Presentation used at The Meades & Company May 2011 Business Builder Forum. How to improve your personal wealth. experts@meadesandco.co.uk

1. Business Builder Forum
11th May 2011
Welcome
Paul Meades – Meades & Company

2. Morning agenda
07.45 Arrival
08.00 Registration, breakfast and networking
08.20 Welcome: Paul Meades, Meades & Company
08.30 John Boss, De Montfort Professional Wealth Management
09.30 Q & A
09.45 Close and networking
10.00 Stadium tour with former Watford FC player Neil Price

3. • Your event
• Feedback essential
• Networking

4. John Boss
De Montfort Wealth Management

5. How to improve your
personal wealth

6. Quick Approach
Become a Premier League footballer
Ya Ya Toure – Manchester City
Wages reportedly £250,000 + per week
Plus bonuses

7. Quick Approach
Marry into the royal family

8. Agenda
• How to improve your personal wealth
• Planning
• The effect of costs and charges
• The effect of tax
• Beware of cash
• Beware of Buy to lets
• Reduce costs wherever possible
• Minimise risk
• Diversify your portfolio
• Engage with your finances

9. The De Montfort Companies
De Montfort
De Montfort De Montfort De Montfort De Montfort
Professional Alternative Financial Tax
Wealth Investments Advisers Solutions
Management

10. Planning
Firstly you need to discover what you are aiming
for?

11. Planning
• Set out where you want to go
• When you want to get there
• What you want to do along the way
• We cannot suggest any investments before we know what is required of
them!
• Allow your adviser to get to know your circumstances and listen to what
you want, as opposed to what they want you to hear

12. Minimise costs and charges
• Be aware of what the total costs and charges are
• Transparent terms of engagement
• Know your total expense ratios
• Difficult to find with some providers
• Independent Research Tools
• Offered to all De Montfort clients

13. Minimise Costs and Charges
• Typical situation
• £100,000 investment Jupiter Merlin Balanced Portfolio Acc
• Bid/Offer Spread 5.25%
• Annual Management Charges 1.5%
• Total Expense Ratio 2.44%
• £100,000 investment Jupiter Merlin Balanced Portfolio Acc
• Bid/Offer Spread 5.25%
• Annual Management Charges 0.75%
• Total Expense Ratio 1.69%
• Physical cost saving per annum £750
• Over 10 years £7,500

14. Minimise Costs and Charges
• Other example
• £100,000 investment Discretionary Fund Manager
• Annual Management Charges 1.50%
• £100,000 investment Discretionary Fund Manager
• Annual Management Charges 0.35%
• Physical cost saving per annum £1150
• Over 10 years £11,500

15. The effect of Tax
Sorry George, our clients do not like paying tax

16. The effect of tax
• Use all tax allowances and tax efficient investments available
• ISA’s £10,850
• Pensions £50,000 (£200,000 this tax year)
• Onshore Bonds No Limit – 5% tax deferred withdrawl facility
• Offshore Bonds No Limit – 5% tax deferred withdrawl facility, gross
roll up
• Other Investments Use capital gains allowances each year £10,600
• Offshore Savings Gross roll up
• Enterprise Investment Schemes
• Venture Capital Trusts
• Property partnerships

17. Venture Capital Trusts
VCTs are investment companies listed on the London Stock Exchange
and were introduced by the UK government in 1995 to encourage individuals
to invest in smaller UK companies not listed on the main stock exchange.
VCTs invest in a portfolio of unlisted or AIM companies (or both) in order to
aid their development into a successful business and realise gains for investors.
They are designed to give private investors an opportunity to back young growth
companies while offering generous tax incentives.
Investment Limit £200,000 per annum
Income Tax Relief30%
Hold period 5 years
Other benefits tax-free dividends
tax-free gains

18. Enterprise Investment Schemes
An Enterprise Investment Scheme (EIS) is a government initiative designed to
encourage individuals to invest in Britain's smaller private companies. To
achieve this, the Government offers EIS investors a range of tax reliefs.
The tax advantages available from an EIS investment provide investors with a
significant head start in comparison to more traditional investment products.
They’re particularly suited to investors with income tax liabilities, or those with
capital gains to defer.
Investment Limit £500,000 per annum
Income Tax Relief30%
Inheritance Tax Relief 100% after 2 years
Hold period 3 years
Other benefits tax-free growth

19. Property Partnership
Example
Springfield UK Commercial Property Fund
The Springfield Commercial Fund expects to return in excess of 13% p.a. via
three reliable benefits of Focused Funds:
• above-average rental income
• above-average capital value increases, and
• risk reduction through high quality management and meaningful diversification.
The Fund’s closed-ended structure enables investors to benefit from buying into
the commercial property market at this point in the market cycle and avoid
dilution from “herd investment” in later years.
The Fund’s management team is expert in commercial property and highly
experienced; it is committed to providing investors with above average returns
for below average risk.

20. Property Partnership
Example
Springfield UK Commercial Property Fund
Option 1 – 50% Geared version
Minimum investment £20,000
Expected return 13% per annum, including 5% income during the term
Expected capital allowances of between 30% and 40% (not guaranteed)
Option 2 – 75% Geared version
Minimum investment £125,000
Expected return between 18% and 20% per annum, no income paid during the
term.
Expected capital allowances of between 60% and 80% (not guaranteed)
Early investment incentives of up to 8%

21. Pensions
Make your existing pension monies work harder.
Funds over £50,000 consider Self-Invested Pension Scheme
A SIPP is a personal pension wrapper that offers individuals more
freedom of choice than conventional personal pensions. They allow
investors to choose their own investments or appoint an investment
manager to look after the portfolio on their behalf.
Individuals have to appoint a trustee to oversee the operation of
the SIPP, but having done that the individual can effectively run
the pension fund on his or her own.
A fully fledged SIPP can accommodate a wide range of investments under its
umbrella, including shares, bonds, cash, commercial property, hedge funds and
private equity.
Don’t forget Protected Rights monies.

22. Beware of Cash
Example
3.5% Fixed 1 Year Bond, minimum investment £1,000
2.8% approximate yield after tax at basic rate of 20% (2.1% net for 40%
taxpayer, 1.75% net for 50% taxpayer)
5.3% Current Retails Prices Index (as at 5th May 2011)
-2.5% net return after basic rate tax
However CASH CAN BE KING!

23. Beware of Cash
Alternative
6.25% fixed income with prospect of 0.5% bonus, 5 year term, full capital
protection as long as the FTSE has not fallen by more than 50% during the term
Coming soon
5 counterparty structure with up to £425,000 full protected by the Investor
Compensation Scheme. Only available through De Montfort

24. Beware of Buy to lets
• What are you intending for this type of investment to do?
• Income?
• Growth?
• Property Spreadsheet

25. Beware of Buy to lets
• Prospects for Growth?
• Average House Prices Jan 1991 to Jan 2011
• Jan 1991 £53,052 to Jan 1996 £50,521 -4.77%
• Jan 1996 £50,521 to Jan 2001 £83,450 +65.18%
• Jan 2001 £83,450 to Jan 2006 £158478 +89.91%
• Jan 2006 £158,478 to Jan 2011 £161,211 +1.72%
• Next 5 years?

26. Beware of Buy to lets
• QNUPS – Qualifying Non-UK Pension Schemes
• What Are The Benefits?
• Tax-free growth –no CGT or Income tax
• Tax efficiency on income –minimal UK income tax
• No limits on annual or lifetime limits*
• Investment flexibility –e.g. property
• Cash or in-specie assets
• Immediate IHT mitigation
• Corporate contributions
• Portable

27. Reduce Costs Wherever Possible
Insurance Premiums – Life Cover, Shareholder Protection,
Key Man, Income Protection, Private Medical, General
Insurances
Bills – Company utility bills
Borrowing – Corporate debt, personal debt, mortgages

28. Relevant Life Policies
Corporation Tax can now be legitimately claimed on life
assurance contributions
Zurich relevant life calculator

29. Minimise Risk
Risk Targets
Profiler Succession Volatility % Return % pa Maximum
Portfolio Loss
1 1 2 to 4.75 3 to 4.5 -3 to -5
2 2 4 to 7 4.5 to 6 -2 to -8
3 3 5 to 9 5.2 to 7.5 -5 to -12
4 4 8 to 13 6 to 8 -7 to -15
5 5 10 to 16 7 to 10 -12 to -18

30. Investment
Management Expertise

31. Diversify your portfolio
Use investments that are uncorrelated to the equity
markets
Try to seek some solutions that do not work on a
benchmark basis
Know your maximum downside
Words of caution
If returns offered are very high, then the risk is usually high

32. Diversify your portfolio
Examples:
The Protected Capital Currency Fund
5 Year investment term
100% capital protection via a zero coupon bond
Target returns 12% per annum
Life Settlements
Asset backed investment
Long established market
Number of different providers
Returns around 9% per annum
Vineyard Investment
3 Year investment term
Asset backed investment
Fixed returns between 30% and 39%

33. Engage with your finances
Take the time to review and monitor investments on a
regular basis
Keep in touch with the latest financial news
Use effective technology
Apps
Online website
Wrap

34. Client Website
• Access 24hrs a day 365 days a year
• Real time valuations
• Secure communication
• Security Equivalent to Banks
• Personal document storage
• Client / Adviser interaction

35. WRAP
ISA’s
PEP’s
UNIT TRUSTS CASH CLIENT BANK
ACCOUNT ACCOUNT
ONSHORE
BONDS
OFFSHORE
BONDS
SIPP
DeMontfort Professional Wealth Management

36. Why WRAP?
• INDEPENDENCE
• FULL SUITE OF TAX WRAPPERS
• MODEL PORTFOLIOS (VESTRA, EVERCORE, QUILTERS)
• ‘WHOLE OF MARKET’ INVESTMENT PROPOSITION
• TRANSPARENT CHARGING STRUCTURE
• HIGHLY COMPETITIVE TERMS WITH FUND MANAGERS
• SECURITY OF CASH – SPREAD ACROSS 8 BANKS

37. De Montfort Professional Wealth Management is authorised and regulated by the Financial
Services Authority