Octopus. AIM Inheritance Tax ISA. An ISA that offers inheritance tax exemption for you and your family

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1 Octopus AIM Inheritance Tax ISA An ISA that offers inheritance tax exemption for you and your family octopusinvestments.com September 2013

2 02 Octopus AIM Inheritance Tax ISA The Octopus AIM Inheritance Tax ISA and you Like thousands of people around the UK, this investor, Peter, is concerned about inheritance tax. His house is worth more than 325,000, so his daughter will have to pay 40% tax on much of his estate when he dies. This includes the ISA investments he has been building up over the years. The Octopus AIM Inheritance Tax ISA offers Peter a way round this predicament. It comes with the same tax benefits his ISAs have always enjoyed, and after two years it is also free from inheritance tax. He can make a cash subscription using his current year ISA allowance and/or transfer some or all of his existing ISAs. And he knows he can withdraw his money if he needs it in future years. The main thing is that he has the reassurance of knowing that his daughter won t have to pay so much tax on what he leaves to her.

3 Octopus AIM Inheritance Tax ISA 03 Welcome to Octopus 4 The inheritance tax benefits of AIM in an ISA 5 A common problem, with a fresh solution 6 How it works 8 Your Octopus AIM Inheritance Tax ISA portfolio 9 The argument for investing in smaller companies 10 Smaller doesn t always mean small 11 A team you can rely on 12 You re in control 14 Understanding the risks 16 The charges 17 How to invest 18 Customer feedback 19 Important information It is very important that you read and fully understand the risks involved with this investment so that you can decide whether it is right for you. The key risks associated with this product are explained on page 16 of this brochure. Please note that all the figures and information provided within this document are correct as at September 2013, unless otherwise stated. Call us on

4 04 Octopus AIM Inheritance Tax ISA Welcome to Octopus We founded Octopus 13 years ago as an independent investment company that would do things differently. Since then we ve focused on listening to our customers, designing products that meet their needs and delivering these products with them in mind. It s an approach that has proved very popular, as we now have over 50,000 customers, who have trusted us with more than 3 billion. Today, the three of us who founded Octopus are still very much involved in the day-to-day detail of the business, but we ve grown to have more than 250 staff, including over 60 investment professionals and dedicated teams to support investors and advisers. We think that the existing tax advantages of an ISA, combined with the potential for 100% inheritance tax relief, offer a great opportunity for ISA investors, so I hope this brochure gives you food for thought. Simon Rogerson Chief Executive Three things we think you ll like about Octopus 1. We always remember it s your money we re investing - so if you want to speak to your fund manager, you can call them. 2. We re passionate about clarity - everything we send you will be straightforward, jargon-free and easy to understand. 3. Whenever you call us, a real person will answer the phone, and you can have as long as you need to talk about your question.

5 Octopus AIM Inheritance Tax ISA 05 The inheritance tax benefits of AIM in an ISA The Octopus AIM Inheritance Tax ISA is a perfect example of the way Octopus only designs investment products to meet the needs of real people. One of the things we often hear from our customers is that although they value the tax-free growth and income provided by ISAs, they worry about the 40% inheritance tax their beneficiaries will have to pay on these investments when they die. We now have a great solution to this problem. Our AIM Inheritance Tax ISA can give your ISA investments full relief from inheritance tax after just two years. And it s available for new ISAs as well as ones you ve built up over time. We manage more than 3 billion with the support of 3,000 wealth managers and financial advisers, along with the trust of 50,000 investors This makes use of the experience we ve built up with our AIM Inheritance Tax Service, which is now used by more than 1,700 of our customers. The product was first launched in 2005, and since then we ve invested 170 million of their money in a selection of AIM shares that can qualify for inheritance tax relief. The Octopus AIM Inheritance Tax ISA works in a very similar way. Our team of six fund managers, who have more than 100 years investment experience between them, will create a portfolio of AIM shares for you. And your investments will stay in the ISA wrapper, with all the tax advantages it provides. Why have you only just launched this ISA? The government changed the ISA rules on 5 August 2013 to allow AIM shares to be held in an ISA. We wanted to help our customers make the most of this opportunity, so we ve launched an ISA that combines freedom from income and capital gains tax with the potential to be free of inheritance tax. These new rules are part of a wider government initiative that aims to encourage investors to discover the benefits of smaller companies. Call us on

6 06 Octopus AIM Inheritance Tax ISA A common problem, with a fresh solution ISAs have been hugely popular since they were launched back in This is understandable, as they offer valuable tax benefits. However, they have been more of a problem when it comes to effective planning for inheritance tax. Octopus can now offer the solution. The problem More than 5 million of the UK s 24 million ISA investors are over 65 years old and will be starting to think about how they can pass on their wealth with as little inheritance tax as possible. Although ISAs offer valuable tax benefits throughout your life, these don t continue when you die. Instead, the total value of your ISAs is treated as just one more part of your estate for the purposes of calculating inheritance tax. Until now the only way to avoid this has been to take money out of your ISAs and use it for a gift, trust or other form of inheritance tax planning. However, this means losing all the tax benefits of the ISA wrapper. As a result, many people with larger estates choose to sell their ISAs losing tax-free growth and income with the aim of reducing inheritance tax. With our new AIM Inheritance Tax ISA, this sacrifice is no longer necessary. You can keep all the tax benefits of your ISAs and, in just two years, get full relief from inheritance tax on these savings as well. THE OCTOPUS SOLUTION We invest your funds in a portfolio of carefully chosen companies listed on the Alternative Investment Market (AIM). For the core of each portfolio we choose mature companies that are typically profitable and paying regular dividends. However, the most important factor is that these companies must qualify for Business Property Relief (BPR). This relief means that as long as you hold the shares for at least two years, and at the time of death, your investments should be exempt from inheritance tax. For more information about how it works, please turn to page 8. Please note, there is a minimum investment of 10,000 in this portfolio, which covers new investments and transfers from your existing ISAs. If you are moving any existing ISAs to us, you must make sure you use your ISA provider s official transfer process. If you cash your investments in, you will lose the ISA benefits and we may not be able to accept them for this account. Key words Inheritance tax is paid on the money and possessions that you leave to your beneficiaries when you die. The first 325,000 of your assets are free from this tax (this is sometimes called the nil rate band ), but everything over this level is taxed at 40%. However, there are a number of well established ways to manage your liability for inheritance tax. These include gifts, trusts and making the most of Business Property Relief. Business Property Relief was introduced by the government in It is now a popular and widely available form of tax relief that is designed to give people an incentive to put their money into trading businesses. If your estate includes a business, or a stake in a business, it can be given exemption from inheritance tax (as long as you ve owned that stake for two years).

7 Octopus AIM Inheritance Tax ISA 07 Five core benefits 1. SPEED Most traditional forms of inheritance tax planning (such as gifts or simple trusts) take seven years to reach full exemption. Our ISA takes just two (although you must still be holding the investments at the time of death). 2. Simplicity All you are doing is investing in or transferring existing investments to an ISA just as you have been for many years. There are no complex legal structures, no underwriting and no medical reports. 3. Access Although you may be hoping to leave your ISA investments to your family, life can change and you may need to withdraw part or all of your money at some point in the future - perhaps to pay for long-term care. You can withdraw money from the Octopus AIM Inheritance Tax ISA whenever you need to. You can even set up your account to give you regular payments. You should remember, though, that if you ve already used your ISA allowance for the current year, you won t be able to put any money you withdraw back into your ISA. Also, if you withdraw money and don t spend it before you die, it will be part of your estate for inheritance tax purposes. 4. Growth potential Our team invest in companies listed on AIM that can qualify for Business Property Relief. AIM is home to a wide variety of companies that offer the potential for growth and dividends. The market has had some tremendous success stories over the years; just a few examples of these are shown on page 11. Of course, it s important to remember that performance is not guaranteed. The value of investments can go down as well as up, so you may not get back the full amount invested. 5. Extra tax benefits As you ll be investing in an ISA, you will also get all the tax advantages these savings schemes provide. This means you pay no income tax on the dividends paid by the companies in your portfolio (though any withholding tax on dividends cannot be reclaimed). You also pay no capital gains tax on your returns no matter how much your money grows and you do not have to declare ISAs on your tax return. Who is it suitable for? Our ISA might be good for you if: Your total estate is likely to be liable for inheritance tax You have built up a significant ISA portfolio over the years You want to keep the tax benefits of your ISAs, while still reducing the tax liability for your beneficiaries You are comfortable with the growth potential and risks involved in AIM investments Call us on

8 08 Octopus AIM Inheritance Tax ISA How it works The best way to understand how the Octopus AIM Inheritance Tax ISA can reduce your family s inheritance tax bill is to look at an example. Mr Thomas has been taking advantage of his tax-efficient investment allowance for 20 years. Thanks to some careful stock selection, his ISA portfolio is now worth 150,000. Although he wouldn t have to pay any capital gains tax if he chose to sell these holdings, when they are combined with the rest of his estate, such as his house and other savings, his dependants would be facing an inheritance tax bill of 60,000 on his ISAs. Faced with this situation, Mr Thomas has decided to take action now by investing 50,000 into the Octopus AIM Inheritance Tax ISA. He uses this year s allowance of 11,520 and transfers some of his existing ISA investments worth 38,480. The paperwork is straightforward, so all Mr Thomas has to do is complete a few forms. Our team then invest his money into a portfolio of carefully chosen AIM shares and manage the investments on an ongoing basis. After holding his Octopus ISA for two years, Mr Thomas investments are removed from his taxable estate saving his family 20,000. Of course, Mr Thomas knows that the Octopus AIM Inheritance Tax ISA is also extremely flexible, so he continues to add to it when he can. This would remove even more of his estate from any liability for inheritance tax and he has the reassurance that he can still make withdrawals when he needs to, without affecting the inheritance tax relief he will receive on the remaining investment. The impact of inheritance tax on a 50,000 ISA portfolio Stocks and Shares ISA Octopus AIM Inheritance Tax ISA Value of investment after two years (this example assumes no gain or loss) Amount subject to inheritance tax at 40% 50,000 50,000 50,000 0 Inheritance tax deducted 20,000 0 Value passed on to beneficiaries 30,000 50,000

9 Octopus AIM Inheritance Tax ISA 09 Your Octopus AIM Inheritance Tax ISA portfolio We know that the primary reason for choosing our ISA is to give you a way of passing on as much as possible to your beneficiaries. As a result, we don t take unnecessary risks with your money. For the core of each investor s portfolio our team looks for established AIM companies that we believe are capable of generating solid returns for our investors. Companies are chosen after detailed research, which may involve spending time with a company s management team, evaluating its competitors and assessing its financial strength. We only invest when we re confident we ve found a company with solid earnings growth potential. Your Octopus AIM Inheritance Tax ISA will be invested in a portfolio of carefully chosen companies that are listed on AIM and that we believe will benefit from Business Property Relief. In spreading your investment across a number of different companies, the diversification achieved ensures your savings are not overly exposed to the prospects of any one business. Qualities we look for in investee companies The companies we choose will have one or more of the following attributes: A strong market position or clear advantages over its competitors A business model that can cope with future growth A proven management team with a record of success A profitable business or a clear path to profitability We also prefer companies whose advantages have not been recognised by the broader market, as this gives us the opportunity to invest while their shares are undervalued. Until now, people have always assumed that their ISA savings would be hit by inheritance tax when they die. It s great news that the government s new rules now make it possible to invest through an ISA in a way which avoids inheritance tax on these savings. Tony Wickenden, Technical Connection Call us on

10 10 Octopus AIM Inheritance Tax ISA The argument for investing in smaller companies The potential inheritance tax benefits of AIM shares aren t the only reason to invest in this market. Although investing in smaller companies involves some risk, this creates great potential for long-term growth. Over the long term, earnings growth is the key factor behind share price performance. Smaller companies offer the potential for earnings growth that isn t found to the same extent in larger companies. For example it is significantly easier for a small company to double a 1 million profit, than it is for a larger company to double a 1 billion profit. That s why, over time, smaller companies have significantly outperformed larger companies in terms of shareholder return. Research by the London Business School has shown that 1 invested in the UK s smallest companies in 1955 would have grown to 8,244 by A similar investment in a fund tracking the FTSE All-Share Index would have grown to just 672. * Within the AIM market there are many success stories smaller businesses that have been growing their earnings year-on-year for years and years, and lots of them aren t even that small. Despite this, the vast majority of investors still focus on large companies. We think that it s time that smaller companies had a fairer share of investors attentions. 3,725 Of course, it is important to note that short-term performance is often driven by the mood of the market. However, this has its benefits as well. It can help create buying opportunities for long-term investors like us, as we can often invest in good companies at a discount. The value of active management We like AIM because it is a market where expertise can really be rewarded. The UK s largest companies are followed by hundreds of analysts and professional investors, so there is little chance that one of them will find an angle the others don t. In AIM, each company is covered by far fewer analysts and investors, so our specialists have much more scope to find hidden value particularly as there are also many more companies to choose from. It may be hard to believe, but 80% of all quoted companies in the UK are worth less than 100 million. Another reason to choose a stockpicker Stockpicking becomes even more important when you take Business Property Relief into account, as this isn t available on every AIM company and the qualification can change over time. For example, a company may no longer be eligible for BPR if it moves into a new area of business or receives a takeover offer. To find out more about our process for identifying businesses that qualify for BPR, please turn to page 17. * Source: Elroy Dimson and Paul Marsh, London Business School

11 Octopus AIM Inheritance Tax ISA 11 Smaller doesn t always mean small For example, if you look at the top ten holdings in Octopus AIM ITS (our existing AIM portfolios designed for inheritance tax planning) you will see they have some impressive statistics: Average market capitalisation: 217 million Average turnover (forecast for 2013): 226 million Average profit before tax (forecast for 2013): 17.2 million Average dividend yield*: 1.9% And although AIM is home to plenty of smaller companies, there are lots of established names you ll have heard of too. Some of the success stories in our AIM portfolios include advertising agency M&C Saatchi, Majestic Wine and Prezzo plc. Majestic Wine operates the UK s largest wine warehouse chain, with more than 190 stores. It was founded in Market Cap: 330m Forecast profit before tax: 25.8m for the year to 1 April 2014 (source: Investec) M&C Saatchi is a global marketing services business working for clients across a wide variety of industry sectors in 22 countries. The company was founded in 1995 and listed on AIM in Market Cap: 195m Forecast profit before tax: 18.5m for the year to 31 December 2013 (source: Numis Securities) Prezzo plc is a branded restaurant operator positioned in the UK casual dining market. It operates 211 sites and listed on AIM in Market Cap: 297m Forecast profit before tax: 19.9m for the year to 31 December 2013 (source: Cenkos) All market caps as at 10 September 2013 * Dividends are the way that companies return some of their profits to their owners (the shareholders). This means that any dividends you receive provide extra growth for your portfolio in addition to any rise in the share prices of your holdings. AIM: Quick Facts AIM was launched in 1995 by the London Stock Exchange. It gives small, but growing, companies a way to raise capital without the restrictions of a full stock exchange listing AIM is now home to around 1,100 companies. Together, they re worth more than 60 billion The largest ten companies are worth an average of 1.29 billion More than 270 of these companies are worth over 50 million Source: London Stock Exchange, Call us as on at 0800 June

12 12 Octopus AIM Inheritance Tax ISA A team you can rely on Richard Power Lead Fund Manager Paul Stevens Fund Manager Richard has been with Octopus since He has over 17 years experience of managing UK smaller companies funds and is in charge of the CFIC Octopus UK Micro Cap Growth Fund. Richard has also worked at Close Brothers and Duncan Lawrie. Andrew Buchanan Fund Manager Paul joined us in 2005 to help with the research and analysis of AIM companies. He is a CFA charterholder and is a co-manager of the CFIC Octopus UK Micro Cap Growth Fund. Kate Tidbury Fund Manager Andrew joined us in 2008 from Close Brothers, where he had been managing AIM portfolios since He has over 35 years of investment experience, which includes launching the first fund focused on AIM (back in 1995). Kate also started at Octopus in 2008 after having worked with Andrew on AIM portfolios for Close Brothers. She has over 25 years experience and has also run specialist ethical small and mid-cap funds at Colonial First State

13 Octopus AIM Inheritance Tax ISA 13 The key facts Edward Griffiths Portfolio Manager Octopus manages more money in inheritance tax-focused AIM investments than anyone else We now look after over 170 million on behalf of over 1,700 clients OUR APPROACH Edward moved to Octopus in 2004 to help launch our AIM portfolio service and he is now the co-manager of the CFIC Octopus UK Micro Cap Growth Fund. He has previously worked at Schroders and State Street. Stephen Henderson Portfolio Manager Every year, we have over 500 face-toface meetings with AIM companies to help us identify the best investment opportunities We support management teams with a track record of delivering earnings growth We interrogate financial reports alongside market forecasts to assess the growth potential of our investee companies Stephen joined Octopus in 2008 as a graduate trainee and he is currently studying towards the Chartered Financial Analyst designation. He provides the rest of the team with analytical support and has dealing responsibilities. Median Octopus AIM Inheritance Tax Service Performance 1 YEAR 3 YEAR 5 YEAR OUR TRACK RECORD SINCE AIM ITS LAUNCH (JUNE 2005) % % % % FTSE AIM Total Return % % -1.38% % FTSE Small Cap (Excluding IT) Total Return % % % % FTSE All Share Total Return % % % % Median Octopus AIM ITS performance is calculated using a sample of client portfolios from 20 June Further details are available on request. Call us on Source: Octopus Investments, Lipper - August 2013

14 14 Octopus AIM Inheritance Tax ISA You re in control We have designed the Octopus AIM Inheritance Tax ISA to be as flexible as possible for you and your family. Building up your portfolio The minimum investment of 10,000 can be made up of contributions towards the current year s ISA allowance (which is 11,520 for the 2013/14 tax year) and/or transfers from either cash or stocks and shares ISAs. Once you ve opened your Octopus AIM Inheritance Tax ISA, you can make additional contributions of 10,000 or more. Again, these can be transfers from other ISAs, or new investments, which shouldn t be more than your ISA allowance for the year. It takes two years for each new contribution to the Octopus AIM Inheritance Tax ISA to gain exemption from inheritance tax. Making withdrawals Although the Octopus AIM Inheritance Tax ISA is designed to give you an effective way of planning for inheritance tax, we know that circumstances can change. That s why we ve made it easy for you to take money out of your ISA whenever you need to. You can also arrange to take regular withdrawals when you set up the account. All you have to do is tell us the amount you want to receive each year on the application form. These withdrawals can be changed or stopped at any time. Please note that after you withdraw money from an ISA, you can only put it back in up to the unused amount of your current year ISA allowance ( 11,520 for the 2013/14 tax year). This means you may lose the tax benefits on the amounts withdrawn from your ISA. You also lose any inheritance tax benefits, so if you don t spend the money before you die, it will become part of your taxable estate. It is also possible to transfer money from the Octopus AIM Inheritance Tax ISA to a different stocks and shares ISA, as long as you use the new company s transfer process. Please remember that the ISA rules don t allow you to transfer money from a stocks and shares ISA, such as the Octopus AIM Inheritance Tax ISA, into a cash ISA.

15 Octopus AIM Inheritance Tax ISA 15 We will keep you informed We ll send you a report every six months detailing the holdings in your portfolio and the trading activity since the last report, together with information on the companies you re invested in. You ll also be able to check the performance of your investments online through our secure website, which is available anytime. After two years Although it only takes two years for an investment in our AIM Inheritance Tax ISA to be exempt from inheritance tax, you must continue to hold it until your death for the relief to apply. Helping your BENEFICIARIES After you die, your executors have three options for your savings: They can ask us to sell the portfolio and pass the money to your beneficiaries They can keep the portfolio invested (outside the ISA wrapper). This could be a good option if your beneficiaries are younger, as it allows them to take over your investments and continue to benefit from any growth that is achieved. After two years it will also be outside of their estates for inheritance tax They can use the portfolio to pay any inheritance tax on your other assets (such as your home, for example). We can liquidate the portfolio for them and then pass the money directly to HMRC In all cases, there should be no inheritance tax bill on the Octopus AIM Inheritance Tax ISA itself, as long as you meet the two year holding requirement. The Octopus AIM Inheritance Tax ISA offers increased diversification for ISA investors looking for growth and inheritance tax savings through exposure to smaller companies. Karl Guadagnini, Financial Adviser, Sense Financial Solutions Call us on

16 16 Octopus AIM Inheritance Tax ISA Understanding the risks Everything you do involves risks. As you go through the day, you will constantly make decisions that balance these risks against the possible rewards. Investing is no different. When it comes to activities such as skiing, cycling or driving, it s clear what the risks are. It s also fairly easy to balance them against the rewards, such as fun, fitness, money-saving and convenience. Although it can sometimes be harder to recognise, there s always a balance between risk and reward in your financial decisions as well. Even a safe investment like a deposit account comes with the risk that your interest won t keep pace with inflation. As the Octopus AIM Inheritance Tax ISA targets long-term growth from a portfolio of AIM-listed shares, it has a correspondingly higher level of risk. Here are a few of the things you need to think about before you decide to invest. investment horizon Investments in the Octopus AIM Inheritance Tax ISA are designed to be held for the long-term. Your ISA may be difficult to sell The shares of AIM companies tend to be harder to sell than those of big businesses, such as BP or Vodafone. This means that if you decide to make a withdrawal or transfer from your ISA, you may not be able to sell the shares immediately and you may have to accept a price that is less than the real value of the companies. You may lose money The level of growth in your ISA depends on the performance of the companies in your portfolio. We do not offer any guarantees about the growth you will achieve and it s important to understand the value of your investments can go down as well as up, so you may not get back the full amount invested. Your ISA will be higher risk than many other UK equity investments. Companies listed on AIM normally involve more risk than those on the main London Stock Exchange. Their performance tends to be more volatile, which means their value can rise or fall by greater amounts on a day-to-day basis. Explaining Business Property Relief Business Property Relief (BPR) means that investments in certain AIM-listed companies can be exempt from inheritance tax. However, it s important to understand that this exemption is assessed by HMRC on a case-by-case basis when an investor dies. Until this happens, it cannot be stated for certain that a particular company will qualify for BPR.

17 Octopus AIM Inheritance Tax ISA 17 The charges You cannot rely on past performance No matter how well an investment or market may have performed in the past, this is not a guide to its future returns. There may be new tax rules in the future The tax benefits for ISAs and AIM-listed shares are available at the moment, but HMRC may change them at some point in the future. The value of some benefits may also depend on personal circumstances. This means that although we invest in AIM companies we reasonably believe will qualify for BPR, we cannot offer any guarantees these companies will remain qualifying investments at all times. That said, our fund managers are highly experienced in identifying businesses that should qualify. They are supported by an audit of all AIM companies contained in our investors portfolios that is carried out for us by PricewaterhouseCoopers twice a year, enabling us to identify businesses that meet the BPR requirements. Your executors will obtain BPR as part of the probate process. They will need to complete a copy of the probate return form IHT 412 and send this to HMRC. OCTOPUS INITIAL CHARGE The Octopus initial charge of 2.5% inclusive of VAT will be deducted from the amount invested. For direct applications and non-advised Waived until 31 December 2013 * (execution only) applications where intermediary commission is requested, the charge is 5% inclusive of VAT. ADVISER CHARGES Adviser charges are costs that you have agreed with your adviser, in payment for the advice they have provided to you. If agreed between you and your adviser, Octopus can facilitate adviser charges from your investment. We will deduct these charges from the amount on your application form and pay them to your adviser. Please note that these initial charges will reduce the amount invested. OCTOPUS ANNUAL MANAGEMENT CHARGE There is an Octopus annual management charge of 1.5% plus VAT of the value of your portfolio per annum, paid quarterly. For direct applications and non-advised (execution only) applications the Octopus annual management charge is 2% plus VAT of the value of your portfolio per annum, paid quarterly. ADVISER CHARGES You may instruct Octopus to facilitate an ongoing adviser charge from your investment, which will be deducted from your portfolio on a quarterly basis and paid to your adviser. This will reduce the net return to you. DEALING FEE AND STAMP DUTY Octopus will apply a 1% dealing charge on all transactions within the portfolio. Any purchases within the portfolio will incur a 0.5% stamp duty charge. *except for non-advised applications up to 2.5% initial charge applies, payable to your intermediary as commission Call us on

18 18 Octopus AIM Inheritance Tax ISA How to invest in the Octopus AIM Inheritance Tax ISA If you have a financial adviser Please contact them and they will help you set up your Octopus AIM Inheritance Tax ISA and arrange any transfers from your existing ISAs. If you are investing directly Please call our team on and we will talk you through the process. We will also send out any forms you need. Please note, it can take up to a month to transfer an ISA to Octopus and the two-year qualifying period for BPR will only start when your money is invested in AIM shares. You should also be aware that until we invest your funds you won t be exposed to the markets. Therefore any rise or fall during this period will not affect your investment. We know how important making the right investment decision is, and we want you to feel comfortable and informed about investing with us. So please feel free to call us at any time on with your questions or queries. We re here to help and we re always happy to hear from you. Octopus are very good at doing customer-friendly communications and that s why I invest with them. Octopus Investor

19 Octopus AIM Inheritance Tax ISA 19 Customer feedback In a recent survey we asked our investors if there was one thing we could do to make you happier, what would it be? Some of the responses we received were quite illuminating... make me 21 again win the lottery help me get out of the rat race lend me a million cure baldness Sadly, we won t be able to help with any of those. But we also got some wishes that we can help with, for example: use layman s language in literature, send me less paper and provide online access to portfolio data. We also asked our investors to sum up their experience of Octopus in one word. Here are some of the responses we received: steady excellent fine approachable efficient good confidence reliable professional pleasing reassuring competent As part of the same survey, two thirds of investors said they would be either likely or very likely to recommend Octopus to their family and friends. Call us on

20 IMPORTANT INFORMATION This document constitutes a financial promotion pursuant to Section 21 of the Financial Services and Markets Act 2000 and is issued by Octopus Investments Limited. Your attention is drawn to the risk factors set out on pages 16 and 17. Nothing in this document should be regarded as constituting legal, taxation, investment, or other advice and prospective investors are advised to consult their own professional advisers before contemplating any investment. Any decision to invest in this product should be made on the basis of the information contained in this brochure, and the terms and conditions. Any references to tax laws or levels in this document are subject to change. Past performance is not a guide to future performance and may not be repeated. The value of shares can go down as well as up and you may not get back the full amount invested. You should consider an investment in this product as a long-term investment. This document does not constitute, and may not be used for the purposes of, an offer or invitation to treat by any person in any jurisdiction outside the United Kingdom. This document and the information contained in it are not for publication or distribution to persons outside the United Kingdom. It does not constitute a public offering in the United Kingdom. Octopus Investments Limited has taken all reasonable care to ensure that all the facts stated in this document are true and accurate in all material respects, and that there are no other material facts or opinions which have been omitted where the omission of such would render this document misleading. The information in this document was captured on 3 September 2013 and therefore may not be current. Octopus Investments Limited, 20 Old Bailey London EC4M 7AN is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales under No Telephone calls may be monitored and/or recorded for regulatory, legal and training purposes. Get in touch Call us IHT us info@octopusinvestments.com Visit us octopusinvestments.com 20 Old Bailey London EC4M 7AN