For Professional Advisers. Not for Retail Clients.
FEBRUARY
2014
abc INVESTMENTS
IN THIS ISSUE
WELCOME TO THIS MONTH’S ISSUE
Investment Focus
Current Invesment
Opportunities
Financial Planning
for...
Industry News
MONTHLY UPDATE
We are delighted to launch the first edition of our Ingenious Investments Monthly Update.
As we approach the end of the fiscal year and personal tax returns have been filed, this is the
time when tax efficient investments take centre stage.
In this issue, we highlight the current Enterprise Investment Scheme (EIS) opportunities
available to you and your clients. This includes Shelley Media EIS which we explore further in
the Investment Focus article by Nik Bower, Managing Director of our media division.
Having listened carefully to your feedback, we have included a Financial Planning for…
section by Matt Dickens, Investment Director and Chartered Wealth Manager, to provide
you with further information on how to identify clients who may benefit from our investment
opportunities. This month’s article will explain how an EIS can be used to mitigate your
clients’ exposure to Income Tax (IT), Capital Gains Tax (CGT) and Inheritance Tax (IHT).
Every month we will keep you updated with our latest investment launches and closes, our
analysis of key industry news and new developments at Ingenious such as myIngenious,
our online portal where you can access your clients’ investment updates and statements.
There are only eight weeks remaining until our range of EIS investments close on 1 April,
so please contact our Client Relationship team on 020 7319 4000 who will help you to
identify clients who could benefit from making an investment in 2013/14.
We hope you find this helpful and welcome any feedback which you can send to
clientservices@ingeniousmedia.co.uk
abc MEDIA
abc CLEAN ENERGY
abc REAL ESTATE
“IT WAS AN EXPLOSION
OF CULTURE, BREAKING
THE TABOOS OF SEX,
ART, FASHION, STYLE
AND ESPECIALLY
CLASS...”
SIR MICHAEL CAINE CBE
proudly presents
an exclusive and limited opportunity to invest in a company producing a feature
documentary with some of the world’s leading names in film and music
For further information please contact a member of the Client Relationship Team on
020 7319 4000 or clientservices@ingeniousmedia.co.uk
abc INVESTMENTS
MONTHLY UPDATE
INVESTMENT FOCUS
Eastern Promise
Nik Bower, Managing Director
F
ilm is big business. Box office revenues alone
generate $35 billion a year worldwide*, before
we come to pay television, ad-funded free TV
and a growing multiplicity of home video media.
DVD sales may be falling, but Blu-ray discs and
so-called digital exploitation are growing to fill
the gap. As smart TVs and high-speed broadband
spread around the world, more and more people are
buying films from internet rental and sales outlets
like Google Play and iTunes, and subscribing for
streaming services like LOVEFiLM and Netflix.
Another factor as significant to the future of
filmed entertainment as the changing behaviour of
consumers in the developed world is the rise of BRICS
(Brazil, Russia, India, China and South Africa). In China,
more than 10 new cinema screens were built every single
day throughout 2012**. That really is an extraordinary
statistic. China is now the second-largest territory in
the world for the sale of cinema tickets, overtaking
both the UK and Japan, accounts for 8% of worldwide
box office*, and has the potential one day to challenge
North America (with around a one‑third market share,
by far the most important territory at present).
The opportunity in China is tightly controlled by the
state, of course. There is a strict quota for the theatrical
release of foreign-produced films. During national
holidays the government imposes a blackout so that
only Chinese movies are in theatres. And without
special dispensation, foreign investors are not allowed
to own film production companies in China. That is why
the last couple of years have seen a burgeoning interest
in Chinese co-production; if a foreign film company
co-produces a film with a local Chinese partner, the
film can avoid the quota restrictions and access the
massive potential of the Chinese market on far better
commercial terms.
Our Shelley Media EIS has been an early entrant into
this market, backing the production of an effects‑heavy
adventure film that shot in China in 2012 as a
co‑production with the state-owned China Film Group.
The film was released this month and, after only five days,
had reached a remarkable fifth place in China’s box office
chart, ahead of US action feature Olympus has Fallen.
At the same time, we have been very busy closer to
home, producing the recent, raunchy Jude Law thriller
Dom Hemingway, and upcoming releases including
Mike Leigh’s new masterpiece Mr. Turner, based on
the life of JMW Turner, the David Tennant/Rosamund
Pike comedy What We Did on Our Holiday and, most
excitingly perhaps, Pudsey: The Movie starring Pudsey
(and David Walliams as the voice of Pudsey).
*Source: Focus 2013 - World Film Market Trends
**Source: www.economist.com/news/christmas-specials/21591741-red-carpet
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abc INVESTMENTS
MONTHLY UPDATE
CURRENT INVESTMENT OPPORTUNITIES
Enterprise Investment Scheme
Shelley Media EIS 9
Shelley Media EIS 9 presents an exciting opportunity to invest in EIS
qualifying companies creating and producing film, television and video
game content for the global market.
• Projected tax free returns between 8-18% per annum
• Minimum investment £10,000
• Subscription deadline of 1 April 2014
Media Opportunities EIS 3
Media Opportunities EIS 3 invests in EIS qualifying companies across the
media and creative industries sector.
• Target of 290% absolute return, tax free
• Minimum investment £10,000
• Subscription deadline of 1 April 2014
Working Class Heroes
Working Class Heroes presents an exciting and exclusive opportunity to
invest in an EIS qualifying company producing the feature documentary
Working Class Heroes about the iconic music artists of the Sixties.
• Projected base case tax free return of 175% on a net investment of 70p
• Minimum investment £10,000
• Subscription deadline of 1 April 2014
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abc INVESTMENTS
MONTHLY UPDATE
Enterprise Investment Scheme (Continued)
Ingenious Renewable Energy EIS 2
Ingenious Renewable Energy EIS 2 offers a compelling opportunity to
invest in EIS qualifying companies which acquire and operate renewable
energy generation facilities.
• Projected tax free returns between 15-20% per annum
• Minimum investment £10,000
• Subscription deadline of 1 April 2014
Seed Enterprise Investment Scheme
Ingenious SEIS 2
Ingenious SEIS 2 will enable qualifying investors to benefit from the Seed
Enterprise Investment Scheme (SEIS), which is a UK government sponsored
initiative to encourage investment in the UK’s enterprise market.
• 50% income tax relief, reducing net cost of investment to 50p per
£1 invested
• Minimum investment £10,000
• Subscription deadline of 1 April 2014
Inheritance Tax
Ingenious Estate Planning
Ingenious Estate Planning offers investors the opportunity to obtain 100%
inheritance tax relief after only 2 years.
• Flexible investment strategy
• Minimum investment £50,000
• Open ended offer
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abc INVESTMENTS
MONTHLY UPDATE
FINANCIAL PLANNING FOR...
EIS Fundamentals
Matt Dickens, Investment Director
W
elcome to the new Ingenious financial
planning column.
Over the coming months I aim to:
• address some of the common misconceptions
about certain investments and their application;
• explore new ways to add value to clients through
practical financial planning; and
• help you to identify solutions to your clients’
problems in an effective and beneficial way.
The Enterprise Investment Scheme
This month, I would like to delve into the Enterprise
Investment Scheme (EIS) to clarify the benefits of these
investments and provide examples of the type of client
it will be particularly suitable for.
The EIS, introduced in 1994, is fully approved and
backed by the UK government. It is designed to promote
investment into smaller and typically (but not always)
higher-risk trading companies by offering a range of
tax reliefs to investors who subscribe for new shares in
those companies. EIS qualifying shares need to be held
for a minimum period of three years to qualify for the
reliefs which is something that needs to be determined
when considering the suitability for your clients.
EIS investments are gradually being perceived
as “mainstream” demonstrated by the fact that
EIS businesses raised over £1 billion in the tax
year 2011/12. In addition, the government has recently
continued their support for the scheme by improving
the allowances available to investors and the benefits
to qualifying companies.
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Individuals can now invest up to £1,000,000 per tax
year and gain the following benefits*:
1) 30% tax credit to be used against their income
tax (IT) liability in the year of the investment (or the
previous tax year)
2) Capital Gains Tax (CGT) exemption - any gains will
be CGT free on disposal
3) CGT deferral relief – for all capital gains up
to three years prior to, and one year after, the
investment is made
4) Loss relief – losses on the disposal of shares can
be offset against Capital Gains or income (in the
year the loss is made and/or the previous year)
5) Shares being 100% inheritance tax (IHT) free
after being held for just two years
As you can see, clients with the most to gain from EIS
investments are those who can benefit from IT, CGT
and potentially IHT relief.
In the next edition, I shall further explore the benefits
of EIS for a high earner who is looking to conduct
some tax-efficient saving and why you should consider
discussing this opportunity with your clients who
fit this profile.
Matt Dickens is an Investment Director in the Client
Relationship team, a Chartered Wealth Manager and member
of the CISI. If you would like to discuss any of your financial
planning matters with him directly, please contact him
on 020 7319 4260 or matt.dickens@ingeniousmedia.co.uk
*Source: www.gov.uk/enterprise-investment-scheme#what-you-need-to-know
abc INVESTMENTS
MONTHLY UPDATE
INDUSTRY NEWS
A Regulatory Reminder
Marc Cane, Group Compliance Officer
FCA amends rules for promotion of EIS to clients
A
ugust 2012, I was on holiday, sitting by the pool when my Blackberry vibrated with news that the FCA
had issued a Consultation Paper called “Restrictions on the Retail Distribution of Unregulated Collective
Investment Schemes and Close Substitutes”.
My initial thoughts were not good. Ingenious has a number of funds that are structured as UCIS such as the Big
Screen Productions LLPs and Ingenious Broadcasting LLPs. On closer review, my initial thoughts were wrong…
The FCA was proposing to restrict the promotion of UCIS, EIS, VCTs and many other investments.
The FCA required responses in November, so when I returned to the office we planned our response. Ingenious and
others made representations to the FCA via a number of avenues to remove EIS and VCTs from the scope of the
proposed new rules and to relax the type of investors that could receive promotions under the proposed new regime.
In early June 2013, the FCA issued the new rules and we had been successful with our representations. The new rules
came into effect on 1 January 2014.
EIS discretionary portfolio management services, such as those offered by Ingenious, unless
structured as a UCIS, are not captured by the new promotional restrictions and can be promoted to
suitable clients.
SHELLEY MEDIA EIS 9
MEDIA OPPORTUNITIES EIS 3
abc RENEWABLE ENERGY EIS 2
abc SEIS 2
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Client Relationship Team
Ian Anderson Director
020 7319 4126
ian.anderson@ingeniousmedia.co.uk
Chris Cylwik Investment Manager
020 7319 4083
chris.cylwik@ingeniousmedia.co.uk
Camilla Vasa Investment Manager
020 7319 4066
camilla.vasa@ingeniousmedia.co.uk
Matthew Bugden Director
020 7319 4102
matthew.bugden@ingeniousmedia.co.uk
Justin Elmes Investment Manager
020 7319 4257
justin.elmes@ingeniousmedia.co.uk
Rosalind Whitehead Investment Manager
020 7319 4110
rosalind.whitehead@ingeniousmedia.co.uk
Russell Jarvis Senior Investment Director
020 7319 4280
russell.jarvis@ingeniousmedia.co.uk
Daniel Hood Investment Manager
020 7319 4259
daniel.hood@ingeniousmedia.co.uk
Edward Batchelor Investment Associate
020 7319 4275
edward.batchelor@ingeniousmedia.co.uk
Gabrielle Beaumont Investment Director
020 7319 4129
gabrielle.beaumont@ingeniousmedia.co.uk
Daniela Jaume Investment Manager
020 7319 4093
daniela.jaume@ingeniousmedia.co.uk
Benjamin Brown Investment Associate
020 7319 4276
benjamin.brown@ingeniousmedia.co.uk
Matthew Dickens Investment Director
020 7319 4260
matt.dickens@ingeniousmedia.co.uk
Ben Mitchell Investment Manager
020 7319 4140
ben.mitchell@ingeniousmedia.co.uk
William Colville Investment Associate
020 7319 4106
william.colville@ingeniousmedia.co.uk
Edward Grant Investment Director
020 7319 4283
edward.grant@ingeniousmedia.co.uk
Richard Nichol Investment Manager
020 7319 4035
richard.nichol@ingeniousmedia.co.uk
Elizabeth Feltwell Investment Associate
020 7319 4118
elizabeth.feltwell@ingeniousmedia.co.uk
Siobhan Griffin Investment Director
020 7319 4132
siobhan.griffin@ingeniousmedia.co.uk
Eileen Redmond Investment Manager
020 7319 4078
eileen.redmond@ingeniousmedia.co.uk
Jamie Jones Investment Associate
020 7319 4075
jamie.jones@ingeniousmedia.co.uk
Simon Harryman Investment Director
020 7319 4146
simon.harryman@ingeniousmedia.co.uk
Patrick Thorp Investment Manager
020 7319 4141
patrick.thorp@ingeniousmedia.co.uk
Kathleen Plunkett Investment Associate
020 7319 4090
kathleen.plunkett@ingeniousmedia.co.uk
Stella Smith Investment Director
020 7319 4131
stella.smith@ingeniousmedia.co.uk
Guy Tompkin Investment Manager
020 7319 4134
guy.tompkin@ingeniousmedia.co.uk
Adam Reeve Investment Associate
020 7319 4039
adam.reeve@ingeniousmedia.co.uk
Elizabeth Blackledge Investment Manager
020 7319 4135
elizabeth.blackledge@ingeniousmedia.co.uk
Hannah Topps Investment Manager
020 7319 4098
hannah.topps@ingeniousmedia.co.uk
Ingenious Capital Management Limited (including the trading divisions Ingenious Clean Energy, Ingenious Media, Ingenious Real Estate and Ingenious
Ventures) and Ingenious Media Investments Limited are authorised and regulated by the Financial Conduct Authority. Registered in England and Wales.
Registered office: 15 Golden Square, London W1F 9JG, UK.
This document has been prepared for information purposes only and does not constitute a financial promotion in accordance with section 21 of the
Financial Services and Markets Act 2000. This information does not constitute or form part of any offer for sale or solicitation of any offer to buy or
subscribe for any securities or investment services. Nothing in this document constitutes investment, tax, legal or other advice by any Ingenious group
entity. Any references to tax laws or levels in this document are subject to change. Past performance is not a guide to future performance and may
not be repeated.
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020 7319 4000
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