By Sebastian Cheek, 9 Jul 20
Tax efficient portfolio will avoid overcrowded areas of the Aim market
Aubrey Capital Management has launched an Aim model portfolio service exclusively on the Ascentric platform.
The portfolios will hold 20 to 30 high conviction names selected using the same process as the firm’s institutional equity strategies which seeks companies with low debt, strong balance sheets and high cash flow.
Under current rules certain qualifying investments in companies on the Aim market are exempt from inheritance tax once they have been held for two years.
The MPS will carry an annual management fee of 0.3% plus VAT and there is a bespoke service available for 0.7% plus VAT. Ascentric’s charge is payable on top, with the platform charging 0.3% on investments up to and including £1m, 0.1% on £1m to £3m and 0.06% on £3m to £5m.
In a press release, Aubrey Capital portfolio manager John James said the investment approach enabled the team to avoid more overcrowded areas of the Aim market while accessing growing businesses.
Aubrey analyst Jay Younger (pictured) said: “The Aim market is home to many interesting growth companies, including those in areas such as cloud communication, gaming services and cyber security that we believe will benefit from accelerating change brought about by the current crisis.”
The Aim MPS will sit alongside Aubrey’s bespoke and MPS offerings already on the Ascentric platform. The firm’s existing IFA outsourced service range comprises six risk profiled investment strategies using a combination of passive strategies and active managers.
Ascentric head of sales Justin Blower said: “It is extremely positive that Aubrey Capital Management has chosen to launch its Aim service exclusively with Ascentric. By leveraging our unique dealing capability this proposition can disrupt the market both in terms of its price and choice of a model portfolio service or a bespoke offering that can be tailored to specific needs, all based on-platform.”
Last week, Aubrey announced the hire of Brooks Macdonald co-founder Jon Gumpel as a fund manager with a remit to develop the firm’s investment services to IFAs and other intermediaries.