BR report 2018

72 73 BR COMPARISON BLACKFINCH ADAPT IHT PORTFOLIOS DOWNING ESTATE PLANNING SERVICE INGENIOUS IEP CARE INGENIOUS IEP CLASSIC INGENIOUS IEP PRIVATE INGENIOUS IREGS MANAGER NAME Blackfinch Investments Limited Downing LLP Ingenious Capital Management Limited Ingenious Capital Management Limited Ingenious Capital Management Limited Ingenious Capital Management Limited DESCRIPTION OF OFFER The Adapt IHT Portfolios are discretionary managed portfolio services targeting asset-backed lending, property development finance, and renewable energy generation. Blackfinch only takes its annual management fee of 0.5% plus VAT after achieving a minimum target return of 4% p.a. or 6% p.a., depending on which of two model portfolios an investor has selected. Within Blackfinch’s IHT range, portfolios featuring integrated life cover are also available to help further safeguard investments. Downing Estate Planning Service focuses on energy and businesses trading from freehold premises. We provide monthly opportunities to exit (subject to liquidity), with no exit penalties or charges, and investors can opt to receive regular distributions. IEP Care is a discretionary investment management service that protects your client’s estate from IHT by investing in companies that qualify for Business Relief (BR) across our three chosen sectors: media, real estate and infrastructure. The investor will become a beneficial shareholder in these companies and the value of their investment should be exempt from IHT after just two years. In addition, investors will have access to Grace Consulting, a leading independent provider of information, guidance and support for care services in the UK. IEP Classic is a discretionary investment management service that protects your client’s estate from IHT by investing in companies that qualify for Business Relief (BR) across our three chosen sectors: media, real estate and infrastructure. The investor will become a beneficial shareholder in these companies and the value of their investment should be exempt from IHT after just two years. IEP Private is a discretionary investment management service offering investors access to compelling Business Relief (BR) qualifying investments which have the potential to become exempt from IHT after two years. IEP Private is a uniquely flexible estate planning solution that allows investors to tailor their investment to suit their personal objectives and circumstances. The Ingenious Real Estate Growth Service is a discretionary investment management service which aims to provide investors with capital growth delivered from an investment strategy focusing on providing finance to experienced real estate developers and secured against developments in locations across the UK where there is established demand. The Service’s objective is to provide an attractive, asset- backed return, while preserving the value of an investment. YEAR FOUNDED 1992 1986 1998 1998 1998 1998 AUM (TOTAL) £200m Over £1bn In excess of £9bn has been raised and deployed across our three specialist sectors, including over £1.3bn in BR qualifying investments In excess of £9bn has been raised and deployed across our three specialist sectors, including over £1.3bn in BR qualifying investments In excess of £9bn has been raised and deployed across our three specialist sectors, including over £1.3bn in BR qualifying investments In excess of £9bn has been raised and deployed across our three specialist sectors, including over £1.3bn in BR qualifying investments AUM (BR) Capital Preservation £22m; Growth £31m Over £350m (including AIM IHT products) £88 million £88 million £88 million N/A SECTOR Asset-Backed lending, property development finance and renewable energy generation General Enterprise Media, Infrastructure, Real estate Media, Infrastructure, Real estate Media and/or Infrastructure and/or Real estate Real estate LAUNCH DATE 1/7/2013 Feb-13 14/06/2014 14/06/2014 14/06/2014 18/03/2018 NO. OF INVESTEE COMPANIES 3 More than 65 businesses 1 1 1 N/A ANNUAL RETURN SINCE INCEPTION Refer to fact sheet for latest annual performance and performance since inception 4.10% annualised return since inception Please refer to the latest NAV update document Please refer to the latest NAV update document Dependent on the investor’s chosen sector allocation N/A TARGET ANNUAL RETURN AND/ OR TARGET YIELD (WHERE STATED) Capital Preservation 4%, Growth 6% Net of fees 4% p.a. over the medium term 3-5% net of fees 3%-5% net of fees Where there is an equal split in the investment BR portfolio between the Infrastructure, Media and Real Estate investment strategies, the overall target return is 5% growth per annum (net of fees). 5%-8% net of fees MINIMUMINVESTMENT £25,000 £25,000 £25,000 £25,000 £50,000 £25,000 INCOME AVAILABLE? Yes Yes, the Service has been designed to provide distributions on a quarterly, six-monthly or annual basis (subject to liquidity and Downing's discretion). Yes Yes Yes NO. OF DIRECTORS Varies 4 N/A N/A N/A N/A LEGAL STRUCTURE Discretionary Portfolio Service Discretionary Portfolio Service Discretionary Service Discretionary Service Discretionary Service Discretionary Service FEES INITITAL 2% 2% on investment/ 1-2% arrangment fee from the investee company 2% investment fee and 1% dealing fee on total investment in the Service 1.5% investment fee and 1% dealing fee on total investment in the Service 2.5% investment fee and 1% dealing fee on total investment in the Service 2% investment fee and 1% dealing fee on total investment in the Service AMC 0.5% + VAT deferred until exit and only if target return as been achieved 2% plus VAT p.a. on net assets. Life Cover Option: 3.5% plus VAT p.a. on original gross investment, reducing to 2% p.a. on net assets after two years (Life Cover option). 0.5% p.a. on investee company. Annual management fee of 1% (+ VAT), subject to the performance hurdle, plus an additional annual administration fee of 0.25% (+ VAT) Annual management fee of 1% (+ VAT), subject to the performance hurdle, plus an additional annual administration fee of 0.25% (+ VAT) Annual management fee of 1% (+ VAT), subject to the performance hurdle, plus an additional annual administration fee of 0.25% (+ VAT) Annual management fee of 1% (+ VAT), subject to the performance hurdle, plus an additional annual administration fee of 0.25% (+ VAT) PERF FEE AMF above subject to Performance Hurdles below 20% on cash proceeds over target compound return of 4% p.a., payable on exit. N/A N/A N/A N/A PERF HURDLE Capital Preservation 4%; Growth 6% 4% p.a. compound return 3% per annum. No AMC is taken unless the client is left with a return net of costs of 3% or more 3% per annum. No AMC is taken unless the client is left with a return net of costs of 3% or more N/A TARGET LIQUIDITY 2-4 weeks Monthly (subject to liquidity and 10 days’ notice) Weekly except in adverse or exceptional market conditions Weekly except in adverse or exceptional market conditions Weekly except in adverse or exceptional market conditions Weekly except in adverse or exceptional market condition BR SOLUTIONS COMPARISON This table may not contain all of the fees charged by each individual manager. In order to make like for like fee comparisons, advisers should check all applicable fees and consolidate the costs. This table may not contain all of the fees charged by each individual manager. In order to make like for like fee comparisons, advisers should check all applicable fees and consolidate the costs.