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By Farzin Yazdi – Head of Investor Visa at Shard Capital.
Today’s data release reminds me of the pre Nov 2014 rush we saw ahead of the increase of minimum investment from £1m to £2m – and the results are similar too. In 2014 from Q3 to Q4 we saw numbers double. This morning’s data release show an increase of over 40% from last quarter with 131 visas granted – with nearly 60% of all applicants coming from China*.
And what a memorable quarter it has been; with the Statement of Changes on March 7 and new rules going live on the 29th of March.
Is Britain still open for business?
When new rules are announced, it takes time for advisors and clients to fully understand them – and their subsequent implications. This time is no different. Many are still coming to terms with the implications of showing source of wealth for 2ys.
I’ve had more than one client explain to me that their cash has only been held for a short period of time, but they will seek to apply once it has been there for 2ys! In fact, from a financial perspective nothing has changed. Immigration rules have aligned closer to those in the financial world.
Given the above, I expect a few slower quarters before a return to the mean, which I believe will be a slightly higher average as some who may have chosen the Tier 1 (Entrepreneur) Visa, may now choose the Investor Visa category.
Managing money for Investor Visa purposes is a specialist service which differs significantly from ordinary investment management; requiring detailed knowledge, expertise, and capabilities in other areas in order to achieve with the ultimate objective – to get ILR.
Overall I welcome the new rules, and whilst not perfect, it does help to protect the UK from unscrupulous sources of wealth and bring greater economic benefit to the country.
Thank you again to all those who took part in our survey. Together we have made a difference!
If you would like more information on the Tier 1 (Investor) Visa, or would like to discuss this ONS release, please contact Farzin Yazdi – farzin.yazdi@shardcapital.com
Important Information
“Shard Capital LLP is authorised and regulated by the Financial Conduct Authority. Important information: The information above is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. It does not constitute a personal recommendation as defined by the Financial Conduct Authority (FCA) or take into account the particular investment objectives, financial situations or needs of individual investors. The value of investments and any income from them can fall as well as rise. You may not get back the amount you invested. It should be remembered that past performance is not a guarantee of future performance. Every effort is made to ensure the accuracy of any information provided and no assurances or warranties are given. If you are unsure of the suitability of this product then you should contact and Independent Financial Adviser, authorised by the Financial Conduct Authority.”
Ashley Boolell, Commodities partner at Shard Capital, provides his insight on the latest commodity market developments following the release of the latest monthly report.
This article is not advice or a recommendation to buy, sell or hold any investment.All trading involves risk. Losses can exceed deposits.
An Individual Savings Account, known as an ISA, can be a great option for an individual to maximise their savings. Up to £20,000 per tax year can be subscribed to the tax-free wrapper. And with the end of the tax year fast approaching, now is the time to act if you have not yet exhausted your ISA allowance.
A stocks and shares ISA is an attractive solution as the returns on investments can offer higher returns than alternative investments. With a stocks and shares ISA, an individual doesn’t pay income tax on any interest or dividends received within the wrapper, nor any Capital Gains Tax on investment returns. Any Income or Capital Gains received within an ISA won’t impact the annual ISA allowance.
Cash ISAs are the most popular ISA solution, although interest rates can be unattractive and sometimes offer lower interest rates than a traditional bank savings account. However, the benefit of ISA’s is that there is no ‘all in’ decision to be made. Individuals can choose to split their ISA allowance across different kinds of ISA options, meaning, they can combine a cash ISA with a stocks and shares ISA.
A stocks and shares ISA can include shares in companies, government and corporate bonds, gilts, and collective’s (unit trusts and investment trusts), allowing an individual to form a diversified investment portfolio.
In the current tax year (up to 05 April 2019) and the coming tax year, individuals can save up to £20,000 in an ISA account. However, the ISA will roll over and new subscriptions are added to the previous tax year which can result in a larger investment pot.
With considerable tax benefits and potential better returns from suitable investments, a stocks and shares ISA can offer a great solution for those looking to plan for their future or utilise savings on top of an existing pension plan. You can also plan for your child’s future by utilising a Junior ISA (JISA) which allows up to £4,128 to be subscribed in the current tax year. Whilst a stocks and shares ISA can offer enticing returns, individual due diligence is always necessary prior to any investment being made. The value of an investment may go down as well as up and you may not get back the money you invested.
We looked at a comparison between £10,000 invested, 9 years ago in a traditional bank savings account, cash ISA, and stocks and shares ISA.
The stocks and shares ISA had an annualised return of 4.41%. This was based on the FTSE 100 Index Total Return (inc dividends) and generated a £5,396 return from the original investment.
The cash ISA had an annualised negative return of -0.67% and made a loss of £650, due to inflation.
The standard bank savings account also had annualised negative return with a loss of £1,253, also due to inflation.
Information and details are correct as of 18 March 2019. Past performance is not a guide for future returns.
Information and details are correct as of 18 March 2019. Past performance is not a guide for future returns.
The Shard Capital Stockbroking team are highly experienced in portfolio management and diversification and can tailor an investment solution for an individual looking to start or grow their ISA.
This document has been prepared and issued by Shard Capital Partners LLP (“Shard Capital”), which is authorised and regulated by the Financial Conduct Authority.
This document is a marketing communication and not independent research. As such, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research.
This document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute a personal recommendation as defined by the Financial Conduct Authority, nor does it take account of the particular investment objectives, financial situations or needs of individual investors. The information contained herein is obtained from public information and sources considered reliable. However, the accuracy thereof cannot be guaranteed.
The information contained in this document is solely for use by those persons to whom it is addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose, at any time, without the prior written consent of Shard Capital. This document may not be distributed to any persons (or groups of persons) to whom such distribution would contravene the UK Financial Services and Markets Act 2000. Moreover, this document is not directed at persons in any jurisdictions in which Shard Capital is prohibited or restricted by any legislation or regulation in those jurisdictions from making it available. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.
Shard Capital or its employees may have a position in the securities and derivatives of the companies researched and this may impair the objectivity of this report. Shard Capital may act as principal in transactions in any relevant securities or provide advisory or other service to any issuer of relevant securities or any company connected therewith.
None of Shard Capital or any of its or their officers, employees or agents accept any responsibility or liability whatsoever for any loss however arising from any use of this document or its contents or otherwise arising in connection therewith. The value of the securities and the income from them may fluctuate. It should be remembered that past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. If you are unsure of the suitability of share dealing specifically for you then you should contact an Independent Financial Adviser, authorised by the Financial Conduct Authority. By accepting this document, the recipient agrees to the foregoing disclaimer and to be bound by its limitations and restrictions.
Shard Capital has in place a Conflicts of Interest Policy relating to its research and marketing communication activities, and disclosure and conflicts in general is available on request.”
As expected, today’s release of the latest ONS figures for Q4 2018 applications for the Tier 1 Investor Visa remains high. This comes as no surprise as on the 5th of December, the Home Office announced that it would ‘halt’ applications which led to many intended investors to apply in those 24 hours in order to have their application fall within the current rules.
The Home Office then later announced that it would not halt the program, however at a later stage it would reform the program. Therefore, we expect the high number of applicants to continue as more and more people make a decision to move to the UK whilst they know what the rules are.
“While in discussion with clients they explain that the uncertainty of future rules is something that worries them, especially with regards to which investments are permitted”, said Rafael Steinmetz Leffa, Head of China Desk at Shard Capital Investor Visa. “This concern is mostly referring to direct investments in the UK government, in the form of Government Bonds which is the preferred financial instrument for the vast majority of this type of investor.”
Whilst we note that the overall number of applications is slightly lower than the third quarter of 2018, it is worth highlighting that 50% of applications in the fourth quarter were from China and its SARs (Special Administrative Regions). We also saw a rise in applications from countries in the Middle East.
2018 also saw the largest number of applicants since the Home Office increased the investment threshold from £1mil to £2mil in November 2014. This shows that investors remain bullish about the UK’s status as a hub for education, finance and investments overall.
If you would like more information on Shard Capital Investor Visa or the UK Tier 1 (Investor) Visa, please contact us.
In an article published by Investment Migration Insider (IMI), the top 13 world’s most popular residence by investment programs have been highlighted, based on official statistics. Rankings have been defined based on ‘main applicants’, however also noted are visas granted for dependents.
At #13 is Latvia, a not so common option for those looking for a visa by investment, however has been deemed to be an ‘affordable option’ to immigrate to the EU and is being favoured by Russians. In 2017, there were 379 investor visas issued including dependents, however only 119 were issued to main applicants.
Currently one of the most expensive Investor Visa programs is Australia. Since end of 2012, AUD$10 billion has been raised, predominantly from Chinese investors who make up nine out of ten applicants. Figures have however since dropped in the last 12 months due to tougher requirements specifically around source of wealth. For year ending May 2018, there were 180 main applicant visas granted.
One country that has had much attention around Citizenship by Investment program is Malta which has had over 1,000 applications since the program launched. 560 of which have been received in the first half of 2018. Inclusive of dependents, there has been 700 visas approved in the last 12 months.
Also in the spotlight over the last few months has been the UK’s Tier 1 (Investor) Visa program which had an increase of 17% YOY in the first half of 2018; a surprising result according to Head of Investor Visa at Shard Capital, Farzin Yazdi, given the introduction of new sanctions and the unknown of Brexit negotiations. For the 12-month period including Q2 of 2018 there were 998 visas granted, inclusive of dependents.
In top place for almost four decades is the US EB-5 program. Currently capped at 10,000 individual visas, in 2017 there were 7,567 visas granted, inclusive of dependents. However, this could soon be overtaken (by comparison) a tiny Greece if reforms are not enacted soon to allow for more applicants.
Commenting on the global statistics, Farzin Yazdi said “There are some surprising results in this list, however we know the low barriers to entry has been driving much of this. We welcome the introduction of stricter due diligence and compliance globally, as ultimately we believe investment should be made for the benefit of a local economy and community.”
Sure Ventures backed Immotion Group have today listed on AIM after announcing their intent to list officially last week. Immotion Group are striving to become the market leader in ‘out of home’ entertainment, combining best in class Virtual Reality with cutting edge motion platforms to create a unique, fully immersive entertainment experience. The state of the art experiences will be offered to consumers in leisure destinations such as shopping centres and family entertainment centres.
Immotion Group was the first direct investment by the entrepreneur led Venture Capital firm, Sure Ventures in April 2018 who specialise in AR, VR and IoT and is led by Chief Investment Officer, Barry Downes.
Speaking of the IPO, Barry Downescommented “As we know, the VR and AR space is booming, and the market is forecast to grow significantly over the next few years. Immotion Group are pioneers in the industry and, with their unique immersive experience, they’re set to fully transform family, out of home entertainment. The team behind Immotion are a group of true innovators and we don’t see anything slowing them down.”
The full operation of Immotion Group incorporates three key areas – Content Creation, Motion Platforms and Proprietary Content Management Systems which allows the company to continue to evolve and offer fresh, high quality content. Within their content creation, Immotion’s subsidiaries, ‘Studios’ and ‘C2K’ have over 20 years of expertise in computer generated animation. Their historic clients include BBC, Toyota and Warner Brothers.
The unique cinema pod motion platforms from Immotion have been developed in exclusive partnership with a Chinese manufacturer which has enabled Immotion to optimise their hardware design and functionality. Whilst their bespoke Content Management System allows the group to analyse experience statistics on each machine in real time in addition to distributing content.
For investors, the revenue model for Immotion has four key channels to market. 1) Motion Platform Sales which will see distribution throughout Europe, North America and the Middle East. 2) Immotion VR, which Immotion will own and operate platforms in shopping malls and high footfall locations, consumers will pay a small fee for the experience. 3) Concessions, through partnership opportunities with high traffic leisure destination partners. VR content will be tailored to suit the location and revenue will be shared with the concession partner. 4) Turnkey & Commercial Solutions which will see Immotion continue to offer immersive solutions for commercial clients as well as larger turnkey VR solutions.
Speaking of the IPO, Rob Wiegold from Shard Capital Stockbrokers said “This is a very interesting sector and we feel Immotion have the right management team in place to drive this model forward. There has been significant appetite in the IPO from investors and should the company be able to take advantage of their current pipeline, we see it being a very interesting 12-18 months ahead.”
As virtual and augmented realities become more accessible, there’s no surprise that the industry is seeing exponential growth. The VR industry in the UK alone is set to be worth £353.3 million by 2020, up a staggering 390% as the industry was worth just £46.4 million in 2016. Globally, the AR and VR market is set to hit US$547.2 billion by 2024 across software and hardware technologies.[1]
For more information on Immotion Group, please contact Shard Capital Stockbrokers on 0207 186 9950 / scsb@shardcapital.com
Important Investment Information: The views above are published solely for information purposes and are not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute advice or a personal recommendation as defined by the Financial Conduct Authority (“FCA”) or take into account the particular investment objectives, financial situations or needs of individual investors. These views are based on public information and sources considered reliable. Past performance is not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments can fall as well as rise, therefore you could get back less than you invest. If you are unsure about the appropriateness of an investment for your circumstances please seek independent financial advice. Investors should form their own view on any proposed investment. This publication has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Figures correct as at 5 July 2018 unless otherwise stated. This publication is issued by Shard Capital Partners LLP, 20 Fenchurch Street, London, EC3M 3BY United Kingdom who are authorised and regulated by the Financial Conduct Authority.
With a summer of sports in full swing across the UK and Europe, and Wimbledon starting this week, a host of world class events is again drawing an influx of tourists from around the globe to British soil. UK based events such as Wimbledon, the Formula One British Grand Prix, Henley Royal Regatta and Royal Ascot see close to 600,000 visitors annually.
Whilst many scramble to get tickets to attend, what most of us don’t think about is the logistics, resources and planning with hosting such events. Behind the seamless presentation of various events is months and sometimes years, crafting every single detetail.
Arena Events Group (ARE) is a leader of turn-key, managed solutions for event organisers across sporting, cultural and corporate events. Arena as we know it was established in 2000, however the group’s history can be tracked back as far as 1761.
The company listed on AIM in July 2017 with an initial market cap of £62mil and share price of 55p, however today, Arena has a share price (at time of writing) of 65.25p, giving them a market cap of £75.99m.
Staging, structures and seating is the backbone of Arena’s services with structures accounting for ~74% of revenue and seating ~20%. This division of the events sector makes up 26% of the overall UK events market, however Arena owns just 7% of this.
A global company; Arena’s core market is the UK which makes up 43% of its sales worldwide. This is followed closely by the US which makes up 40% however they also have presence in the Middle and Far East and Asia. Annually, Arena are involved in 300 events across 15 different countries.
In recent years, the company has experienced considerable growth, and this is attributed to Arena reducing its reliance on ‘one off’ large scale events (such as the London Olympics and Rugby World Cup) and investing in leveraging the demand for temporary structures. Arena’s core strategy has been to focus on annually recurring events which make up 70% of their revenue. A low customer concentration means the top 10% contracts for Arena make up just 20% of their total revenue.
The company’s growth has also been fuelled by increasing regulations with health and safety that have favoured Arena as an experienced and well invested events supplier. Arena’s strong performance history means they have never lost a multi-year contract.
Arena’s longest standing client is Wimbledon and the group’s involvement in ‘The Championships’ remains after 68 years. This is followed by a 31-year partnership with ‘The Open’, 21 years with the PGA European Tour and 31 years with Cheltenham Races.
In 2007, the group underwent an MBO (Management buy-out) and in 2012 the group secured external investment from MML Capital Partners and Sports Investment Partners (SIP) which enabled the company to expand worldwide. Since then, Arena has integrated seven diverse acquisitions to become a top five operator in the global events market.
On the 29 March (2018), the Group’s US subsidiary, Arena Americas announced that the US Attorney’s Office was formally charging one of the company’s previous customers for a violation related to the Small Business Set-Aside Program. The initiative was designed to support the development of small businesses, however the client of Arena (Americas) won a USD $4m, 10-year US Department of Defence contract and engaged Arena Americas to deliver on this. If found in breach, Arena could face a fine of between USD $1m – $8m.
The announcement of legal action has had an obvious negative affect on the share price, hitting a 12-month low of 49p, which followed a high of 65.95p prior to the news.
“At the time of the announcement, the share price tumbled, however this has recovered well since. They have no other similar contracts so we see the risk of additional potential fines as low and it would appear that the market has factored in a fine in the low single digit millions. We do not anticipate this to have a long-term impact on the group” said Rob Wiegold from Shard Capital Stockbrokers.
Meanwhile, Arena released their 2017-year end annual results on April 11th which showed a group revenue increase of 18% to £109.6m and announced a maiden dividend of 1.35p. 2017 also saw Arena win the largest contract in its history with the US PGA; a five-year contract worth up to USD $40m.
In their recent AGM update, Arena Events Group PLC Chairman Ken Hanna said, “We are pleased to report that trading in the first four months of this year has been in line with management’s expectations and we have won a number of new contracts for events which will be delivered later this year or early next year. Operationally each of our three divisions continues to trade well and we remain confident of the outlook for the group.”
In May, the group acquired Ice House Rentals Ltd in the UK and most recently in June, Sheffield based events company Events Solution Ltd who provide equipment for high profile events such as the London Marathon. Hanna also said they’re considering further acquisitions.
Important investment information : The views above are published solely for information purposes and are not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute advice or a personal recommendation as defined by the Financial Conduct Authority (“FCA”) or take into account the particular investment objectives, financial situations or needs of individual investors. These views are based on public information and sources considered reliable. Past performance is not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments can fall as well as rise, therefore you could get back less than you invest. If you are unsure about the appropriateness of an investment for your circumstances please seek independent financial advice. Investors should form their own view on any proposed investment. This publication has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Figures correct as at 3 July 2018 unless otherwise stated. This publication is issued by Shard Capital Partners LLP, 20 Fenchurch Street, London, EC3M 3BY United Kingdom who are authorised and regulated by the Financial Conduct Authority.
Commenting on the release, Head of Shard Capital Investor Visa, Farzin Yazdi has said, “Due to quality assurance, the ONS net migration data sets have been delayed. We have confirmed that the following Home Office data stats are created by different analysts from separate data sets and can be relied upon.
During the first quarter of this year the trend continued with 96 main applications granted. China, with its Special Administrative Regions represent 41% of all UK Tier 1 (Investor) Visa applicants. Russian applicants, not surprising have halved and now only represent 8% of the total.
This certainly was an interesting quarter as the January 11 PBS dependents rule change took effect. Contrary to expectations our analysis of dependents to main applicants ratio has not changed significantly. We do not expect this to change much, however will report if it does.
A new interesting change is the number of applicants from India, who usually do not make an appearance in this list, although dominate the Entrepreneur category. In the previous alert we commented on the complexities of the Entrepreneur Visa and seeing those applicants switching into the investor category.
We also commented in the previous alert on the rise of Turkish nationals. Whilst our observations during the quarter see a continued strong demand, this may not continue as we have seen the Turkish Lira devalue whilst interest rates have gone from 8% to 16.5% with an election in a month’s time.
The UK remains the destination of choice for HNW migrants, we expect the UK to remain open but to the right business.”
Leon Coetzer, Chief Executive Officer of Jubilee Metals discusses this week’s release of the Hernic PGM (Platinum Group Metals) Project results with Damon Heath from Shard Capital.
Leon, we note the recent release of the Hernic Q1 results for 2018. What do you see as the key points for shareholders from the report?
“Hernic’s Q1 results had a significant increase in efficiencies from last quarter, jumping 30% in ounces delivered to the refinery?. Production hit 1850 ounces in a month which saw quarterly PGM production with just under 5,000 ounces. Our Q1 results also include the month of January which is a notoriously difficult production month and includes approximately 2 weeks downtime.
The increase in efficiencies was an extremely pleasing result for us given the improvement in production of ounces; highlighting that this was also delivered against a reduced plant throughput. This suggests an improvement of more than 40% on PGM efficiencies which bodes very well for the expected performance in Q2.
We see Platinum efficiencies as they key to ensuring the Hernic Project can be delivered and achieved on a sustainable basis.”
We note the increased unit cost for PGM per ounce produced, what was behind this increase?
“The per unit cost for Q1 contains one off changes which have been accrued for. This includes variables such as salary increases for the work force and one-off payment for utility connection fees.
If we were to strip these costs out, the unit cost drops to below USD 400 per ounce delivered which is exceptionally low for a platinum producer. Given this, with a unit price of USD 434 per ounce, the Hernic Project is still one of the lowest, if not the lowest cost Platinum producers in the world.”
It has been unfortunate to see the DCM numbers (Dilokong Chrome Mine) have a neutral earnings growth over the quarter?, do you believe this is related to third party Ore?
“Although overall earnings have remained positive, this has been underwhelming. The DCM is going through a transitional phase as we gear up for the PGM project and the decision has been made to commence the installation of the full fine chrome circuit (similar to Hernic) to maximise the recovery of chrome in preparation of the PGM recovery plant.
DCM will therefore go through a period of process upgrading and build program over the next two quarters as we gear-up for the PGM circuit. The build program will be funded from our cash reserves and our available project financing facility.
We expect DCM earnings will remain flat during this transitional period before accelerating to reflect the recovery of the additional chrome and the commissioning of the platinum recovery circuit.”
What can we expect from Jubilee for the remainder of the year?
“Shareholders can look forward to a year that includes the delivery of our next PGM project, whilst we also commence the construction of our Kabwe Project in Zambia. However, this will not detract from our drive to grow our earnings from further improved performance from Hernic and DCM.”
If you would like more information on Shard Capital, or Jubilee Metals Group, please contact us.
Shard Capital is the appointed Broker for Jubilee Metals Group.
Important investment information Shard Capital Partners LLP are authorised and regulated by the Financial Conduct Authority. Our FCA Register number is 538762. The views in this article are published solely for information purposes and are not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute advice or a personal recommendation as defined by the Financial Conduct Authority (“FCA”) or take into account the particular investment objectives, financial situations or needs of individual investors. The views above are based on public information and sources considered reliable. The results noted are not a reliable indicator of future performance. Yields are variable and not guaranteed. All investments should be held for the long term as their value can fall as well as rise, therefore you could get back less than you invest. If you are unsure about the appropriateness of an investment for your circumstances please seek financial advice. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This publication has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Figures correct as at 19th April 2018, unless otherwise stated. This publication is issued by Shard Capital Partners LLP, 20 Fenchurch Street, London, EC3M 3BY United Kingdom.
