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Post by albermarle on Apr 6, 2018 18:25:37 GMT
The ethical bank , Triodis, has launched a crowdfunding site in addition to its normal activities. IFISA available. www.triodoscrowdfunding.co.uk/ Offering a limited number of bonds from 5 to 15 years , paying 4-7% range , some RPI linked . Bonds are for green energy , homes for independent disabled living etc . At first look , downside is relatively low interest rates ; long repayment timetables;no SM, and in some cases no security. Upside is very detailed DD/prospectus; established organisation /bank ( also offering current accounts /cash ISA's etc ) and long track record of helping good causes. I am looking at this ( amongst others ) for this years new IFISA, any thoughts from anybody ? |
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macq
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Post by macq on Apr 7, 2018 10:55:50 GMT
The ethical bank , Triodis, has launched a crowdfunding site in addition to its normal activities. IFISA available. www.triodoscrowdfunding.co.uk/ Offering a limited number of bonds from 5 to 15 years , paying 4-7% range , some RPI linked . Bonds are for green energy , homes for independent disabled living etc . At first look , downside is relatively low interest rates ; long repayment timetables;no SM, and in some cases no security. Upside is very detailed DD/prospectus; established organisation /bank ( also offering current accounts /cash ISA's etc ) and long track record of helping good causes. I am looking at this ( amongst others ) for this years new IFISA, any thoughts from anybody ? Looks a bit like Abundance ( who they have worked with ) but with some charity/social bonds.Have been thinking it might be nice to move away from property etc and as others have said possibly helping in some way. Some of the long terms on a few projects make them hard to judge but your right about the detailed prospectus and the backing of a bank who have been investing in these sorts of projects for some years would seem a good thing.Its piqued my interest a bit enough to have a look around
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Post by albermarle on Apr 8, 2018 18:45:55 GMT
Reading more about this , it seems they are the first actual bank to also have a crowdfunding/ P2P activity. Although it has a separate URL and sign in process from their mainstream banking processes.
Anyway I have signed up to the IFISA and invested a few hundred Pounds in a couple of the bonds.
Register process worked well ( debit card payments OK ) but you have to answer quite a lot of questions about being a 'sophisticated investor' etc and that you fully understand that you might not get your money back etc Plus you will have difficulty in trading the bonds.
I guess as a bank with a good reputation, they are being ultra cautious about warning about the dangers of investing in these types of products.
On the other hand the offer details are in a different league from what we are used to in P2P , very professional and detailed , which I like .
That's apart from any feelgood factors from the ethical aspect , which I generally support , depending on the cause.
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Post by mememe on Apr 8, 2018 21:37:16 GMT
I looked but decided against for the reasons albermarle stated. No secondary market on long dated bonds leaves you stuck with no access. If their inflation linked offerings had been fully inflation linked (rather than just the interest and not the capital) then they might have been more attractive.
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macq
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Post by macq on Apr 8, 2018 22:46:08 GMT
I looked but decided against for the reasons albermarle stated. No secondary market on long dated bonds leaves you stuck with no access. If their inflation linked offerings had been fully inflation linked (rather than just the interest and not the capital) then they might have been more attractive. like you say there are a couple of possible negatives if you want your money back quick.But would think the bonds being inflation linked is a good thing and would only expect it on the interest not the capital
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Post by mememe on Apr 10, 2018 22:25:03 GMT
I looked but decided against for the reasons albermarle stated. No secondary market on long dated bonds leaves you stuck with no access. If their inflation linked offerings had been fully inflation linked (rather than just the interest and not the capital) then they might have been more attractive. like you say there are a couple of possible negatives if you want your money back quick.But would think the bonds being inflation linked is a good thing and would only expect it on the interest not the capital Well the approach to inflation linking looks pretty unusual to me unless I'm missing something. Why would you only expect linking on the interest and not the capital as that's not the way ILG or other inflation linked bonds would normally work? The way I interpret their documents is their x% inflation linked bonds pay you less than x% + inflation because the interest only increases with inflation it doesn't pay you inflation in addition to the interest rate. Eg if you had a one year 5% index linked bond (with no lag), if inflation reached 10% I'd expect to get a return of 15% whereas the Triodos approach would just appear to pay 5.5%. Am I reading it wrong?
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macq
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Post by macq on Apr 12, 2018 17:20:32 GMT
like you say there are a couple of possible negatives if you want your money back quick.But would think the bonds being inflation linked is a good thing and would only expect it on the interest not the capital Well the approach to inflation linking looks pretty unusual to me unless I'm missing something. Why would you only expect linking on the interest and not the capital as that's not the way ILG or other inflation linked bonds would normally work? The way I interpret their documents is their x% inflation linked bonds pay you less than x% + inflation because the interest only increases with inflation it doesn't pay you inflation in addition to the interest rate. Eg if you had a one year 5% index linked bond (with no lag), if inflation reached 10% I'd expect to get a return of 15% whereas the Triodos approach would just appear to pay 5.5%. Am I reading it wrong? must admit i had not looked into the details as i would need to do a transfer which i am not ready to do.I may have been be a bit dim as my only knowledge of inflation proof bonds are the old NS&I inflation proof bonds where if the rate went up your interest rate matched it.So in your example of 10% i would have expected to be paid 10%(was some years back so could be remembering wrong).A bit like Landbay moving their rate with LIBOR or some bonds on Wisealpha
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Post by albermarle on Apr 12, 2018 18:11:25 GMT
If you have inflation linked NSI bonds , they currently pay 0.1% + RPI inflation. I don't think you can expect a bond paying 5% to pay 5% + RPI.
In the case of the Triodis bonds , the inflation linking of the interest rate is just a small benefit on some rather long term bonds , in case inflation/interest rates take off during the life of the bond .
In any case of the few bonds currently available some have this 'benefit' and some not. in fact it seems each bond on offer has its own individual structure , which is very fully detailed in the bond offer.
It's clear that there are no eye watering financial benefits on offer, and they are long term investments in green/social/community projects/businesses. On the other side there is very detailed DD and prospectus info and it is an established bank offering cash Isa's current accounts etc ( assets under management €14 Billion ) so maybe a bit more secure long term than some of the more pop up P2P lenders. Although of course they make it 100% clear the crowdfunding site is separate from the normal banking activities, but at least you can probably discount any risk of platform failure in this case.
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macq
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Post by macq on Apr 12, 2018 19:00:08 GMT
but with the index linked bonds issued a few years back it was probably paying near 4 or 5% but the index has gone down since hence the lower rate.The govt. i believe does not issue new ones but only lets you role over old ones as they were such a good deal in the 70's & 80's when inflation was very high and usually moving in an upward direction (good old days queuing in the post office to buy deciding on fixed or indexed) now not so much.Some people still renew hoping rates rise even Monevator rolled his over apparently
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Post by albermarle on Apr 13, 2018 13:46:19 GMT
There have been some new issues of NS&I inflation linked bonds since the 80's but not any new ones for nearly 10 years I think.
You can rollover the bonds when they mature but only at the rate currently on offer. The last couple I have rolled over where only at 0.1% + RPI.
However RPI is now >3% and the bonds are tax free and 100% secure , so better than any cash ISA.
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Nomad
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Post by Nomad on Jul 24, 2020 16:20:28 GMT
New charity bond announced - |
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Nomad
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Post by Nomad on Aug 3, 2020 10:53:29 GMT
New charity bond announced - Already £1.7m subscribed, and immediate transfer of funds is required despite interest only being earned from September 30.
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dead-money
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Post by dead-money on Aug 9, 2020 19:16:17 GMT
Given that Abundance has a secondary market it seems odd that this hasn't been implemented on the Triodos platform. (I'm guessing that the Triodos crowd funding platform is a white labelled version of the Abundance platform.) As there's a certain overlap between the offerings on Abundance and Triodos other things being equally you'd pick Abundance surely?
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Nomad
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Post by Nomad on Aug 10, 2020 8:35:55 GMT
New charity bond announced - Already £1.7m subscribed, and immediate transfer of funds is required despite interest only being earned from September 30. I contacted Customer Services, who said I had until September 14 to transfer my funds. However, today I received a standard email stating "If we haven't received your payment by 5pm tomorrow (i.e. 1 week after placing your original investment order) then your investment will be cancelled."
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