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The Luna AIM portfolio delivered a return of 1.3%* during the first quarter which was ahead the FTSE AIM All Share TR index of -2.3%*. We are conscious that this is a very short-term time period and when taking a longer-term perspective from launch (01/06/2020 to 31/03/2024) the Luna AIM Portfolio has outperformed, returning 10.3%* compared with the FTSE AIM All Share TR of -10.7%*.

The best performing AIM holding was Team17, the games label and developer, which closed up 27% during the quarter. Team17’s share price has been under pressure over the last two years as the Covid ‘love’ for games companies has dissipated. This has left the share price at depressed levels and some of the moves in the first quarter reflect this strong bounce. On top of this at the end of January, the company reported it traded strongly in the key festive period, ending 2023 with “positive momentum across the portfolio”.

On the negative side, RWS Holdings, the provider of technology-enabled language, content, and intellectual property services, saw their share price drop 25%. The company announced results on the 22nd February which were broadly in line with market expectations and therefore the move in the share price suggests a large seller in the market. Rather than any other driver for this large move over such a short time period.

In summary, it was a good quarter for the Luna AIM portfolio relative to the AIM All Share, following on from a strong end to 2023.  Please remember that the AIM portfolio has been created to invest in companies that qualify for Business Property Relief (BPR) and in doing so are potentially outside of the estate for Inheritance Tax Purposes (IHT)***.  Whilst delivering long-term performance is obviously welcome, we are looking to mitigate share price weakness that would negate the reason for investing in AIM (saving 40% IHT).

* Source: MorningStar Direct

** Source: Alpha Terminal

*** based on current tax legislation and holding the assets for a minimum qualification period


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