Two Ingenious-backed films, both comedy-dramas and both based on real-life stories, have been enjoying critical and box office success in recent weeks.
The first, The Duke, starring Jim Broadbent and Helen Mirren, tells the story of Kempton Bunton, a 60 year old self-educated taxi-driver, who in 1961 steals Goya’s portrait of the Duke of Wellington from the National Gallery in London in what might best be described as a philanthropic heist. Set partly in industrial Newcastle upon Tyne and partly in early ‘60s London, the film is already being cited as a comic masterpiece.
Jim Broadbent gives the performance of his life in a movie which, sadly, was the last feature film to be directed by the great Roger Michell, who died in September 2021. It was awarded five stars by The Guardian and the Daily Telegraph at its world premiere at the Venice Film Festival in 2020. The film’s theatrical release was delayed by Covid but has been a great hit with the public since it opened in February.
The second film, Phantom of the Open, directed by Craig Roberts, stars Mark Rylance as Maurice Flitcroft, an amateur golfer, dreamer and unrelenting optimist, who succeeded in gaining entry to the British Open Golf Championship Qualifying Competition in 1976 where he shot the worst round in Open history, infuriating the golfing establishment and becoming a folk hero in the process. Also starring Sally Hawkins and Rhys Ifans, the film is remarkable for Mark Rylance’s perfectly pitched performance as the defiantly hopeful amateur Flitcroft, a role which the actor plays straight to great comic effect.
Phantom was released in March in the UK and, like The Duke, is proving immensely popular. This is a relief for the whole industry. Over the last two years the pandemic has cast a large shadow over the theatrical box-office for film, with cinemas closed for long periods and audiences evidently reluctant to return other than for occasional super-hero Hollywood movies like The Batman and action-thriller blockbusters like the James Bond film No Time to Die.
But the tide is now turning, and it is high quality, quintessentially British films like The Duke and Phantom of the Open that are currently proving instrumental in attracting nervous audiences back to broader cinematic fare. Ingenious is delighted to have worked with long established partners the BFI, BBC Film, Pathe, eOne, Cornerstone, Baby Cow and Screen Yorkshire to bring these two films to the public. Both films will shortly be released in the United States by Sony Pictures Classics.
Ingenious today announces the launch of IEP Apex, a simple and cost-effective solution for any financial advisers and their clients looking to maximise the wealth they pass onto their beneficiaries. IEP Apex is designed to take a holistic approach to estate planning by providing a unique set of benefits as standard, including:
IEP Apex focuses on protecting capital via a lending strategy secured against high-quality assets with a low correlation to public markets. This strategy can reduce volatility in investment returns and aims to benefit from long-term growth ahead of inflation.
IEP Apex makes things simple for financial advisers and their clients by providing complimentary insurance cover from day one to settle any IHT liability arising during the two-year Business Relief-qualifying period as well as providing access to a complimentary care advisory service.
While investment managers have historically always charged investors for insurance cover and peace of mind, Ingenious is proud to make both insurance cover and access to the care service available as standard, creating a new type of estate planning service.
IEP Apex will become the fifth service in the Ingenious Estate Planning family. All IEP services offer investors flexible access to their investment, subject to the terms of the investment agreement, as well as the benefits of the complimentary IEP Care Service. In June 2021, for the second year running, the services were ranked second most competitive in the market for cost over a five-year period, while the Private Real Estate strategy was also ranked number one for the second year running for overall return over a five-year period1.
IEP Apex operates an asset-backed lending strategy to reduce risk and protect investors’ capital while seeking to carefully deliver predictable long-term returns. An investment in IEP Apex can be expected to have a low correlation to public markets, an important consideration for diversification of an investment portfolio.
IEP Apex keeps things simple. Investors achieve immediate peace of mind by no longer having to wait two years for their investment to qualify for Business Relief, or longer with other strategies. If an investor were to die during the two-year qualifying period, their liability to IHT is settled via the insurance cover, providing peace of mind from day one – why should an investor take the risk of waiting two years for Business Relief when they can achieve the same effect immediately, on day one?
From year three onwards, the investment should qualify automatically for Business Relief, meaning that the investor should face no charge to IHT at any point post investment.
Investors automatically receive access to the complimentary IEP Care Service, an advisory service that enables them to plan both practically and financially for potential care needs before they become a reality. This feature also comes as standard as part of this new type of service.
Historically, investment managers have charged investors more money for additional services such as insurance cover and access to care advice. With the new IEP Apex service, financial advisers and their clients no longer need to decide between tax effectiveness or cost as IEP Apex provides complimentary insurance cover and access to complimentary care advice as part of the service.
Ingenious has many years’ experience establishing and monitoring Business Relief-qualifying investments and to date every single investor has benefited from the Business Relief expected. In addition to Ingenious’ ongoing monitoring, all of our IEP services further benefit from an independent annual review to provide comfort that the service remains Business Relief compliant. Just another example of our unique service.
1Tax Efficient Review, June 2021. IEP Private Real Estate has been ranked number 1 for two years running for total returns over a five-year period.
2Tax Efficient Review, June 2021. The IEP services have been ranked number 2 for two years running for total cost over a five-year period.
On 23rd March it was announced that the NFTS Board of Governors had appointed Sophie Turner Laing, former CEO of Endemol Shine and MD of Sky, as its new incoming Chair. She becomes the School’s first female chair, succeeding Ingenious founder Patrick McKenna, who will step down at the end of his final term in August, having held the post since 2013.
The NFTS, which has some 600 students studying a wide variety of industry focused MA courses, Diplomas and Certificates covering the whole screen sector, from film and TV to animation and games, has regularly featured in The Hollywood Reporter’s annual ranking of the world’s top ten film schools. It has been described by The Guardian as the world’s best film school, reflecting the fact that the School’s graduates are invariably snapped up by industry on graduation, demonstrating the unique strength of the School’s distinctive teaching model, which is strongly influenced by commercial partners. These include the BBC, Channel 4, Sky, Disney and Amazon.
Patrick’s leadership of the School has been transformational. It has greatly expanded its educational footprint, with the opening of state-of-the-art equipped premises in Beaconsfield and new teaching facilities in Glasgow (NFTS Scotland), Leeds (NFTS Leeds) and Cardiff (NFTS Wales). The number of students taught has more than doubled, whilst the progressive change in the School’s gender and ethnic balance within the student body has set the standard for improving performance on diversity in recruitment.
Ingenious Real Estate is now focused on supporting more sustainable commercial and residential property schemes in the UK following the latest funding commitment from Shawbrook.
The London-based investment manager, part of the Ingenious Group, is aiming for net-zero developments to account for 25 per cent of its portfolio by December this year and has secured a new £35 million revolving credit facility from Shawbrook Bank to originate sustainable opportunities.
Founded in 2014, Ingenious Real Estate provides debt and equity capital to experienced, mid-market developers in the residential, commercial and mixed-use sectors. To date, its team has provided loans worth £500m and supported the completion of 2,400 units.
The firm recently provided a £19m loan to developer Citu to support the development of the Climate Innovation District (CID) in Leeds city centre – the UK’s first low carbon urban neighbourhood. More than 800 homes will be built in four phases using a timber-framed system designed to reduce carbon emissions at each stage of development.
In Felixstowe, Ingenious Real Estate has agreed a development finance facility of £10.3m over 18 months with existing client Generator Group, to fund the development of 21 three and four bedroomed family homes and 10 one and two bedroomed flats. This latest agreement represents a loan to gross development value (LTGDV) of 70%, linking in with earlier phases of an existing and proven project.
In Gateshead, Ingenious Real Estate has agreed a development finance deal with The Morton Group Ltd to support the development of 17 family homes. The development features a mix of three, four and five bedroomed properties in Street Gate. The facility of £4.6m has been agreed over 18 months for an LTGDV of 68%.
In Abberley, Ingenious Real Estate has agreed a development finance facility with a regular client, Piper Homes. This is the 4th deal between Ingenious and Piper Homes. The finance facility of £5m over 21 months has an LTGDV of 70%. The Abberley site, in the countryside between Worcester and Tenbury Wells will offer a range of 25 two, three, four and five bedroomed homes, including two bedroomed bungalows with excellent finishes throughout.
Formed in 2013, Ingenious Real Estate focuses on providing senior development and bridging finance to well-designed schemes in locations across the UK that have a proven demand. Typical loan terms are 18-30 months, and the team has since completed more than £590 million worth of transactions. The current portfolio balance is weighted towards residential, with the majority of Ingenious developments qualifying for Help to Buy.
In September 2020, Ingenious became the first alternative lender to become a member of the UK Green Building Council (UKGBC). As part of this membership, Ingenious is actively seeking to engage through training programmes, thought leadership and access to the latest research so that it helps drive sustainable standards within the sector.
In another challenging year, and with another record-breaking number of award entries, Ingenious has secured a spot as one of the finalists in the Best BR Investment Manager – Unlisted category of the 2021 Growth Investor Awards, hosted by Intelligent Partnership. Now in their seventh year, the Growth Investor Awards are a key event in the investment industry calendar. The awards celebrate the companies and individuals who go above and beyond to support the UK’s growing businesses, and in doing so create jobs, boost economic growth and support innovation.
About the award
Sponsored by Exact Libris, The Best BR Investment Manager – Unlisted award is open to leading investment managers specialising in non-Aim-based investments qualifying for Business Property Relief. Ingenious will compete for the award alongside seven other impressive finalists: Blackfinch Investments, Foresight Group, Octopus Investments, Puma Investments, Seneca Partners, TIME Investments & Triple Point.
This year the Growth Investor Awards are being brought back as a live and in-person black-tie awards ceremony at the prestigious London Hilton Park Lane. Taking place on the evening of Thursday November 4, 2021, the awards present an ideal opportunity to catch up with old contacts, make new ones, and acknowledge the ongoing excellence and resilience of the industry at one of the most important moments in its history.
Award submissions will now move to a second round of judging from an independent panel of judges. All scores are collated to determine the winner and runners-up, with all finalists receiving a tailored feedback and benchmarking report offering expert insight about areas for improvement.
For further information, please visit growthinvestorawards.com
We are very pleased that the Court of Appeal reversed the findings of the Upper Tier Tribunal and ruled that our film partnerships were, as we have always contended, trading with a view to profit. In light of this judgment we are considering what further options are open to us in relation to these proceedings.
BayWa r.e. continues its strong growth in the UK through the provision of Operation and Maintenance Services (O&M Services) for five solar farms totalling 22.37MW on behalf of its new client, Ingenious.
The delivery of BayWa r.e.’s expert O&M Services will look to optimise the Ingenious managed assets helping to increase production through enhanced utilisation of resources.
As an award-winning provider of O&M Services with four office locations across the UK and Ireland and growing staff numbers, BayWa r.e. has grown its solar portfolio to over 943 MW and continues to expand.
Ingenious is a specialist investment manager, founded in 1998. The company supports the global energy transition to a low carbon environment through investment of debt and equity into projects and businesses that harness low carbon energy generation, resource efficiency, transport and communications technologies.
Life was good in 1967 Britain; the first colour television broadcast was made on BBC2, Sandie Shaw won the Eurovision Song Contest and Beatlemania was in full flow. August 1967 was particularly sunny and warm and annual price inflation (RPI) sat at just 1.4%1.
Within 12 months, RPI reached 5.7%, subsequently remaining above 5% for THIRTEEN years, including five years above 10%, and peaking at an eyewatering 26.9% in August 1975. From 1967 to 1983, inflation averaged 11.1% per annum, and the price of goods increased by 540%, having a devastating impact on the standard of living.
Those who were starting out in life in 1967, looking to buy a home and raise young families, are now in their 70s and 80s with very different aspirations and concerns. But if inflation makes a comeback, as is expected, what does this mean for them now that they are retired and for their later life and estate planning considerations?
Most people in later life have two overriding objectives; leave the best possible legacy for their family and ensure they have enough money to meet their own life needs. The two are not mutually exclusive as their accumulated wealth may need to be used for either purpose depending on how life pans out. Advisers therefore need to help them plan for all possible eventualities.
Inflation and capital taxes
Let’s consider the impact of inflation on legacy aspirations. In March 2021, the Chancellor froze all Inheritance Tax thresholds until 2025/6. In an inflationary environment where asset prices, particularly property values are increasing, more estates will be dragged into paying Inheritance Tax. Those who are not actively looking to sell their properties may be blissfully unaware that their assets have crept above the nil rate band and the prospect of IHT being levied on their estates may come as a surprise to them. For those with assets above £2m, again likely to be a growing number, Residential Nil Rate Band taper will accelerate as the value of their estate grows and so they may not enjoy the same level of relief they had been expecting. Gifting of IHT exempt assets, such as Business Relief (BR)-qualifying assets may be considered as a way of mitigating this.
Similarly, more clients could be dragged into the Capital Gains Tax net if they wish to crystalise gains made on other assets. Keeping track of rising asset values relative to tax exemptions and thresholds could make a real difference to the legacies clients are able to leave to their beneficiaries, or to the amount of money available for clients to pay for their own life needs. Proactive management will become an increasingly important aspect of the adviser role in an inflationary environment.
The ‘Real’ value of money
Many clients looking to maximise their legacies whilst maintaining access and control consider BR-qualifying investments, of which there are now a variety on offer from a number of investment managers. Many of these have a “capital preservation” focus and target modest returns, some as low as 1.5% p.a. and numerous around 3% p.a. Inflation has been low since the market for these products was developed, allowing investors to maintain the real value of their investments, but with little room to manoeuvre for any bumps in the road. Indeed, in recent times some services have struggled to meet these targets due to volatility in energy related assets.
Whilst the Office for Budget Responsibility (OBR) medium-term forecasts for RPI are around 3%2, Deutsche Bank has warned of a global inflation time bomb, with inflation re-emerging in 2023 at a level which “could resemble the 1970s’ experience”. It has to be said that this is not a widely held position but not many people expected to see double-digit inflation figures when they were enjoying the summer of 1967!
Even if the OBR are correct, some BR-qualifying portfolios would be struggling to preserve capital in real terms. It is vital therefore that advisers look towards services which can offer greater returns, and low costs, so that legacy aspirations can remain intact.
Rising costs of raw materials and energy lead to higher prices for consumers and a poorer standard of living if incomes cannot keep pace with expenditures. This is at its most acute for those in retirement, who often rely on savings to supplement their income, and where pensions maybe index-linked but ‘real inflation’ is growing at a faster rate than the index. In this situation, a planned legacy may now need to be repurposed to meet life’s needs.
Accessibility & liquidity
Strong performance and minimising tax deductions on withdrawals can make money go further, but accessibility is a pre-requisite in this scenario. Whilst BR portfolios are favoured by many as they are, in principle, more accessible than most trust-based estate planning strategies, liquidity within the underlying companies and investments varies significantly. In challenging times, physical assets can prove difficult to sell in a timely manner and at a favourable price, even those shares listed on AIM may not be as readily realisable as they appear. Holding cash for liquidity purposes would become too much of a drag on returns in an inflationary period. This could explain why there is a trend developing towards secured lending-based investments where no trade or asset sale is required as there is natural liquidity within lending books.
Care provision
We all know that more and more people will need care of some description in later life. We know that it is expensive and can wipe out a lifetime of saving in next to no-time. Care provision is, by definition, a very personal service, delivered by caring individuals, who have bills to pay and who will face rising costs themselves. Ignoring for one moment any cost of goods, the inflationary surge in labour costs in the care sector alone will lead to significant increases in care fees. Obtaining professional guidance to navigate the care system, securing great care at the best possible cost will become increasingly important for families who want the best for their loved ones.
The value of advice
Only 5% of the UK population are over the age of 75 and will remember what it was like having to deal with inflation back in the 1970s’, most financial advisers were still at school and many not even born, the experience of the client coupled with the expertise of the adviser makes for a good partnership but meeting the challenge of inflation requires product providers to support them with solutions which can provide sufficient growth, income, accessibility, tax efficiency and access to professional services in specialist areas such as care.
1Office for National Statistics, June 2021
2Office for Budget Responsibility, May 2021
