for a minimum of four years.
In addition, Aim stocks, treated as unquoteds for tax purposes, provide a shelter from inheritance tax if held by an investor for a minimum of two years.
The Teathers Aim for Growth service has an upfront charge of 5% and offers IFAs 2.5% commission. The annual management fee is 1.5% plus VAT.
Teather & Greenwood, which has won the Aim Awards Best Research Award for the past three years, said it has a strong track record of identifying and monitoring Aim stocks, as well as access to the pipeline of new issues, some of which it acts as sponsor for.
The Close product carries an initial charge of 5%, with an annual management fee of 1.75%. Commission for IFAs is 3% and renewal commission is also available.
Investors in the Close Accelerated Taper Service have their portfolios managed in parallel in order to streamline investment decisions. They are invested in companies listed on Aim or traded on Ofex, as well as new issues.
Like Teather & Greenwood, Close has an established track record in Aim portfolio management, through the experience of the Close Aim VCT and the Close Beacon Investment Fund, which has been managed by the same investment team headed up by Andrew Buchanan for more than six years.
Marc Gordon, managing director of Close Fund Management, said: 'The tax benefits investments in Aim and Ofex attract have been an open secret in the City for the past year but there's every reason for the growing numbers of wealthy individuals in the UK to investigate them.
'Inheritance tax is becoming a much greater issue in British life and at the moment this service provides one of the only opportunities for an investor to minimise their IHT liabilities while retaining control of, and access to, their investment.'
Martin Sherwood, who heads up the tax efficient solutions division at Teathers, added: 'As well as tax benefits that Aim for Growth can provide, our expertise in this area means we can identify outstanding opportunities for individuals seeking to invest in the smaller companies sector.'
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