TIER 1 INVESTMENT VISA SERVICE

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1 TIER 1 INVESTMENT VISA SERVICE 1

2 TIER 1 INVESTMENT VISA SERVICE Our Investment Visa Service offers Tier 1 investors a bespoke portfolio of Home Office compliant securities designed to achieve a successful completion of the visa immigration programme. Objective The common objective of the Tier 1 investor is to achieve permanent residency and potentially to acquire citizenship in the United Kingdom. Our objective at P1 is to ensure that your money is invested in securities that perform in line with your expectations and meet the requirements of the Home Office programme. Security of Assets Your investments will be held by an independent custodian regulated by the Financial Conduct Authority (FCA) who adheres to strict capital adequacy requirements. Our Bespoke Service At P1 we seek to provide a service that incorporates a rigorous portfolio management process. Our initial consultation will establish your investment objectives and attitude to risk. We will use the information compiled from this meeting to construct a portfolio that is both compliant with visa requirements and combines your investment objectives, personal goals and risk profile. At P1, we offer a level of flexibility that allows us to liaise with your other advisors to ensure the best possible client outcome. As a financial services institution we have strong links with other professional services firms. Our contacts can provide access to the full suite of financial support including financial advice, planning and support for non-domiciled UK residents. 2

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4 TIER 1 INVESTMENT VISA SERVICE On-boarding Process - Home Office Requirements The UK immigration process has a timetable, and the UK Home Office is very specific with its requirements. In line with this, our recommendation is: Up to three months prior to the submission of your visa application An initial meeting / call / Skype to get acquainted; Establish overall objectives; Determine your investment objectives; Establish your investment risk profile; Establish source of funds and source of wealth; Complete account opening forms; P1 will then open an account; A P1 / Custodian letter for Home Office for visa application will be generated (to be passed to your immigration advisor). After visa is issued Funds are transferred to your investment account; A mutually agreed investment portfolio is constructed in line with your objectives and attitude to risk; The investment is made within 90 days of the visa being issued and a confirmation letter is produced for the Home Office to be passed to the immigration advisor. 4

5 A Flexible Approach We understand that each individual has different investment requirements and expectations. For some investors preservation of their capital will be their primary concern, whilst they achieve their ultimate goal of permanent residence in the UK. Other investors may wish to take on added risk to achieve greater returns. At P1 we have the flexibility to provide for different client outcomes. Our preliminary meetings will allow us to understand your personal circumstances and preferences. We will create a plan and proposal tailored to your needs and compliant with visa regulations. Key Stages Analysis of your personal circumstances and risk profile; A statement of investment objectives and constraints; Development of Strategic Asset Allocation alongside suitable benchmarks; Tactical Asset Allocation; Stock Selection; Portfolio Construction; On-going Monitoring, Investment Changes & Rebalancing. 5

6 TIER 1 INVESTMENT VISA SERVICE Investment Constraints The basis for your visa application is that you invest in the United Kingdom. The UK government defines this as an investment in the form of UK Government bonds, share capital or loan capital. This list excludes collective investments, property investments, leveraged investments and bank deposits. Furthermore, what is defined as a UK company comes under added scrutiny. At P1 we can combine your personal investment preferences with Government requirements. Strategic Asset Allocation When looking after your portfolio we need to ensure that your portfolio reflects the level of risk that it has been assigned. Strategic asset allocation achieves this by choosing how much of your capital is invested in each asset class. UK gilts, where you lend money to the UK Government, are considered the least risky investment. Equities, where you take a share in the ownership of a business, are considered the riskiest asset class. Combining equities and UK gilts we can establish a portfolio that matches your risk profile. 6

7 Tactical Asset Allocation The performance of an individual company will be affected by the performance of the industry in which the company competes. Tactical Asset Allocation aims to deploy your capital in a way that captures the best performing industries and hence companies. We use a process for identifying the best investments. We assess the health of the UK economy and its constituent industries. We will invest more of your portfolio in the industry sectors that we believe provide the best opportunity for outperformance. These will be sectors that we perceive to be undervalued by the market and exhibit characteristics that will be catalysts for positive change. Idea generation and changes will be formally discussed at quarterly investment committee meetings. Your portfolio will be diversified across sectors with adjustments made in keeping with your risk profile. We will regularly review your portfolio, identifying when positions become overweight or underweight and take the appropriate action to ensure the risk in your portfolio does not become too concentrated. 7

8 TIER 1 INVESTMENT VISA SERVICE Active Stock Research Process Our research process combines both fundamental and qualitative techniques. Fundamental techniques include analysis of companies accounts and financial performance. Qualitative research builds a picture of the potential investment through investigating the factors that affect the company. We use the two techniques together to develop a more complete view of the potential investment. We start our process for identifying stocks by looking at the economy as a whole and breaking it down into sectors. Sector Analysis Security selection begins with an in depth analysis of individual industry sectors. The specific economic factors that affect each industry are identified. We develop a view of the future prospects of each sector. We tilt your portfolio towards the sectors with the brightest outlooks. Screening Screening is a process to identify the better companies by using a filter. We start with a list of large UK companies that are visa compliant. We organise the companies into their respective sectors. We then apply a quality filter using accounting ratios to rank the companies within each sector. This produces a watch list of the best companies by sector. We take this watch list and apply a further screen to it. This filter focuses on identifying the cheapest companies. We use accounting ratios that detect value. This results in a list of good value, quality companies. Company Analysis Our analysis of individual companies begins by reading their annual reports. We assess the company s competitive strategy, market share and business model. We examine the financial statements to understand how well management s strategies translate to underlying performance. We will compare similar companies and use this information to make a decision on whether to invest. A basket of suitable Investments Our research results in a panel of securities organised within their industry sector from which we can build your portfolio. 8

9 Portfolio Construction Your portfolio will be built using investments from our panel of investible securities. UK gilts will anchor most portfolios. A selection of stocks from our panel will be added. The stocks will cover all sectors. Our selection will emphasise the sectors and companies that we believe have the best prospects. Stocks and gilts provide a source of income through coupons and dividends. We have the flexibility to choose investments that can give a greater level of income, if required. This is achievable whilst maintaining the desired risk level. Some stocks will be chosen to add stability or diversity to the portfolio. 9

10 TIER 1 INVESTMENT VISA SERVICE On-going Monitoring, Investment Changes & Rebalancing We will review your investment objectives and risk profile on an annual basis. We understand that your circumstances may have changed and we need to ensure that your portfolio reflects this. The panel of investible securities will be monitored continually. If the underlying rationale for an individual security s inclusion on our panel changes it will be removed from the watch list and your portfolio; a suitable replacement will be purchased. Securities might also be removed when the future prospects of another security become more attractive, resulting in that security being purchased. Portfolio rebalancing and reporting will be conducted on a quarterly basis. Rebalancing is necessary to ensure that your portfolio does not become overly concentrated and realigns with your investment objectives on a systematic basis. Rebalancing allows your portfolio to lock in the gains from high performing sectors reallocating those funds to the poorer sectors. This helps to ensure that we sell high and buy low. The performance of your portfolio will be monitored against an appropriate benchmark. 10

11 We are more than happy to help For more information please contact us on +44 (0) or 11

12 Dean Clarke House Southernhay Gardens Exeter EX1 1AP +44 (0) P1 Investment Management Limited is registered in England, registration number Registered office: Southgate House, 59 Magdalen Street, Exeter, Devon EX2 4HY P1 Investment Management Limited is authorised and regulated by the Financial Conduct Authority under registration number November 2017