octopus titan vcts - citywire
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Octopus TITAN VCTs
September 2014 For use of the professional advisers only and not to be relied upon by retail clients
And you can tell it is because the whole thing looks like the small print we usually try to avoid. But there are some things we should let you know about before we get to it.
The following presentation is for investment professionals only and should not be relied upon by any other person. Information is current as at August 2014 and is sourced to Octopus Investments Limited unless otherwise stated. If this document is forwarded to another person, please ensure you’ve taken responsibility for the document under the financial promotions rules and identified yourself as the issuer.
This advertisement is issued by Octopus Investments Limited it is not a recommendation. The decision to invest (or not) should not be based on this document alone. Any decision to invest in this product should be made on the basis of the information contained in the relevant prospectus, which can be found on www.octopusinvestments.com. Do your research, talk to our experts and make an informed decision. Octopus accepts no liability for any direct, indirect or consequential losses arising from decisions to act or not act based solely on this document.
All statements and opinions are current at the date of publication and may not be applicable thereafter. They are based on our analysis of data that we believe to be objective and reliable. However, we accept no liability in respect to its completeness and accuracy (except where incompleteness or inaccuracy is caused by gross negligence or fraud). We try to avoid conjecture – neither past performance nor forecasts are a reliable indicator of future results. Your capital is at risk and you may not get back the full amount invested.
VCT shares are likely to have higher volatility and liquidity risk than other types of shares quoted on the London Stock Exchange Official List.
Tax treatment depends on the individual circumstances of each investor and may be subject to change. The availability of tax reliefs also depends on the companies a VCT invests in maintaining their qualifying status. HM Revenue & Customs may change the rules on VCT tax relief in the future.
These can change and are not guaranteed. Investors’ capital is at risk, the value of shares can go down as well as up and they may not get back the full amount invested.
Nothing in this document should be regarded as constituting legal, taxation, investment or other advice. Prospective investors are advised to consult their own professional advisers before contemplating any investment.
Octopus Investments Limited 20 Old Bailey, London EC4M 7AN | T: 020 7710 2800 | F: 020 7710 2801 | www.octopusinvestments.com
Authorised and regulated by the Financial Conduct Authority.
THIS SLIDE LOOKS IMPORTANT
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WHO IS OCTOPUS?
OVER 3,000 ADVISERS HAVE RECOMMENDED US TO 50,000 INVESTORS
2000 Est. Largest Provider of VCT, EIS & IHT solutions (BPR)
More than 300 employees including 80 investment professionals
supported over
450 Smaller businesses
OVER £3.5BN AUM
Rated For our customer service
Date: August 2014. Source: Octopus
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HOW ARE WE DIFFERENT?
• We are focused on clients’ real needs and design our products with you and your clients in mind
• Our products target potential growth, income or capital preservation – so may be suitable for a range of appetites
• Exceptional customer service – we love talking to clients!
• We are really passionate about smaller companies
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WHAT IS A VCT?
INVESTORS INVESTMENT VEHICLE
INVESTMENT PORTFOLIO
VCT INVESTMENTS
Investment*
YPlan
SwiftKey
For illustration purpose only. *Each investment will be subject to an initial fee and ongoing fees, including administration fee and an annual management charge. Charges paid by a VCT.
Tax certificate
A share
£k Charges paid to Octopus and to advisers/intermediaries*
Other
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TAX BENEFITS OF VCTS
Income tax relief: 30% income tax relief on VCT investments of up to £200,000 in any tax year. The VCT shares must be held for a minimum of 5 years to retain the tax relief and investors cannot claim tax relief in excess of their income tax liability
Tax Free Dividends: Dividends from VCT investments are tax free for the investor and do not have to be declared on their tax return.
Tax-free growth: growth in value of VCT shares is capital gains tax free
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TAX RELIEF PRODUCT COMPARISON
Tax-free income and
growth
No income tax relief on investment
ISA
Up to 30% income
tax relief *
Tax-free growth and dividends
VCT Pension
Up to 45% tax relief on
contributions
Income liable to tax
For illustration purpose only. No loss or gain is shown on the investment. The investment will be subject to an initial fee and ongoing fees, including administration fee and an annual management charge. *On investments up to £200,000 in a tax year and assuming shares are held for five years.
TITAN VCTS
A new wave of entrepreneurship is emerging in the UK, and Titan VCTs are helping to fuel this ambition.
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TITANT VCTs: OVERVIEW • Managed by the Ventures team – some of the most experienced fund managers in
the industry
• We back people with exceptional ideas, not sectors
• Existing portfolio of dynamic businesses
• Plus the next generation of potential stars
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A UNIQUE INVESTMENT PROCESS…
3,000 opportunities annually
900 plans
200 meetings
6-8
Entrepreneurs, professionals & industry leaders
Titan VCTs +
other funds
Investee company
seeking £100k - £5m
Venture partners Funds
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…SUPPORTED BY OUR VENTURE PARTNERS A group of 100 + leaders of business
Been there
Done it before
Great contacts
Sales
Purchasing
Hiring
Leadership
Sector skills
Introduce deals
Review deals
Co-invest
Support investee firms
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Date: August 2014. Source: Octopus For illustration purpose only. Investment is taken as £1. Total return (TR) is calculated as Net Asset Value (NAV) + cumulative dividend Past performance is not an indicator to future performance.
Titan 5 Titan 4 Titan 3 Titan 1 & 2
100p
NAV 93.5p
NAV 90.3p
NAV 89.7p
NAV 104.7p
Tax Relief
30p
Tax Relief
30p
Tax Relief 30p
Tax Relief 30p
TR: 109.7p TR: 126.3p TR: 137.2p
Dividends 36.0p
Dividends 5.0p
‘J-Curve’ Dividends
47.5p
TR: 93.5p
ESTABLISHED TRACK RECORD
Launched 2007 Launched 2011 Launched 2009 Launched 2008
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…AND WE’RE IN GREAT COMPANY
BACKED BY
AND AND AND
BACKED BY
BACKED BY
BACKED BY
BACKED BY
AND
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2013/14
£18.5m £40m
2010/11
Deal flow:
• Economic environment is right for early stage investing
• New deals coming to us – many on an exclusive basis
• Plus, existing portfolio needs further investment to optimise potential
New company investments Follow-on investments
INVESTING TO BACK POTENTIAL WINNERS
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DRIVING POTENTIAL RETURNS: THE NEXT GENERATION
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“LIKE TICKETMASTER IN THE LAST 48 HOURS”
Find and buy tickets in just two clicks
Venues have, on average, 50% unsold seats
We increasingly consume in a last minute culture
Downloaded by 1 in 5 iPhone users in London
YPlan charges a commission on bookings
Source: YPlan. Date: August 2014
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LIMITED EDITION DESIGNS
• Beautifully crafted furniture without paying inflated retail prices
• Limited edition designs
• No shops or warehouses
• Your items get delivered straight to your door
Answers the need for exclusivity at an attractive and affordable price
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• Titan VCTs invest in dynamic early-stage businesses.
• The businesses are hand-picked by Octopus Ventures team. We back people with exceptional ideas.
• Together with Venture Partners we give our portfolio companies the advice and support they need to fulfil their potential.
• Investing in Titan VCTs means that your clients can support exciting early-stage UK business while taking advantage of the potential tax benefits of VCTs.
• Titan VCTs have announced an intention to fundraise and more details about the
fundraise will follow shortly.
SUMMARY