Thorntons Investments has rolled out a new sustainable AIM portfolio, designed to offer clients exposure to smaller companies providing environmental and social solutions.
The Sustainable Future AIM Inheritance Tax Portfolio Service targets small and innovative companies operating across four areas of sustainability; new energy, environment, health and efficiency.
These include companies that contribute to areas including energy storage solutions; electric vehicles, renewable energy; water use reduction; pollution prevention and healthcare.
For example, one company within the New Energy sector is involved in the funding, installation and management of smart meters and carbon reduction, the wealth manager said.
The new portfolio is run on a discretionary basis, available to advised clients only, and currently comprises 38 holdings.
Matt Strachan, CIO of Thorntons Investments, says: “In a world that has become stressed and distressed, we urgently need to move from a linear system of extract, use and dispose, to a more circular, sustainable economy. We believe that some of the most exciting companies focused on providing sustainable solutions to the numerous environmental and social challenges we all face are to be found on AIM.”
Strachan said small companies are often overlooked or unable to “play the rating game” but are often the ones trying to make the biggest difference.
He added: “I could reel off example after example of the tangible, positive impact our portfolio companies are having, from kettle control products which have reduced energy waste equivalent to the CO2 emissions of 1 million cars, or washing technology that can reduce water, chemical and energy use by half in clothing production, to the development of biological nutrients for crops that reduce the need for chemical fertilisers and fungicides and also help drought tolerance. This is real and the demand for the work these companies are doing is going to grow and grow.
“By offering sustainable investment into those AIM companies making a real difference we are providing a genuinely different and ‘deep green’ estate planning solution for investors looking to leave a meaningful lasting legacy for their beneficiaries and future generation.”
Unlike other estate planning solutions, with a portfolio of AIM company shares the investor retains control over their investment and can make withdrawals should their circumstances change. AIM company shares which qualify for 100% business relief are fully exempt from inheritance tax provided they have been held by the investor for at least two years out of the last five years, and were held at death.
