Q: How can you help advisers and support them in this way so they can talk to their clients about these issues?
Yes, we really are strong supporters of advisers and how they interact with their clients. We want to help them build their own knowledge base. We have a huge amount of collateral on how to use EIS, such as case studies from a tax planning perspective, how to reduce income tax or Capital Gains Tax deferral, or inheritance tax mitigations. We use case studies to illustrate how advisers can utilise this for the benefit of their clients. We also have a number of seminars that we run on a group basis or one to one professional development CPD modules, so that everyone can access more knowledge and become better qualified. We strongly support facilitating advisers with better information and knowledge.
Q: What does the industry need to do more of to promote alternative investments to a wider investor base?
This is a challenging one, because investing into small companies and within the EIS scheme is obviously very high risk. That’s why the tax breaks are there, and that’s why it is not for everybody. When we talk to advisers or investors, our aim is to get them to understand what they’re investing into. Therefore the knowledge and suitability is really the benchmark for us. There is a large demand building within the marketplace. When you look at the rise of platform investing or direct investing through the internet into small companies, you have a huge pool. People really need to understand the risks of investing in small companies. There is more scope but ultimately it needs to be done the right way. It is not for everybody because of the risk factors. However, for those clients of sufficiently high net worth, who have the required capacity for loss and who are prepared to take risk, it’s a really good alternative investment to sit alongside their portfolio.
Q: Are there any final key messages you would like to pass on from Oxford Capital to our readers?
The key message from the team at Oxford Capital is that we are very experienced venture investors who have been investing and supporting businesses in the UK for the last 20 years. We have a fantastic portfolio of companies that are doing very well. We have a very clear investment strategy as to how to access these early stage companies, how to do this in a risk- managed environment and with a clear message around portfolio construction. We believe that accessing EIS investments through our growth EIS is a great way to diversify portfolios for investors and their advisers.
Important information
Oxford Capital invests in unquoted securities, which are classified by the FCA as a Non-Readily Realisable Security (NRRS). As such, these products may only be marketed to limited categories of investors, relating to knowledge, experience or financial situation. If an investor decides to pursue any investment opportunity after your personal investment recommendation, they will be investing in an unquoted company. Capital is at risk and investors should only invest if they can afford to lose their capital. Investment is of a long term and illiquid nature. It can be difficult to value and to sell unquoted investments. Any tax advantages associated with investing are based on current legislation, are subject to change, and depend on the individual circumstances of each investor. Sole responsibility for suitability of the investment for an investor lies with the investment adviser.
