In September 2016 we launched TIME:AIM, the first passive based Business Property Relief (BPR) qualifying AIM service. We created TIME:AIM to address advisers’ criticism of traditional AIM BPR services – that they are expensive and their returns are highly volatile. TIME:AIM provides investors with a unique way to access mature AIM-listed businesses with strong fundamentals thanks to our innovative ‘smart passive’ investment strategy.
This approach ignores market sentiment, thus providing a robust investment strategy which delivers attractive risk-adjusted returns to investors, unaffected by human factors, such as the departure of a key fund manager and stock picker bias.
TIME:AIM enables investors to access an ISA qualifying discretionary management service, offering uncapped annual returns by investing into UK focused companies with high growth potential.
So how does this work?
Using sophisticated proprietary software we screen all prospective BPR qualifying investments against financial, commercial and performance criteria. Using a number of quantitative metrics, only those with a below market average volatility are selected.
This formalised approach removes emotion from stock selection and results in a portfolio without exposure to higher risk companies such as those focussed on mining and resources.
The result is a diversified portfolio of around 25 evenly weighted holdings of mature, profitable, BPR qualifying companies for each investor. Each portfolio is then rebalanced annually, to correct any drift from our stipulated criteria.
Because this is a quantitative rather than qualitative model, we have been able to back test it over ten years, demonstrating that it is significantly less volatile than the market average over that period. We are the first BPR manager to introduce this passive based model for the AIM market.
Click here to view the graph which uses backtesting* to demonstrate how TIME:AIM would have performed over the previous ten years.
This approach means we have been able to deliver a service, focused on reducing the risk associated with AIM shares and improving the consistency of returns, with a significantly lower Annual Management Charge than competing AIM services – 0.8% per annum versus an industry average of between 1.5% and 2%. Consequently, we believe that the income produced by the TIME:AIM service through the underlying dividend flow is the most reliable of any of the providers. We also offer the service as an ISA qualifying portfolio.
If you have any questions or would like to find out about TIME:AIM, please contact us on 020 7391 4747 or firstname.lastname@example.org.
*TIME:AIM backtesting measures the performance of a portfolio after illustrative adviser ongoing fees of 0.5% p.a., TIME’s annual management fee of 0.8% (plus VAT), annual custodian and all broker fees;
TIME:AIM backtesting assumes a net investment of £100,000 (after initial fees) was made on 31 May 2005 and is rebalanced annually in May;
TIME:AIM backtesting assumes no intra-year reinvestment for AIM companies which were sold during the period. All sales proceeds and dividends received reinvested at next rebalancing point;
Backtesting is for illustrative purposes only , based on simulated past performance, and is not reflective of actual investment performance. Past performance is not a reliable indicator of future performance.