1. Due Diligence
January 2017
For professional adviser use only

2. Tatton Onshore Tax Strategies
Introduction
Building on from success within the Tatton stable, Tatton Onshore Tax Strategies has launched to provide an IHT investment solution, through AIM portfolios, administered on UK Retail Investment Platforms.
Building on his previous experience at Octopus, Lothar Mentel has worked with experienced small cap manager Chris Swanepoel to design and launch an IHT AIM Portfolio.
The AIM Portfolio service is managed by Tatton Investment Management Limited (TIML) through the trading style, Tatton Onshore Tax Strategies
From humble beginnings Tatton Investment Management Limited has now branched out to offer a range of discretionary portfolio solutions, all investment styles from total return to income and active management to passive.

3. Company Information Company Name Tatton Onshore Tax Strategies Address
125 Old Broad Street, London, EC2N 1AR
Telephone
Contact, name and position
Alex Antonius, Chief Investment Consultant
How would you characterise your company?
Tatton Onshore Tax Strategies is a tax product specialist offering access to a selection of carefully chosen stocks listed on the UK’s Alternative Investment Market (AIM).
Please provide a brief history of your company.
Tatton Onshore Tax Strategies was founded in by Lothar Mentel, Chief Investment Officer. Tatton Onshore Tax Strategies is a division of Tatton Capital Limited which in turn is a wholly owned company of the Perspective Group Limited.

4. Company Structure What is the legal structure of your company?
Tatton Onshore Tax Strategies is a wholly owned division of Tatton Capital Limited, which in turn is a wholly owned company of the Perspective Financial Group Limited.
The full legal entity name with which the client would contract.
For contractual purposes it is referred to as “Tatton Investment Management Limited trading as Tatton Onshore Tax Strategies
The Directors
The Directors of Tatton Investment Management Limited are:
Lothar Mentel – (CF1, CF30)
Noel Stubley – (CF1)
The Directors of Tatton Onshore Tax Strategies are:
Lothar Mentel – CEO and CIO
Noel Stubley – CFO
Frequency of Board Meetings
Tatton Investment Management Limited meet on a regular basis, quarterly.
Registration
Tatton Investment Management Limited is regulated in the UK by the FCA, Number
Tatton Investment Management Limited is a company registered in England and Wales no

5. Regulatory Considerations
Date of last regulatory review
None
Details of any disciplinary action by regulators in the last 3 years
Details of complaints in the last 3 years
Outline of independent scrutiny
Tatton Investment Management is subject to regular FCA supervision. Additional auditing and compliance review is provided by Paradigm Partners Limited.
Professional Indemnity Insurance
Complaint cover is in place with a syndicate of insurers, providing £1.75million of cover per single claim and in the aggregate.

6. AIM Portfolio General Information Tatton Onshore Tax Strategies
Is a trading style of Tatton Investment Management Limited, serviced and managed by a dedicated team at Tatton Investment Management Limited.
AIM Portfolio Service
Is an investment strategy for ISA and GIA, which can qualify as a IHT strategy administered and held on UK Retail Investment platforms.
Key Objectives
Achieve full BPR eligibility
Minimising risk of sustained capital losses while aiming for long term returns above the rate of inflation
Key Benefits
The AIM Portfolio is held (custody) and administered (traded) on UK Retail Investment Platforms allowing clients to retain the effectiveness and flexibility of the platform
Cost effective IHT mitigation
Low minimum investment
Fees
Tatton’s Management fee is 1.25% (inclusive of VAT)
Charges
Each platform has their own trading charges, Currently Nucleus charges £10 per trade plus a 0.15% brokerage charge
Minimum Investment Limits
£25,000 for GIA
Annual limit for ISA

7. The Investment Team Number of staff
Tatton Onshore Tax Strategies has 5 permanent staff
Investment Professionals
Tatton Onshore Tax Strategies:
Lothar Mentel – CEO & CIO
Chris Swanepoel – Portfolio Manager – Head of AIM Investments
Mark Murray – Investment Analyst
Emma Dixon – Investment Operations Manager
Tatton Onshore Tax Strategies Investment Committee
The investment decisions are made by the Tatton Investment Committee. The members of this committee are:
Lothar Mentel
Jim Kean – Head of Investment (Tatton Investment Management)
Chris Swanepoel
External representative(s)
Staff turn over
None

8. Tatton Onshore Tax Strategies Team
CEO & CIO
Lothar Mentel
Chief Investment Consultant
Alex Antonius
Head of AIM Investments
Chris Swanepoel
Investment Analyst
Mark Murray
Portfolio Manager
Emma Dixon

9. AIM Portfolio Service – The Team
Dedicated team led by experience Small Cap specialist
Lothar Mentel, Dipl Oec – CEO & CIO
After 20 years in investment management, with positions at Commerzbank, Barclays Private Bank/Wealth, Threadneedle, NM Rothschild and most recently Octopus Investment Management, Lothar set up Tatton IM together with Paul Hogarth in After 15 years in quantitative analysis and product development, he became CIO of Octopus in 2008 which included leadership of the AIM team. He holds a German post graduate business and economic degree (Dipl Oec) and is a regular commentator in the international investment media.
Chris Swanepoel, CFA – Head of AIM Investments
Twenty years investment experience as a portfolio manager with JP Morgan Asset Management, Barclays and CIT. Investment experience includes the management of the £400m J.P.Morgan UK Smaller Cap Institutional Fund with a positive track record and the successful launch and management of the Barclays AIM Portfolio Service. Corporate finance expertise at CIT provides further depth of knowledge enabling a unique outlook on businesses, globally and emerging, leading to a solid base for outperformance. Chris is a holder of the Chartered Financial Analyst designation.

10. AIM Portfolio Service – The Team
Dedicated team led by small company specialist
Emma Dixon – Investment Operations Manager
Emma joined Tatton Investment Management in With over 20 years in investment administration and private client portfolio management Emma brings a wealth of trade execution experience to the team. Her career took her from Hambros Bank in the early 90’s, to Datastream, the CCLA and Henderson Investors, before she became a portfolio manager after joining Barclays Private Bank in She holds various professional qualifications in investment management as well as project management.
Mark Murray – Investment Analyst
Mark joined Tatton Investment Management in 2014 as an Investment Analyst. Before this he graduated from the London School of Economics and worked in Parliament as a Research Assistant. Mark holds the Investment Management Certificate (IMC).

11. Investment Philosophy
AIM Portfolio
Description
The Tatton AIM Portfolio targets companies with business plans focusing on organic sales growth. We then analyse the financial strength of each of these companies, and meet the management of the company to ensure they fulfil our criteria. We will invest only when we believe we have found the right company with the right potential at the right price.
While AIM features more than 1,000 companies, we look to invest in a carefully selected portfolio of stocks. Our aim is not to invest in companies which are broadly similar, where performance is likely to be adversely affected by the same events at the same time, for example, we would not invest all money into a single industry sector. Neither would we invest in companies where returns are likely to be ‘all or nothing’ – e.g., a biotech company where share price rises are wholly dependent on the success or otherwise of a single event, in this case the discovery of a new drug.
The stocks we select will be chosen from a variety of different sectors, but all have the same characteristics of (a) long-term investment potential and (b) are conducting trades that make them eligible for Business Relief.

12. Investment Process
Outline of Tatton AIM Investment Process
The Tatton AIM Portfolio is a discretionary managed service. We will assemble a portfolio of stocks and continue to carefully manage this portfolio on clients behalf to capture the inheritance tax advantages and mitigate risks through diversification and ongoing monitoring.
We will only target those companies whose businesses we fully understand. To aid us here, we research every company thoroughly using our own resources, broker research and independent external research companies. A key element to our disciplined research process is the company visits we carry out to ensure they comply with our rigorous investment criteria. If we are not completely confident in every aspect of a company, we will not invest in them.
We believe there are four main sources of investment ideas:
Company meetings
Broker company research
Fundamental analysis of companies
Tatton’s valuation screening process

13. Key Risks Your capital is at risk
Tatton AIM IHT Portfolio is a stock market investment which means that your capital is at risk and the client may get back less than the amount invested. It should be considered a long-term investment.
Tax reliefs are not guaranteed
Tax reliefs depend on individual circumstances. There is no guarantee that tax reliefs will remain the same in the future.
AIM listed shares are high risk
AIM stocks are small and generally can be more volatile and are considered higher risk than shares in large, listed companies.
Your investment may be difficult to sell
As the market for shares listed on AIM is smaller than the market for the larger listed shares, it can be difficult or take longer to sell an investment particularly if this needs to be achieved in a short period of time.

14. Tatton Investment Management Communication
End Client Reports
Tatton provides quarterly overviews of model portfolio performances at the general level.
For specific client account reporting/valuations this is provided by the adviser to the client via the chosen Retail Investment WRAP platform.
Adviser updates
All advisers are invited to the Tatton Onshore Tax Strategies quarterly Investment Committee webex for an update on the portfolio performances, reasons for changes, and general market update.

15. Adviser Firm Specific Permissible jurisdictions
Tatton can accept clients that are provided advice by a UK registered Adviser and are residents of any EU country, Jersey, Guernsey, Isle of Man or Gibraltar
How will Tatton help me to deliver my on-going service to clients?
Tatton will provide regular market updates and valuations on a quarterly basis (direct to you the adviser, or direct to a client) to be agreed with you. It will also invite you to a quarterly investment committee.
How will Tatton’s proposition meet my client’s needs?
Tatton’s AIM proposition is for those clients who accept a higher risk position to achieve IHT mitigation within 2 years and would like to retain the flexibility and effectiveness of a platform for their tax focussed investments.
How will Tatton’s proposition enhance my own service proposition to my client bank?
Our active portfolio overlay service is designed to reduce the burden of managing your clients investments through your existing platform arrangements. Our discretionary overlay means we have the flexibility to react faster to changing market conditions when compared to other more traditional advisory services.
What changes will I have to make to my advice process to be able to work with Tatton?
Each firm will need to consider this question carefully and individually. The impact of bringing Tatton into your business, should be minimal and we have an investment team to help you integrate the Tatton proposition into your advice process.

16. Adviser Firm Specific
What support and training will I receive from Tatton to help train my staff?
We have an investment support team which will help you integrate Tatton into your business.  You have easy access to the Investment support and Tatton Management team during office hours and we are pleased to answer your queries and assist you in any manner we can.
How can I ensure that the Tatton proposition can be explained to my clients in a fair, clear and not misleading manner?
We have provided generic descriptions of how Tatton works and explanatory wording that you can use within your Suitability Reports. In addition, we have integrated this material into the PPOL report writing software, which many of our customers use.
What support will I receive from Tatton to help explain the proposition to my clients?
We provide a range of brochure ware and support materials which will help you to explain how Tatton works to clients; this is available freely on our Tattontax website and is regularly updated.
How can Tatton interact with my larger, HNW clients
You are welcome to bring clients into our Tatton offices, to meet with Lothar and the investment team. By appointment only please.

17. Competitor Comparison
Key Points
When conducting a due diligence exercise on Tatton Onshore Tax Services, it is imperative that the IFA can show that Tatton Investment Management Limited is neither a full DFM nor just a provider of model portfolio service, but a hybrid of the two offering an AIM portfolio on a UK Retail Investment platform.
Tatton has developed an IHT AIM proposition whereby the IFA remains in firm control of the client ownership and relationship, with Tatton owning the investment management of assets and rebalancing.
Tatton is only available through the financial adviser, with no direct client offering. The firm belief is that the adviser knows the client and their needs and aspirations, and is in the best position to determine the appropriate solution for the clients’ needs. This allows Tatton to concentrate purely on investment management rather than client relationships.
We operate purely on UK Retail Investment platforms. By focussing on our areas of expertise only and operating exclusively on external platforms we can offer our services at the most competitive rates.
The comparison table on the next slide shows other AIM portfolio solutions charges,

18. AIM IHT portfolios on platform – by Tatton
TOTS Ltd. introduces price competiveness to UK tax products
Competitor
Minimum investment
Initial charge
Annual Charge
Dealing charges
Retail Investment platform
Notes
Brown Shipley
£100,000 2%
1.5% Y N
Off platform private bank solution
Brooks MacDonald
£N/A
N/A
1.25% 1%
Off platform premier solution
Killik & Co
£50,000
1.75%
£30 PD
Charles Stanley
Only platform offer – Novia + Winterflood
Thames Valley Investments
0.75%
 Part of D2C advisory
Octopus Investments
2.5%
Off platform solution
Amati (no longer live)
Discontinued on Transact
Blackfinch
Only take annual fee if the portfolio reach target returns (4% or 6% )
Tatton OTS AIM IHT Service
£25,000 
0% 
1.25% 
Incl VAT!
£ % Broker charge
Y 
0.35% Nucleus + standard AIM broker execution

19. Important Information
Compliance Note
Important Information
This document is solely for the use of professionals and is not for general public distribution
Tatton Investment Management Limited is authorised and regulated by the Financial Conduct Authority. The value of your investments and the income from
them can fluctuate and it is possible that investors may not get back the
amount they invested. The information in this document does not
constitute investment advice or a recommendation for any product and
you should not make any investment decisions on the basis of it.