How safe is to invest in these types of bonds

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ejjavies

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I have found this company that offers several ways of investments, with a return of between 7 - 10 % each year depending of how many years the money is kept and the different fonds.
If you google alternative investment you will get the company
Has anyone any experience with them? how safe are in your opinion?
I suppose benefits will have a dirt of 37 and below % (base on the new budget)
This company is based in UK, are there similar options in Ireland?

Many thanks in advance.
 
IMO without even using Google, I surmise that anyone offering 7-10% annual return is selling a pipe dream.
How safe? Not at all.
 
ejjavies said:
I have found this company that offers several ways of investments, with a return of between 7 - 10 % each year depending of how many years the money is kept and the different fonds.
If you google alternative investment you will get the company
Has anyone any experience with them? how safe are in your opinion?
I suppose benefits will have a dirt of 37 and below % (base on the new budget)
This company is based in UK, are there similar options in Ireland?

Many thanks in advance.
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Are they guaranteeing that sort of return? If so, sounds dubious. I suspect the advertising claim is based on returns on the back of a good year. In which case you have to ask yourself, will they return that again for the following year? Or have you missed the boat?
 
TheBigShort said:
Are they guaranteeing that sort of return? If so, sounds dubious. I suspect the advertising claim is based on returns on the back of a good year. In which case you have to ask yourself, will they return that again for the following year? Or have you missed the boat?
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From the website:

Government Backed – The UK Government guarantee the Energy income for 20 years.

Asset Backed – Bondholders have the security of a floating charge over the Companies Assets with a Security Trustee in place.

Assets Fully Insured – Returns covered by comprehensive Insurance policy with leading Insurer.

Fixed Return - Annual return paying a yield of 6.09% AER for 3 years, 7.12% AER for 4 years or a lump sum payment of 50% on a 5 year option.
 
What does that mean in English?! Seriously, nothing can offer that return on investment without massive risk. High return with low risk simply isn't possible!
 
ejjavies said:
From the website:

Government Backed – The UK Government guarantee the Energy income for 20 years.

Asset Backed – Bondholders have the security of a floating charge over the Companies Assets with a Security Trustee in place.

Assets Fully Insured – Returns covered by comprehensive Insurance policy with leading Insurer.

Fixed Return - Annual return paying a yield of 6.09% AER for 3 years, 7.12% AER for 4 years or a lump sum payment of 50% on a 5 year option.
Click to expand...

Why are assets covered by leading insurer when backed by UK government?

I don't know too much about it, so it could be a great deal. But on the information that you have supplied me I would be very sceptical.
Having said that, im sceptical by nature on investment offers. My experience is that once the offer is being made mainstream advertising, then you have missed the boat.

But if you do invest, then I hope you can prove me wrong.
 
These Investment products are sold by BUCKET SHOPS. Do yourself a favour and go and watch the MOVIE, THE WOLF OF WALL STREET. You don't know the people that might contact you and wouldn't believe them. They are in reality nothing more than pure SCUM. Earlier this year I had to contact the Irish CB concerning a crowd that wouldn't stop calling me. Yes. they were well spoken and had women handing out details who sounded quite sexy. But the CB contacted me about this scam and thanked me for alerting them as they were ripping people off for their money to use for terrorist activities.

A fool and his money is easily parted. Have we all not heard about the Irish that have got ripped off by Irish companies. We have all seen the Commission brokers at the horse races and thinking they must be making a fortune. Very easy to spend other peoples money. Remember this, I could write a book on these degenerates.
 
And if they do call you, ask them are they registered to sell Investment product in Ireland. If they say yes, ask them for their authorised number. Check them out. In reality its your money. If you want to splash it about, donate to the SVP or Peter McVerey trust. At least you'll be in the knowledge that somebody has been helped with your funds.
 
I think you deserve a proper reply to your query. Companies such as this are engaged in financing projects such as wind power and housing that is then rented to UK local authorities. On the face of it, the deal is plausible. They sell bonds (ie take loans from) to members of the public on a short term (5 years) basis to finance construction of these assets. Getting loans from the public can be cheaper than from the banks and allows them much more flexibility.

However, I see lots of warning signs and issues here;

1. they say sector is backed by the UK government. This is only partly true. UK buys wind power at higher then normal rates, but has recently cut these rates. The UK government does not guarantee your investment!
2. the company itself. The site contains no detailed information at all about the promoting company (who are they, past history, financial solidity etc), nor about the company that will eventually get the funds. This is a red card.
3. the loan term. Your money is tied up for 5 years. However this period will not be enough for them to pay off their loans, so you getting your money back in 5 years will depend on them enticing more investors to lend them funds to repay the earlier investment. Given possible falls in future power prices, this is an unnecessary risk to take.
4. website faq. the questions asked are self serving, not the ones that an investor should ask. another warning sign

I would also make the point that 6% to 7% per annum is too low for the level of risk involved and for the fact that this investment, even if it turns out ok, will be totally illiquid. I think there is a high risk that you wouldnt get paid back after 5 years but that they might try to roll over the loans. For comparison in the energy sector, Big Oil is paying 3%-5% dividends at present which are more more secure and completely liquid. Of course, you have the risk of your investment gaining or losing capital over time, but such risk of loss, in my opinion is much less than the type of investment you are discussing.
 
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