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IMPORTANT INFORMATIONIssued by Ingenious Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority. Nothing in this document is intended to constitute financial, legal or tax advice. This document does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities. Past performance is not a guide to future performance and may not be repeated. The value of an investment may go down as well as up. Telephone calls may be recorded.

Our overriding aim as portfolio managers is to provide our clients with financial peace of mind.

Our StoryIngenious Asset Management (IAM) was established in 2003. The firm was created as an alternative to the traditional approach favoured by other investment managers, aspects of which we felt had become out-dated. As private investors ourselves we resolved to create the company we would want managing our own money. A company that combined modern investment techniques with a traditional approach to client service. In the ensuing years this philosophy has proved popular with a wide variety of investors, including private individuals, families, companies and charities, resulting in the firm today managing £1.5 billion of assets on behalf of clients.

Our PhilosophyAlthough our clients vary widely in their financial circumstances and investment objectives there is a single unifying aim we have for them all. We aim to deliver financial peace of mind. Our clients’ assets are held safely and securely with one of the world’s largest custodian banks and all our clients can be confident their portfolios are being professionally managed with the sole aim of generating steady long-term returns to meet their investment goals.This aim of financial peace of mind is built on the

following principles which guide our approach to investment and underpin the culture of our firm.

• We aim to deliver steady long-term returns ahead of cash and inflation• We will back our judgement by investing our own money alongside that of our clients• We believe clients are particularly sensitive to losses (but not necessarily averse to taking risk)• We will communicate clearly and respond promptly

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Ingenious Asset Management today manages £1.5 billion of

client assets, primarily in global, multi-asset portfolios

Our investment approach is founded on the belief that our clients are particularly sensitive to losses rather than being averse to taking risk.

Focus on Wealth PreservationA subtle, yet important, difference is at the heart of our investment approach. This is the difference between being loss-averse and being risk-averse. We believe our clients are the former but not necessarily the latter. Uncertainty of outcome is not itself necessarily a bad thing. However, no client likes to suffer a loss.This focus on wealth preservation and a desire at all times to avoid a permanent loss of capital guides every aspect of our investment process.

Asset AllocationWe believe a portfolio’s asset allocation, the proportions in which it is divided between cash, bonds, equities and property is the primary determinant of its long-term investment performance. Countless academic studies have been conducted on this topic and all have concluded that, for a well-diversified portfolio, this is the case. What is less well understood is that asset allocation is also the major driver of investment risk. Consequently we primarily establish each client’s asset allocation based on their tolerance for loss.

Fund SelectionNo investment management company has a monopoly on outstanding people or great ideas. Consequently we enhance our stock-picking skills by investing in funds run by proven, talented specialists from other investment houses. This ‘best of breed’ approach allows us to blend our asset allocation skills with the stock-picking skills of the few outstanding managers available across the market.Over the years we have been convinced this approach delivers better risk-adjusted returns for our clients.

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Our aim is simply to grow the real wealth

of our clients over the longer term

To use the industry jargon, Ingenious Asset Management is a “Discretionary Fund Manager” or “DFM”. This means clients entrust us with the day–to-day decision making on their portfolio. We decide which stocks to buy (or sell), how much to invest and when to do so. All activity on the portfolio is regularly reported to clients but no permission is sought in advance of making a trade. Clients using this service view it as a highly efficient way to have their portfolio professionally managed and it allows us the flexibility to take advantage of market opportunities as they arise. Our overriding aim each time we trade is to grow the long-term value of the client’s portfolio in line with their investment objectives.If you choose to use our DFM service we are always mindful that the monies we manage are your monies and you are entitled to withdraw them at any time. You can instantly terminate our DFM service at any time. No notice is required, no penalty clauses are triggered and no reason need be given. The minimum portfolio size for this service is £250,000.

Individual Savings Accounts (ISAs)As an HMRC-approved plan manager we can offer ISAs to be managed in conjunction with your personal account. This is a highly tax efficient form of saving we encourage all our UK tax paying clients to take advantage of.

Offshore AccountsWe are able to accommodate clients wishing their assets to be held offshore through our sister company, Ingenious Asset Management International Ltd, established in the Channel Islands.

Non-Sterling AccountsWe are happy to manage accounts denominated in currencies other than sterling, such as dollars or euros.

Portfolio LoansOnshore individual and corporate clients are entitled to apply for a loan using the assets of their portfolio as security. The loan is highly flexible and has no arrangement fees.

Our core service is the discretionary management of investment portfolios.

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We back our judgement by investing our own money alongside that of our clients

Our clients are typically risk-averse investors who place great importance on capital preservation.

Private ClientsThe vast majority of the portfolios we manage are on behalf of individuals or families seeking bespoke long-term management of a portion of their wealth. For example; clients with surplus capital or a SIPP (Self –Invested Personal Pension) seeking steady growth of a nest egg ahead of retirement; or families with assets held in trust, perhaps for children or grandchildren, who wish to efficiently pass wealth down to the next generation; or individuals (or couples) who appoint us to generate a steady, growing income stream from their portfolio.

CharitiesIn recent years we have attracted a growing number of charities as clients. We are acutely conscious that the generation of income is often a critical component of the investment objectives for charities. In many cases this income is required to meet the costs of running the charity. Here we can help by ensuring sufficient income is produced in a timely manner to meet day to day costs as they arise. Also, many charities wish to distribute their investment income to causes they support, whilst

allowing the capital to grow. We manage many portfolios on this basis, where the primary objective is to steadily grow the income produced in real terms.

US PersonsManaging portfolios on behalf of US-connected individuals can often be complex owing to the constraints imposed by the US and UK tax authorities. We have developed a service that combines our investment approach with US custody of the assets and administration that meets the reporting requirements of the IRS and HMRC.

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Our starting point is your investment mandate, your particular combination of

requirements that make your account unique

Our primary aim is to give our clients the peace of mind that their assets are securely held and will achieve steady long-term growth.

Many clients simply require a balanced portfolio, invested across a broad range of assets, seeking a return from income and capital growth; others have very specific needs requiring a highly tailored solution. We are equally comfortable with either approach.Prior to opening your account we take time to understand your investment objectives. Of particular interest are your long-term investment goals and your attitude to risk. We then document these and refer to this as your ‘Investment Mandate’. The key determining factors are:

Risk Tolerance

It is critical we have a clear understanding of your appetite (or lack of it!) for risk.

Performance ObjectiveClients typically set us the objective of delivering returns ahead of cash and/or inflation.

Time HorizonYou may have a specific date to which the portfolio must be managed (e.g. retirement). More typically the investment time horizon is set as the time period over which you will judge our performance.

Income RequirementsMany of our clients require regular income from their investments with us and we construct their portfolios accordingly.

TaxWe need to understand your tax position as this will influence how we construct and manage your portfolio.

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We have designed and built our own proprietary

asset allocation tool, Efficient Frontier.

Although we take pride in our ability to manage risk we cannot eliminate it, nor do we claim to do so.

Efficient FrontierWe have built mathematical models for each of the major asset classes and a further model to combine them efficiently. Efficient Frontier is the name we have given to this system of models.Efficient Frontier’s primary purpose is to determine the asset allocation most likely to achieve a client’s growth objective whilst preserving their capital with the certainty they require.As markets move and risk levels rise and fall we are able to use Efficient Frontier to re-calibrate portfolios, and, if necessary, re-balance them to a new strategic allocation.However, we are always mindful that no mathematical model, no matter how sophisticated, can ever fully capture the complexity of financial markets. Hence we view Efficient Frontier as a highly useful tool to guide us and blend it with our own judgement before finally determining a portfolio’s asset allocation.

Risk Management Techniques

Strategic Asset AllocationThe long-term risk of capital erosion is primarily managed through the strategic asset allocation assigned to each portfolio.

Tactical Asset Allocation Short and medium term risks are managed through tactical deviations from the core strategic allocation

Investment in FundsSelective investment in funds, which are themselves diversified portfolios of stocks, is a powerful mechanism for reducing stock specific risk

Diversification Across FundsStill further diversification and risk reduction is achieved by holding a portfolio of funds. This dilutes the manager risk and further reduces the stock specific risk.

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Investing through collectives can provide excellent risk-adjusted returns and substantially reduce stock specific risk

Our team of research analysts identify the funds which then form the building blocks for our clients’ portfolios.

We predominantly, but not exclusively, invest in collective funds. These include unit trusts, open-ended investment companies (OEICs), exchange traded funds (ETFs) and listed investment trusts. We firmly believe this best of breed approach delivers better returns for our clients.

• Funds can provide excellent risk-adjusted returns and substantially reduce stock specific risk.• Funds provide access to highly talented managers typically on terms not available to retail investors.• Managers can freely trade stocks within funds without incurring capital gains tax.• Funds provide access to asset classes not otherwise available (e.g. commercial property)• In the case of ETFs they offer a highly efficient and cost effective way to gain exposure to a market.

Our Research ProcessOur team of analysts led by our head of research is responsible for identifying new fund ideas. Potential new funds must pass through our due diligence process. This eliminates funds that do not meet our minimum requirements to be considered for inclusion in client portfolios.Funds that successfully pass through this initial screening process are then assessed against our

“ten commandments for fund selection”. This is a proprietary list of attributes we have identified over the years typically only exhibited by the very best managers. Our aim here is to separate the very few truly talented managers from the vast number of also rans.Finally we will meet with the individual or team that runs the fund, often several times, to gain a clear understanding of their objectives and investment process.Only funds that successfully pass through all three stages of this research process are then included in client portfolios.

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Your investment director is personally responsible

for balancing your growth objectives against your

tolerance for risk

Your investment director is the person at Ingenious who knows you and your requirements best.

Investment Director’s Role Your investment director’s role is two-fold, to construct your portfolio and to communicate with you. Your investment director will have day-to-day responsibility for all investment decisions taken on your portfolio.Their starting point is your investment mandate. From this they select the risk adjusted model closest to your risk profile. This provides an initial strategic asset allocation. This allocation will then be fine tuned by your investment director to meet your exact requirements.Your investment director is also responsible for selecting the particular funds and stocks to be held within each asset class in your portfolio.You will also be assigned an alternate portfolio manager to provide cover in your investment director’s absence and to ensure that two investment professionals are familiar with your account.

Risk ProfileWe regard it as imperative that we do not exceed

your appetite for risk. Your investment director is personally accountable for ensuring we remain within the parameters you set.

Investment RestrictionsSome clients place limitations on the type or magnitude of investments permitted in their portfolio. The investment director will ensure these restrictions are never breached.

Tax StatusYour investment director will be expected to be familiar with your tax position, particularly with regard to Capital Gains Tax, and any constraints this may impose on the management of your portfolio.

Combining PortfoliosYou may have more than one account with us. If so your investment director is responsible for managing these, when appropriate, as a single investment portfolio.

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Our appointed custodian is part of BNY Mellon who have over $25 trillion of client assets under custody or administration

CustodyOur appointed custodian is Pershing Securities Limited (Pershing) through their operations in the UK, Jersey or the USA depending on client requirements. Pershing is a specialist provider of custodial and administration services, employing 6,000 people globally and with over $1 trillion of client assets under their care. Their parent company is Bank of New York Mellon (BNY Mellon) who have over $25 trillion of client assets under custody or administration (further information on both these firms can be found at www.bnymellon.com and www.pershing.co.uk).We are also happy to accommodate larger clients who may wish to appoint their own custodian and currently work with several other custody banks.

Cash Payment ServicesWe offer a number of payment services. Please note however, in all cases we will only pay monies from your portfolio with us to a nominated bank account in your own name.

Regular Income PaymentsMany clients establish their portfolio with the specific aim of generating an income from it. For such clients

we are happy to pay to them all the income received into their account on a regular basis. Most clients choose to receive this investment income either monthly or quarterly.

Standing Orders We are happy to set up a standing order on client accounts whereby a fixed sum is paid on a regular basis.

Ad Hoc PaymentsClients may of course request money to be paid out of their account at any time. Payment may be made by electronic transfer of cheque. If insufficient cash is available on the account we will realise assets to raise the monies required. This will normally only take a few days.

You will rightly judge us on our ability to safeguard your assets and administer your account as much as on our investment performance.

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We promise to communicate clearly and respond quickly

We offer a comprehensive reporting service for our clients.

We provide regular investment reports containing statements, transaction summaries, up to date valuations and investment commentary.We are always happy to discuss individual requirements and are able to construct bespoke reports.Your investment director will also meet with you regularly to report on our performance, answer your questions and discuss your ongoing requirements.

Reporting to you

ValuationsMost clients request quarterly valuations of their portfolios. We can also provide these more frequently or less frequently if preferred.

StatementsYou will receive regular statements detailing all movements across your accounts.

Contract NotesIf required these are dispatched within 24 hours of any trade we execute on your portfolio.

Tax PackWe provide comprehensive tax information to meet your tax reporting obligations. This will include a CGT statement and an HMRC-approved, consolidated income tax voucher.

Reports for your AdvisersWe are happy to provide copies of any or all of our reports to your nominated advisers.

Call UsYou are always welcome to contact your investment director to discuss your portfolio or to ask any other questions that you may have.

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CONTACT

To obtain further information on our services, to make an appointment to meet us or simply find out more please contact us at:

Ingenious Asset Management Limited15 Golden Square, London W1F 9JG T +44 (0)20 7319 4000 F +44 (0)20 7319 4001www.ingeniousmedia.co.uk/[email protected]

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Ingenious Asset Management Limited15 Golden Square, London W1F 9JG T +44 (0)20 7319 4000 F +44 (0)20 7319 4001www.ingeniousmedia.co.uk/[email protected]

IMPORTANT INFORMATIONIssued by Ingenious Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority. Nothing in this document is intended to constitute financial, legal or tax advice. This document does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities. Past performance is not a guide to future performance and may not be repeated. The value of an investment may go down as well as up. Telephone calls may be recorded.