New Tax Efficient Investment Product
It’s been a busy start to 2019. The Growth Capital Ventures team have been putting the final touches to our latest tax-efficient investment product - MAVEN Bonds.
We have been working with closely our main investor, Maven Capital Partners, to develop and launch the MAVEN Bonds Investment Platform. The platform offers investors the opportunity to access tax-free returns of up to 7.75% per annum by investing through the MAVEN Bonds Innovative Finance ISA.
More about the opportunity
- Monies raised from the launch will be used to provide finance across a portfolio of secured projects – primarily into property deals led by either the Maven or GCV team. Security (either first or second ranking) will always be taken over borrowers assets.
- Open to everyday investors with a minimum investment of £1,000.
- Maximum raise under the bond offer of £7 million.
- Fixed rate returns of between 4.75% and 7.75% per annum.
- Investors can choose either a 2 year or a 4 year Bond and then decide to receive interest quarterly or at maturity of the Bonds – these choices will determine the interest rate earned.
- Investments can be made through an Innovative Finance ISA (“IFISA”) which means that income is earned tax-free.
- SIPP and SSAS eligible subject to pension providers approval.
- The first tranche of Bonds will be issued on 1st April 2019 – still within the 2018/19 tax year which could be useful if you have not used your current year ISA allowance. Further tranches will be issued each month after that – so investors can utilise their 2019/20 annual ISA allowance.
- Annual ISA/IFISA allowance of £20,000 per annum.
- Streamlined and automated online investment process – apply directly through the Maven Bonds Platform at www.mavenbonds.co.uk
- Review and monitor your investment through your personal investor dashboard.
- Capital is at risk – in a similar way to a Stocks & Shares ISA (and unlike a Cash ISA), the investment is not covered by the Financial Services Compensation Scheme (“FSCS”). This explains why the anticipated returns on the Bonds are higher than what can be achieved on a Cash ISA – it is an investment product rather than a savings product.
Innovative Finance ISA
The IFISA market is still relatively new (first announced in 2016) but it is growing rapidly – more than £290m was invested during the 2017/18 tax year. Following the extension of the IFISA legislation in August 2016, more investors are now taking notice of the product as the move away from Cash ISA’s continues. Cash ISA savers have been struggling to find one able to match the rate of inflation and therefore have been looking for alternatives and the IFISA is proving to be a popular new choice.