Investment Objective

Guinness prioritise the preservation of capital for investors by focusing on companies that require capital where risks can be mitigated contractually, or by the realisable value of the assets of the business.

Guinness sources investments through its networks of contacts, established through making more than 50 EIS investments since 2011. All origination leads are discussed at Guinness’ regular pipeline meetings where they are prioritised according to the investment strategy.

The team have a strong pipeline of investee companies into which they intend to make investments. These are across a number of sectors but broadly fall into one of the following categories:

Businesses that own Property and Land

Businesses whose value is underpinned by property or land ownership. Examples of these types of businesses include a children’s nursery, a rehabilitation centre and a crematorium.

Businesses with high value Stock and Equipment

Companies where a proportion of their value is through ownership of tangible and tradable assets. This includes trading businesses with tradable assets such as logistics and freight, or businesses with high value and liquid stock, such as a classic car dealership.

Businesses with assets backed by Long Term Contracts

Businesses such as waste management or recycling where the assets are underpinned by long term contracts and high visibility of cashflows.

Guinness usually seeks Board positions in Investee Companies, seeking to establish regular formal communication with management teams, and remain closely involved in each Investee Company during the life of an investment. Investee Companies are also required to provide Guinness with regular management reports and financial statements.

Guinness actively monitors opportunities for exits of individual investments. Any potential exit strategy will be described in a short-form memorandum and submitted to the Investment Committee for final approval prior to the commencement of any sale process.

Exit Strategy

Anticipated exit routes expected to include (but are not limited to):

• Sale to a trade or financial buyer;
• Sale to management;
• IPO on a market such as AIM;
• Leveraged return of capital to investors

Fund Manager

Guinness Asset Management is a London-based specialist fund management company, established in 2003. Guinness is independent and focused purely on investment management. Our in-house economic, industry and company research allows us to take an independent view and not be led by the market. Our size and specialist nature also means we have the ability to respond to market changes and opportunities. Together with our US sister company, Guinness Atkinson Asset Management, the firm currently manages more than £600 million. Since 2010, the Guinness EIS team has raised and invested over £60 million in EIS qualifying companies.

Guinness Asset Management is wholly independent and is 100% owned by employees and management.

Further information can be found at www.guinnessfunds.com.

Fees

Investing through an advise

Guinness Transaction Fee of 2%, paid by investee companies;Annual Management Fee of 2%, paid by investee companies.

Investing through a non-advisory intermediary

Guinness Initial Fee of up to 3%, paid to intermediary from investor’s funds;;Guinness Transaction Fee of 2%, paid by investee companies;Annual Management Fee of 2%, paid by investee companies.

Investing directly

Guinness Initial Fee of 3%, paid by investor;Guinness Transaction Fee of 2%, paid by investee companies;Annual Management Fee of 2%, paid by investee companies.

Administrator fees

Transaction fee of up to 0.35% and an annual charge of £75 per investor regardless of the number of investee companies.

Performance fee

Once Subscription has been returned to investors, 20% of Portfolio profits.

Kuber Specific Arrangements

Kuber Investors are charged as ‘Investing through an adviser’, no fees borne directly by investor.

Please note Admin fees as set out previously still apply.