Time Investments has rolled out a ‘smart passive’ service exclusively targeting low-volatility Alternative Investment Market (AIM) companies.
Time:AIM will construct a portfolio of the 25 ‘largest, profitable and most stable’ companies in the AIM 100 index, including only those that come under the business property relief (BPR) inheritance tax exemption rules.
By implementing an annual rebalancing of the evenly weighted portfolio, Time says it will eliminate the ‘traditional stockpicker bias’ and accompanying volatility usually associated with the London Stock Exchange (LSE) sub-market.
This will be effected by filtering potential investments through financial, commercial and performance criteria – a process which Time asserts will minimise volatility without compromising returns.
‘We are addressing advisers’ criticism of traditional AIM BPR services that they are expensive and their returns are unpredictable,’ said Stephen Daniel, Times’s head of investments.
‘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.’
Time is aiming to undercut its rivals with fees amounting to ‘around half’ of those levied by most AIM BPR services.
Time:AIM carries an annual management charge of 0.8% plus VAT after an initial 1% entrance fee, with the yearly portfolio rebalancing costs will be absorbed into the stated AMC.
The minimum investment is £25,000 or £15,000 via an ISA.