Where we invest

Let’s look at an example company held in the Octopus Inheritance Tax Service

Fern Trading Limited is an example of one of the portfolio companies in the Octopus Inheritance Tax Service. The company is managed by Octopus and wholly owned by investors in the Service.

Fern was established in 2010 and has grown to become the parent company of a large trading group worth more than £2 billion. More information on Fern and its businesses can be found at ferntrading.com

What Fern does

Fern’s business activities align with the objectives of the Octopus Inheritance Tax Service.

Fern has a diverse trading strategy, focusing its business activities in areas that support the UK economy and are expected to generate predictable cash flows over the long term.

Fern’s business strategy has evolved over time and we expect it to continue to.

As Fern has steadily grown in size, it has entered new sectors. These sectors intentionally have different key drivers of performance, with the aim of reducing volatility over the economic cycle.

Renewable energy

Renewable Energy

Fern entered the renewable energy sector in order to target predictable income, with some energy sites also benefiting from long-term inflation-linked government incentives.

Fern is the UK’s largest producer of solar energy from commercial-scale sites.

It owns and operates more than 200 renewable energy sites, including solar installations, windfarms, biomass plants, landfill gas sites and reserve power plants.

Property

Property

Fern issues conservative loans secured against property to experienced property professionals, providing finance for UK property investment and development.

Through issuing conservative, short-term loans, Fern can manage risk while targeting predictable returns and a healthy level of cash flow. This is especially important to Fern in providing liquidity and managing volatility for its shareholders. 

Healthcare

Healthcare

With an ageing population, there’s a large and growing market for high-quality care homes and retirement communities.

Attracted to the predictable returns available, Fern is a lender and operator in the healthcare sector. It aims to deliver a better healthcare experience by investing in carefully designed care homes, retirement villages and other healthcare facilities.

Fibre

Fibre

Fibre infrastructure businesses are expected to deliver long-term and stable returns, because they own and operate assets that benefit from predictable demand and pricing.

Fern entered the fibre optic broadband sector to diversify its activities and it currently represents a small proportion of its overall business.

Fern acquired two providers that aim to connect almost 700,000 UK homes in areas where the need for high-speed broadband is not currently being met.

Key risks of the Octopus Inheritance
Tax Service

  • It is important to remember that the value of an investment, and any income from it, can fall or rise, and you may not get back the full amount you invest.
  • The Octopus Inheritance Tax Service invests in unquoted companies. The shares of unquoted companies could fall or rise in value more than the shares of companies listed on the main market of the London Stock Exchange. They may also be harder to sell.

Learn more about where we invest

Want to read more about underlying investments in the Octopus Inheritance Tax Service? Download the underlying investments document.

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