BR Report 2019

63 62 DOWNING ESTATE PLANNING SERVICE TIME:AIM MANAGER NAME Downing LLP TIME Investments OFFER DESCRIPTION Downing Estate Planning Service focuses on energy and asset-backed businesses. We provide monthly opportunities to exit (subject to liquidity and 10 days’ notice), with no exit penalties or charges, and investors can opt to receive regular distributions. TIME:AIM uses our innovative ‘smart passive’ approach, designed to reduce the volatility of returns and remove stock picker bias. TIME:AIM only targets AIM listed companies that qualify for BR, offering the potential for growth and IHT mitigation. TIME:AIM can be held within an ISA or non-ISA wrapper. YEAR FOUNDED 1986 2011 PROVIDER ASSETS UNDER MANAGEMENT Over £1 billion (as at 31 Dec 2018) £3bn PRODUCT ASSETS UNDER MANAGEMENT £443.2 million (including AIM IHT products) £38m SECTOR General Enterprise AIM listed companies LAUNCH DATE (OF SERVICE) February 2013 September 2016 NO. OF INVESTMENTS IN UNDERLYING COMPANIES More than 70 1 company invested in 30 AIM quoted companies ANNUAL RETURN SINCE INCEPTION 3.50% 12.65% (Nov 2017 - Dec 2018) TARGET ANNUAL RETURNAND/OR TARGET YIELD (WHERE STATED) 4% p.a. over the medium term N/A MINIMUM INVESTMENT £25,000 £15,000 INCOME AVAILABLE? Yes, the service has been designed to provide distributions on a quarterly, six- monthly or annual basis (subject to liquidity and Downing’s discretion) No NUMBER OF DIRECTORS 4 0 LEGAL STRUCTURE Discretionary Portfolio Service Discretionary Portfolio Service INITIAL FEES 2.0% (payable by the IHT Companies) 1% + VAT AMC *Standard option or Life Cover option 0.8% + VAT PERFORMANCE FEE Payable on exit and only if the cash proceeds received throughout the lifetime of your investment exceed your initial subscription plus a compound return of 4.0% p.a. We will then receive 20% of the excess (inclusive of VAT). N/A PERFORMANCE HURDLE 4.0% p.a. compound return N/A TARGET LIQUIDITY Monthly (subject to liquidity and 10 days’ notice) Monthly *1) Standard option: 0.5% p.a. of the net assets of the IHT Companies (inclusive of Downside Protection Cover). 2) Life Cover option: 2.0% p.a. of original gross investment (inclusive of Life Cover), reducing to 0.5% p.a. of the net assets of the IHT Companies after two years. Under both options, the standard element of the annual management charge (of 0.5% p.a.) will only be payable at the end of each financial period and is subject to each IHT Company having generated at least 4% growth over the financial period (after all charges to the underlying businesses). If the performance is not sufficient for the charge to be paid, in full or in part, in a particular period, it will be lost and never recouped. Service costs: Downing provides administration, accounting, secretarial and other services to the IHT Companies for a fee of 1.5% p.a. of the net assets of the IHT Companies. BR SOLUTIONS COMPARISON TIME:ADVANCE TIME:CTC MANAGER NAME TIME Investments OFFER DESCRIPTION TIME:Advance is a discretionary management service that allows investors to access BR to mitigate their IHT liabilities. The service targets a net return of between 3% and 4.5% p.a. with a capital preservation focus achieved through investing in asset-backed businesses. The service has received consistent awards recognition, with wins at both Investment Week’s Tax Efficiency Awards and the Growth Investor Awards in 2018. TIME:CTC (Corporate Trading Companies) is an IHT solution designed to help businesses utilise or reinstate existing BR, allowing them to mitigate their IHT liabilities, potentially immediately. The service holds a 23 year track record and allows business owners to maintain control of their assets, avoiding the need for trusts or to gift assets to obtain relief. The service targets a net return of between 3% and 4.5% p.a., investing into asset backed businesses with a focus on capital preservation. YEAR FOUNDED 2011 2011 PROVIDER ASSETS UNDER MANAGEMENT £1.4bn £1.4bn PRODUCT ASSETS UNDER MANAGEMENT £400m £84m SECTOR Secured property lending, renewable energy (hydro, wind, solar & biomass), self-storage and commercial forestry Primarily secured property lending, with some potential exposure to renewable energy (hydro, wind, solar & biomass), self-storage and commercial forestry LAUNCH DATE (OF SERVICE) February 2013 October 1995 NO. OF INVESTMENTS IN UNDERLYING COMPANIES 1 company invested in 105 underlying projects 1 company invested in 79 underlying projects ANNUAL RETURN SINCE INCEPTION 4.10% N/A TARGET ANNUAL RETURNAND/ OR TARGET YIELD (WHERE STATED) 3-4.5% 3-4.5% MINIMUM INVESTMENT £25,000 (£10,000 top up) £100,000 (£25,000 top up) INCOME AVAILABLE? Yes, by regular withdrawal option (no dividends paid) Yes, on request only and subject to the company having sufficient retained earnings NUMBER OF DIRECTORS 4 directors & independent advisory panel of 6 2 directors & 2 non-executive directors appointed to each CTC company LEGAL STRUCTURE Discretionary Portfolio Service Bespoke IHT Service INITIAL FEES 2.5% + VAT 3.5% + VAT AMC 0.5% (inclusive of VAT) and deferred until exit and only payable from the excess over a return of 3.5% p.a. 0.5% (inclusive of VAT) and deferred until exit and only payable from the excess over a return of 3.5% p.a. PERFORMANCE FEE N/A N/A PERFORMANCE HURDLE N/A N/A TARGET LIQUIDITY 2 weeks Target 4-6 weeks