Guinness Asset Management has launched the Guinness AIM EIS 2015, a discretionary managed service that will invest in AIM-listed companies through the tax-efficient EIS structure.
This follows on from the launch of the Guinness AIM EIS 2014 last year.
Guinness AIM EIS 2015 is targeting capital growth by making investments in AIM-listed companies that qualify for EIS reliefs.
Changes in 2012 allow larger companies to benefit from EIS tax reliefs. These changes include increasing the maximum number of employees from 50 to 250 and the maximum gross assets from GBP8 million to GBP16 million following an investment. As a result the number of AIM-listed companies that can benefit from EIS tax reliefs has increased. In addition, the improvement in the economic climate has seen an increased number of IPOs and new share issues by AIM-listed companies, providing an active market from which the investment manager can select investment opportunities.
AIM-listed companies have an additional attraction to EIS investors, in that there is liquidity in the shares by virtue of their listing, enabling investors to exit more readily after the EIS three year holding period.
The fund manager is targeting returns in excess of GBP1.30 to investors (GBP1.60 including 30 pence EIS Income Tax Relief) net of all fees per GBP1.00 invested.
As with Guinness AIM EIS 2014, Guinness Asset Management will defer all its fees on this offering until they can be paid from the proceeds of investments. This is a departure from traditional fee structures for EIS offerings and enables the investment manager to invest up to 100 per cent of an investor’s subscription in EIS qualifying companies. Investors may claim EIS tax reliefs on the sums invested, so this structure helps maximize this amount for investors.
Guinness AIM EIS 2015 is structured as an approved fund, which eases the administrative burden for investors. Investors will receive one EIS 5 certificate once their subscriptions have been invested, rather than receiving multiple certificates as is the case with unapproved funds.
Guinness AIM EIS 2015 is managed by the existing Guinness AIM investment team of Andrew Martin Smith Shane Gallwey and Hugo Vaux.
Andrew Martin Smith, lead fund manager, says: “We will continue to build on the success of our existing AIM EIS investments. The changes in EIS legislation allowing us to invest in a larger range of companies, coupled with the increased number of share issues from AIM-listed companies, has allowed us to select quality companies for our existing portfolio, and continues to make this an attractive area of investment for us.”