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Fundamental IG AIM portfolios – video update

In this video with IG markets Chris Boxall, co-founder of specialist investment manager Fundamental Asset Management, comments on recent changes to the AIM for Inheritance Tax portfolios created for IG.

Chris discusses first quarter’s performance from the Standard Fundamental IG AIM Portfolio, which was developed for IG in September 2016, and the subsequent Higher Yielding Fundamental IG AIM Portfolio created at the start of 2018.

Chris also comments on changes to the portfolios, including the sale of the position in Restore (financial reporting that borders on the dishonest), review of the new IG portfolio position in Focusrite (a stock held by Fundamental since not long after IPO) and a replacement share for the higher yield portfolio following a dividend cut from one of the previous holdings – as anticipated, the higher yielding AIM portfolio is providing plenty of excitement!

Other companies discussed include Patisserie Holdings (AIM:CAKE), RWS Holdings (AIM:RWS), K3 Capital Group (AIM:K3C), Safestyle UK (AIM:SFE), NAHL Group (AIM:NAH), Epwin Group (AIM:EPWN) and Zytronic (AIM:ZYT).

 

After a challenging first quarter in 2018 for equities, Fundamental Asset Management AIM portfolios have seen strong performances from several portfolio companies over recent weeks, supported by excellent results and updates.


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The key to AIM success

Chris Boxall, co-founder of AIM specialist Fundamental Asset Management, writes in this week’s Investors Chronicle.

The article ‘The key to Aim success’ suggests how the AIM Admission Document should be essential reading for any investor in AIM companies, yet large parts of this vital document are often ignored.

The disastrous performance of Conviviality (CVR) and Accrol Group Holdings (ACRL), suggest many investors – both large and small – missed the warning signs in the admission documents of both these companies that may have prevented a substantial loss of capital.

Subscribers to Investors Chronicle can read the article by visiting the link here

Be wary of Buy and Build!
We are increasingly wary of the so-called ‘Buy and Build’ strategies adopted by some companies on AIM, led by corporate managers with little real equity participation; Conviviality being one such example of this. Many of these businesses seem to address low growth markets and are struggling to make real progress, flattering their reported returns through large ongoing exceptional items and restructuring costs, with signs of trouble often reflected in poor cash flow. To quote Warren Buffett, ‘Only when the tide goes out do you discover who’s been swimming naked.’ On this measure Conviviality could be likened to a nudist colony!