Guinness AIM EIS Team
AdviserLead Fund Manager
AIM EIS Investment Strategy
The Investment Manager will predominantly invest in a portfolio of AIM listed companies that it believes will offer capital gain underpinned by sound financial assumptions and robust management teams. Up to 20% of the fund may be invested in pre-IPO or NEX companies. Our investment strategy is summarised below:
The Service is focused on investing in companies that are listed on AIM and which will benefit from EIS tax reliefs. In exceptional circumstances companies listed on NEX Growth Market or pre-IPO companies may be considered for investment, up to a maximum of 20% of Subscriptions in aggregate.
The Investment Manager will commence investing from 6 April 2018 and it is intended that Subscriptions will be fully invested within 12 months. The Investment Manager intends to hold the Investments for the EIS Three Year Period.
The Investment Manager is targeting a portfolio 10 or more investments to provide diversification to Investors.
Sector and Stage
The Investment Manager will review potential investments across a range of EIS qualifying sectors and will look to have a balanced spread of investments. Investee Companies are also likely to be at different development stages, with some early stage businesses with high growth potential and some more mature businesses with more predictable cashflows.
The focus of the Service is on generating capital growth. It is not expected that many Investee Companies will pay dividends during the three year EIS holding period. This will help maximise tax reliefs for Investors as dividends are usually subject to income tax whereas a capital gain realised after the EIS Three Year Period will be exempt from capital gains tax.
Investments will only be made into companies that have received EIS Advance Assurance from HMRC.
On exit the Investment Manager intends to offer Investors a number of options to suit their requirements. This will include, but not be limited to, the sale of Investments to return cash, continued management of the Investments to maintain Inheritance Tax Relief or sale and reinvestment into a followon Guinness AIM EIS fund.
EIS Investment Process
Our formalised internal Investment Process helps to ensure that due care is taken in the identification, selection, execution, monitoring and exit of the Fund’s Investments.