Money is Moving | IFA89/GBI20 | June 2020

For today’s discerning financial and investment professional

A special combined issue with

M AGAZINE

Money is Moving ESG - Changes in the investment climate

7 killer Questions for Advisers on EIS and SEIS June 2020

ANALYSIS

REVIEWS

Managed Portfolio Services Research Report

IFAM89/GBI20

COMMENT

INSIGHT

Change makes us inventive

Investing for a world of change

Previously Investec Asset Management

Ninety One is authorised and regulated by the Financial Conduct Authority.

Change makes us adapt

Investing for a world of change

Previously Investec Asset Management

Investments involve risk; losses may be made.

PEOPLE LIKE TO BE SCARED

…….and you can make money out of it Horror films are the most profitable genre.

The audience is clearly defined Low budget films can make a lot of money

You can invest in a portfolio of films Call Iron Box Capital now on 020 7628 7857 or email raimund@ironboxcapital.com

Serious Investment Serious Entertainment www.ironboxcapital.com

CONTE NTS

CONTRIBUTORS

June 2020

6

Welcome

8

M&G Investments

Richard Harvey A distinguished independent PR and media consultant.

Ben Constable-Maxwell, Head of Sustainable and Impact Investing at M&G Investments on actively investing in the transition to a low carbon economy

10

Matthew Cushen Co-Founder of Worth Capital, outlines the key questions you need to ask about EIS/SEIS

Tracey Underwood Founder of PACE Solutions

14

Insurance Doctor Daniel West of Apex Insurance looks at the implications of Covid-19 on adviser firms’ insurance considerations with particular regard to professional indemnity renewal

16

Fidelity International Stuart Rumble, investment director, Multi Asset, Fidelity International discusses Asian Equity

Andrew Sullivan Editor GBI andrew.sullivan@cliftonmedialab.com

18

Better Business In this month’s column, Tracey Underwood of PACE Solutions looks at the nuts and bolts of assimilating an existing practice into your own

20 Sue Whitbread Editor sue.whitbread@ ifamagazine.com

Ingenious UK Care Provision: Covid-19’s spotlight

22

Richard Harvey

Alex Sullivan Publishing Director alex.sullivan @ ifamagazine.com

Irrefutable evidence that lockdown has finally got to the usually irrepressible Richard Harvey

24

Tony Catt The financial professional’s crib-sheet to Managed Portfolio Services

Kim Wonnacott Technical Sales and Marketing

25

Career Opportunities From Heat Recruitment

kim.wonnacott@ifamagazine.com

28 ESG

By Mark Walker, Managing Partner at Tollymore Investment Partners

30

GB Investments & EISA Present the Advocate Webinar Series Fostering the continued investment in SMEs and Start-ups

32

Tax Year End Andrew Sullivan on the ups and downs of TYE 2020

36

Chai Time Friday April 24 saw o2h ventures’ inaugural ChaiTime webinar; the first one was themed ‘Early stage investing in a post COVID-19 pandemic environment.’

Designed by: Becky Oliver IFA Magazine is published by IFA Magazine Publications Ltd, Arcade Chambers, 8 Kings Road, Bristol BS8 4AB Tel: +44 (0) 1173 258328 © 2020. All rights reserved ‘IFA Magazine’ is a trademark of IFA Magazine Publications Limited.

No part of this publication may be reproduced or stored in any printed or electronic retrieval system without prior permission.

All material has been carefully checked for accuracy, but no responsibility can be accepted for inaccuracies. Wherever appropriate, independent research and where necessary legal advice should be sought before acting on any information contained in this publication.

The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.

IFA Magazine is for professional advisers only. Full details and eligibility at: www.ifamagazine.com

I FAmagazine.com

39

Open Offers Our listing of what’s currently available for subscription

5

WE LCOM E

June 2020

WELCOME

H

ope you don’t mind that I’ve gazumped both of our magazine Editors this month. These are strange days and I wanted to send you a personal message from the Team here at IFA Magazine. As we’ve all been directly affected by lockdown, we sincerely hope that you and your family are keeping safe and well and haven’t suffered any losses or distresses.

Interesting times encourage us all to reflect and think a bit differently, and we have said on our cover ‘Money Is Moving’, and when money moves, clients need professional advice.

In this Issue we are doing a first for IFA magazine, as we join forces with our sister magazine GB Investments.

Let’s face it TYE was, well, not quite what any of us anticipated! So, alongside our continued focus on ESG (one with a cautionary tale included), the topical insight from our regular contributors we bring you a focus on tax-efficient investments.

As we head into the summer we have also partnered with our friends and colleagues at EISA to bring you the ADVOCATE webinar series for EIS and SEIS. You can find all the details and dates to register later in the magazine.

Continuing our focus on ESG, Ben Constable-Maxwell of M&G gives a hard-hitting analysis of investing in the transition to a low carbon economy.

6

Mark Walker, Managing Partner at Tollymore Investment Partners suggests a need for a cautionary approach, arguing that we need to look below the surface of what might simply be lip-service ESG investments.

Matthew Cushen of Worth Capital has written “7 killer questions for an IFA to ask an EIS fund manager” based around the presentation he delivered to great success at the prestigious VCT/EIS event just before Christmas last year.

Ingenious offers us a look at UK care provision – possibly never more top of our minds than it is today.

Most of you will be familiar with our regular contributions from Tony Catt, Compliance Consultant, and his expertise needs little by way of special introduction. We are, however, delighted to say that he has partnered with us at IFA Magazine to bring you his exhaustive research report on Managed Portfolio Services and you can find his introduction to its genesis later in the magazine along with links to get your copy.

There’s plenty more besides, so I hope you find it stimulating.

Stay apart, stay safe and stay well for better times ahead.

With very best wishes, Alex Sullivan IFA Magazine

I FAmagazine.com

Discover the power of light speed The new Prudential ISA online service We’re making it easier for you to do business with us with our new Prudential ISA online service. 3-minute end to end application processing, easy control over client management, and a broad choice of risk managed fund options - all in one place.

Boost your ISA process at pruadviser.co.uk/isaonline This is just for UK advisers – it’s not for use with clients.

The value of any investment can go down as well as up so your customer might get back less than they put in.

Provided by Link Financial Investments Ltd.

Prudential is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority.

June 2020

M&G I NVESTM E NTS

COMBATTING

CLIMATE CHANGE Ben Constable-Maxwell, Head of Sustainable and Impact Investing at M&G Investments, continues his commentary on the importance of investing in companies which deliberatively set out to deliver a positive impact as part of their mission. In this article he looks at actively investing in the transition to a low carbon economy

W

hether it’s the rising number and intensity of hurricanes or floods, forest fires or droughts, it is increasingly untenable to ignore the causes and consequences of climate change.

Arguably there is no more critical challenge facing global society. The effects of global temperatures rising to 1.5 degrees Celsius above pre-industrial levels, as projected by the International Panel on Climate Change , are severe. At two degrees, the impact looks grave.

It is not only the health of our planet at risk from rising carbon emissions, but also our financial wellbeing. Despite the scale of the challenge, I am buoyed by the contribution that investors can make by channelling resources and exerting their influence.

THE POWER OF PERSUASION Active investors like M&G have long held company management to account on corporate strategy and governance. In the same way, we can hold feet to the fire on climate change.

Companies need to properly understand the risks, and I believe it is the role of responsible investors to persuade and cajole their management to make positive changes. Frank

8

discussion about the risks that climate change poses to a company – for instance, if rising sea levels might inundate its coastal assets – can shape opinions and strategy.

It is not only the health of our planet at risk from rising carbon emissions, but also our financial wellbeing

When it comes to lending sufficient weight to the management of climate risks, an important step is disclosure. The Taskforce for Climate-related Financial Disclosures (TCFD) has developed a framework for consistent climate-related financial risk disclosures, upgrading the importance of climate reporting by requiring its integration within financial accounts.

We also want to see ambitious targets and metrics to ensure companies make tangible progress towards mitigating risks. Another vital step is linking executive remuneration to climate-related goals. Rewarding progress and aligning incentives makes them more likely to be achieved.

I FAmagazine.com

M&G I NVESTM E NTS

SHAPING A SUSTAINABLE TRANSITION I believe the transition to a lower carbon economy will be more effective if incumbent companies are coaxed into playing an active part.

Their scale means they are well-placed to deliver a positive impact. For instance, if a global car maker can halve carbon emitted from the 10 million vehicles it makes a year, its environmental benefits could far outweigh those of a manufacturer of 1,000 zero-emission cars a year.

Leading companies which spearhead and mainstream sustainability in their sectors can deliver terrific impact.

Take Ørsted, for example. The Danish energy company is at the forefront of society’s transformation towards renewables, having once been a fossil fuel-focused business.

Today, Ørsted has built more offshore wind farms than any company worldwide and has committed to being coal-free by 2023, when it will have reduced its carbon emissions by 96% compared to a decade ago.

I believe the transition to a lower carbon economy will be more effective if incumbent companies are coaxed into playing an active part

June 2020

Investors are right to support companies that take steps towards combatting climate change, but it is also right to expect material progress. If companies fail to act, investors have a responsibility to use all tools at their disposal.

The threat of divestment can be an effective one. It has certainly moved the dial on corporate attitudes, but it is not a panacea. Using ownership and stewardship as instruments – exerting pressure alongside other shareholders on companies to decarbonise – can be more powerful.

Investors with more than US $34 trillion in assets under management have signed up to the Climate Action 100+ initiative to ensure the world’s largest corporate greenhouse gas emitters take action on climate change.

After engagement with Shell in 2018, the oil major not only committed to set carbon emissions targets, but linked executives’ long-term incentive plans to meeting them . BP has committed to align its capital expenditure strategy with the Paris Agreement.

The environmental risks of climate inaction are evident.

Where companies do not act, they will not only expose themselves – and their investors – to financial losses, but they will miss opportunities for success that lie in tackling this challenge.

To find out more about impact investing at M&G, visit: www.mandg.co.uk/positiveimpact

About Ben Constable-Maxwell

Where leading companies can evolve and tap into trends like rising demand for green electricity, their shareholders can aspire to achieve sustainable financial returns and contribute to a demonstrably positive impact for the climate.

KEEPING UP THE PRESSURE While the shift away from a carbon-intensive economy may appear incremental, I am confident that we are on the cusp of companies accelerating their progress, spurred by legislative, normative and economic pressure.

Good intentions are reflected in the number of companies committed to a trajectory that limits the global temperature rise to less than two degrees Celsius above pre-industrial levels – a goal of the international Paris Agreement on climate change.

I FAmagazine.com

Ben is Head of Sustainable and Impact Investing, M&G. He joined M&G in 2003 as an Investment Specialist supporting the Global Equities team. He then moved to the Corporate Finance and Stewardship team in 2013, where he began focusing on corporate governance and ESG at international companies. Ben has been responsible for developing the incorporation of ESG in M&G’s investment processes and sits on M&G’s Responsible Investment Advisory Committee, which oversees Responsible Investment activities at M&G including the firm’s membership of the UNPRI. Ben graduated from the University of Newcastle-upon-Tyne with an Honours Degree in Classics before spending four years in the Equities team at Invesco Perpetual.

9

MATTH EW CUSH E N

June 2020

7 KILLER QUESTIONS TO ASK AN EIS/SEIS FUND MANAGER The following is based on a presentation Matthew Cushen, Co-Founder of Worth Capital, gave at the VCT/EIS event in November which went down a storm with the full house that saw it; we asked him to turn it into an article for us and we’re very pleased he has

I

n 2008 it was the Midas touch. My first seed equity investment returned £376k from a £58k investment in only 4 years. After that result, of course my mate Paul (who had also been involved) and I continued to invest. What could go wrong? We become prolific.

We found out what could go wrong.

And had a good deal of success as well.

At the time we were investing as a hobby, with most decisions made in the pub. In a rare moment of discipline, we reviewed how, and more importantly why, we were performing and noted down some points on a back of a napkin (reproduced here – the actual napkin has long since disintegrated!).

support for entrepreneurs, that could stack the odds of seed investing?” And we ended up creating a unique seed investing proposition.

The same insight can also be expressed as questions that an IFA, Wealth Manager or private investor would do well to ask any EIS or SEIS fund manager – and so dig beyond the fees and compliance basics to the fund manager’s capability to deliver outsized returns.

1. WHAT’S THE SCOPE OF YOUR INVESTMENTS? Without being clear what field you are playing on, it’s difficult to play a good game. Funds that describe themselves as a tech specialist, or as a generalist consumer fund are not being specific enough. We hunt for: Product, service & sales channel innovation in underserved and/or growth markets creating habitual consumption (B2C or B2B) and a loved brand Each line is important – the first line is deliberately general, but ‘innovation’ is a pre-requisite. Then that innovation needs a market within which it has room to thrive. We’ve learnt that ideas will change over time, but it is virtually impossible for a nascent business to jump from market to market.

Returning to these points a couple of weeks later, we saw valuable insight, so asked ourselves: “could we deliberately design a deal flow, a distillation process and the ongoing

10

Creating habitual consumption describes forming a sustained and strengthening relationship with customers (whether consumer or B2B). As this is what leads to building a loved brand. Brand equity creates additional

I FAmagazine.com

MATTH EW CUSH E N

exit value beyond just multiple of EBITDA or revenues.

(And it happens to be what Paul and I are qualified and experienced in doing – we have deep innovation, marketing and brand building expertise).

We are deliberately not ‘tech’ focused. We’ve seen too many amazing technology solutions desperately searching around for a problem to solve and subsequently failing. However, any new business is likely to be digitally enabled. A good example is Vitrue Health. They saw that physiotherapists and orthopaedic surgeons are underserved in measuring and assessing muscular skeletal health. Currently a physiotherapist will conduct several tests over a 30-minute consultation, assessing by eye and taking notes by hand. Vitrue developed a box of depth and motion sensors that observes the same tests and immediately creates a visual and quantitative report showing joint and muscle movement with an objective and comparable set of data. Yes, this is a ‘healthtech’ product – but we were sold on the open space, the muscular skeletal health market and the potential to extend this beyond care to preventative early diagnosis.

2. WHAT ARE YOUR INVESTMENT CRITERIA? All businesses are different, so it is critical to have criteria that define what good looks like and create objectivity when making choices between different opportunities.

We use: a. team (25% weighting): nothing unusual here, the team being the most important element is a bit of a cliché.

But then it’s worth checking the clarity of how good is defined. As well as the normal premium for industry experience we hunt for clues across: • curiosity & empathy: an outward looking view on the world, listening intently, constantly challenging and always on the hunt for new data whether it be about customers, competitors or different business models.

• creativity & raw intellect: if curiosity is about gathering lots of dots, this is the smarts to join the dots, making

I FAmagazine.com

June 2020

the connections that led to new opportunities, sweat a business model or to solve intractable problems.

• self-motivation & proactivity: the mentality to prioritise, set plans and follow them.

• resilience & tenacity: the relentless energy & determination to grow a business and overcome the inevitable bumps, or chasms, in the road.

• charm & integrity: whether building out a loyal team, negotiating with clients & suppliers or sharing news with investors, being positive, authentic & honest is the only way to develop & maintain successful long-term relationships. b. market (25%): we value inspirational market insight.

If an entrepreneur has identified a new insight, then they have a good chance of creating a truly innovative product and/or being able to dominate a new category. And we look for space for a new business to grow.

Bedfolk is an example. It sells ridiculously comfortable bedding (sheets, pillowcases and duvet covers) manufactured in a beautiful mill in Portugal. That alone would not be solving a need. But they’d seen that the customer experience around buying bedding is very poor and even the most successful retailers like John Lewis and the White Company have single digit market shares.

So they sell direct to customer – making the transaction simple and prices keen by cutting out the retailer. This is a formula that has worked in the US – with brands such as Parachute and Brooklinen growing spectacularly fast. c. the big idea (20%): we want to see something truly innovative and different - differentiated in the market and with a proposition or business model that is protectable. d. communication & marketing (15%): the ability to articulate a proposition clearly. If an entrepreneur can’t get it over to us, there is little chance of explaining it to customers with much shorter attention spans. Then we want to see a thought through marketing plan – clear priorities on who to target, the channels to get to them and a sense of what it would cost. e. commercial model (15%): we don’t expect the detail of how a business makes money to always be crystal clear at the start, but we do want to see some proof points that it will be possible to create some revenue from a proposition and a rough sense that this will be greater than the cost of doing so.

11

June 2020

MATTH EW CUSH E N

3. WHAT’S YOUR ACCESS TO EXCLUSIVE & EXCITING DEAL FLOWS? There’s unfortunately a tendency for those with the capital to arrogantly expect those that want to get hold of it to do the running. But this old school approach results in funds fishing in a small pond and often competing over the same deals (and so increasing valuations).

We wanted to put ourselves in front of entrepreneurs and make it easy and attractive for them to approach us. So we created a competition series called ‘The Start-Up Series’. It’s promoted nationwide by www.startups.co.uk. It gives us unique deal flow beyond the London bubble.

Whilst 73% of seed funding goes to businesses inside London (source: The Deal, Beauhurst, published February 2020), 60% of our funding is directed outside of London. An example is Uniblock, founded by Les, a 55 year-old ex-Army guy – not the stereotypical entrepreneur. He has now established a factory in Scunthorpe employing 22 people manufacturing a highly insulating, quick to erect, building material. After only 3 years it is already 4 times the value of our initial investment.

4. HOW SYSTEMATIC & BIAS FREE IS YOUR ASSESSMENT? Unfortunately, Paul and I are like most other investors – greying, white, middle class and living in the South East.

We’ve deliberately designed a distillation process to, as much as we can, remove our inherent bias.

of our funding has been directed to businesses with a female founder. ‘Ditching the pitch’ may remove a bias towards bravado and confidence that many believe disadvantages women pitching to a room full of men. Or it may be our obsession with market insight – there is some science that says women are more empathetic and so able to spot different insight. Randa and Patricia, mothers and founders of VeeLoop illustrate this.

VeeLoop is an online approval and payment service to help tweens and teens shop and subscribe online, whilst Mum and Dad maintain control. It helps retailers to reduce basket abandonment and to stay the right side of GDPR and legal considerations when transacting with kids. The founders’ empathy with the problem to solve got them to properly innovative solution.

5. HOW DO YOU AGREE FAIR VALUATIONS? Valuing a start-up is only vaguely related to the science of valuing an established business – there is not enough earnings data to make objective calculations. First Chicago/Venture Capital, Berkus, Risk Factor Summation or other such valuation methods are useful and objective if there is good disclosure and availability of risk data.

But we believe valuing a start-up is much more of a conversation – to get to something that is fair for investors and motivating for founders.

We have this simple framework that helps structure the conversation and keep both parties objective with matters of subjectivity. It is a qualitative framework not a quantitative equation, but one maths principle is deliberate. It has multiplication signs, not plus signs. If any of these elements are missing the result should be zero.

First we say ‘ditch the pitch’. It is remarkable how this cliched, ineffective and lazy way of judging ideas, businesses (and, with speed dating or Tinder, even romance) has ingrained itself. We have a six step process we follow each month that distils our competition entries (generally 60 to 100 per month) down to 3 or 4 business with whom we devote half day sessions to really get under the skin of the strategy, proposition, marketing plan, financials, operating model etc.

Evidence: the proof points the start-up has that their proposition is going to be interesting and valuable to the target market. Ideally there will be some actual customers and revenue. But even at an earlier stage than that, any idea should have insight and research to back it up.

Sadly, only 9% of early stage funding goes to businesses with a female founder (source: The Deal, Beauhurst, published February 2020). Without any positive discrimination, 40%

Momentum: seeing the founders have built up a head

12

I FAmagazine.com

MATTH EW CUSH E N

of steam, can deliver on promises made and have a clear plan for the next steps.

Potential: of course, early stage businesses are all about potential. Making this as real as possible helps to quantify value, for example, product development pipeline or letters of intent or contracts from future customers.

Too many valuations currently are overweighting the value of potential, based purely on a great idea with very little in the way of evidence or momentum. This seems to be particularly true of crowdfunding, probably as there is not a proper conversation between entrepreneur and investors.

This framework – usually further backed up with numbers and projections – keeps us objective. It keeps us from getting swayed by what’s hot and from blindly following the market.

6. HOW DO YOU REDUCE RISK, ACCELERATE GROWTH & MAXIMISE VALUE? There is an interesting divide opening within the seed investment market. There are funds operated by financial services professionals, possibly with strong brands built in a different asset class.

Then there are now more early stage investing funds run or advised by commercial and entrepreneurial types that have themselves built businesses.

Our sense is that it ‘takes one to know one’ – with commercial entrepreneurs being better qualified to spot markets, ideas and teams with the best potential. But then also they are best able to help the founders of new businesses to reduce risk, accelerate growth and maximise exit value – along with providing the oversight and protection for investors.

We get properly ‘sleeves rolled-up’ with our investments.

Not just taking a board seat but digging deep into areas where an entrepreneur needs the benefit of our experience and battle scars.

An example here is Weekly10. It is a very smart way for any business to measure and track sentiment and engagement within their organisations. The market is huge – literally any business, in any country, in any sector that employs people. So, the challenge is to prioritise segments for which

I FAmagazine.com

June 2020

marketing effort and investment is likely to deliver the best return. We started to help the founder to do that even as we were assessing the business. And have continued to do so alongside other help on pricing, communications, experience design etc.

7. WHEN DO YOU DEPLOY & HOW DO YOU BUILD PORTFOLIOS? Unfortunately, there are examples of EIS & SEIS funds not deploying investment capital in a timely way, or even within the tax year expected. The answer to this really goes back to deal flow, if it is regular, sustained and throwing off quality investments then a fund should be able to deploy regularly. But the proof is in the performance over the last couple of years.

The time it takes a fund to process EIS and SEIS tax certificates is also a valuable clue about client service.

Although we are at the mercy of HMRC for part of the process, it really isn’t that difficult. We are now always below 60 days. And for our last portfolio of 4 investments in January this year we had certificates to investors within 24 days.

Building diversification in a portfolio is essential for seed investing. Some businesses will fail but portfolio returns are driven disproportionately by the multiples achieved by those that exit. Because the scope of our investing is wide, our mini-portfolios are cross sector, and cross B2C and B2B. We also have an eye on the maturity and risk across the portfolio. Sometimes there will be a ‘moonshot’, such as Zobi – a hardware and software product to detect rogue communications between devices on a network (for example, questioning why your smart coffee machine is sending an instruction to open your smart lock on your front door). But any ‘moonshot’ with the potential for very large multiples would be balanced by less adventurous choices.

GBI

Matthew Cushen is an innovation consultant, entrepreneur and successful angel investor. He is Co-founder of Worth Capital.

The Start-Up Series Fund, created by Worth Capital and managed by Amersham Investment Management, invests in the monthly winners of the Start-Up Series.

The minimum investment is £10,000. Find out more here: www.worthcapital.uk

13

June 2020

I NSU RANCE DOCTOR

INSURANCE DOCTOR PROFESSIONAL INDEMNITY: IMPORTANT RENEWAL ADVICE Continuing our series on the IFA’s guide to Professional Indemnity insurance, Daniel West of Apex Insurance looks at the implications of Covid-19 on adviser firms’ insurance considerations with particular regard to professional indemnity renewal

During these very uncertain and somewhat challenging times, I cannot emphasise enough how important it is, now more than ever, to review your Professional Indemnity insurance, especially if your policy is shortly due for renewal.

WHAT IS THE FCA POSITION ON COVID-19 AND THE PII RENEWAL PROCESS? The FCA have recently stated there are no indications that Covid-19 has prevented underwriters from renewing professional indemnity insurance. Following discussions with the International Underwriting Association, Insurers, and Brokers, they believe PII cover remains available in the market and that the current crisis is not preventing insurers from undertaking the renewals process: “Our position remains that firms need to have PII policies in place in accordance with our rules to support their ability to meet liabilities as they fall due and to protect their consumers.

It is ultimately a commercial decision for insurers about what cover they will offer including cost and on what terms. But

14

they need to meet their regulatory obligations, including when manufacturing, distributing and writing a contract of insurance.”

We have spoken with many of our IFA clients regarding the renewal process and have decided to answer some of the most common questions below: WHEN SHOULD I START MY RENEWAL? We suggest you begin your renewal process at least two months prior to the renewal of your policy.

We understand it is quite common that some insurers may not wish to release terms more than thirty days prior to the renewal date. However, this does not mean you have to submit your application within these timescales.

Allowing your broker and insurer enough time to fully review and assess your proposal will enable them to consider all potential risks and allow your broker to challenge any possible increases in premium or excess, and/or restrictions in cover.

I FAmagazine.com

I NSU RANCE DOCTOR

HOW CAN I MAKE MY PRESENTATION MORE ATTRACTIVE TO INSURERS? When deciding whether to offer cover, an insurer will take many factors into consideration.

• Claims/Circumstances It is incredibly important when advising of claims or ‘potential’ claims that you provide as much detail as possible. What were the circumstances? Has the claim been settled? And has anything been paid out. I would suggest you request a formal ‘Confirmed Claim Experience’ document from your broker/insurer if possible and advise of any policies/procedures you have put in place to mitigate any potential future occurrences.

• The Proposal Form If you provide an insurer with a poorly completed proposal form, one which is lacking in information and/or is difficult to comprehend, the insurer is likely to refuse to offer terms.

March June 2020

withdrawn from the market or have added non-compliant restrictions in cover. A specialist broker will know how best to proceed and which markets to approach.

Many brokers have exclusive arrangements with insurers and will be unlikely to be able to approach other markets.

If you find you are in this position, we suggest you look to approach one other ‘whole of market’ broker to approach all available insurers.

Please note that if an Insurer is approached by numerous brokers, there is a possibility that the underwriter may choose not to offer terms altogether.

WHAT SHOULD I CONSIDER IF I END UP WITH MORE THAN ONE QUOTATION? We suggest the following: • Check the policy for any additional endorsements and/ or exclusions.

Another example would be where your existing broker has only asked for a short one or two page declaration rather than a full proposal form. If there is not enough information to make a prudent and well assessed appraisal of your risk, why would an Insurer want to provide cover?

This is where you will find any non-standard restrictions.

These can range from applying a sub-limit to the overall limit of indemnity to Pension Transfer restrictions (especially in respect of DBTs). It’s important you raise any concerns with your broker as soon as possible.

• Be Fully Transparent

• Check the financial strength of the insurer.

I know it goes without saying that you shouldn’t deliberately omit information from your proposal form, but on occasion it’s not uncommon for someone to innocently fail to provide information that may be a factor when reviewing the presentation. If the renewal of the PI is delegated to another employee of the firm, which is very common, we ask you take a moment to review the presentation before it is presented to your broker or insurer. A second pair of eyes cannot do any harm. If you are ever unsure as to whether something needs to included, note it on the proposal and make relevant comments. It is better to provide more information, than not enough.

Over the past five years, we have seen several unrated or poorly rated insurers enter the market offering very attractive rates, only to then withdraw from the market due to financial issues. If an option looks almost too good to be true, do your due diligence and look at the insurers financial ratings or ask your broker for details on S&P, Moody’s and AM Best ratings.

We believe presentation is key in the current market and like to ensure all the relevant forms are completed prior to submitting to insurers. This way the process will be much smoother for the underwriters as they will have all the information they require, rather than having to keep requesting further details.

SHOULD I APPROACH MORE THAN ONE BROKER? This is a very good question.

Your broker should be clear and transparent as to which insurers they can, and plan to approach for your renewal.

Should you be involved with DBTs, your existing insurer may well be your best option. However, if your Insurer has

I FAmagazine.com

• Speak with a specialist PI Broker A specialist PII broker should have broad market relationships and the knowledge required to offer the best service possible and more importantly, peace of mind.

We have many years’ experience sourcing PII for IFAs and understand how the process works. Because of this we pride ourselves on making the renewal exercise as simple and efficient as possible.

About Daniel West Cert CII – Associate Director Daniel has been with Apex Insurance Brokers for 5 years and specialises in the placement of IFA and Financial Institution Professional Indemnity Insurance (PI).

As an independent broker, Apex can offer one of the most extensive choices of IFA insurers available, with specialist sector and product knowledge to offer their clients some of the best terms available in the market.

Their extensive IFA insurance experience allows them to fully understand your business, advise how to best present your risk and what insurers are best suited to your firm.

15

June 2020

FI DE LITY I NTE RNATIONAL

ASIAN EQUITY Stuart Rumble, investment director, Multi Asset, Fidelity International discusses Asian Equity

A

t Fidelity Multi Asset, we maintain a bias in equity regions to Asia, and more specifically Greater China given the larger share of energy importers, more attractive long-term themes like China consumption, and more positive signs on the virus. Overall caution on the emerging markets complex is needed though, as the institutional capacity to embark on stimulus, keep rates low, and avoid capital flight varies greatly by country.

In recent weeks, Chinese authorities have started to roll back some of the most severe measures for containing the spread of Covid-19 after the number of new cases fell. We think that it is too early to add portfolio risk aggressively while much of the rest of the world remains in lockdown, and China’s ability to bounce back may be unique given the state’s role in the economy, but there is an emerging near-term case for increasing investment in China.

16

Economic activity in China is edging back. Some of the leading macro data is now being supported by on-theground stories of schools opening in some regions, people returning to restaurants and busy recruitment firms. There are also strict measures to control the risk of another wave of infections, including health tagging, multiple temperature checks in public and mandatory quarantines for domestic travel. There is still some way to go to reach normal levels of business, backwards looking

There are also strict measures to control the risk of another wave of infections

I FAmagazine.com

FI DE LITY I NTE RNATIONAL

data looks shockingly bad, and Covid-19 has not gone away, but markets look forward and things are moving in the right direction.

Total social financing in China is often a good leading indicator for industrial activity and domestic equities

June 2020

are being forced down by the PBoC’s monetary easing policy. Total social financing in China is often a good leading indicator for industrial activity and domestic equities, and it recently rose to a record high level. It could be that manufacturing and industrial companies recover quickest, which is perhaps reflected in that they drove the recent recovery in investment spending.

Valuation metrics for these companies, which are typically considered value-style stocks, look interesting with the spread between the 1 year forward PE ratio for growth and value stocks currently close to its widest ever level. Overall, as China leads the world out of Covid-19 lockdown, our team’s bias to Asia supports a near- and long-term case for Chinese equities.

That should bode well for Chinese equities which, at the time of writing, are still down over 7% year-to-date.

Valuations look attractive versus long-term averages and with reference to government bond yields which

I FAmagazine.com

17

BETTE R BUSI N ESS

June 2020

ACQUISITION PROCESS Tracey Underwood of PACE Solutions looks at the nuts and bolts of assimilating an existing practice into your own

I

n recent years, there has been a significant amount of activity in firms acquiring other Financial Advisory practices. This is likely to continue as firms exit the industry either due to owner retirement or pressure from regulatory, professional indemnity and capital adequacy requirements.

There have been a few articles recently which have focused on the due diligence side of acquisitions; this article focuses on the actual process itself when embedding the acquired firm into your practice.

When looking at the acquisition process, of primary concern will be obtaining a return on your investment.

In particular, if you have obtained finance to fund the acquisition then you will want to see a return as soon as possible. Therefore, you need to have a slick robust process in place to maximise your opportunities.

assets are held; location of clients. This analysis does not necessarily need to be conducted by the business owner and can be delegated to an experienced member of the support team.

Combine the results to obtain:

• Total Funds Under Management

• Total number of Providers

• Locality of clients

• Which policies are receiving recurring income

If possible, obtain this information electronically from the exiting firm as this will greatly speed up the process.

1. DOES THE CLIENT BANK FIT MY PROPOSITION?

Once this analysis has been completed, this should show the number of clients that are not on ‘proposition’ and how easily they can be converted. If assets are held in legacy products with exit penalties and guarantees, this will make the conversion process more difficult and lengthen the return on investment. If there are a significant number of providers involved, then this will also lengthen the amount of time required to obtain accurate information.

This requires thorough investigation; are you focusing on the High Net Worth, Transactional Clients or both?

If possible, take a snapshot of the soon to be acquired client bank; funds under management per client; where

From experience, collating policy information is particularly onerous with many providers not forthcoming with this information. This is likely to be the lengthiest part of the process and can take several weeks.

When thinking about a prospective purchase, start by mapping out how the acquisition will ‘fit’ into your business from a proposition and support perspective:

18

I FAmagazine.com

BETTE R BUSI N ESS

June 2020

2. WILL THE EXITING ADVISER BE JOINING THE FIRM?

In summary, in conjunction with your Due Diligence process, take some time to think about:

Generally the adviser is taken on to ensure smooth transition of the client bank into the new firm. As part of the acquisition process you need to ensure that the adviser can ‘sell’ your proposition. For example, if the adviser has not had much experience of Wrap, Cashflow, Lifestyle Planning and following processes then this needs to be built into a training programme.

1. What processes you have in place to convert assets.

2. What training the new adviser may require this may not necessarily be technical but ‘selling’ your proposition.

3. What team and/or outsourced services need to be in place to deliver.

Done properly, this will avoid any potential liability issues once the adviser eventually exits the business.

4. The timescale to convert clients. Can this be done within the timescale the new adviser will be in the business?

3. DO YOU HAVE THE TEAM IN PLACE TO SUPPORT THE ACQUISITION?

Once you have this process in place, this can be repeated for future acquisitions and refined, where possible.

If you are taking on the adviser as part of the purchase deal then there is likely to be a set period of time before he or she eventually retires from the business.

Is it achievable to convert the clients to proposition in that time period, with the support team currently in place?

Do you have capacity within your existing support team; do you need to recruit more staff or outsource certain services?

If you recruit, is there a requirement for that member of staff once the acquisition conversion has completed?

In this case, you will want the Firm’s advisers to meet with the clients prior to the adviser leaving to ensure continuity of service. More importantly, you do not want clients to be leaving in the period following acquisition.

And finally, if your existing advisers are taken up with the acquisition clients then they may be spending less time on their own clients and opportunities.

I FAmagazine.com

About Tracey Underwood Tracey is the owner and founder of PACE Solutions. The business provides support for financial planning firms by focusing on operational practices including; recruitment, compliance, processes, client proposition and business strategy. This is achieved not only through a consultancy process but by hands on implementation to ensure that firms achieve effective results that would otherwise not be achieved through consultation only.

19

I NGE N IOUS

June 2020

UK CARE PROVISION: COVID-19’S SPOTLIGHT

T

he Covid-19 pandemic has shone a spotlight on the UK’s later life care system. Like many essential services, it has come under extreme pressure and is rising to this enormous challenge, but it is a worrying time for those who are in care or need to consider care services for themselves or their family.

Financial advisers should be involved in every aspect of later life planning for their clients, including preparedness for professional care, so we spoke to one of the country’s leading care advisors to find out more about the pressures and complexities of the care system during this crisis.

Grace Consulting provide families with bespoke, independent advice on how to find the best possible care solutions for their needs and wishes.

WHY IS THIS PANDEMIC PUTTING SUCH A STRAIN ON THE CARE SYSTEM? As with all key services, the care system is learning ‘as we go’ with this new virus. Care homes have had to close their doors to visitors, which can be distressing for residents and their families, while shielding at home can lead to social isolation. Patients are being discharged from hospital more rapidly than usual and there are staff shortages, due to selfisolation and the stress and emotional strain being put on carers. According to LaingBuisson, as of 15 April 2020, an estimated 12% of care home front line staff were unavailable for work. Care facilities are having to rapidly adapt existing practices, causing disruption within homes and agencies. It is a very complex combination of conditions to navigate while prioritising the best interests of the individual.

At Grace Consulting, we are reassured that in most cases our clients with care in place are managing well. When Grace Care Advisers call to check how they are managing, they rarely express concern about the current situation, just gratitude for the dedication of their carers. For example, carers in care homes are making great efforts to take phones to people and to help with tablet video calls (not always with total success!). Some are sending regular photographs to families. Each kind intervention helps to keep families in contact and reduce anxiety.

20

IS COVID-19 CHANGING THE WAY FAMILIES DISCUSS CARE IN LATER LIFE? These unprecedented times have brought to the fore the benefits of planning for later life. There has inevitably been an increase in the need for rapid decision making where people have been taken urgently to hospital due to sudden illness and where families have been unable to visit due to social distancing and restrictions on movement of people.

Additionally, we have witnessed a more acute focus on mortality across the population. This has brought about an openness to discuss, plan, and increase propensity to engage in conversations about later life care between family and loved ones. We hope that once the pandemic is over, and we can meet up again with our family and loved ones, we will continue to see the benefits of this. Financial advisers and independent care advisers can help facilitate these conversations and make sure that funds are in place to help realise these plans if the time comes.

“The area of later life planning will only increase in interest as there is a huge planning gap around inter-generational (or “wealth transfer”) planning and this therefore presents a big opportunity to access potential beneficiaries through demonstrating sound financial planning and the value of clear, knowledgeable and independent advice. This is why Ingenious in conjunction with other specialists in the area like the Society of Later Life Advisers (SOLLA) and independent care consulting firm, Grace Consulting, run educational sessions for advisers to both increase their awareness of the issues across the area and fully understand the opportunity it provides advisers.” (Simon Harryman, Senior Business Development Director at Ingenious) HAS THE PANDEMIC STIMULATED POSITIVE CHANGE? Yes. This pandemic has shone a light on the importance of the care sector and its incredible work. An increased awareness of the hugely valuable and onerous role carers play has garnered new respect for the sector. Services have ramped up in an extraordinarily short time period as the Government has been forced to fast-track initiatives

I FAmagazine.com

I NGE N IOUS

that have been on the agenda for some time. This has provided us with the tools we require to continue to meet our clients’ needs. We have been able to offer advice based on new and fast-changing guidelines and maintain open lines of communications with care facilities so families can continue to monitor the care provision of loved ones.

We have worked with various agencies and government bodies to accommodate demand for temporary care after hospital discharge as well as working with individuals to plan for longer-term solutions. All this has been enabled by a streamlined communication between health and social care bodies.

June 2020

Working with her dedicated care adviser who has a background in nursing, Maggie was immediately listened to and the pressure of the situation was understood. A clear action plan was set out very quickly, with Richard contributing via technology to express his opinion. They discussed • Richard’s care needs and personal wishes • Maximising his rehabilitation with appropriate care and physiotherapy • The most suitable care options – in a care home or at home with appropriate adaptations, equipment and care • Details of the availability and cost of care

WHAT CAN WE LEARN FROM THIS PANDEMIC ABOUT PLANNING FOR LATER LIFE CARE? This experience should encourage people to start planning for care earlier than before, to put contingency plans in place and where necessary consider setting up powers of attorney, not just for finance, but also for health and welfare. This gives individuals the control over decisions that may be made for them in an emergency and loved ones the confidence that they are doing the right thing by the individual.

We have also seen the incredible support technology can give in times of emergency or isolation. We encourage every family to set up smart phones and tablets that can enable them to continue communicating with loved ones - something we are no doubt all benefiting from at the moment.

• Available funding and state benefits The care adviser carried out bespoke research into high quality, local care homes that could be suitable for Richard and his rehabilitation. She has also provided an option of a home-care plan, with required equipment and details of suitable home care providers. They discussed the cost of these options so Richard and Maggie could plan further.

Maggie shared her feedback with the Ingenious Care Service, telling us that her and Richard’s experience changed overnight with the provision of professional advice. The value of being listened to and spending the time to thoroughly consider their options has allowed them the confidence that Richard is receiving the best possible care at a time when there is immense pressure on the system.

At Ingenious, we believe that preparing for changing circumstances is a cornerstone of sound financial planning – especially when it comes to protecting the legacy your clients are creating for their loved ones.

RICHARD AND MAGGIE’S STORY Over the last month, families have found a huge amount of support in the Ingenious Care Service, a complimentary part of Ingenious Estate Planning that offers bespoke, independent care advice.

We were recently told of a case where a man suddenly suffered a stroke at the age of 75.

Richard was fit and healthy until the stroke left him with long-lasting damage, including the loss of use of his left arm and difficulties with his speech and swallowing. His wife, Maggie, has not been able to see him in hospital and their children are unable to visit to support her because she is in self-isolation.

Maggie was told that beyond Richard’s hospital stay, his care needs would be complex, and his rehabilitation would require professional care. Richard would be discharged in the coming days and so a plan for his care was urgently required. Though initially overwhelmed, Maggie was able to make use of Richard’s Ingenious Care Service access, to quickly make sense of the situation.

I FAmagazine.com

THE INGENIOUS CARE SERVICE IS AVAILABLE ACROSS ALL THE INGENIOUS ESTATE PLANNING (IEP) SERVICES Through investments in unlisted real estate, infrastructure and media businesses, IEP has a strong track record in achieving a steady, long-term return, with low volatility and a low correlation to stock markets. The portfolio is less sensitive to short-term economic shocks and market sentiment than listed assets can be.

Ingenious Care services became a cost-free part of Ingenious Estate Planning in October 2019. There has since been a significant uptake from investors choosing it as part of their later life planning. Some have used the service to make financial allowances for potential future care needs, and others have actively used the guidance of the service to consider care plans for themselves or a family member.

For more information investments@theingeniousgroup.co.uk

21

June 2020

RICHARD HARVEY

RECREATIONAL

HOOVERING

Irrefutable evidence that lockdown has finally got to the usually irrepressible Richard Harvey

D

uring these tiresome times The Gospel According To Harold Arlen and Johnny Mercer, which inveighs us to “accent-uate the positive, e-lim-inate the negative” seems sound advice, and might keep you hurling yourself from a top floor window.

It ill behoves me, as someone who earns his monthly crust with the written word, to cavil at the exhaustingly negative approach taken by Fleet Street’s vultures at those early evening press conferences. When, a few weeks ago, the earnest man from The Guardian was patched in, only to discover he was talking to himself rather than the nation, I fleetingly wondered if some Number Ten spin doctor had niftily pulled the plug.

22

Perish the thought…..

Thus, in an increasingly desperate search for something – anything – to lift the daily gloom, I’ve been a loyal follower of Arlen and Mercer’s advice. As a result, I have discovered….

• Renewed hoovering skills, long forgotten since my days in a seedy bachelor pad that my father described as “being only one step removed from the town tip”.

•

Joe Wicks isn’t entirely irritating: his online workouts| for ‘seniors’ are sufficiently brief to invoke a smug sense of satisfaction, even if his encouragement to touch your toes is ridiculously over-optimistic (go on, admit it: can you?).

I FAmagazine.com

RICHARD HARVEY

• The early morning queue at Waitrose looks endearingly like a mass stick-up by a roving gang of masked pensioners.

• If you’d had shares in Zoom before lockdown, my best wishes for your retirement to the Bahamas.

•

Some experts need to discover the art of timing.

Professor Neil Ferguson, whose coronavirus pronouncements made him the least likely recipient of the Little Ray of Sunshine Award, encouraged everyone to keep fit and lose weight in a message he delivered on Easter weekend, just as the nation was embarking on the biggest chocolate-fest of the year and that was all before his resignation as a government adviser as a result of accusations of double standards.

As reported last month, I’ve steered well clear of checking my investments, despite my IFA telling me she sees ‘green shoots’. Which is hardly a felicitous comment to make – didn’t former Chancellor Norman Lamont use those words during the 1991 recession, only to discover the green shoots were dandelions and daisies?

As the late Kenny Rogers opined in The Gambler, “when the dealin’ is done” we will be confronted with some ghastly figures outlining the damage wrought to the UK economy

by Covid-19.

I FAmagazine.com

June 2020

So, in a search for some perspective, I was intrigued by a Twitter posting outlining a comparison of each country’s national debt. Probably inaccurate, like most of the stuff on social media, but it alleged Britain is the third most indebted country in the world.

Other, more reliable, sources have us further up or down the international league table, although most have the United States at number one with a debt of $18,286,510,000,000, and rising.

And if you want to see international debt constantly rattling up like an out-of-control fruit machine in some Alice in Wonderland casino, log onto www.economist. com and take a look at its global debt clock, spinning faster than your eyeballs.

How do you describe incomprehensible figures like that – gazillions? It will make the inevitable national bill for tackling coronavirus look like loose change. No consolation, but at least it should give us some comfort that the economy will heal itself in time, and we can then continue to rack up our national debt.

And with that thought, I’m now off for a bit of recreational hoovering.

23

June 2020

TONY CATT

THE MPS REPORT

BY TONY CATT The financial professional’s crib-sheet to Managed Portfolio Services

I

work as an independent compliance consultant working mainly with IFA firms around London and the South-East. I have several firms for whom I undertake different duties. I have previously undertaken platform research and distributed it among my client firms.

One of the firms asked me to undertake research on Managed Portfolio Services (MPS) as they had been running their own portfolios and were looking to move to a third-party arrangement.

I looked around the market for reports and found Defaqto, the Langcat and Next Wealth reports. The first two were commissioned by OMW WealthSelect and unsurprisingly focussed on that. When I looked at the reports, they had a core of MPS providers but they each had some that did not appear on the other reports. I went onto FE Analytics where I found a lot more. But none of them had as much detail as I wanted or the breadth of providers, so I thought that I would just have to do it myself.

This research is to show the MPS that are currently available for IFAs to use for their clients’ investment strategies.

There are many providers in the market offering MPS. It is an extremely competitive market. Many Discretionary Fund Managers (DFM) offer managed portfolios for investors who want their money managed professionally, but do not have the size of investment that would warrant the expense of a bespoke discretionary fund management service, which is used for High Net Worth (HNW) investors. Rather than miss out on the Mass Affluent (MA) market of people who want to invest, but not the same magnitude, the Managed Portfolio Services have been introduced.

I am looking to provide information on a wider range of providers to show how any Managed Portfolio Service chosen by a firm is competitive in the market and why it may be chosen to suit the clients of the advising firm.

24

The more I looked into the MPS, the more I realised that there are a lot of very good practitioners in the field - all apparently with their own views on investment and how much better they were than their competitors.

This report can only be considered to be a snapshot of the market in April 2020. Whilst I have a wider range of providers than any other report that I have seen on MPS providers, there are still a lot of providers that are not in this report, simply due to the numbers available.

It just proves that there is an investment strategy to suit every investor. They just need to be discovered and identified.

With all these managed portfolio services providers available, it is a mystery why any financial planning firm would want to devote so much of their valuable time running their own portfolios.

The full MPS IFA Annual Report is available to purchase for just ÂŁ249.99 +VAT* To request your copy visit www.ifamagazine.com/ *For professional advisers only.

IFA Magazine will be running a webinar on 7th July, to discuss the pros and cons for advisers in using an MPS. For more information contact kim.wonnacott@ifamagazine.com

I FAmagazine.com

CAREER OPPORTUNITIES Position: Senior IFA Administrator Job Ref: 59372 Location: LONDON Salary: £30,000 - £35,000 The opportunity for a Financial Planning Administrator to join a well-established Financial Services Practice which provides a highly personalised financial planning and investment management service.

The Opportunity During a period of growth, our client is looking for someone to provide high quality technical administration and analytical support to the successful Financial Planners of the business. The firm has the flexibility to mould the perfect opportunity around each person’s specific skillset, so the role can be tailored to exactly what you want. You will have the opportunity to work in a supportive team environment where progression is strongly supported.

What’s needed to be considered?

In order to be considered for this unique opportunity, candidates need to have – • Previous experience within a Financial Planning role • Professional communication manner, both written and verbally • Any Financial Services qualifications are desired

Position: Paraplanner Job Ref: 59346 Location: NOTTINGHAM Salary: £35,000 - £45,000 The opportunity for an experienced Paraplanner to join a fantastic Financial Services firm who focus on providing a high quality financial planning and investment management service.

The Opportunity During a period of key expansion, our client is looking for an experienced Paraplanner to support the successful Financial Planners of the business. The firm has the flexibility to mould the perfect opportunity around each person’s specific skillset, so the role can be tailored to exactly what you want. You will have the opportunity to prepare suitability letters, reports and recommendations and provide technical support to complex client queries. You will be working in a strong team-focused environment where you can develop your career within a prestigious firm.

What’s needed to be considered?

In order to be considered for this unique opportunity, candidates need to have • Level 4 Diploma qualified or working towards this • Previous experience within a fast-paced IFA Practice • High level of analytical capability and good communication skills

I FAmagazine.com

25

June 2020

Position: Employed Financial Planner Job Ref: 59368 Location: HOVE Salary: £30,000 – £60,000 + OTE The Client Our client is a bespoke independent Financial Planners, based in the heart of Hove. Due to an extremely fruitful period of business, they are now looking to expand by adding a new member to the Financial Planning team.

The Opportunity The opportunity here is for a Financial Advisor, with a professional and level-headed approach to come in and help take on a number of the company’s client's moving forward, alongside building and growing this bank further. This opportunity would be suitable for any Level 4 Diploma qualified professionals, whether you be an excising IFA with a strong book of business, or a newly qualified Adviser looking to work in a highly professional environment. In this role, as mentioned, you will have the chance to work with a number of the firms existing connections, with all your leads provided via referrals and professional introducers, with a highly rewarding Salary and Benefits package.

What’s needed for me to be considered?

• • • •

Hold previous experience within an IFA / Financial Planning Practice Must be qualified to a minimum industry standard of Level 4 Diploma Qualified Previous experience dealing with High Net Worth Clients desirable but not essential A strong understanding of Pensions and Investment products advantageous

26

I FAmagazine.com

June 2020

Dan Gratton - Specialist Financial Planning Recruiter I have been recruiting within the financial planning field for just over 2 years now, largely specialising within the placement and recruitment of financial planners and senior back office roles. Prior to this, I was working in the industry for 5 years, as an Associate Financial Planner, so like to think I am somewhat knowledgeable on both the industry and those in it!

A lot of people believe that the job hunt on the build up to Christmas can be quite slow, however we have found quite the opposite, with last December being our busiest month to date. It seems companies are very keen to get their recruitment needs in order, prior to the new year, so there may never be a better time for you to start your search.

You will see below that we have a number of opportunities that we are working on at present and many more on our website should you be open to new opportunities. Furthermore, should you just wish for further information on the IFA job market at present, opportunities locally or industry information on qualifications etc, please do not hesitate to be in contact. You can reach me on 0117 922 1771 or feel free to email me at dan.gratton@heatrecruitment.co.uk.

What’s next?

If you are interested in any of the above opportunities, please contact us directly. If suitable, one of our specialist consultants will be in contact with you to discuss the opportunity in detail prior to submitting your Curriculum Vitae to the client. During this discussion, we will aim to identify your specific skills and motivations and, where appropriate, can also recommend other relevant opportunities to you that match your requirements.

And finally…

If these specific vacancies are not exactly what you are looking for, please contact us to discuss other opportunities we may be recruiting for that aren’t necessarily advertised.

Powered by

BRISTOL OFFICE

LONDON OFFICE

+44 117 922 1771

+44 203 207 9075

Visit the Heat Recruitment website for more details of these and hundreds of other jobs too www.heatrecruitment.co.uk

I FAmagazine.com

27

ESG

June 2020

ESG:

THE LATEST INCARNATION OF MARKETING-LED INVESTMENT STRATEGIES

By Mark Walker, Managing Partner at Tollymore Investment Partners

I

nstitutional investment management is broken.

Asset-gathering business objectives and goldplated cost structures magnify the imperative to grow AuM. Investment firms led by marketers rather than investment managers create strategies tailored to what will sell rather than what works.

Large pools of management fees are required to fund large, expensive teams designed to convey analytical edge.

Pressures to justify high management fees discourage investment professionals from acknowledging ignorance or mistakes and create an action bias that is incompatible with good investment outcomes.

The creation and promotion of investment strategies which will sell result in niche investment universes predicated on analytical edge, primary research methods, or proprietary idea generation funnels, all of which look ‘differentiated’ in a pitchbook. The latest incarnation of this pitchbook mentality comes in the form of ESG investing mandates.

Investors last year ploughed a record $21bn into ‘socially-responsible’ investment funds in the US, almost quadrupling the rate of inflows in 2018. The surge in popularity of companies with the best social, environmental and social governance scores in recent times has resulted in a crop of ESG funds, eager to attract some of

28

the cyclical capital flows to this particular bucket.

Attempts to quantify skill through an obsession with measurement creates bubbles, disincentivises first principles thinking, and makes capital allocation and manager selection processes less efficient by making them more data driven. But data can be falsely empowering, unaccompanied by thoughtful qualitative review of a manager’s capacity and incentives to do a good job.

The shoehorning of ESG frameworks into existing asset management programmes and the surge in new ESG funds extend the already warped incentives in the investment management industry. Stocks with strong ESG scores are bid up as these capital inflows are put to work.

Are investment managers, guided by the desire to grow assets and the employment of a quantitative ESG scoring framework, losing the facility to think independently about the sustainability and reasonable governance of companies?

About the investment merits of their equity? About being socially responsible by directing endowments’, charities’ and pension funds’ capital to this more richly valued subset of the global investment universe?

ESG’s commonly accepted synonymity with ‘sustainable investing’ is especially perplexing. Who wants to own unsustainable businesses in the first place? What is investing

I FAmagazine.com

ESG

if not the purchase of part-ownership of sustainable, flourishing enterprises? What long term business owner, managing capital for investors with long term, sometimes perpetual, investment horizons, would like the company he or she owns to be run by dishonest, self-serving managers misaligned with company owners, to treat employees poorly, create negative externalities, and exploit its customers?

The conscientious long-term investor must consider the company’s relationship with all its stakeholders.

At a minimum, understanding the strength of these relationships is central to mitigating risk of permanent capital erosion. Ideally, these relationships confer a lasting unfair business advantage, difficult to replicate by peers merely paying lip service to regulators and investors requiring the completion of ESG checklists. The items on these checklists must be measurable. This encourages the quantification of factors which are qualitative. How can one quantify, or score whether, and the extent to which, social media companies exploit their users to the detriment of their health? Can these checklists consider and measure the enormous and compounding positive externalities created by modern platform businesses?

An appreciation of the relationship between a company and its stakeholders is a qualitative, subtle, and effortful endeavour. The interrogation of business ethics and the capacity for company managers to make the right long-term decisions are at the heart of serious investment programmes. The employment of an outside analytics firm to bestow credibility on an ESG framework is no part of this.

Any investor with an interest in owning sustainable businesses must recognise that company boards have broader responsibilities to consider than environmental and social issues. They will also understand that these duties do not dilute their fiduciary obligations to equity holders. Rather, they are a necessary part of satisfying them.

Decisions to create large positive externalities and forge win-win outcomes take time and often come at the expense of traditional short-term measures of shareholder return.

But these are the decisions that determine corporate vitality and staying power.

The broad disregard for long term win-win outcomes is a function of short holding periods. Company ownership changes hands on average every few months, vs. eight years in the 1960s. This is a by-product of investment constraints deeply embedded in the institutional money management

I FAmagazine.com

June 2020

industry, such as short-term capital, manager/investor misalignment, career risk and asset-growth agendas. These constraints cannot be addressed with an ESG checklist.

Just as truly special corporations seek to thrive under the principle of win-win, so must investment management firms create more value than they consume. Incentive

An appreciation of the relationship between a company and its stakeholders is a qualitative, subtle, and effortful endeavour

structures should make it sensible to forgo additional management fees in lieu of excess returns on insider capital. Frameworks for economic profit-sharing should reward acceptable performance and coordinate manager and investor enrichment. Investors should receive most of any outperformance generated, not just most of the absolute return. Fee structures should therefore allow fund managers to talk about integrity with some legitimacy. Too many managers charge obscene fees with the sole purpose of enriching themselves at the expense of clients.

With business ownership in the public markets so fleeting, and given the strong economic incentive to raise capital, it is unsurprising that the objective of investing in viable, durable companies is not evergreen nor widely practised. This is a sombre impeachment of the asset management industry.

But it creates opportunity for those investors who recognise that treating stakeholders well is good for business owners.

We look for symbiotic value chains; there need not be a trade-off between compounding owners’ capital and the principled consideration of all other lives our companies affect. Managers of the companies we own must look beyond the direct or immediate consequences of their actions in order to create lasting value. And a longterm outlook is essential, because shorter term sacrifices – ‘the capacity to suffer’ – are often required to create value of any permanence.

29

June 2020

GB I NVESTM E NTS & E ISA

M AGAZINE

GB INVESTMENTS AND EISA PRESENT THE

ADVOCATE WEBINAR SERIES FOSTERING THE CONTINUED INVESTMENT IN SMES AND START-UPS

T

he impact of Covid 19 and the government’s fiscal interventionism has tilted the normal expectations around the tax year end of 2020 in our investments sector. Yet the effectiveness of tax incentive led schemes for investment in SMEs and Startups has been proven over the last 40 years and will continue to play a pivotal role in how we rebuild our economy once the crisis has passed.

As part of our strategic relationship with EISA, GB Investments presents a new essential webinar series we are

calling ADVOCATE to build knowledge and confidence for advisers across a broad range of related topics affecting us right now.

We will be joined by leading industry experts who will discuss the existing state of play and the key issues for advisers to consider for their clients around approaches to risk, IHT and tax planning, in a forum designed to be both educational and insightful. We have invited IFAs who collectively have extensive experience in investments in this area to join us and share their expertise in the discussions.

GBI

ADVOCATE EIS STATE OF PLAY 10AM TUESDAY 2ND JUNE

• A review of the tax year end, the current state of play and approaches to risk

Why now is the right time to be looking at EIS

Chaired by Mark Brownridge, Director General of EISA, we will be joined by industry leaders to discuss opportunities for advisers and their clients in the space.

ADVOCATE TECHNICAL 10AM TUESDAY 23RD JUNE - IHT, BR AND TAX PLANNING

• The discussion will include Case studies, Insight from leading solutions providers, Solutions for clients whose estates put them over the residence nil rate band taper threshold, and clients with large ISA portfolios along with inheritance tax considerations.

10AM TUESDAY 7TH JULY EIS - UNDER THE BONNET

• The discussion will include detailed insight into some of the leading fund managers in the space; Fees; Due Diligence; Platforms; Objectives to consider (growth, capital preservation, income, or a combination of all three, and the targeted level of annual returns) and how fund managers provide detail on the proposed underlying investments: how will they generate returns and how is liquidity achieved.

30

I FAmagazine.com

GB I NVESTM E NTS & E ISA

I FAmagazine.com

June 2020

31

TAX YEAR E N D

June 2020

TAX YEAR END -

OR THE END OF DAYS? Andrew Sullivan on the ups and downs of TYE 2020

I

t seems a lifetime ago, but it was just at the beginning of April that I got in touch with some of our friends in the sector.

Lockdown was still a novelty and social distancing was beginning to be seriously observed with typical British awkwardness. Then the infection and mortality statistics started to make it terrifyingly clear that this wasn’t just something nasty that was going around; this was the biggest threat to human life in our country since the Blitz.

“I don't suppose there's ever been a TYE quite like it given the current circumstances”, I wrote (perhaps rather flippantly, I now realise). “For the next issue of GBI Magazine, I'm planning to have a look at the ups and downs of TYE 2020 and whether your experience this time round was startlingly different or amazingly similar to before.

“I'd also be interested to hear your opinions on the immediate and longer-term prospects for the sector.

“If it helps you avoid cabin fever, would you care to jot down a few thoughts?”

The response was fascinating and refreshingly positive…

AMERSHAM INVESTMENT MANAGEMENT SEIS and EIS investing in Q1 2020 was, like practically every other sphere of economic activity, severely impacted by the consequences of the Covid-19 pandemic. S/EIS

32

investing has become in recent years less centred around the tax year-end, with closes arranged by investment managers in this sector throughout the year, for example in biannual or quarterly closings. Nonetheless, the tax year-end remains a significant hard deadline in the fiscal calendar by which many investors seek to ensure deployment of their allocated funds in order, especially, to benefit from the opportunity to “carry-back” their tax reliefs to the previous tax year, SEIS in particular remaining a specialist ‘passion-centred’ investment At the time of writing (April 2020) it is too early to infer any hard, detailed industry-wide assessment for S/EIS but anecdotally most managers known to this firm have had deployment plans affected quite seriously.

In our case we also found that expected inflows for deployment came under pressure, not to the extent that deployment was jeopardised but that additional criteria for investment had to be considered in investors’ best interests, as always.

First, we had to review our pipeline of investee companies which had already passed through due diligence process and initial investment committee review in order to assess, from the investor perspective, which companies would now be best able to safeguard the prospective follow-on investment. This was less complicated in the cases for EIS follow-on investments, as appropriate companies in our portfolio were already well known to us and effective information-rich communication with them was possible in the very short term.

I FAmagazine.com

TAX YEAR E N D

For the pipeline of prospective new company SEIS investments this process was more challenging. Our decision was to increase concentration – meaning that instead of investing in three new prospects we chose just one. Normally we would look to provide a degree of sector diversification for any investment close. However, in these circumstances we felt it was not in investors’ best interest to be deployed into each of several companies which may risk being undercapitalised sufficiently to weather any likely pandemic-related storms. Accordingly, we chose to deploy into just one SEIS company, being the one which we were most confident could be best positioned to navigate successfully through the current environment.

That SEIS investment was completed on 3 April 2020 in Newfangled Games Limited. Newfangled is a premium mobile, PC and console game development studio based in London. Founded by BAFTA-winning developer Henry Hoffman and award-winning artist Frederick Hoffman, Newfangled develops original IP with a focus on artistic, narrative-driven, emotionally engaging game experiences.

Henry is a BAFTA-anointed “Breakthrough Brit” who after leading on the Microsoft-published, BAFTA-winning game Mush, co-founded Mudvark and created the millionplus-downloaded game Mortar Melon. His follow-up game “Hue” won over 25 industry awards, successfully releasing on all current generation consoles and MAC/PC. Newfangled has been created to pursue a plan to create a studio producing a series of games titles. With necessary consents obtained from HMRC, the team was, by the turn of the year, ready to hit the ground running and start work on the first in this series of developments.

When current conditions made us consider which of several excellent SEIS propositions on our books to support at this incredibly difficult time, Newfangled were able to demonstrate an operating model wherein we have high confidence they can execute their plan with minimum disruption: • Home working is perfectly familiar in their sector • Their year 1 budget could be cash flow protected through cancellation of all travel to conferences • Staffing could be re-shaped in timing but not in reducing skills-sets available.

I FAmagazine.com

June 2020

• The product is digital therefore no supply-chain problems relevant.

• The market environment is even more positive for entertainment Our firm, focussed wholly on the S/EIS sector, will always seek to meet challenges and keep investing as subscribers have trusted us to do in their tax-advantaged allocations and of course we remain open, working remotely.

GROWTHINVEST In some respects it remains too early to assess the true impact of the coronavirus pandemic on our industry, and to understand the effects it has had on fund managers, fundraising and distribution, and of course the health and longevity of investee companies across the UK. The real impact on the overall tax year was only really seen in March, rather than any earlier, and so whilst we saw some impact on the usually busy last few weeks of the tax year, by that stage many of our advisers and clients had already made their tax-efficient investments.

However, while we continued to see growth within our own business during the 2019-20 tax year end period, we are aware that fund managers across the market have struggled to raise and deploy assets, and it appears that figures are significantly down on the same period in the 2018-19 tax year. We are also conscious of the high number of start-up companies that have been forced to make drastic changes to their headcount and draw back their revenue-generating activities.

Looking at the wider economic climate, we are encouraged that the government has issued a support package specifically designed to support SMEs and their early-stage investors during this challenging time, although we agree with others across the industry that this is likely to need some further measures in order to be truly beneficial in getting support and capital to those who need it most.

Given the ever-changing nature of the situation we find ourselves in, we are continually assessing the operating environment and impact on growth for fund managers,

33

June 2020

TAX YEAR E N D

entrepreneurs, financial advisers and their clients. Over the last four years we have helped drive positive change and digitalisation in the tax-efficient arena, so that now digital applications, signatures, sophisticated analytics tools and 24-hour access and support are becoming the norm. We are pleased to see that we have seen this welcomed and adopted by almost the entire industry. This gives us increased confidence that the industry can carry on with a version of ‘business as usual’ and potentially recover fairly quickly once a new version of normality returns.

Our next Fund will open within the next few weeks and we welcome conversations with investors looking to find ways in which they can get their hard earned cash into an investment designed to not only weather this current economic storm, but take full advantage of it.

While there will of course be numerous challenges for advisers and their clients at this difficult time, we remain optimistic about the strength of this sector in the longterm and its ability to weather the storm.

Investments from the Par Investor Network were down 18% year on year (£5m v £6.1m)

HA ATCH VENTURES

PAR EQUITY EIS subscriptions were up 94% year on year (£4.5m v £2.3m), though starting from a low base.

We estimate that between £0.5m and £1m additional subscriptions were lost as a result of C-19, but as all our investment opportunities were fully subscribed by the end of the tax year, this would have been used to invest in the new tax year.

As Haatch is a relatively new fund we were, in some ways, fortunately positioned to weather this current storm simply because we weren’t expecting a vast tsunami of tax year end EIS funds to land in order for us to meet our targets and drive our business forwards. We run our funds very much in the same way we expect our invested companies to be run - lean and prudently with 12 months plus of runway and agility to spare.

We now have 4 separate sources of capital to invest in and support our new and existing portfolio companies.

These are the Par EIS Fund, the Par Investor Network, the Scottish Investment Bank and just recently the new £75m investment programme with the British Business Bank. This positions us very well to take advantage of the increasing opportunities we are seeing in Scotland, Northern Ireland and the North of England.

It’s because of this that we see the future more brightly than most and while the pandemic has certainly sharpened our focus on certain industries a little more than before our approach has changed little. We remain committed to investing in digital pioneers and disrupters at an early stage and we are certain that they will be well placed to grow throughout the coming recession.

Of course, some of our portfolio companies are hurting in the face of C-19, but others are capitalising on the opportunities that it brings. The majority are technology companies that are continuing to develop well and cut through the noise.

The pipeline of new opportunities that are set to take advantage of the structural economic changes ahead remains strong and we remain excited to be supporting them with our usual hands-on approach. All four of our partners have built companies through the last Great Recession and so we are open-eyed to the challenges, but also to the opportunities it presents and we plan to take full advantage of them.

34

Overall, we are optimistic about the outlook for both our portfolio and fundraising.

COINVESTOR First and foremost we are a technology company and our very DNA is within the tax efficient market. As such we were incredibly fortunate to be able to transition to the new normal and work from home without any

I FAmagazine.com

TAX YEAR E N D

business continuity issues. Working closely with fund managers, investors and advisers we felt keenly that the industry as a whole was not so fortunate; the timing of the pandemic could not have been worse for the tax year end investment cycle and we have been working hard with all sides of the market to ensure our digital market place, the CoInvestor platform, is able to deliver a solution in these extraordinary times.

As post rooms shut across the nation, we immediately organised a process with fund managers and their custodians implementing a digital straight through investment process on our regulated platform ensuring a seamless process for investing and managing these investments could be achieved. We believe we are first to market with this and we were really encouraged to work with all of the market in getting this live as quickly as we did.

Clearly all of our clients were impacted by COVID and we ourselves were not immune. With transactions on our platform down markedly from expectations this was keenly felt across the multiple fund managers and advisers we work with. However, we have a digital solution and this has accelerated adoption from all sides and the efficiencies we create by working together in a digital environment we believe will continue to be in place long after the lockdown is a distant memory.

Looking ahead we are also working with a high number of fund managers to list single company deals from their portfolios on the platform. Should these be at fair value then the ever-increasing number of HNW investors (and elected professional or sophisticated investors) using our platform will be able to invest in the funds themselves as well as support individual companies. We see this as an opportunity for all.

We are also encouraged by the accelerated process of the adoption of our digital services concerning portals, whether operating on the platform directly or as a standalone to service clients with a secure document room and communication channel. On our platform this is now free of charge for fund managers and adviser firms as we support them through this unique operating

I FAmagazine.com

June 2020

environment. Their interest in this is we think testament to the industry putting the client first, something we feel strongly will put us in good stead as we look forward to brighter times and not behind us.

HARDMAN & CO One of the consequences of the current financial crisis is that it has become much more challenging to value many private companies, including those within EIS funds. The world has changed, stock markets are down, and funding has suddenly become less plentiful at a time when many businesses really need liquidity.

The ability to value many companies is particularly important to provide a ‘fair value’ assessment when undertaking a transaction or valuing portfolios.

When the market has momentum, investors often compete to invest in good private companies, and between them create a fair market value. In less buoyant times, as we are currently experiencing, investor confidence declines and less funding is forthcoming.

Without funding, many ambitious businesses find their once rosy future is replaced by fear for survival, particularly where cash flow is critical. Valuations can be impacted suddenly and dramatically. In short, for many companies it is necessary to recalibrate their worth. This is when the services of an independent valuer can be crucial.

Hardman & Co has been involved in private company valuations for several years. This includes significant experience in working for funds administrators helping to establish fair values for private companies held in dailypriced investment funds. Our expert team of analysts bring their knowledge of real-world circumstances to underpin the valuation computation derived from accepted industry practices and methodologies.

Hardman & Co is now bringing this expertise into the EIS market, to help ensure that there is fair value for investors, managers and the companies themselves.

35

June 2020

CHAITI M E

A CIVILIZED WAY TO END THE WORKING WEEK -

WHEREVER YOU ARE

Friday April 24 saw o2h ventures’ inaugural ChaiTime webinar; the first one was themed ‘Early stage investing in a post COVID-19 pandemic environment.’

A

global audience logged in not just from the UK, but from the rest of Europe, India, Japan and the USA and included financial advisers, entrepreneurs, scientists, academics and international executive management.

Chaired by Sunil Shah, CEO o2h ventures, the panel was comprised of big players in their fields: Peyman Gifani, CEO, AI VIVO; Sanjeev Gordhan, Commercial Director, Newable; Kieran Murphy, President & CEO, GE Healthcare; Deepali Nangia, Angel investor specialising in female founders; Steve Thurlby, Wealth Management Adviser, Fairstone Group and Goncalo de Vasconcelos, CEO Rnwl, Founder Syndicate Room.

Given Accenture’s prediction that ‘Every business will be a health business’, ChaiTime 1’s mission was to explore what are the winning and investable technologies of the future? We are not going back to the way things were before; what will be the new normal?

36

What makes ChaiTime a bit different is that it’s very relaxed; you don’t feel obliged to take copious notes – on the contrary, it’s more like having a drink and a chat with your peers before heading home for the weekend (yes, we’re at home anyway but the point still stands…)

To answer the question “When is this COVID-19 situation all going to be over?”, Sunil Shah turned to Peyman Gifani, who has been deeply involved in developing a comprehensive AI platform to understand how C-19 works; some of the platform’s output has already made the national newspapers.

Gifani explained that rather than look at one specific target, they had taken a phenotypic approach and therefore looked at all the changes on all the genes. By creating a large phenotypic representation of the effect of 90,000 different drugs and compounds, some of them already approved, some in phase 2 or 3 of development, we can have a head start and go quickly to clinical setup and trial to test their efficacy against C-19 as soon as possible.

I FAmagazine.com

CHAITI M E

When asked if it would be possible to go to big pharma and point out certain drugs which the companies may not even have considered as being relevant to the current pandemic, he told us that is exactly what they’re doing now.

By focusing on 50-60 drugs which are approved and have been human-tested, it might be possible to change the game until we actually have a vaccine and consequent large-scale immunity.

Even to a non-scientist, this was exciting news and a genuine insight into early-stage health tech at work and making a difference.

From here the discussion ranged across the spectrum of investment sectors, which would survive, which would thrive, which would get knocked down but then get up again and which might have heard the bell for closing time.

March June 2020

At the time of writing, the second ChaiTime webinar is scheduled to quiz various business leaders on how we innovate, create and collaborate from home.

Chaired by Prashant Shah, Executive Chairman of o2h Ventures, panellists are scheduled to include Professor Christoph Loch, Director (Dean) of the University of Cambridge Judge Business School and a specialist in the management of innovation in organisations; Karin Briner, Vice President & Global Head of Chemistry at Novartis; Chris Heron, CEO of tech company Visibly and Lekha Washington, an award winning artist, actor, poet and design entrepreneur.

The ChaiTime webinars take place every Friday at 1500 BST and you can register here http://tiny.cc/o2hCTW05

Throughout the session, the audience were able to message the individual panellists with their own specific questions.

I FAmagazine.com

37

EIS done differently.

EIS investments chosen and mentored by seasoned entrepreneurs.

No initial or annual fees charged to investors.

Call us on 02039 510590, or email info@valacap.com Investors should only invest in the Vala EIS Portfolio on the basis of the Information Memorandum, Application Pack and Key Information Document, having received advice from a suitably qualified adviser. We do not offer investment or tax advice.

EIS-qualifying investments should be seen as long term investments, their value can fall as well as rise and they are not covered by the Financial Services Compensation Scheme (FSCS).

June 2020

M AGAZINE

GBI OPEN OFFERS A selection of tax efficient opportunities currently open for investment

I FAmagazine.com

39

SEIS Open

Close

Nov 2017

Evergreen

Target Raise: £3m per annum Minimum investment: £10,000

Deepbridge Innovation SEIS The Deepbridge Innovation SEIS represents an opportunity for private investors to participate in a selected portfolio of innovative seed stage innovation companies, taking advantage of the tax benefits available under the Seed Enterprise Investment Scheme.

Providing seed investment to emerging technology-focused companies, the Deepbridge Innovation SEIS seeks to fund selected investee companies that possess an exciting new innovative approach to meet the existing and emerging requirements and demands of both corporate and consumer markets.

The Deepbridge Investment Team has a proven track record of working with emerging companies to create value for shareholders through a hands-on investment methodology.

The Deepbridge Innovation SEIS is a manager fee-free SEIS opportunity at the point of investment for subscriptions received by a financial adviser. Upfront and ongoing manager fees are paid by the Investee Companies, potentially allowing investors to enjoy up to 100% of SEIS tax benefits. Please see costs and fees section in the Information Memorandum for full details.

T. 01244 746000 E.Enquiries@deepbridgecapital.com www.deepbridgecapital.com

The availability of SEIS tax reliefs depends on individual circumstances, may be subject to change in future and depend on underlying companies invested in maintaining their qualifying status. Investment in unquoted companies carries high risks and investors could lose the total value of their investment. Investments in SEIS can be difficult to realise. Past performance is not a reliable indicator of future performance.

This financial promotion, directed at investment professionals, has been approved by Enterprise Investment Partners LLP (“EIP”).

Deepbridge Advisers Limited (FRN: 609786) is an Appointed Representative of EIP, which is authorised and regulated by the Financial Conduct Authority (FRN: 604439).

EIS Open

January 2013

Close

Evergreen

Deepbridge - Technology Growth EIS

Amount to be Raised: Uncapped

The Deepbridge Technology Growth EIS represents an opportunity for private investors to participate in a selected portfolio of innovative growth companies, taking advantage of the tax benefits available under the Enterprise Investment

Minimum Investment: £10,000

Scheme. The Deepbridge EIS focusses principally on three sectors: • Energy and resource innovation; • Medical technologies; • Business enterprise and other high growth IT-based technologies.

T. 01244 746000 E. Enquiries@deepbridgecapital.com www.deepbridgecapital.com

The Deepbridge Investment Team has a proven track record of working with emerging companies to create value for shareholders through a hands-on investment methodology. The Deepbridge Technology Growth EIS is a manager fee-free EIS opportunity at the point of investment for subscriptions received by a financial adviser. Upfront and ongoing manager fees are paid by the Investee Companies, potentially allowing investors to enjoy up to 100% of EIS tax benefits. Please see costs and fees section in the Information Memorandum for full details.

The availability of EIS tax reliefs depends on individual circumstances, may be subject to change in future and depend on underlying companies invested in maintaining their qualifying status. Investment in unquoted companies carries high risks and investors could lose the total value of their investment. Investments in EIS can be difficult to realise. Past performance is not a reliable indicator of future performance.

This financial promotion, directed at investment professionals, has been approved by Enterprise Investment Partners LLP (“EIP”).

Deepbridge Advisers Limited (FRN: 609786) is an Appointed Representative of EIP, which is authorised and regulated by the Financial Conduct Authority (FRN: 604439).

SEIS Open

January 2016

Close

Evergreen

Target Raise: £3m per annum Minimum Investment: £10,000

The Deepbridge Life Sciences SEIS The Deepbridge Life Sciences SEIS represents an opportunity for private investors to participate in a selected portfolio of early stage life sciences companies, taking advantage of the tax benefits available under the Seed Enterprise Investment Scheme.

Providing seed investment to emerging companies operating in the life sciences sector, the Deepbridge Life Sciences SEIS seeks to fund companies with exciting new technologies that aim to satisfy the needs of large and growing markets.

The Deepbridge Investment Team has a proven track record of working with emerging companies to create value for shareholders through a hands-on investment methodology.

T. 01244 746000 E. Enquiries@deepbridgecapital.com www.deepbridgecapital.com

The Deepbridge Life Sciences SEIS is a manager fee-free SEIS opportunity at the point of investment for subscriptions received by a financial adviser. Upfront and ongoing manager fees are paid by the Investee Companies, potentially allowing investors to enjoy up to 100% of SEIS tax benefits. Please see costs and fees section in the Information Memorandum for full details.

The availability of SEIS tax reliefs depends on individual circumstances, may be subject to change in future and depend on underlying companies invested in maintaining their qualifying status. Investment in unquoted companies carries high risks and investors could lose the total value of their investment. Investments in SEIS can be difficult to realise. Past performance is not a reliable indicator of future performance.

This financial promotion, directed at investment professionals, has been approved by Enterprise Investment Partners LLP (“EIP”). Deepbridge Advisers Limited (FRN: 609786) is an Appointed Representative of EIP, which is authorised and regulated by the Financial Conduct Authority (FRN: 604439).

40

I FAmagazine.com

Open Offers

EIS Open

Evergreen

SEIS Close

Evergreen

Amount to be Raised: £5m Minimum Investment: £15,000

Oxford Technology Combined SEIS and EIS Fund - “The Start-up Fund” Oxford Technology invests in high risk, high reward technology start-ups, in general within an hour’s drive of Oxford, and has been doing this since 1983. The latest fund, OT(S)EIS, made its first investment in 2012. By 5 April 2020, OT(S)EIS had completed 142 investments in 41 companies. In the most recent quarter, the tax free gain on the portfolio increased from £9.5m to £9.85m. On balance Covid created more value in the quarter than was destroyed, which is not to say that none of the investees suffered.

The figures for the fund as a whole since its inception are as follows:

T. 01865 784466 E. info@oxfordtechnology.com www.oxfordtechnology.com

Gross amount invested by OT(S)EIS:

£7.16m

Cash back to investors via tax reliefs:

£2.75m

Net cost of these investments after tax reliefs:

£ 4.41m

Cash back from exits:

£ 0.24m

Fair value of remaining portfolio:

£14.25m

Total value: £17.25m Tax free gain (on paper only so far):

£9.85m

After tax losses on the three failures:

£0.0459m

*OT(S)EIS investors who made an SEIS investment in Animal Dynamics, an Oxford University spin-out at 14p per share (7p after SEIS tax relief) in Jun 2015, had the opportunity to exit in March 2019 at 97p per share (so 14x the after tax share price). About 50% of the shareholders opted to sell with 50% opting to remain – the company is doing very well.

OT(S)EIS remains open for investment at any time. We average about one or two new investments per quarter, and investors in the fund receive their pro-rata share of these. The latest quarterly report, with a page of information on each investment is downloadable from from www.oxfordtechnology.com.

EIS Open

Now

SEIS Close

31.07 2020

Amount to be Raised: £3.5m Minimum Investment: £20,000

Iron Box Capital: Alive in the Morning Ltd. Alive in the Morning Ltd. will develop, produce, finance and market a slate of unique, commercial films in the horror and thriller/horror genres. Horror is one of the most popular and pro table genres in a worldwide Filmed entertainment market that will be worth a forecasted US$104.62 billion a year by 2019. It is consistently commercially successful as people love to watch movies to be scared, whether at the cinema or at home.

Horror is also one of the most international genres, as fear is universal, transcending cultural and geographical boundaries.

Horror Films additionally can be made on low budgets and do not need star names to attract audiences, offering the potential for a significant return-on-investment.

Advance Assurance has been given.

T. 07528616752 E. raimund@ironboxcapital.com www.ironboxcapital.com

I FAmagazine.com

41

EIS Open

Close

01.10.2018

Evergreen (quarterly closes in January, April, July, October)

Amount to be Raised: £10m Minimum Investment: £10,000

Great Point Ventures EIS Great Point Ventures EIS (“Fund”) presents UK tax payers with the opportunity to invest in EIS qualifying businesses operating in the booming UK creative industries.

The Fund aims to seek out high growth companies and has a broad sub-sector approach designed to offer investors a degree of diversification across content creation, content distribution & marketing, production facilities & services and new media & technology.

Investors will have a minimum of four companies in their portfolio and all companies must have received Advance Assurance from HMRC prior to funds being deployed.

Why Great Point Ventures EIS?

Unrivalled sector experience - the Great Point team have a unique blend of financial, operational, commercial and investment management expertise specific to the media sector Strong opportunity pipeline - significant proprietary, sector specific deal flow offering genuine portfolio diversification Alignment of interest - the Fund offers a competitive fee structure ensuring Great Point’s interests are aligned with those of the investor T. 0203 873 0028 E. dperkins@greatpointmedia.com www.greatpointmedia.com

Growth focussed - the Fund’s target return is two times gross investment (excluding tax reliefs, inclusive of all costs and fees) Tax efficient - for every £1 subscribed 98p will be invested and therefore attract EIS tax reliefs (subject to personal circumstance)

EIS Open

Close

March 2017

Evergreen

Deepbridge Life Sciences EIS

Maximum Raise: Uncapped

The Deepbridge Life Sciences EIS represents an opportunity for private investors to participate in a selected portfolio of healthcare innovation, whilst taking advantage of the tax benefits available under the Enterprise Investment Scheme.

Minimum investment: £10,000

The Deepbridge Life Sciences EIS focuses principally, but not exclusively, on three sectors: • Biopharmaceuticals • Biotechnology • Medical Technology.

The Deepbridge Investment Team has a proven track record of working with emerging companies to create value for shareholders through a hands-on investment methodology.

T. 01244 746000 E. Enquiries@deepbridgecapital.com www.deepbridgecapital.com

The Deepbridge Life Sciences EIS is a manager fee-free EIS opportunity at the point of investment for subscriptions received by a financial adviser. Upfront and ongoing manager fees are paid by the Investee Companies, potentially allowing investors to enjoy up to 100% of EIS tax benefits. Please see costs and fees section in the Information Memorandum for full details.

The availability of EIS tax reliefs depends on individual circumstances, may be subject to change in future and depend on underlying companies invested in maintaining their qualifying status. Investment in unquoted companies carries high risks and investors could lose the total value of their investment. Investments in EIS can be difficult to realise. Past performance is not a reliable indicator of future performance.

This financial promotion, directed at investment professionals, has been approved by Enterprise Investment Partners LLP (“EIP”).

Deepbridge Advisers Limited (FRN: 609786) is an Appointed Representative of EIP, which is authorised and regulated by the Financial Conduct Authority (FRN: 604439).

SEIS Open

Now

Close

Evergreen – multiple close dates

Amount to be Raised: £750K Minimum Investment: £10,000

Iron Box Film & TV seis channel in the Amersham SEIS fund The British Film Industry is growing, and is forecast to grow for years to come. This is fuelled by the global demand for films, through multi on-line channels, including Netflix and Amazon Prime.

Iron Box’s team of experts has specialist knowledge across development, finance, production and marketing of film & television projects. As a company they are well positioned to capitalise on this growth market.

The aim is to focus on the most profitable genres, where there is a clear target audience, and in using proven teams of people that have a track record of making profitable Film & TV shows.

The Iron Box Film & TV SEIS Channel has been designed for UK tax payers who prefer to invest in a managed portfolio of independent filmed entertainment projects, whether for traditional films or television. There are likely to be around 4 films in each portfolio. The fund will finance projects that are commercial, with strong audience appeal, and suit the international marketplace.

T. 07528616752 E. raimund@ironboxcapital.com www.ironboxcapital.com

42

The companies will be SEIS eligible.

I FAmagazine.com

Open Offers

EIS

SEIS

Open

Close

Now

Multiple

Amount to be Raised: Evergreen

Minimum Investment: £10,000

T. 07768571271 E. pauls@worthcapital.uk worthcapital.uk

Start-Up Series Fund The Start-Up Series Fund is an evergreen EIS & SEIS service. Managed as an Alternative Investment Fund by Amersham Investment Management Limited, authorised and regulated by the FCA. The service is designed for eligible subscribers to be invested in selected winners of the Start-Up Series, a monthly competition organised by Worth Capital Limited and promoted by startsups.co.uk. The Fund invests in qualifying B2C or B2B companies with innovative products or services that can create new consumer behaviours in growth markets, with teams that demonstrate compelling marketing & communication skills and with a clear credible route to exit.

•

EIS & SEIS investments - choose EIS, SEIS or both

•

Businesses selected by real world, commercial entrepreneurs with deep brand, marketing, retail & innovation expertise – worth capital

•

A unique approach to UK EIS & SEIS fund investing – a monthly competition which has attracted over 2,600 applications to date

•

Ongoing oversight from experienced investor directors - skilled in helping accelerate growth & reducing risk

•

Investments in ‘mini-portfolios’ of typically 3 or 4 businesses

•

Investments qualifying for attractive EIS & SEIS tax reliefs

Any investment in the Start-Up Series Fund places your capital at risk of total loss and will not be readily realisable. Tax treatment depends on individual circumstances and is subject to change.

We recommend you take professional advice before investing.

EIS Open

Evergreen

Close

Evergreen

Amount to be Raised: Evergreen Minimum Investment: £15,000

Downing Ventures EIS Downing Ventures EIS invests in high risk, high potential return investment opportunities with a principal focus on early-stage UK technology companies, while also providing access to attractive EIS tax reliefs.

The teams invests across a variety of sectors, with a focus on enterprise software, health technology and e-commerce.

Each of these young, growing businesses will be high risk with a significant chance of failure.

However, the following factors should help to manage risk: • Diversification: investments are estimated to be spread across a portfolio of 10 - 15, where possible in a variety of sectors.

T. 07946 117770 E. Bill@Downing.co.uk www.downing.co.uk

IHT Open

Evergreen

BR Close

Evergreen

Amount to be Raised: Evergreen Minimum Investment: £25,000

• Due diligence: a high number of opportunities will be investigated before each investment is made. In 2018, the team reviewed around 100 companies a month.

It’s anticipated that investors will be given the opportunity to exit their investments between four and eight years from subscription.

Downing Estate Planning Service Downing Estate Planning Service (DEPS) aims to preserve investors’ capital by focusing on two sectors: businesses trading from freehold premises and/or energy businesses. We believe these are lower risk than other tax-efficient sectors. DEPS is designed to offer full IHT relief on subscriptions after two years, by investing in a portfolio of businesses that qualify for business relief.

The service has been designed with the following key features: • Targets capital growth of 4% per annum over the medium term (this is a target and not guaranteed).

T. 07946 117770 E. Bill@Downing.co.uk www.downing.co.uk

• Receive distributions (paid on a quarterly, six-monthly or annual basis).

• Access to capital twice a month, with no charges or penalties on exit (subject to liquidity, Downing’s discretion and 10 days’ notice).

Additionally, we offer two insurance policies for this service: • Downside protection cover (at no additional cost): covers the first two years (before the investment obtains IHT relief). It covers a loss in value of up to 20% on initial net investment on death.

• Life cover (optional – at an additional cost): mitigates the effect of IHT for the first two years before IHT relief begins. It covers 40% of the original gross investment (which would be payable to HMRC) upon death within the first two years.

I FAmagazine.com

43

BR Open

Close

June 2005

Evergreen

Amount to be Raised: Unlimited

Minimum Investment: £25,000

Octopus AIM Inheritance Tax Service Since 2005, the Octopus AIM Inheritance Tax Service has offered a fast and flexible solution to inheritance tax planning, while providing the potential for significant capital growth through investment into a portfolio of 20-30 companies listed on the Alternative Investment Market (AIM).

As we only select companies which meet the requirements for Business Property Relief, the shares should become exempt from inheritance tax after just two years, provided they are still held on death.

Our highly experienced Smaller Companies team manages £1.5 billion on behalf of 11,500 investors across the service.

T. 0800 316 2295 E. clientrelations@octopusinvestments.com

octopusinvestments.com

Portfolio companies are chosen after detailed research, which involves spending time with a company’s management team, evaluating its competitors and assessing its financial strength.

Holdings are monitored on a day-to-day basis, with the team making investment decisions.

The Octopus AIM Inheritance Tax Service is also available within an ISA wrapper.

The value of an investment, and any income from it, can fall as well as rise and you may not get back the full amount invested.

Tax treatment depends on individual circumstances and may change in the future.

Tax relief depends on portfolio companies maintaining their BPR-qualifying status.

The shares of smaller companies could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell.

Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London EC1N 2HT. Registered in England and Wales No. 03942880. We record telephone calls. Issued: September 2018. CAM07427-1809.

EIS Open

Close

Evergreen

Evergreen

Amount to be Raised: Uncapped Minimum Investment: £20,000

Symvan Capital Symvan Capital has an established and award-winning track record of growth-oriented investing. We invest in scalable and disruptive technology businesses – companies that seek to impact and change established business models or industries. We look for businesses with a unique proposition and the potential to deliver ten times our investment.

Symvan scours the market to find founders with strong teams who have vision, drive and flexibility to deliver results within reasonable time frames. We fund, mentor and support them through to exit. We provide both management and expert advice from our own team and from our network.

T. 020 3011 5097 E. ml@symvancapital.com www.symvancapital.com

There are zero upfront or ongoing charges to the investor. We charge the investee companies instead. Therefore, investors can claim 100% of the EIS tax reliefs.

The only fee Symvan eventually charges investors is a 20% performance fee, which is dependent on a successful exit. Consequently, Symvan is very exit focussed.

We typically add no more than five to seven new companies to the portfolio per year, in line with our “deeper not wider” investment philosophy.

We have £9.5 million remaining capacity for deployment pre 5th April 2020, targeted across up to 12 companies. Guaranteed carry-back to 18/19 for subscriptions received prior to 5th April 2020.

IHT Open

Evergreen

Close

Evergreen

Amount to be Raised: Evergreen Minimum Investment:

£100,000

Downing AIM Estate Planning Service (DAEPS) Downing AIM Estate Planning Service (DAEPS) enables investors to own a portfolio of AIMlisted shares and is designed to offer full IHT relief on subscriptions after two years, by investing in companies that qualify for business relief.

We aim to manage risk by spreading funds across at least 20 companies from different sectors on the AIM market.

Other key features:

T. 07946 117770 E. Bill@Downing.co.uk www.downing.co.uk

• Downside protection cover (at no additional cost): an insurance policy that covers the first two years (before the investment obtains IHT relief). The policy covers 20% of any net loss in value on death under the ages of 90 years.

• Ownership and control: allow investors to retain full ownership of the investments.

• Capital growth: companies will be selected based on analysis on operational business, longevity of earning and alignment between management and equity shareholders.

• Access: enable investors to withdraw capital from their portfolio at any time, subject to liquidity and 10 days’ notice.

44

I FAmagazine.com

One platform to access, evaluate and invest in alternative assets Join a growing community of financial advisers using CoInvestor to access a range of EIS, VCT and BR investment opportunities.

From digital applications through to dynamic portfolio tracking, CoInvestor makes it easy to manage your clients’ alternative asset investments – all in one place.

Create your free account at coinvestor.co.uk

Capital at risk - Investments shown on CoInvestor put your capital at risk: investors may not get back the full amount invested. The investments listed are in unlisted companies which are likely to be harder to value and sell than quoted shares.

CoInvestor Limited is registered in England under company number 07233697 and is authorised and regulated by the Financial Conduct Authority under firm registration number 747676.

IHT Open

Close

Evergreen

Evergreen

Amount to be Raised: Evergreen Minimum Investment:

£100,000

Downing AIM ISA (DISA) Downing AIM ISA (DISA) gives investors the opportunity to invest in a portfolio of AIMquoted companies, combining IHT relief (after two years) with ISA tax benefits, by investing in companies that qualify for business relief.

We aim to manage risk by spreading funds across at least 20 companies from different sectors.

Other key features: • Downside protection cover (at no additional cost): insurance policy that covers the first two years (before the investment obtains IHT relief.) The policy covers 20% of any net loss in value of death under the ages of 90 years.

T. 07946 117770 E. Bill@Downing.co.uk www.downing.co.uk

• Ownership and control: allows investors to retain full ownership of the investments.

• Capital growth: generate capital growth from the portfolio of investments.

Companies are selected based on analysis of their operational business, longevity of earnings and alignment between management and equity shareholders.

• Access: to enable investors to withdraw capital from their portfolio at any time, subject to liquidity.

VCT Open

October 2019

Close 30th October 2020

Blackfinch Spring Venture Capital Trust

Amount to be Raised: £20 million

The Blackfinch Spring VCT brings clients the chance to further diversify their portfolios through exposure to the technology sector. This is alongside access to VCT tax benefits including 30% income tax relief and the prospect of tax-free dividends.

Minimum Investment: £3,000

The VCT plans to invest in a diversified range of early stage technology firms operating across sectors. The focus is on firms at a growth-stage of development, bringing a higher chance of success. Investee firms will be sourced from high-quality new deal flow. The VCT will also make follow-on investments in the highest-performing firms emerging from the Blackfinch Ventures EIS Portfolios. By 2024 we plan to return the profits to investors as tax-free dividends of 5% per annum.

ordinary shares and over-allotment facility for a further £10 million.

T. 01452 717070 E. enquiries@blackfinch.com www.blackfinch.com/ventures/ springvct

EIS Open

April 2017

SEIS Close

Evergreen

Amount to be Raised:

Up to £25,000,000

Minimum Investment: £10,000

T. 020 7071 3945 E. enquiries@growthinvest.com www.growthinvest.com

46

GrowthInvest Portfolio Service The GrowthInvest Portfolio Service is a discretionary managed EIS & SEIS portfolio service that leverages the experience and expertise of the GrowthInvest investment team to select a diversified portfolio of some of the most promising companies that have passed through GrowthInvest platform due diligence process.

GrowthInvest is an independent platform, which provides access to tax efficient investments for the clients of UK financial advisers and wealth managers and angel investors. The platform brings the advantages of early stage investing to a wider audience of investors and advisers, who are able to benefit from the potentially higher returns these investments can offer and tax efficiency through reclaimed income tax and reduced capital gains liabilities via government approved schemes, such as EIS and VCTs. Clients can invest in three different strategies in the GrowthInvest Portfolio Service. The first will target investee companies which qualify for SEIS reliefs only; these companies tend to be the highest risk that are often developing their minimum viable product and will be pre-revenue businesses. The second strategy will target investee companies which qualify for EIS reliefs only, i.e. those businesses that are already trading and require equity capital to expand their operations. The third strategy is a mixed investment policy which will target investee companies which qualify for both SEIS and EIS relief and offering a more moderate level of risk. The GrowthInvest Portfolio Service aims to return to clients twice the initial invested amount (not including tax reliefs) and is aiming to exit investments and return capital three to seven years after the initial investment into the Portfolio Service.

I FAmagazine.com

Open Offers

EIS Open

Close

July 2019

June 2020

Amount to be Raised: £20m Minimum Investment: £50,000

Calculus EIS Fund Pioneers of tax efficient investing, Calculus Capital created the UK’s first approved EIS Fund in 1999.

Our 20+ year track record of investing in growing UK Companies assures investors of our ability to make sensible investments capable of delivering excellent returns at every stage of the economic cycle.

Calculus has won multiple awards, EISA’s ‘Fund manager of the Year’ five times, ‘Best EIS Investment Manager’ at the Growth Investor Awards and most recently EISA’s Outstanding Contribution to EIS Investment Management by Fund Manager’ in 2019.

Calculus are recognised as having an incredibly robust investment process and an active portfolio management style – which has led to an impressive track record of successful exits.

The Calculus EIS Fund focuses on entrepreneurial companies with growth potential, across a diverse range of sectors. An investor can expect a portfolio of at least 6 companies with the following characteristics: • The ability to achieve our target IRR of 20% • Experienced management teams

T. 020 7493 4940 E. info@calculuscapital.com www.calculuscapital.com

• Successful sales of proven products or services • Profits or a clear path to profitability • Clear route to exit Calculus’ investment policy is exit led, with a key focus on delivering strong returns to investors.

The target 18 month deployment commences after the relevant closing date.

Calculus value their reputation for client service as much as their investment record, and are focused on building long standing relationships with both clients and advisers. Please get in touch to find out more on 020 7493 4940 or info@calculuscapital.com.

VCT Open

September 2019

Close August 2020

Amount to be Raised: £10m Minimum Investment: £5,000

Calculus VCT Calculus Capital has a strong track record for investing in entrepreneurial, unquoted UK companies.

Our experienced investment team and thorough investment process have produced impressive dividend performance and exit returns for investors. By co-investing in selected entrepreneurial companies through both VCT and EIS, Calculus are able to choose larger companies and bigger deals. The Calculus VCT has the following characteristics: • Targets an annual dividend of 4.5% of NAV • Income tax relief of 30%, tax free capitalgains and dividends • Diversified portfolio, targeting 30+ qualifying companies • Monthly standing order and Dividend Reinvestment Scheme options available • Target 5% discount in respect to share buyback The top up offer will be used to invest in new companies with grwoth potential and provide further funding to a number of portfolio companies.

T. 020 7493 4940 E. info@calculuscapital.com www.calculuscapital.com

EIS Open

Evergreen

Close

Evergreen

Amount to be Raised: N/A Minimum Investment: £25,000

Calculus value their reputation for client service as much as their investment record, and are focused on building long standing relationships with both clients and advisers. Please get in touch to find out more on 020 7493 4940 or info@calculuscapital.com.

Vala EIS Portfolio The Vala EIS Portfolio invests in companies selected and mentored by a group of serial entrepreneurs, with a long track record of creating, building and successfully selling companies.

We focus our investments on the sectors we know best, where our expertise and networks can make a valuable impact on the progress of our portfolio companies. This includes digital media and entertainment, engineering, fintech, leisure, and food & beverages.

Investors will acquire shares in 6-10 companies, with an overall target return of 2x and expected holding period of 3-5+ years. Portfolios usually include both pre-revenue and post-revenue companies, and new and follow-on investments.

T. 0203 951 0590 E. info@valacap.com www.valacap.com

I FAmagazine.com

We charge no initial or annual management fees to investors. Our costs are covered by a 6% fee charged to investee companies, and we earn a performance fee of 20% of profits from successful exits.

Investments are completed in tranches, so subscriptions can be quickly deployed and investors can learn about the companies we plan to invest in before subscribing. Our next tranche is scheduled for the 30th June 2020 for immediate deployment, subject to a minimum fundraise of £1m.

Corresponding EIS3 certificates for this tranche are expected to be available within 3 months.

47

EIS Open

Close

June 2019

June 2020

Amount to be Raised: £20m Minimum Investment: £10,000

UK Creative Content EIS Fund The UK Creative Content EIS Fund, in association with BFI, will invest in a new generation of EIS qualifying UK creative content companies within a diversified growth focused portfolio. Calculus Capital is the fund manager bringing a wealth of experience investing in growing UK companies over the past 20 years. Stargrove Pictures is acting as strategic adviser for the Fund, having overseen £1bn+ of investment in the sector. Together, Calculus and Stargrove create a ‘best in class’ combination which the BFI selected after a rigorous selection process.

UK content companies already have an established track record of creating high quality content watched by millions worldwide.

Technology is changing the way we consume creative content, evidenced by the significant growth of subscription video-on-demand (SVOD) services such as Amazon and Netflix, who are reported to be spending almost $15bn on content. Together with the more traditional broadcasters and distributors, this has created a highly competitive landscape and an ever-increasing global demand for exciting original content. The Fund is well placed to capitalise on this unprecedented growth in demand.

T. 020 7493 4940 E. info@calculuscapital.com www.creativecontenteis.co.uk

An investor can expect a portfolio of at least 6 companies with the following characteristics: • Proven experience in developing and producing commercially appealing projects • Existing development slate • Excellent talent connections • Commitment to diversified multi-platform strategy • Experienced entrepreneurial management teams The Fund is targeting deployment over 15 months with a target return of 2x on monies invested.

Calculus value their reputation for client service as much as their investment record, and are focused on building long standing relationships with both clients and advisers. Please get in touch to find out more on 020 7493 4940 or info@calculuscapital.com.

EIS Open 2012

Close Evergreen

Amount to be Raised: No maximum

Minimum Investment: £20,000

Par Syndicate EIS Fund Par Equity is an award-winning EIS Fund Manager, investing in innovative, high growth potential technology businesses across the UK. We harness the expertise and contacts of our Par Syndicate and wider investor network to create a distinctive, operationally focused investment model that benefits both investors and entrepreneurs.

Our investor network provides unrivalled access to the right people at the right time, who enhance our deal flow, improve our due diligence, fine tune business models and guide the entrepreneurs through to exit. Entrepreneurs recognise Par Equity as an added value investor, which is reflected in our strong flow of investment opportunities.

Strategy for the Fund: • Focused on early stage technology companies with high quality management teams addressing global markets

T. 0131 523 1057 E. pauline.cassie@parequity.com www.parequity.com

• Co-investing with experienced angel investors who add value to portfolio companies at each stage through to exit • Target portfolio of 7 - 8 investments • Target deployment within 12 months • Expected holding period of 5 - 7 years with a benchmark IRR of 15% Experience and track record of the Fund Manager: • Award-winning investor • 10-year track record • 53 investments made • £128m deployed • 14 realisations achieved: • 3.2x multiple (before tax relief) • 26% blended IRR • 3.6-year average holding period

48

I FAmagazine.com

Open Offers

EIS Open

Close

15th Dec 2014

Evergreen

Target Raise: Evergreen Minimum investment: £15,000

Committed Capital Growth EIS Fund Committed Capital is an investment management and corporate advisory business founded in 2001.

• Investment Methodology - Focus on maximizing growth in companies with the injection of human capital to assist leading entrepreneurs develop their business to its full potential.

• Investment Strategy - Post-revenue (£1m+), growth stage UK based technology companies across a number of sectors. Companies must have multiple client contracts in place, solid pipeline of sales, proven management and robust and demonstratable growth strategy.

• Diversification

- Investors will have between 8-12 companies in their portfolio with HMRC advance assurance in place.

T. 020 7529 1365 E. glen.stewart@committedcapital.co.uk www.committedcapital.co.uk

• Deployment • Target return

- Funds typically deployed within 6 months.

• Minimum investment

- 2-3x ROI*

- £15,000

Track record Since 2001 the team have achieved an average 2.4x ROI* with an average holding period of 4 years.

The fund has deployed £54.7m (as at April 2020), had two profitable partial exits and most recently a whole exit that completed on 31 July 2019 with a 2.71xROI*.

Outside of the current funds, Committed Capital has deployed £36.8m across 18 other EIS qualifying companies and has exited all of these achieving 17 profitable exits with just 1 partial failure. * - (excluding any tax reliefs)

EIS Open

Now

Close

Evergreen

Amount to be Raised: N/A Minimum Investment: £5,000

Access EIS Access EIS tracks performance data of over 1,000 active startup investors. It then selects and co-invests with some of the best-performing “super angels” with the aim of replicating their collective success.

The fund aims to diversify your investment across at least 50 super-angel-backed startups to minimise risk and capture as many potential “blockbusters” as possible.

As an EIS fund, eligible investors could benefit from generous tax relief on their investment into Access EIS. SyndicateRoom’s dashboard aims to make light work of EIS paperwork with easily downloadable summaries that can simply be attached to an HMRC self-assessment tax return.

T. 01223 478 558 E. contactus@syndicateroom.com www.syndicateroom.com

I FAmagazine.com

With investments, your capital is at risk. SyndicateRoom and Access EIS are targeted exclusively at sophisticated investors who understand these risks. This message has been approved as a financial promotion by Syndicate Room Ltd, which is authorised and regulated by the Financial Conduct Authority (No. 613021). It is not a recommendation to invest and does not constitute advice. Tax relief depends on an individual’s circumstances and may change in the future. If unsure, seek advice. Syndicate Room Ltd is registered in England and Wales. Number 07697935.

Registered office: The Pitt Building, Trumpington Street, Cambridge CB2 1RP

49

EIS Open

Evergreen

Close

Amount to be Raised:

£20 million

Minimum Investment:

£20,000 (£15k if both spouses)

T. 0207 927 7465 E. Enquiries@endven.com www.endven.com

EIS

SEIS

Open

Evergreen

Open

Evergreen

Amount to be Raised:

Open Ended

Minimum Investment: £10,000

Endeavour Ventures Managed Portfolio Service Building on our successful track record in growth EIS investing since 2005, Endeavour’s new Portfolio Service has been designed to provide many of the advantages of a managed EIS fund, but with better flexibility and no initial or annual fees for investors. Total fees are kept low, and clients receive 100% EIS relief on the money we invest.

Endeavour builds each client a diversified portfolio of companies across technology sectors that we know and understand. We focus on enterprise software, property and legal technology related platforms, cloud-based software delivery, workforce management and optimisation, data management platforms, and we have developed expertise in payments, FX and in fintech. We also diversify across stages of development, we seek out companies that are showing increasing customer traction, and many of our investments are into maturing businesses wishing to expand. The number of investments held by a client increases over several years tax years to give optimum diversification.

The objective is to enable clients to consistently benefit from EIS reliefs against tight deadlines while providing a base case return on capital of 1.6x to 2x over a 5 year period. This is against Endeavour’s 12 year audited cash to cash track record of 6.1x cost.

Our investment team understands growth investment complexities and timeframes. We have the right combination of skills for due diligence, investing, assisting and monitoring portfolio companies, and for exiting investments. We know that growth investing requires resilience over a number of years, and therefore forge strong partnerships between management teams and our own team members, that endures throughout the course of the investment cycle and on to exit. The most recent portfolio exit was Blue Prism Group Plc, providing Endeavour’s investors with a return of 150x and securing the EISA’s 2017 Best Exit of the Year.

Nova Growth Capital At Nova, we believe that fund management can be done differently. Our approach to fund management affords the investor access to tech enabled, growth-focused businesses at the earliest stages of a company life cycle, all whilst aiming to reduce the risk associated with investing in startups. We do this by aiming to reduce the 5 most common startup mistakes. Our truly proprietary deal flow is provided by our cofoundry business, helping founders solve real problems felt by sizeable markets. Our cofoundry then employs over 100 people to consult, build and grow our portfolio companies, applying our investors capital into an operating model rather than an investment model. The result; our portfolio value has grown in excess of 80% year on year for 10 years.

• Potential returns of £5.70 in the £1 if portfolio growth continues at 83% • Target returns of £2.18 in the £1 based on targeted 20% year on year portfolio growth

T. 0151 318 0761 E. fund@wearenova.co.uk www.wearenova.co.uk

EIS/SEIS Open January 2019

Close Quarterly Closings

Amount to be Raised: £10m

Minimum Investment: £25,000

E. invest@o2h.com www.o2hventures.com

50

• A minimum return of 58p in the £1 in the unlikely event that every company in the cohort fails • A 0.2% chance of every company in the cohort failing Our senior team are a balanced mix between seasoned investors, start-up practitioners and successful entrepreneurs. The fund aims to deploy quarterly into 10 companies through a mixture of SEIS and follow on EIS investment, further reducing risk by giving a diversified spread of circa 30 high growth, tech enabled companies per year

The o2h therapeutics and AI fund The Britain’s first S/EIS investment fund backing biotech therapeutic and related AI opportunities has made 10 Investments into biotech therapeutics and AI companies since its launch at the beginning of 2019. o2h ventures look for companies with great science that have potential to be developed towards a collaboration or exit. It is fund manager’s belief that what happened in Tech over the last 10 years is being replicated in Biotech with large pharma seeking to collaborate and acquire innovative small biotech companies. o2h ventures are also privileged to invest into a sector in which they can not just make a commercial return but also work on projects that benefit society.

The team at o2h group have access to some of the most exciting ideas through its live grass roots working relationships fostered with entrepreneurs and scientists over many years giving it far earlier access than competitors to the most promising companies.

In 2019, the o2h therapeutics and AI fund was nominated as the Best New Entrant in the Tax Efficiency Award by Investment Week and was the finalist for Impact Awards in the 25th Year EISA Awards.

Sunil Shah, the fund manager, is on the Board of the Biotech Industry Association, Cambridge Angels and received the 2019 UKBAA Angel of the Year award.

I FAmagazine.com

Open Offers

EIS Open

Close

Evergreen

Evergreen

Amount to be Raised:

c. £30m

Minimum Investment:

£25,000

MMC Ventures EIS Fund Invest in the UK’s fastest growing technology companies • Performance: In the last 24 months, MMC has delivered five positive exits returning an average of 2.7x to investors.

• Experience: MMC has been backing the UK’s fastest growing tech companies for 19 years, making them one of the most experienced managers in the EIS space.

• Commitment: More than £11 million has been invested by the MMC founders and team alongside its investors, on the same terms.

T. 0207 361 0212 E. invest@mmcventures.com www.mmcventures.com

EIS Open

1st November 2019

Close 31st March for investment requiring deployment by the 5th april for carryback; otherwise the fund will remian open with depoloyment on a monthly basis

Amount to be Raised:

£3,500,000

Minimum Investment:

£10,000

Investors in MMC’s EIS Fund can expect deployment over a 12-18 month period in a diversified portfolio of c. 10 companies. The Fund targets a 2-3x return over a 4-8 year holding period.

ARIE Capital Technology EIS Fund ARIE Capital began investing in technology companies in 2016, following on from two early technology investments that its parent company, Taurus Asset Finance, made in 2013.

Since then, our company has made fifteen technology-based investments. We are proud of our vibrant and diverse portfolio that continues to increase exponentially in valuation, with two exits already made.

Following these principles, we have now assembled a dedicated team to focus on the development of EIS opportunities and to cultivate exciting new technologies.

We are partnering with companies and founders that are well known to ARIE Capital and have already shown considerable growth and development. We look to nurture these companies so that they will be ready for further funding in the future (from ourselves or other investors), which will be to the benefit of all concerned.

With our globally-minded structure and experienced team, ARIE Capital offers you the opportunity to invest in companies that might not come your way via the traditional routes. In this way, we present to you a fund that is full of unique investment opportunities that are both exciting and with significant upside potential.

T. 020 7087 3570 E. martin@arietech.co.uk www.ariecapitaleis.com

I FAmagazine.com

51

NOV 19 / 403604