The AIP is a sterling-denominated benchmark that tracks the net performance of discretionary managed portfolios designed to mitigate UK inheritance tax through Business Relief-qualifying investments.
The ARC Inheritance Tax Portfolio Index or AIP is a sterling denominated index used by investors and their advisers in assessing the performance of a discretionary portfolio within a specialist mandate designed to mitigate UK Inheritance Tax ('IHT') liability through investment in stocks that are expected to qualify for UK Business Relief.
Currently, certain investments in UK companies qualify for Business Relief (BR), allowing them to be passed down free from inheritance tax after two years of ownership (provided the investor is still holding them at death).
The AIP Index provides insight into the actual returns being generated by discretionary managed IHT portfolios, net of fees, based on thousands of portfolios submitted by participating investment managers.
Data
No model or synthetic data is accepted.
The AIP Index relies exclusively on authentic performance data derived from portfolios that are actively managed by investment professionals. By utilizing real data from thousands of submitted portfolios, the Index achieves a high level of accuracy and reliability in reflecting the outcomes experienced by investors.
Contributors provide actual monthly performance figures, net of fees, for all discretionary IHT portfolios, covering as much historical data as possible.
Only portfolios that aim for 100% Business Relief eligibility are included in the Index. While holdings are not limited to AIM stocks, AQSE (formely ISDX) listings are also permitted, illiquid private equity portfolios that cannot be valued on a regular basis are excluded.
Generally, portfolios are expected to be fully invested, although there may be instances where a portion of cash is held.
The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE), designed for smaller, growing companies seeking access to capital. Launched in 1995, AIM provides a more flexible regulatory environment than the main market, making it attractive for early-stage and high-growth businesses.
AIM stocks can be volatile and less liquid than those on the main market, making them higher-risk investments.
The Aquis Stock Exchange (AQSE) is a UK-based stock exchange focused on small and mid-sized growth companies. It operates two markets: the AQSE Growth Market, which offers a lighter regulatory framework for early-stage businesses and the AQSE Main Market, which follows stricter listing rules. AQSE provides an alternative to AIM, supporting entrepreneurial companies with access to capital while offering investors exposure to high-growth opportunities.
However, liquidity can be lower than on larger exchanges, making it a higher-risk investment environment.
Calculation basis
- Sterling denominated monthly index with start date of December 2012
- Unweighted, each portfolio’s index contribution is not determined by value
- Data Contributor concentration limits avoid any single Data Contributor dominating the Index
See the latest report and data contributors here.
Commercial use of the ARC Wealth Indices requires a licence.
The usage of our Indices is detailed in clause 5 of our Terms and Conditions.
Unauthorised use of the ARC Indices incurs a penalty as set out in the terms and conditions. If there is any doubt over whether your use of our Indices is in breach of the terms, please contact us to avoid any risk of becoming liable to a penalty.
Important Information
The ARC IHT Portfolio Index is based on historical information and past performance is not indicative of future performance. The ARC IHT Portfolio Index is computed using a complex calculation and the results are provided for information purposes only and are not necessarily an indicator of suitability for your specific investment or other requirements.
ARC does not guarantee the performance of any investment or portfolio or the return of
an investor’s capital or any specific rate of return. ARC accepts no liability for any investment decision made on the basis of the information contained in this report. You should always complete your own analysis and/or seek appropriate professional advice before entering into an agreement with any ARC IHT Portfolio Index Data Contributor.
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