Shelley Media Fund 7 - Executive Summary - Ingenious Media

abc INvESTMENTS
SHELLEY MEDIA FUND 7
AN abc EIS FUND
EXECUTIvE SUMMARY 2012/13
Shelley Media Fund 7 (the Fund), an Ingenious EIS Fund, presents an exciting opportunity for UK taxpayers to invest in a
portfolio of EIS qualifying media production companies (Investee Companies), whilst also benefitting from risk mitigation
in the form of EIS reliefs.
Key Features & Benefits
• EIS fund investing in a portfolio of HMRC pre-approved
companies producing films, television programmes and
video games (Entertainment Projects)
• Targeted tax free returns of between 8%-18% per annum
• Focus on production companies creating content with
substantial distributor pre-sales, the benefit of
government incentives and strong sales estimates
provided by first class international sales agents
• Benefit of EIS reliefs:
- 30% income tax relief on EIS investments up to
£1,000,000 against a 2012/13 income tax liability,
and up to £500,000 against a 2011/12 income tax
liability 1 reducing net cost of investment to 70p per
£1 invested
- Capital gains tax deferral available for gains realised
within three years before, or up to 12 months after,
investments are made by the Fund
- Loss relief – in event of loss, a 45% taxpayer with
sufficient income is only at risk for 38.5p per
£1 invested
- 100% relief from inheritance tax liability where
EIS qualifying investments are held for more than
two years
- No tax payable on disposal
• Ingenious has an excellent track record of delivering
targeted returns on our EIS investments
• Minimum cash investment of £10,000
Who is the Investment Suitable for?
UK tax paying individuals to whom any of the following apply:
• income tax liability in 2012/13 and/or 2011/12
• large capital gains to defer
• would benefit from inheritance tax relief
Financial Illustration 2
An investor’s return will be determined by the value of their
Qualifying Shares upon realisation.
Summary Financial Illustrations Low Case Upside Case
Cost of Investment 100,000 100,000
Less Income Tax Relief at 30% (30,000) (30,000)
Net Cost of Investment 70,000 70,000
Investment Proceeds 90,504 115,000
Total Return 29.29% 64.29%
Average Annual Return (Tax Free) 8.38% 18.39%
Average Gross Equivalent Annual Return 15.74% 34.55%
Why Ingenious?
• Leading UK alternative asset manager and EIS specialist,
Ingenious has raised in excess of £400 million of EIS
funds to date and provided services to more than 230 EIS
qualifying media companies
• Reputation for delivering innovative and efficiently
structured investment opportunities for more
than 14 years
• Strong historic performance in the media sector, having
backed many commercially successful projects including
the X-Men franchise, Avatar (the highest grossing film of
all time) and over 500 hours of TV programming for ITV,
BBC, SKY and PBS, such as Doc Martin and Foyle’s War
• Proven expertise and global connections in
the media industry coupled with an extensive
professional infrastructure
How to Apply
• After reading the full Information Memorandum and
Investor Agreement, please complete the Application
Form and return it to Ingenious Media
• The Closing Date for the Fund is 5.00pm
on 2 April 2013 3
1 Carry back relief in respect of 2011/12 income tax liability assumes the Manager is able to fully invest in the fund before 6 April 2013.
2 Based on a single investment of £100,000, EIS income tax relief at 30% applied against an investor’s 2012/13 income tax liability, currently announced tax rates and
a realisation of the investments in each Investee Company after 3.5 full years of trade. The illustrative returns may not be a reliable indicator of actual performance.
3 Subject to the Manager’s discretion to close on an alternate date.

isks
Investment in the Fund involves a high degree of risk. The level
of returns and the availability and timing of relief for investors
may be impacted by:
• Returns generated by the Investee Companies from their
involvement on Entertainment Projects
• An investor’s tax position and changes to legislation
• The availability of investment opportunities for the Fund’s
manager and the EIS qualifying status of investments
made by the Fund’s manager
• Tax rules, levels and regulations are subject to change and
the availability of tax reliefs will depend upon individual
circumstances
Past performance is not a guide to future performance and
may not be repeated. The value of an investment in the Fund
can go down as well as up and you may not get back the full
amount invested. You should consider an investment in the
Fund as a medium term investment. Investments made by the
Fund are likely to be illiquid.
Investors are advised to seek relevant legal, financial and tax
advice before making any decision to invest. Full details of the
risk factors and associated mitigation techniques can be found
in the ‘Risk Factors’ section of the Information Memorandum.
Facilitation payments (applicable for Advised Retail
Clients completing Application Form A)
• The Manager can facilitate the payment of adviser charges
from the investor to their adviser, if requested
• Up–front and/or in equal annual installments over two or
four years
IMportANt INForMAtIoN
Commissions (not applicable for Advised Retail Clients
completing Application Form A)
• Payable by the Manager
• 3% of subscription amount or 2.5 % with trail commission
of 1% payable over two or four years
• Commissions may be rebated to the client or invested for
them in the Fund
Fund Fees and reimbursement of Costs and Expenses
• 1.5% upfront Arrangement Fee
• Upfront Initial Monitoring Fee
Note: Investor’s share of the above upfront fees is capped at
6.5% of subscription amount (or 3.5% in the case of Advised
Retail Clients completing Application Form A)
• 1.5% per annum Annual Monitoring Fee
• Up to 0.18% per annum Custodian Fees
• 20% Fund Performance Fee on realised amounts in excess
of 103% of Aggregate Subscriptions
• Reasonable 3rd party expenses incurred by, and costs
of, the Fund Manager and its affiliates in managing,
administering and providing services to the Fund and its
investments may be charged to the Fund or the Investee
Companies as appropriate.
This Executive Summary is a summary of the information memorandum (Information Memorandum) for Shelley Media Fund 7 (the Fund).
This information does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for the Fund. Any decision
in connection with an investment in the Fund should be made only on the basis of information contained in the Information Memorandum. If you
are in any doubt about the content of the Information Memorandum, and/or this document and/or any action you should take, you are strongly
recommended to seek advice immediately from a financial adviser authorised under the Financial Services and Markets Act 2000 who specialises in
advising on opportunities of this type. Nothing in this document or the Information Memorandum constitutes investment, tax, legal or other advice by
Ingenious Media Investments Limited (Ingenious Investments) or Ingenious Media (a trading division of Ingenious Capital Management Limited). An
investment in the Fund will not be suitable for all recipients of this document or the Information Memorandum.
All statements of opinion or belief contained in this Executive Summary or the Information Memorandum and all views expressed, statements made and
all projections and forecasts regarding future events or the anticipated future performance of the Fund represent Ingenious Investments’ and Ingenious
Media’s own assessment and interpretation of information available to them as at the date of the Information Memorandum. No representation is
made, or assurance given, that such views, statements, projections, forecasts or anticipated future performance are correct, attainable or complete
or that the objectives of the Fund will be achieved. The views, statements, projections, forecasts and anticipated future performance are based upon
various assumptions and estimates which involve significant elements of subjective judgement and analysis and which are subject to uncertainties
and contingencies; actual results could differ materially from those set forth in such projections, views, statements, forecasts and anticipated future
performance. Prospective investors must determine for themselves what reliance (if any) they should place on such statements, views or forecasts, and
no responsibility is accepted by either of Ingenious Investments or Ingenious Media in respect thereof. Issued by Ingenious Investments, 15 Golden
Square, London W1F 9JG which is authorised and regulated by the Financial Services Authority. The Fund is managed by Ingenious Media, a trading
division of Ingenious Capital Management Limited, which is authorised and regulated by the Financial Services Authority.
abc INvESTMENTS
15 Golden Square
London
W1F 9JG
T +44 (0)20 7319 4000
F +44 (0)20 7319 4001
www.ingeniousmedia.co.uk
enquiries@ingeniousmedia.co.uk IMIL/SMF7/ES/01.13