BR report 2018

68 69 OCTOPUS INVESTMENTS INHERITANCE TAX SERVICE, AIM INHERITANCE TAX SERVICE AND ISA ABOUT OCTOPUS INVESTMENTS The best companies and products make your life simpler, not harder. Why should financial services be any different? When Octopus was founded in 2000, we wanted to build an investment company that put its customers first, by solving real life issues. We also wanted to be fully accountable, honest and upfront about how we manage investors’ money. Today we manage more than £7.5 billion on behalf of tens of thousands of retail investors, institutions and companies. And we’ve built market leading positions in tax-efficient investments, renewable energy and financing smaller companies. We launched our first BR-qualifying portfolio in 2005 and today we are the largest manager of investments that qualify for BR. We offer customers three investments designed to suit different objectives: the Octopus Inheritance Tax Service that targets sustainable returns, and the Octopus AIM Inheritance Tax Service and ISA that target growth from shares listed on AIM. We’re proud of the track record of our Br-qualifying portfolios and are delighted to have won Best BR Manager at the Growth Investor Awards in 2016 & 2017, along with Best Tax and Estate Planning Solutions Provider at the Moneyfacts Awards in 2016 & 2017. OUR BR SERVICE Since 2007, our flagship estate planning service, the Octopus Inheritance Tax Service, has helped thousands of people to plan for the future by investing more than £2 billion in important and sustainable sectors across the UK. It targets delivering an average of 3% growth per annum for investors, and we put our annual management charge at stake if this is not delivered. The service typically provides liquidity within ten days and has never taken more than a month, however liquidity cannot be guaranteed. Advisers recommending the Octopus Inheritance Tax Service have the assurance of a professionally managed service with size, scale and diversification, combined with an 11-year track record and robust governance structure including an independent board to oversee each portfolio company. The portfolio is overseen by a dedicated portfolio team, with investments being sourced, analysed and managed by in-house sector specialist investment teams. More than 3,000 investors have passed away having held shares in the service for more than two years, entitling their estates to claim BR. INVESTMENT CASE STUDY FERN TRADING LIMITED (OCTOPUS INHERITANCE TAX SERVICE) Fern began trading in 2010 and has grown to become the parent company of more than 200 companies, with business interests spread across the UK and France. It directly employs more than 350 people, and provides employment for many more through the contracts it places. Fern has a diverse trading strategy but focuses its business activities on areas where Octopus has extensive experience such as renewable energy, healthcare and property lending, each of which has a team comprising of more than 40 sector specialists. These sectors have been selected for their capability of generating predictable returns over the long term. In addition, these sectors make a valuable contribution to the UK by: • Helping to meet its targets for renewable energy production • Helping the economy to grow by releasing housing stock for redevelopment • Helping address the housing and care needs of an ageing population Fern’s business sectors: • 61% of Fern comprises businesses that it owns and operates, the other 39% comprises its short and medium-term lending business. PUMA INVESTMENTS PUMA MULTI-STRATEGY ESTATE PLANNING SERVICE ABOUT PUMA INVESTMENTS Puma Investments is a subsidiary of Shore Capital Group Limited, an AIM listed company with a 33-year history and a track record of working with SME’s. Shore Capital has a network of five offices including London, Liverpool and Edinburgh, is a leading market-maker on AIM and an adviser to a large number of AIM listed companies. The asset management division of Shore Capital, which incorporates Puma Investments, manages approximately £850m. Puma Investments specialises in Inheritance Tax Services, VCTs and EIS. Puma has raised over £340m in tax-efficient investments. The Puma AIM IHT Service has won the Growth Investor Award for Best AIM Investment Manager for two years running (2016 and 2017). Puma Investments has also recently won Best Tax Efficient Group at the Investment Awards. ABOUT THE PUMA MULTI-STRATEGY ESTATE PLANNING SERVICE (‘EPS’) The Puma Multi-Strategy EPS offers a unique solution to cater for varying return and risk profiles, drawing from Puma Investments’ extensive expertise across the spectrum of BR qualifying investments. Investors can choose to invest in Private Trading Companies, or AIM Shares, or a combination of the two strategies. Private Trading Companies • Invest in companies that have a strong reputation for providing senior secured loans to the real estate sector • Puma acts as the Trading Adviser to Puma Heritage plc, which focuses on secured loans that are underpinned by real estate, at conservative loan to value ratios AIM Shares • Investments are selected on strict valuation criteria, with a focus on defensive growth • The experienced team seek to invest in quality companies with strong margins, good returns and a track record of cash generation The Puma Multi-Strategy EPS offers investors the option of two-year life protection, to mitigate the potential impact of Inheritance Tax in the first two years. INVESTMENT CASE STUDY Care home, Chester An example of a secured loan underwritten by Puma Heritage Plc, is the £7.9m facility to fund a new state-of-the-art, 81 bed care home in Chester. The purpose-built facility provides exceptional care, encompassing residential, nursing and dementia care services. The home has created approximately 70 jobs, and facilities include en- suite showers in each bedroom, a varied schedule of activities and even its own hair salon. Puma Heritage Plc had first charge security over the freehold site and the developer has an extensive track record of building and operating care homes. Upon completion of the building project Puma Heritage was repaid. FERN’S SECTOR ALLOCATION EQUITY WIND 17% EQUITY SOLAR 27% EQUITY RESERVE POWER 2% EQUITY LANDFILL (GAS & BIOMASS) 11% EQUITY HEALTHCARE 4% DEBT HEALTHCARE 12% DEBT RESERVE POWER 2% DEBT SOLAR 1% DEBT PROPERTY 24% JUN 2014 90 80 130 100 140 110 150 170 120 160 180 OCT 2015 AUG 2014 DEC 2015 OCT 2014 FEB 2016 FEB 2017 DEC 2014 APR 2016 APR 2017 FEB 2015 JUN 2016 JUN 2017 APR 2015 AUG 2016 AUG 2017 JUN 2015 2014 OCT 2016 OCT 2017 AUG 2015 DEC 2016 DEC 2017 165.8 133.6 PUMA AIM IHT SERVICE PORTFOLIO PERFORMANCE PUMA AIM IHT PORTFOLIO FTSE AIM ALL SHARE INDEX Past performance is no guarantee of future results.