View more on these topics

Broader access for Shelley media fund

Ingenious Investments has lowered the minimum investment of its latest Shelley media fund to £3,000 from £10,000.

The Shelley media fund 4 is an enterprise investment scheme fund that invests in companies producing film, television programmes and video games. It will hold firms with the potential to provide sustained growth despite economic uncertainty, with the expectation that most of the firms in the portfolio will produce films and television programmes.

Ingenious Ventures, manager of the fund, expects the portfolio to produce tax-free returns of 13.6 per cent a year, which it says is equivalent to a gross return of 27.2 per cent a year for high-rate taxpayers.

The company, which is experienced in both the EIS market and the entertainment sector, says investors in this fund can benefit from the increased rate of 30 per cent income tax relief against their 2011/12 income tax liability. This tax relief limits investor risk, but Ingenious also intends to minimise risk and maximise potential returns by finding investment opportunities that are supported by minimum revenue streams.

The intention is to preserve capital by investing only in opportunities that are commercially viable and use government tax incentives and/or contracted pre-sales from top distributors. Ingenious also expects companies in the portfolio to negotiate a share of the profits from the films, tv programmes or video games they produce.

As well as income tax relief, the EIS allows the deferral of capital gains tax for gains realised within three years before, or up to 12 months after, investments are made by the fund in to the unquoted companies. No CGT is payable on returns made from the EIS qualifying investments and if held for more than two years, shares in this EIS fund should qualify for IHT relief.

Ingenious is an experienced manager of EISs and VCTs, and is also well known for its investment experience in the entertainment sector. Its conservative approach to managing the portfolio, with a focus on capital preservation and investing in firms that can show that they have minimum contracted revenue streams, may provide comfort for some investors.

However, the high potential returns of investing in unquoted firms in the entertainment sector through an EIS fund will still be matched by higher than average risks.

Recommended

Andrew Patten, Partner in pensions group SNR Denton UK

The TIEs that bind?

Liability management is a key concern for companies with definedbenefit pension schemes. A transfer incentive exercise can form a useful part of a liability management strategy. Central to a properly conducted exercise will be the role of the member IFA. How a TIE worksMost TIEs comprise an offer by a scheme employer to members of […]

18

Intermediary complaints up 19%

The number of complaints against IFAs, advisers and execution-only intermediaries have increased 19 per cent from 20,713 in the second half of last year to 24,458 in the first half of this year. The FSA’s complaints data, published today, shows the number of complaints against banks have remained stable over the same period, increasing by […]

JO Hambro launches two Asia funds

JO Hambro Capital Management has bolstered its investment offering with the launch of an Asia ex-Japan fund and an Asia small and mid-cap fund. The funds will be managed by Samit Mehta and Cho-Yu Kooi, both of whom joined the firm following the acquisition of Singapore-based Silver Metis Capital Management by JOHCM in May 2011. […]

Merchant House blames £400k loss on FSA approval time

Merchant House made pre-tax loss of £424,492 loss in the first half of 2011, blaming the time taken for regulatory approval of its Clarkson Hill acquisition. Merchant House launched a financial planning arm after acquiring certain assets from Clarkson Hill Group in December last year. Upon the acquisition, Merchant House said it aimed to recruit […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com