Barclays to shut down AIM portfolio service

Killik Asset Management (KAM) and Williams de Broë (WdeB) are among those to benefit from Barclays Wealth’s decision to close its AIM portfolio service.   

The troubled investment bank has told clients it will cease to offer the service, which launched three years ago, from 20 April. It has advised clients not to liquidate their portfolios but transfer them to the AIM service run by Graham Neale (above) at KAM, through which it has agreed preferential terms for its clients.

In a statement issued by Barclays, the group said: ‘We are working with our clients to ensure their ongoing requirements for this investment are met.

‘To this end, we have strongly recommended that clients do not liquidate their portfolio, but appoint an alternative specialist investment manager to manage
these assets.

‘There are a number of managers who specialise in the provision of AIM portfolio management services. To assist our clients in their election, and ensure a smooth transition to a new manager, Barclays Wealth has agreed preferential terms with Killik Asset Management for our AIM portfolio service clients.’ 

The terms Barclays has struck with KAM includes the waiving of the usual initial charge and pricing aligned with the current Barclays Wealth tariff for a 12-month period.

However, WdeB, which runs £3.6 billion on behalf of clients, including about £60 million in its AIM portfolio service, has been among those benefitting from Barclays Wealth’s decision to shut the operation down.

WdeB said it received a number of enquiries from Barclays clients looking to transfer their AIM portfolios to its service, which recently celebrated its three-year anniversary. 

Mark Northover, lead portfolio manager for WdeB IHT Relief Portfolio Service, who has managed AIM portfolios since 2001, said it is too early to say how many clients are ready to make the switch.

But he said there had been particular interest at its Birmingham and Edinburgh branches, which was set up by a former Barclays’ team of investment managers.