aim iht portfolio · the investment manager will aim to provide inheritance tax efficiency, there...

AIM IHT PortfolioDiscretionary Portfolio Service

Successful wealth management for 35 years

Contents

Introduction to the Reyker AIM IHT Portfolio

Risk warningsFees & chargesYour portfolio’s ingredients

2

11

Grow your wealth for the next generation

8 10

Why Reyker?

4

020 7397 [email protected]

The IHT benefits of our service

7

2 AIM IHT Portfolioreyker.com/aim

Your wealth is a result of years of saving and hard work. One day you may want to pass on your estate to your family but without proper planning, they could end up losing out due to tax charges.

Under current tax legislation, if your estate is worth more than £325,000, then your beneficiaries will face 40% inheritance tax (IHT) on any amount above this threshold. This is likely to have a substantial impact on the amount of inheritance you pass on.

That is why we have created the AIM IHT Portfolio to aid you with your inheritance tax planning and to make your wealth work for you and the next generation.

Our team of experts will manage a portfolio of investments for you that will take advantage of the growth opportunities available from one of the world’s leading markets for growing businesses, known as AIM, and the generous inheritance tax advantages that come with it.

We take care of the day to day management of your portfolio so that you can relax knowing that your investments are in expert hands to grow and protect your wealth for future generations.

Introduction to the Reyker AIM IHT Portfolio

If your estate is worth more than £325,000, then your beneficiaries will face 40% inheritance tax.

3AIM IHT Portfolio reyker.com/aim

What is AIM?

The Alternative Investment Market, or AIM, was launched in 1995 as a gateway for small and growing companies to obtain investment from the public.

To encourage investment in small and medium enterprises listed on AIM, the UK Government has introduced several tax advantages.

Stocks that qualify for business property relief (BPR) and have been held for at least two years are not liable for inheritance tax. There is no stamp duty on purchases, and shares can be held within an ISA.

Whilst the AIM market is known for its high growth potential, it also offers investors the opportunity to access well run, UK focused growth businesses. Our AIM IHT Portfolio offers you a great opportunity to add diversification to your current total investment portfolio.

The AIM market offers investors two great opportunities: access to leading growth businesses and mitigation of inheritance tax on your investment after two years.

AIM IHT Portfolioreyker.com/aim

Trust our expertsOur dedicated investment team has over 50 years of combined investment experience. Our experts will take care of everything associated with looking after your portfolio including the day to day management and decision making required to meet your needs.

We take a team approach We believe that this is the best method for portfolio management. Making investment decisions as a team ensures that there is a clear rationale for each investment and reduces biases in the decision making process.

We are here for you and the next generationWith all our clients we wish to build a long term relationship that is based on trust and your satisfaction with our service. This does not change as wealth passes from generation to generation. Our team will support your beneficiaries and look to cater for their needs when the time arrives.

A truly personal serviceWe are both friendly and professional. You can be sure to speak to a member of our team at any time. Many firms say this, but this is something we really pride ourselves on. We do everything in house and there are no call centres.

Established and reliable We have been providing a diversified range of financial services to both retail and institutional clients for over 30 years. We are prudent and have never made a loss in this time so you can be sure that we are here for your future.

What do we think of AIM?We like it so much that we are considering listing our own shares on AIM. If you wish to invest in us yourself, you could even see our shares feature in your portfolio at some point in the future.

Why Reyker?We do everything

in house

We keep things simple

Open, honest and transparent

Speak directly with our experts

Active investment management

No outsourcing


Charity CrowdfundingEISFintech FundsProperty fundsReal assetsStructures

35 YEARS OF GIVING

INVESTMENT ADVICE TO CLIENTS

IntegrityIS OUR WATCHWORD

CLIENT BASE

WHO WE ARE

PROFESSIONAL

INSTITUTIONAL RETAIL

• Discretionary fund management

• Client money, asset and treasury handling

• Execution, dealing, hedging and trading

• Tax wrapped investments• Safe custody and global

settlement services• Financial services

administration• Issuer of structured

investments

WHATWE DO

Custodian, depositary & global broker

Discretionary fund manager

& trader

INSTITUTIONAL SERVICE PROVIDER

IN MANY AREAS:

Institutional service provider

Successful wealth management for 35 years


Inheritance received by your beneficiaries £60,000£90,000 £110,000

Inheritance tax is charged at 40% on all assets over the nil rate band of £325,000 which can leave beneficiaries with a considerable IHT bill.

You can use our AIM IHT Portfolio to mitigate such tax charges.

Shares that qualify for business property relief and have been held for more than 2 years can be left to your beneficiaries free from IHT. Therefore, investing into our AIM IHT Portfolio for at least 2 years will provide you with the IHT efficiency required to enhance your beneficiaries’ inheritance.

This illustrative table is intended to display a comparison of the effect of inheritance tax on a cash sum versus a tax efficient investment. The value of our AIM IHT portfolio will fluctuate and so the “value after 2 years” is very likely to be different to the value stated. The value of the investment can go up as well as down. Fees will apply and will affect returns.

The IHT benefits of our service

REYKER AIM IHT PORTFOLIO CASH

Value after 2 years

Inheritance tax levied

Investment performance per annum 5% loss 5% growth 0%

Your initial investment £100,000 £100,000 £100,000

£90,000 £110,000 £100,000

£0 £0 £40,000

Our portfolio provides inheritance tax benefits alongside the potential for high capital growth.


What is the investment objective?The portfolio’s objective is to generate high capital growth and improve IHT efficiency over an investment horizon of at least 2 years. We use the FTSE AIM All Share Index as our benchmark, which represents the wider AIM market, and our goal is to outperform this.

We pay particular attention to each company’s financial base and their business model. We feel that cash generation is one of the key criteria for a growing business and we favour companies with a track record of profitability. With cash, companies can remain solvent and utilise growth opportunities.

Too often investors are caught up in the latest investment trend and forget the fundamentals of the business. We select companies who operate in a growing industry, have a genuine competitive advantage and are guided by an experienced and knowledgeable management team. An intelligent yet plausible business model is crucial. We meet with the senior management teams of our portfolio holdings to assess this first hand.

We consider how a stock will fit into the portfolio as a whole. We build diversified portfolios with businesses from different industries. Your AIM IHT Portfolio will include a mix of new and impressive technology companies alongside some stalwarts of the AIM market which have been operational for over 100 years.

Your portfolio’s ingredients

Our approach to stock selection

Key facts

Management fee 1% p.a.

Dealing charges £5 per trade

Minimum investment £25,000

2017 performance

Reyker AIM IHT Portfolio 31.39%

AIM All Share Index 25.98%

Investor suitability

Investment horizon 2 years

SRRI score 5

Target volatility 15% or lower

Capacity for loss High


Our investment goal is simple: select stocks that will perform well over at least a 2 year period and reward you as the investor.


We keep our charging simple. Our management and custody fees are charged monthly in arrears. Dealing charges apply as and when trades take place.

The following fees and charges are applicable:

Annual management & custody fee 1% per annum.

This is charged against the value of the portfolio. The fee covers the management of your portfolio as well as the safe keeping and administration of your assets.

Dealing charges£5 per trade.

We have a specialist, in house dealing desk that provides a first class execution service at a very competitive rate.

WithdrawalsNo charge for BACS withdrawal.£25 for CHAPS withdrawal.

Portfolio construction feeReyker does not charge an upfront fee for externally advised clients. For clients seeking financial advice from Reyker, please contact us directly.

Adviser feesReyker can facilitate the payment of both initial and ongoing fees on your behalf where you have agreed to pay your financial adviser fees for providing ongoing services related to your Reyker AIM IHT Portfolio.

Other feesWe make small charges for items such as ad-hoc valuations and paper statements. You can find a detailed breakdown of the these charges in our standard tariff of fees & charges. This is available on our website: reyker.com

Fees & charges


Risk warnings

IHT efficiency Investors should acknowledge that to benefit from relief from inheritance tax, shares must be held for at least 2 years. When new investments are made, this 2 year clock begins. When investments are sold, the tax benefits gained will be relinquished. Whilst the investment manager will aim to provide inheritance tax efficiency, there will be times when changes in the portfolio holdings are required. Cash held in the portfolio will not be exempt from inheritance tax.

Market risk The portfolio will invest solely in AIM listed company shares. The price of company shares can be volatile and subject to unpredictable changes over the investment term. The value of your portfolio is affected by movements in the price of the shares. Investors should understand that the value of their portfolio can go down as well as up. If you sell part or all of the portfolio after its value has fallen, you may lose some or all of your capital.

Volatility Due to the AIM market being a market for small and medium sized companies, the swings in share prices of AIM listed companies can be more pronounced than those of larger companies. This also means your portfolio valuation could show larger swings compared to other types of investments. Remember you are investing for at least 2 years, so you need to consider if you can accept such short term swings. Whilst the minimum investment period is 2 years, we feel that investing for longer than this will allow investors to handle swings in valuation and ultimately be rewarded by these swings.

Liquidity risk We define liquidity as the ability to turn your investment into cash at a fair value. AIM stocks can sometimes offer limited liquidity. There may be times when it could be difficult to sell the stocks quickly at a fair market price. At Reyker, we have our own in house dealing team who are able to monitor liquidity constantly. However, there is a risk that if you decide to sell part or the whole of your portfolio, we may not be able to sell the shares immediately unless you settle for a price that may be lower.

Inflation risk The value of your initial capital and any returns you receive may be affected by inflation over the term of the investment. If inflation is high over the term of the investment, your purchasing power may decrease and so the real return could be low or negative. The portfolio is managed with inflation in mind, however this is a risk you should still consider.

Taxation risk Tax rules and legislation, including that relating to IHT and ISAs, can be subject to change and we therefore cannot guarantee that the taxation landscape will not alter over the life of your investment. Furthermore, whilst we make investments in companies that we reasonably believe will qualify for tax relief, HMRC will assess tax relief on a case by case basis. Therefore, we cannot guarantee that any investment will qualify at all times. Reyker does not provide tax advice but we are happy to introduce you to someone who can. Further information about tax in the UK is available from the government website: gov.uk

All investments carry risk. Prior to investing in our discretionary managed portfolios you need to make sure you fully understand the risks and accept the level of risk you are taking. The service is actively managed and whilst we strive to achieve our investment objectives and monitor opportunities regularly, we cannot guarantee that it will achieve the objectives set out for the portfolio. Both performance and capital can be at risk.

Please read over this brochure and the risk factors described on this page. If there are any areas that you are still unsure about then please consult with your financial adviser before investing.


Is this investment suitable for you?

How to apply This service is available for retail investors who have received advice, and professional investors. You can invest using your Stocks & Shares ISA, SIPP, or directly. If you do not have an adviser and would still like to use our service, please get in contact with us. Apply by post: application forms are available from your adviser and are on our website reyker.com/aim Apply online: your account can be instantly set up with us. Please go to reyker.com/aim and click on the apply now button.

What happens next? When your application is accepted you will receive an email confirming your Reyker online digital account details from us. From then on, all statements and communications, including a welcome letter, will be uploaded to your secure Reyker online digital account free of charge. You will receive monthly statements on your Reyker online digital account. If you require paper statements to be sent out, we will make additional charges.

We want to ensure that you are making the right investment for your circumstances and that you are comfortable with your investment.

This portfolio is designed for advised investors who are seeking capital growth and IHT efficiency from their investments. You should be looking to invest in this portfolio for 2 years or longer and you should be able to set aside capital for this period. This is a high-risk investment therefore you must have a high capacity for taking financial losses, and be able to withstand wide fluctuations in the value of your portfolio.

We expect that your financial adviser will consider a complete set of factors when deciding if this investment is suitable for you. If you are not comfortable, at any stage, then we encourage you to contact your adviser or Reyker as soon as possible.


The service that we provide to you is governed by our terms and conditions of business (“T&Cs”), which forms a contract between us. You and your adviser must read it before you invest. The latest version can be found on our website and can be provided in print on request. This is updated periodically, so may change from when the investment began.

The current version of our T&Cs always supersedes previously issued versions including those that were applicable at the time the investment was made.

If you do not understand the terminology used in the T&Cs, or the effect of any clauses, please discuss this with your adviser or contact us directly. Once you have committed to invest with our service, this is deemed to be acceptance of our T&Cs and you will be bound by them as it is a contract with us. If you or your adviser wishes to discuss the elements of risk affecting this service, then please get in touch with us.

What should I do if I have a complaint?If you have an issue, then we ask that you get in touch with us on 020 7397 2586 and speak to one of our London based client services team and we will endeavour to resolve your issue as quickly as possible.

In the unlikely event that you wish to make a formal complaint about the service you can write to:The Compliance Officer, Reyker, 17 Moorgate, London, EC2R 6AR or email [email protected]

Our complaints procedure is stated in our T&Cs and is available on our website.

Our terms and conditions of business

020 7397 [email protected]

Reyker Securities plc17 MoorgateLondon EC2R 6ARUnited Kingdom

Call us: 020 7397 2590Email us: [email protected]: reyker.com

Company Reg No. 1747595

London Stock Exchange Member 780

Reyker Securities plc is authorised and regulated by the Financial Conduct Authority No 115308

Copyright Reyker 2019Issue 1

aim iht portfolio · the investment manager will aim to provide inheritance tax efficiency, there...

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