SUMMARY
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The London Asset Management Alternative Asset Class fund (“the fund”) is part of an open-ended
protected cell company (PCC) approved by the Guernsey Financial Services Commission and
listed on the Channel Islands Stock Exchange. It is not a UK regulated Collective Investment Scheme.
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The Fund invests in existing funds that have no direct correlation to equity investments. Hence it being
a fund of funds. The fund looks to seek value by investing in Senior life Settlement funds, Traded
Endowment funds, Carbon Emission funds, Student Accommodation funds and other suitable asset
class funds that are not equity based and offer low volatility.
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The aim of the fund is to produce capital appreciation of between 8% and 11%.
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Whilst the plan is open-ended, in view of the establishment charge this should be considered as a
medium to long term investment.
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Investors may cash in all or part of their holding on any trading day subject to the redemption terms.
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The value of shares can fall as well as rise and investors should be prepared to accept a
risk of loss of capital.
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Any growth realised from an encashment or withdrawals from the fund will be liable to Capital Gains
Tax (CGT) for UK tax.
THE FUND DETAILS
London Asset Management Ltd is the Manager
London Asset Management (Guernsey) Ltd is an appointed representative of London Asset Management Ltd and is the appointed promoter of the fund. The manager has appointed Lancelot Investments SARL as the investment adviser. It is not a regulated collective investment scheme such as a UK unit trust or a UK OIEC.
Who selects and buys into existing funds?
Lancelot Investments buy into existing alternative asset class funds. Deutshe Bank International Ltd act as the custodian to the fund and all administration of the fund is run by the Fund Corporation of the Channel Islands Limited.
How is the fund constructed?
As with any investment, over exposure to one risk is not desirable and with this in mind strict parameters are followed to ensure diversification.
The cell shall typically have no more than a 50% exposure to any individual fund share or security except in respect of investment into other Collective Investment Schemes where diversification of risk will generally be achieved by the underlying fund, and whilst it is expected that the Cell will usually invest in a minimum of three Collective Investment Schemes, it may invest in fewer should the Manger consider this appropriate.
Intended Exposures
0% to 100% - Senior Life Settlement Funds
0% to 100% - Carbon Emission Funds
0% to 100% - Traded Endowment Funds
0% to 100% - Student Accommodation
0% to 100% - Other Alternative Asset Classes
Senior Life Settlements
A Life Settlement is the purchase of life insurance policy where the life insured has chosen to sell their policy in the open market. Senior life settlements are so called due to a high average age of the lives assured. A Senior Life Settlement fund purchases a number of these insurance policies. The funds are not correlated to any other asset class such as stock markets, bonds or property.
Carbon Emissions
Carbon Emission funds maximize investment returns from creating and selling carbon credits. The funds also invest in greenhouse gas emission reduction and green energy projects.
Traded Endowments
Similar to Senior Life Settlements except Traded Endowments funds purchase endowment policies that have built in capital guarantees.
Student Accommodation
Funds that invest in students and key worker accommodation, throughout the UK. Positive returns are obtained through a combination of secure income and capital appreciation arising from increasing rental values.
Other Alternative funds
The investment manager from time to time may select opportunities from other alternative asset classes.
Other Plan Details
If partial withdrawals have been made, they will be reflected in a capital gains tax certificate issued at the end of the tax year.
Share purchases and sales are carried out once a month, on the 1st of each month, or a later business day.
The value of the Fund at any time will depend on the investment performance of the shares. The price of shares can fall as well as rise.
DEALING IN SHARES
Base Currency
GB Pounds
Subscription Price
Participating Shares are initially being offered at a price of GBP1 per share, and thereafter on Investment Dealing Days at a price equal to the NAV (Net Asset Valuation) per share.
Minimum Subscription Amount
GBP 15,000
Minimum Top Up
GBP 2,000
Investment Dealing Day
The close of business on the first Business Day of each month.
Redemption Dealing Day
The first Business Day of each quarter.
Subscription Notice Period
Seven Business Days, Prior to the Investment Dealing Day.
Redemption Notice Period
Fifteen days before end of current quarter for redemption at the end of the following quarter
(minimum notice of 105 days before quarterly redemption dealing).
Redemption Proceeds Payment
Payment of the redemption proceeds will be made on or before the twentieth day following the applicable Redemption Dealing Day.
Dividends
If dividends are declared, they will be declared once a year as at 31 March. It is intended that at least 85% of the income from the cell will be paid to investors.
Conversion Notice Period
Fifteen days before end of current quarter for redemption at the end of the following quarter.
Valuation Point
The last Business Day of each month.
Subscription Price
Participating Shares are initially being offered at a price of £1 per share, and thereafter on Investment dealing days at a price equal to the NAV per share.
Broker
A broker appointed by the fund from time to time.
Maturity Date
The cell has no fixed maturity date. Cleared funds received will be invested on deposit in our client account and attract interest at the current rate, until shares are purchased. The amount invested, less the initial charge, will then be used to purchase shares at the first available dealing date. We will issue an Initial Transaction Statement setting out details of the shares purchased.
HOW WILL SHARES BE VALUED?
The share price is valued monthly, currently on the last Business day of each month. It will be announced on the 15th of the month and be shown on our web site www.lamfund.com. The net asset value will be determined on the basis of the share value of each fund, plus cash and other assets less costs of acquisition, setup fees and all existing and contingent liabilities, including provision for future liabilities as the manager may determine and any accrued performance fee. The net asset value per share shall be determined by dividing the net asset value by the number of shares in issue at the time of valuation.
WHAT ARE THE CHARGES?
Investor
Initial charge: up to 5.25% of the original investment.
Fund Charges
Annual management charge; The manager is entitled to receive a fee at the rate of 1.5% per annum of the Net Asset value of the cell to be accrued monthly and payable monthly in arrears. In addition, the manager is entitled to be reimbursed for any out-of-pocket expenses in connection with carrying out its duties. The manager may pay a proportion of this fee to the promoter as agreed between the parties from time to time.
Performance Fee; A maximum incentive or performance fee of 15% per annum may be levied against the cell at the discretion of the manager, on any increase in NAV (subject to a high watermark).
Redemption Fee
None
As with all OEICs, other fees are payable to various third parties such as custodian and auditors. Full details of these are set out in the offering Memorandum and supplement.
All fees and other costs are taken into account before calculating performance fees.
Further details of all charges are available on request.
HOW IS THE FUND TAXED?
There is no tax on the fund.
For direct investments it is our understanding that the returns will, under current legislation, be subject to Capital Gains Tax (CGT) for UK investors.
Rates of CGT will be payable only on encashment where the share price has risen. This will apply on partial or full encashment.
The amount declared on our CGT statement will need to be aggregated with other gains to assess whether CGT is payable.
Currently UK residents have an annual CGT allowance.
Investments by pension funds are tax free.
KEY FEATURES OF THE INVESTMENT
What are the risks?
The Investment return is based on the performance of the underlying shares of the fund and depending on performance there could be no investment return payable.
It should be remembered that the price of the shares can go down as well as up and that, on redemption of shares you may not receive the amount that you originally invested.
If you tell us that you want to cancel your investment after we have bought the shares in the various funds, you will only get back the value of the shares when we sell them, which could be less than your original investment.
You must be aware that if any of the parties involved are unable to meet their obligations you could lose some or all of your investment.
The levels and the bases of taxation could change in the future.
Is there a liquidity risk?
Alternative Investment asset classes traditionally have a far higher liquidity risk than equity based investments as the unwinding of the purchased assets is far more difficult due to smaller and less regulated markets. A fund of funds approach reduces the liquidity risk. However, in the event that total redemptions from the cell exceed 10% at any quarterly trading date the Manager reserves the right to delay settlement of any excess over this amount. The manager may seek to match redemptions and subscriptions where appropriate.
Is there a Currency Risk?
Some of the funds purchase their assets in a foreign currency. The fund would usually use financial instruments to protect the exchange rate to ensure that the returns are always in the sterling equivalent.
What happens to my money prior to investment date?
Cleared funds received will be held on deposit in our client account and attract interest up until shares are purchased.
How much will any advice cost?
If you receive advice from an Independent Financial Adviser, he or she will tell you how much the advice will cost. Even if you do not receive any advice we may pay commission to the Independent Financial Adviser who introduces the business to us.
How will you keep me informed?
We will write to you to acknowledge your application within five working days. With the letter we will send you a summary of your investment and a notice of cancellation.
Once the shares have been purchased, we will send you details of the shares you have bought. We will send half yearly statements showing the value of the plan. You can check the current price of the shares of the fund at any time by looking at our web site: www.lamfund.com
Can I change my mind?
When we acknowledge your application we will send you a “Notice of your right to cancel.” You have 14 days from the day you receive this to send it back to us.
What happens if I die?
If you die whilst invested in the fund we will deal with your investment, as instructed by your personal representatives. We will provide a value as at the date of death and will explain the options available.
Should I seek advice?
This brochure is not a personal recommendation to you. We do not provide advice as to its suitability, or guidance on tax issues. We recommend that you talk to an authorized Financial Adviser before making your mind up whether to apply.
WAYS TO INVEST
It is available through various channels.
Direct Investment (Minimum£15,000)
Investments may be made directly either by an individual, jointly or on behalf of a child under the age of 18.
Pension Funds
The trustees, subject to the terms of the scheme, can hold shares within certain pension arrangements including SIPP’s and SSAS. For this type of application you can download this through our website: www.lamfund.com
Companies/Charities
Shares in the fund can be held by either companies or charities, subject to the relevant articles of association permitting such an investment. For this type of application you can download this through our website: www.lamfund.com
Individual Savings Account
The London Asset Management Fund is available as a Maxi Stocks and shares ISA and is available when completing ISA and PEP transfers.
Various Trust Structures
Applications available on the website.
www.lamfund.com
THE WORLDWIDE MUTUAL FUND PCC LIMITED
London Asset Management Alternative Asset Class Cell
Terms and Conditions of Application
1. |
By completing and delivering an application form, you the applicant(s): |
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(a) |
offer to subscribe for the number of Participating Shares specified in your application form (or any smaller number for which the application is accepted) at the price specified in the relevant Appendix, subject to the Particulars, the relevant Appendix, these Terms and Conditions and the Memorandum and Articles of Association of the Fund; |
(b) |
offer to subscribe for the number of Participating Shares specified in your application form (or any smaller number for which the application is accepted) at the price specified in the relevant Appendix, subject to the Particulars, the relevant Appendix, these Terms and Conditions and the Memorandum and Articles of Association of the Fund; |
(c) |
warrant that your remittance will be honoured on first presentation and agree that, if such remittance is not so honoured, you will not be entitled to receive a confirmation of ownership for the Participating Shares applied for or to enjoy or receive any rights or distributions in respect of such Participating Shares unless and until you make payment in cleared funds for such Participating Shares and such payment is accepted by the Fund (which acceptance shall be in the Fund's sole and absolute discretion and shall be on the basis that you indemnify it against all costs, damages, losses, expenses and liabilities arising out of or in connection with the failure of your remittance to be honoured on first presentation) and that at any time prior to unconditional acceptance by the Fund of such late payment in respect of such Participating Shares the Fund may (without prejudice to any other rights it may have) treat the agreement to allot such Participating Shares as void and may allot such Participating Shares to some other person, in which case you will not be entitled to any refund or payment in respect of such Participating Shares (other than the return of such late payment); |
(d) |
agree that any confirmation of ownership and any monies returnable to you may be retained pending clearance of your remittance and that such monies will not bear interest for your account; |
(e) |
agree that, in relation to all applications, acceptances of applications and contracts resulting from this application form, nothing shall limit the right of the Fund to bring any action, suit or proceeding arising out of or in connection with any such applications, acceptances of applications and contracts in any other manner permitted by law or in any court of competent jurisdiction; |
(f) |
warrant that, if you sign the application form on behalf of another party or on behalf of a corporation, you have due authority to do so and such person or corporation will also be bound accordingly and will be deemed also to have given the confirmations, warranties and undertakings contained in these Terms and Conditions and undertake to enclose your power of attorney or a copy thereof duly certified by a solicitor or bank where required by the instructions relating to the application form; |
(g) |
agree that, in respect of those Participating Shares for which your application has been received and processed and not refused, acceptance of your application shall be constituted by notification of acceptance thereof by the Fund or its appointees; |
(h) |
agree that all documents in connection with the offering and any returned monies will be sent at your risk and may be sent by post to you at your address (or, in the case of joint applicants, the address of the first-named applicant) as set out in the application form; |
(i) |
agree that, having had the opportunity to read the Particulars and the relevant Cell Appendix, you shall be deemed to have had notice of all information, statements of opinion and representations concerning the Fund contained therein; |
(j) |
confirm that in making such application you are not relying on any information or representation in relation to the Fund other than those contained in the Particulars and the relevant Cell Appendix and you accordingly agree that no person responsible solely or jointly for the Particulars and the relevant Cell Appendix or any part thereof will have any liability for any such other information, statement of opinion or representation; |
(k) |
confirm that you have reviewed the restrictions contained in paragraphs 2, 3 and 4 below and warrant as provided therein; |
(l) |
(if you are a UK resident investor) confirm that you have read and understood the "Capital-at-risk products fact sheet" issued by the Financial Services Authority, accompanying the Particulars and the relevant Cell Appendix. |
(m) |
warrant that you are not under the age of 18; |
(n) |
warrant that if you are intending to hold your investment in the Fund through an ISA or PEP you are and /or will remain (as appropriate, depending on when you opened the ISA or PEP) a qualifying individual under the ISA Regulations or the relevant PEP Regulations |
(o) |
agree to provide the Fund with any information which it may request in connection with your application including, without limitation, evidence of identity to comply with applicable money laundering regulations and agree that in case of delay or failure to provide satisfactory information, the Fund and its appointees may take such action as they see fit including declining this application form; |
(p) |
warrant that, in connection with your application, you have observed the laws of all requisite territories, obtained any requisite governmental or other consents, complied with all requisite formalities and paid any issue, transfer or other taxes due in connection with your application in any territory and that you have not taken any action which will or may result in the Fund or its appointees acting in breach of the regulatory or legal requirements of any territory in connection with the offer for Participating Shares in the Fund or your application; |
(q) |
warrant that, if you are applying in your capacity as trustee, that you have the requisite authority to make such application and that you are acting pursuant to and in accordance with the powers conferred upon you as trustee under the relevant trust deed; |
(r) |
agree that your application for Participating Shares is irrevocable and will remain valid regardless of whether or not all or part of such Participating Shares are validly transferred into an ISA or an
existing PEP. |
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| 2. |
No person receiving a copy of the Particulars, the relevant Cell Appendix or an application form in any territory may treat the same as constituting an invitation or offer to him nor should he in any event use such application form unless the same could lawfully be used without contravention of any registration or other legal requirements. It is the responsibility of any person wishing to make an application hereunder to satisfy himself as to full observance of the laws of any relevant territory in connection therewith, including obtaining any requisite governmental or other consents, observing any other formalities requiring to be observed in such territory and paying any issue, transfer or other taxes required to be paid in such territory. |
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| 3. |
The Participating Shares may not be directly or indirectly offered, sold, resold, delivered or otherwise transferred within the United States or to, or for the account or benefit of, and US Person except in transactions exempt from the registration requirements of the US Securities Act and applicable state securities laws. The Fund has not been and will not be registered under the US Investment Company Act of 1940, as amended. |
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4. |
Persons subscribing for Participating Shares shall be deemed to represent and warrant that they are not resident in the United States and will not, as principal or agent, offer, sell, transfer or deliver directly or indirectly, as part of the distribution of the Participating Shares any Participating Shares or otherwise assist in any such Participating Shares being purchased by any person in the United States or as a result of a purchase order known to originate in the United States. |
