BR report 2018

74 75 OCTOPUS AIM INHERITANCE TAX ISA OCTOPUS AIM INHERITANCE TAX SERVICE OCTOPUS INHERITANCE TAX SERVICE PUMA AIM IHT SERVICE PUMA HERITAGE PLC MANAGER NAME Octopus Investments Octopus Investments Octopus Investments Puma Investment Management Limited Puma Investment Management Limited DESCRIPTION OF OFFER The Octopus AIM Inheritance Tax ISA is a discretionary managed service that is invested in a diversified portfolio of smaller companies listed on the Alternative Investment Market (AIM) targeting growth. Investors in the service gain access to a portfolio of 20-30 AIM-listed companies that are typically well established, profitable and paying dividends. The 10 person specialist Smaller Companies team at Octopus manages more than £1.7 billion on behalf of more than 10,000 investors across a range of products that invest in AIM listed shares. The Octopus AIM Inheritance Tax Service is a discretionary managed service that is invested in a diversified portfolio of smaller companies listed on the Alternative Investment Market (AIM) targeting growth. Investors in the service gain access to a portfolio of 20-30 AIM- listed companies that are typically well established, profitable and paying dividends. The 10 person specialist Smaller Companies team at Octopus manages more than £1.7 billion on behalf of more than 10,000 investors across a range of products that invest in AIM listed shares. The Octopus Inheritance Tax Service is a discretionary managed service that is invested into one or more companies that Octopus has established for investors in this service. The business strategies employed by these companies are carefully selected with the aim of delivering sustainable and predictable growth over an investor’s holding period. The range of sectors will change over time in order to focus on the best opportunities capable of delivering the cornerstones of the investment mandate: liquidity, BR qualification and 3% compound growth on average for an investor over the life of their investment. The Puma AIM Inheritance Tax Service is an award winning discretionary portfolio service that seeks to mitigate Inheritance Tax by investing in a carefully selected portfolio of AIM Shares. Investments are selected on a strict valuation criteria with a focus on defensive long-term growth. Can also be accessed on platfrom through Standard Life, Transact, Ascentric and Succession. Puma Heritage’s core focus is on secured lending. The primary objectives are to preserve capital for shareholders and mitigate risk, whilst generating asset-backed returns. Investments in the Company are intended to provide 100% Inheritance Tax mitigation after two years through Business Relief. YEAR FOUNDED 2000 2000 2000 1985 (Shore Capital, parent company of Puma) 1985 (Shore Capital, parent company of Puma) AUM (TOTAL) £7.5bn £7.5bn £7.bn £850m £850m AUM (PRODUCT) £590m £768m £1.9m £14m £55m SECTOR AIM listed - general enterprise AIM listed - general enterprise Unlisted - general enterprise (including renewable energy, healthcare, property and construction lending) AIM listed companies Secured property lending LAUNCH DATE September 2013 June 2005 May 2007 Jul-14 Jun-13 NO. OF INVESTEE COMPANIES 20-30 20-30 1 parent company with 200 + trading subsidiaries 21 stocks in the portfolio as at April 2018 (Manager targets approximately 20 holdings) 1 (being trading entity Heritage) ANNUAL RETURN SINCE INCEPTION please refer to product factsheet please refer to product factsheet please refer to product “Underlying Investments” document 12.67% 3.00% TARGET ANNUAL RETURN AND/OR TARGET YIELD (WHERE STATED) N/A N/A 3% growth on average per annum on a compound basis over an investor’s holding period on the invested amount after annual fees N/A No stated target return but the Trading Adviser (Puma Investments) will only receive its deferred 1% annual fee in full if shareholders receive an average return of 3% per annum over 5 years (or in the period to exit if earlier). MINIMUM INVESTMENT £20,000 £25,000 £25,000 £15,000 £25,000 INCOME AVAILABLE? Yes Yes Yes Yes Yes NO. OF DIRECTORS Company specific across the portfolio Company specific across the portfolio 3 directors (2 of which are independent) N/A Three Directors, two of which are independent LEGAL STRUCTURE Discretionary Managed Service Discretionary Managed Service Discretionary Managed Service Discretionary Managed Portfolio Service Single holding company with trading subsidiaries FEES INITIAL 0% 2.5% 2% Direct with Puma: 1% (of amount subscribed) Through a platform: 0% 1.5% of amount subscribed AMC 1.5% +VAT 1.5% +VAT 1% +VAT (deferred until exit and contingent on performance) Direct with Puma: 1.25% + VAT (of portfolio value) Through a platform: 1.25% + VAT (of portfolio value) 1% + VAT (deferred until exit and only paid in full provided that a 3% p.a. return has been achieved as an average over each period of 5 years (or earlier for any period less than 5 years). PERF FEE N/A N/A N/A N/A N/A PERF HURDLE N/A N/A N/A N/A N/A TARGET LIQUIDITY Processed daily Processed daily Processed weekly Investors can access their portfolio on a monthly basis (subject to liquidity and 30 days notice) Monthly BR SOLUTIONS COMPARISON 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.