BR report 2018

65 64 BR SOLUTIONS DISCLAIMER Some of the managers have included some performance information in the following pages. As always, past performance is not a reliable indicator of future performance. This document is for professional advisers only, and it is not to be relied upon by retail investors. The value of an investment, and any income from it, can fall as well as rise, so investors may not get back the full amount they invest. Tax treatment depends on individual circumstances and may change in the future. Tax reliefs depend on the portfolio companies maintaining their qualifying status. The shares of the smaller companies could fall or rise in value more than shares listed on the main market of the London Stock Exchange. They may also be harder to sell. These products are not suitable for everyone. Any recommendation should be based on a holistic review of your client’s financial situation, objectives and needs. Neither Intelligent Partnership nor the managers offer investment or tax advice. We recommend investors seek professional advice before deciding to invest. BLACKFINCH ADAPT IHT PORTFOLIOS ABOUT BLACKFINCH INVESTMENTS Blackfinch is an investment specialist with a 25-year heritage. We provide evolved investment solutions with a focus on capital protection, security and growth. Our philosophy is one of adaptation to market change and customer needs. Blackfinch’s ethos is to provide our customers with a simple yet swift solution. We are committed to delivering flexible investment strategies, on services and solutions that offer value to investors and target attractive returns. This includes a range of tax solutions that target Inheritance Tax (IHT) exemption via Business Relief (BR). Products in our BR-focused range include the Adapt IHT Portfolios, Adapt IHT Protected Portfolios and Adapt AIM Portfolios for individuals, and the Thrive Corporate Management Service for businesses. Bringing significant experience and expertise with a transparent approach, Blackfinch is trusted with approximately £200 million under management and administration. For more information, please visit blackfinch.com . OUR ADAPT IHT PROTECTED PORTFOLIOS BR OFFER The Adapt IHT Protected Portfolios were developed to help safeguard a clients’ investment by providing a life cover policy for the first two years of investment to mitigate the potential IHT liability in the event of an untimely death. The investment objective, alongside IHT mitigation and capital preservation, is to deliver above inflation returns. Investors can select from three portfolio options targeting Capital Preservation, Balanced or Growth, with returns from 4–6%. The portfolios are managed by Blackfinch’s specialist investment team. BR-qualifying investments are in the form of asset-backed lending, property development finance and renewable energy generation. Each investment is subject to extensive analysis and controls. There is no annual management charge (AMC) for the first two years, rather a fee of 9% which includes the life cover premiums in first two years’ insurance premiums, plus the portfolio establishement fee (excluding adviser fees). INVESTMENT CASE STUDY The Adapt IHT Portfolios have provided a bridging loan of c.£1.8m for 49 acres of land containing 3 lakes near Doncaster. Planning has been granted for 50 holiday eco- lodges in the southern region. At present a café and a detached two- bedroom holiday lodge exist. The northern part of the site attracts Europe-wide media coverage through fishing competitions, and the tenant has created an exchange with fisheries in France. The site requires on-site accommodation for 10 overseas visitors a week, and a 10-room motel has been agreed by the landlord in exchange for £60,000 annual rent. The loan is secured on a first charge basis with a LTV of 26%. ADAPT IHT PROTECTED PORTFOLIO PROPERTY DEVELOPMENT LENDING RENEWABLES ASSET-BACKED LENDING Capital preservation portfolio typical asset location Balanced portfolio typical asset location Growth portfolio typical asset location 30% 45% 60% 20% 20% 30% 25% 40% 30% LOCATION DONCASTER FINANCE ARRANGED C.£1.8M BRIDGING LOAN FINANCE PERIOD 9 MONTHS SECURITY FIRST CHARGE LOAN TO VALUE 26% STATUS ACTIVE