an overview of esp growth portfolio service - stellar-am.com · esp growth is structured...
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Estate & Succession Planning
An overview of
ESP Growth Portfolio ServiceA discretionary managed portfolio generating capital growth
About Stellar
We are an independent firm, wholly owned by our directors and staff. We have been helping clients plan to mitigate inheritance tax successfully for over a decade.
We are focused solely on estate and succession planning. Our clients include individuals, trustees, business owners and those with lasting powers of attorney.
We work with you to offer your clients
a different approach to estate planning; capital preservation and tax efficiency; and a wide choice of services to maximise diversification.
Our approach is consultancy rather than transaction-led; uses technology to improve administration; and offers complementary services through trusted partners.
Our services invest exclusively in business activities which qualify for Business Relief (BR).
Business Relief formerly called Business Property Relief (BPR); legislation introduced in the Finance Act 1976; applies to a wide range of business activities; is not restricted in the same way as VCT or EIS investments; and qualification provides 100% relief from inheritance tax after only 2 years.
Stellar ESP Portfolio Services
We don't do IHT planning, we offer Estate and Succession Planning (ESP) services tailored to your clients’ specific needs.
Our ESP Portfolio Services offer:full relief from IHT after two years;full control of, and access to, capital during your clients' lifetime;access to mature, non-correlated UK investment opportunities;excellent generational planning opportunities; anda choice of growth or income.
without:health or age restrictions;complicated legal structures and costs;or transfer of capital or loss of control.
Our ESP Portfolio Services
Our services offer a range of qualifying business activities, across both asset-backed and AiM-quoted companies. These portfolio services allow discretionary management and have low and transparent fees.
Further benefits include:
AiM
A highly diversified portfolioLow concentration riskAvailable on wrap platformsAvailable for GIA & ISA (APS and ISA transfers)
Asset Backed
Qualifying business activities offer low volatilitySupported by physical, tangible assetsA choice of growth or incomeThe option to tailor your portfolio
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ESP Growth is structured differently to other estate planning portfolios because we put your client at the centre.
When your client invests with us, we incorporate a trading company in their name and they are the sole shareholder.
Their trading company will then invest in a range of diversified trading activities all of which qualify for full inheritance tax relief after two years.
ESP Growth offers access to seven trading areas and your clients’ capital will be spread across a blend of these.
Security of all our qualifying business activities
ESP Growth Portfolio Service
ESP Growth is a discretionary managed portfolio that is designed for clients wishing to leave a growing legacy free from inheritance tax.
ESP Growth provides your clients with access to a wide choice qualifying business activities that offer security and diversification, in addition to qualifying for Business Relief.
Key features
TransparentSimple investment strategy
and fee structure
Security of Our Trades
Trade Security #1 Security #2 Timescale Growth/Income
Bridging Finance 1st Charge Low LTV (<65%) 2 Years Income
Forestry Freehold Land Physical Crop 5-7 Years Growth
Farming Freehold Land Physical Crop 5-7 Years Growth
Hotels Freehold or Long
Lease
Physical Bricks and
Mortar
5-7 Years Growth and Income
Solar Energy Lease Asset Value & Gove 5 Years Income
Residential Development Freehold Land Bricks and Mortar 2 Years Income
Commercial Development Freehold Land Bricks and Mortar 2 Years Income
New qualifying trades are introduced regularly to provide maximum diversification.
ESP Growth Trading Company
RBS Business Bank Account
BridgingFinance
Forestry Farming Hotels Renewable Energy
ResidentialDevelopment
Commercial Development
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Tax-efficiencyFull inheritance tax relief
after two years
DiversifiedAccess to seven qualifying
business activities
ControlInvestments made in your client’s
name so they keep full control
Growth5% per annum target return (net of all fees)
Our Investment StrategyESP Growth Portfolio Service
ESP Growth is a discretionary managed portfolio that is designed for clients wishing to leave a growing legacy free from inheritance tax.
ESP Growth provides your clients with access to a wide choice qualifying business activities offer security and diversification, in addition to qualifying for Business Relief.
Key features
Tax-efficiencyFull inheritance tax relief
after two years
DiversifiedAccess to seven trading
activities
TransparentSimple investment strategy
and fee structure
ControlInvestments made in your client’s
name so they keep full control
GrowthTarget return of 5% per annum (net of all fees)
Our Investment StrategyESP Growth is designed to help your clients pass on capital to their children and for this reason capital preservation is the focal point of our investment strategy.
We choose to invest in our seven trading activities because these are underpinned by physical assets and we believe this makes these trades lower risk investment areas.
All of our qualifying business activities offered are carefully selected to ensure thatthey
Qualify for Business Relief and therefore full inheritance tax relief after two years.Can provide a return after fees and charges of 5% per annum.Are asset-backed to offer a high level of security.Are uncorrelated to equities, gilts & bonds to provide investment diversification.
Security of Our Trades
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ESP Growth is designed to help your clients pass on capital to their children and for this reason capital preservation is the focal point of our investment strategy.
We choose to invest in our seven trading activities because these are underpinned by physical assets and we believe this makes these trades lower risk investment areas.
All of our qualifying business activities offered are carefully selected to ensure that they
Qualify for Business Relief and therefore full inheritance tax relief after two years. Can provide a return after fees and charges of 5% per annum. Are asset-backed to offer a high level of security. Are uncorrelated to equities, gilts & bonds to provide investment diversification.
Trade Security #1 Security #2 Timescale Return Profile
Bridging Finance 1st Charge Low LTV (<65%) 2 Years Income
Commercial Forestry
Freehold Land Physical Crop 5-7 Years Growth
Commercial Farming
Freehold Land Physical Crop 5-7 Years Growth
Hotels Freehold or Long Lease
Physical Bricks and Mortar
5-7 Years Growth and Income
Solar Energy Lease Asset Value & Govt. Subsidy
5 Years Income
Residential Property Development
Freehold Land Bricks and Mortar
2 Years Income
Commercial Property Development
Freehold Land Bricks and Mortar
2 Years Income
Security of our qualifying business activities
New qualifying trades are introduced regularly to provide maximum diversification.
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Features and Benefits
ESP Growth Portfolio Service
Features of the service Benefits to clients
Full relief from IHT after 2 years Rapid inheritance tax efficiency
100% owned company Client has full control & access to their capital
Full investment management, company secretarial & accounting service
You can rest assured your client’s investment is taken care of
Removes personal taxation Can save your client tax during their lifetime
Low transparent fees with uncapped returns Maximise investment returns
Features of the portfolio Benefits to clients
Wealth preservation Mitigate risk to preserve clients' capital
Asset-backed Tangible assets are less volatile
Range of qualifying business activities Prevents over-exposure to a single asset class
Uncorrelated to other major asset classes Creates investment diversification
Diversified portfolio High diversification lowers investment risk
Flexible Structure ESP Growth is structured differently to other estate planning solutions and offers many different planning opportunities for your clients.
You could set up multiple ESP Growth companies to earmark assets for each of your clients’ children; these companies can also be left in trust for grandchildren or school fees planning.
No Barriers to Investing Most importantly anyone can qualify as there are no health or age restrictions, the only requirement is that assets are held for two years or greater and are held on death.
Planning Ideas and Typical Clients
Simple Estate Planning
Clients seeking to leave a growing legacy to their beneficences can transfer other investments to ESP Growth to increase tax efficiency.
Earmarking Capital and Bloodline Planning
Clients can choose to earmark capital for specific children and establish separateESP Growth companies to leave segregated legacies for each child to inherit.
Inter-Generational Wealth Planning
Many older clients may be concerned by future care costs, ESP Growth can help provide funding for later life care whilst creating a tax efficiency legacy for beneficiaries.
School Fees Planning and Legacies for Minors
ESP Growth companies can be left in trust and restrictions can be placed on what the capital is used for (e.g. for education) and when the minor can inherit.
Reducing Personal Tax Exposure
An ESP Growth portfolio can be used to help clients reduce their personal tax exposure.
Investment Diversification
Clients seeking to diversify their existing investment portfolio by investing in asset-backed trades that are uncorrelated to major asset classes.
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Your client will receive an extensive report each quarter detailing how their ESP Growth company has been performing, what trades it has invested in and how each of those is performing.
If you would like to see an example report, please contact us.
Tailored Reports Fees and Charges
Adviser charging can be facilitated from an investment in ESP Growth and the relevant pages of the Application Form should be completed.
Performance Updates
We produce quarterly factsheets showing our latest performance, our allocations and up to date market commentary.
These are available on our website www.stellar-am.com and will also be published on our online portals for clients and advisers.
Tailored Illustrations We create bespoke illustrations for any clients considering investing in ESP Income and these can be tailored to their individual needs.
Please contact Alistair Maguire to request an illustration [email protected]
Tailored Illustrations
We create bespoke illustrations for any of your clients considering investing in ESP Growth and these can be tailored to their individual needs.
Please contact Louie Marshall to request an illustration [email protected]
Multi Device Access
All our reports and illustrations are available across a range of platforms and devices.
Computer Tablet Mobile Phone
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Minimum Investment
Initial Fee
Dealing Fee
Annual Management
Fee (p.a.)
Annual Administration
Fee (p.a)
£40,000 1% 1% 1% 0.5%
Multi Device Access
All our reports, factsheets and illustrations are available across a range of platforms and devices.
Computer Tablet Mobile Phone
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Features and Benefits
ESP Growth portfolio service
Our service features Benefits
Full relief from IHT after 2 years Rapid inheritance tax efficiency
100% owned company Client has full control & access to their capital
Full investment management, company secretarial & accounting service
You can rest assured your client’s investment is taken care of
Removes personal taxation Can save your client tax during their lifetime
Low transparent fees with uncapped returns Maximise investment returns
Our portfolio features Benefits
Wealth preservation Mitigate risk to preserve client's capital
Asset-backed Tangible assets are less volatile
Range of qualifying business activities Prevents over-exposure to a single asset class
Uncorrelated to other major asset classes Creates investment diversification
Diversified portfolio High diversification lowers investment risk
Flexible Structure ESP Growth is structured differently to other estate planning solutions and offers many different planning opportunities for your clients.
You could set up multiple ESP Growth companies to earmark assets for each of your clients’ children; these companies can also be left in trust for grandchildren or school fees planning.
No Barriers to InvestingMost importantly anyone can qualify as there are no health or age restrictions, the only requirement is that assets are held for two years or greater and are held on death.
Planning Ideas and Typical Clients
Simple Estate Planning
Clients seeking to leave a growing legacy to their beneficences can transfer other investments to ESP Growth to increase tax efficiency.
Earmarking Capital and Bloodline Planning
Clients can choose to earmark capital for specific children and establish separate ESP Growth companies to leave segregated legacies for each child to inherit.
Inter-Generational Wealth Planning
Many older clients may be concerned by future care costs, ESP Growth can help provide funding for later life care whilst creating a tax efficiency legacy for beneficiaries.
School Fees Planning and Legacies for Minors
ESP Growth companies can be left in trust and restrictions can be placed on what the capital is used for (e.g. for education) and when the minor can inherit.
Reducing Personal Tax Exposure
An ESP Growth portfolio can be used to help clients reduce their personal tax exposure.
Investment Diversification
Clients seeking to diversify their existing investment portfolio by investing in asset-backed trades that are uncorrelated to major asset classes.
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Kendal House, 1 Conduit Street, London W1S 2XA
020 3195 3500 | [email protected]
www.stellar-am.com
INC-ES-1804
Registered in England and Wales No. 06381679.
Stellar Asset Management Limited is authorised
and regulated by the Financial Conduct Authority.
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Placemats
Talk to one of our experienced team
Matthew Steiner Business Development Director
020 3326 0382
Matthew Sand Senior Business Development Manager
020 3757 8916
Case Studies Performance Factsheets
Brochure IMA Application Forms
Next steps
If you would like to learn more about our ESP Growth Portfolio Service, you can find further details within our extensive literature suite.
Our literature is available to download via our website, or please contact us to request copies.
If you would like to discuss any of our services in more detail, please contact us.
Literature suite
GRO-OV-1902