Triple Point Advancr Bonds
For the best part of the last decade, interest rates have been loitering around the 0.5% mark. So, investors have had to endure measly rates on their cash.
To address this, specialist investment firm Triple Point has created the Advancr Bond.
The idea is simple. Rather than let all your cash languish in a savings account, if you're prepared to take some risk, you could invest in a secured bond and receive up to 5.90% AER, plus a 0.5% p.a bonus exclusive for Wealth Club investors.
You can choose the term – 1, 2 or 3 years – and whether to receive monthly interest or a single payment at maturity.
- Exclusive bonus for Wealth Club investors
- Attractive rates of 4.75% APR to 5.9% AER
- Choose monthly interest or single payment at maturity
- Invest as an individual or as a company
- Available within an ISA for tax-free interest. Make a new subscription or transfer existing ISAs
- Diversified portfolio of 60,000+ loans
- Experienced manager with a strong track record
- Minimum investment £1,000 – no maximum
Terms and rates
|Monthly Gross income||Maturity Gross income|
|1 year term||4.75% APR||4.85% AER|
|2 year term||5.25% APR||5.38% AER|
|3 year term||5.75% APR||5.90% AER|
|PLUS 0.5% BONUS exclusively for Wealth Club investors|
AER is the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. APR is the Annual Percentage Rate and assumes no re-investment of monthly interest.
How do the Advancr Bonds work?
The bonds are issued by Triple Point Advancr Leasing plc, which specialises in SME leasing and lending and currently has a book of 63,000 loans.
When you invest, your bond is immediately exposed to Triple Point's whole pool of loans, so you can benefit from diversification.
To add further diversification, Triple Point undertakes different types of lending activities. These range from high-volume/low-value transactions, where, for example, it provides funding for credit card terminals, to high-value asset-backed transactions, where, for example, it provides bridging finance to property developers, typically with a charge over the property and loans to value of maximum 75%.
Depending on the type of loan, the repayment term could be anything from 30 days to five years.
How secure are the bonds?
As any investor knows, a bond is an investment, therefore riskier than savings and not covered by the Financial Services Compensation Scheme for deposits. Your capital is tied up for a fixed term.
That said, the Advancr Bonds are secured against all the assets of the issuer (Triple Point Advancr Leasing plc), rather than against individual loans.
As with any lending business there is an expected level of defaults on individual loans within the portfolio, however, the default rate (0.9%) is well below the bad debt provision maintained by Triple Point for the whole portfolio. These provisions coupled with the interest coverage ratio and large size of the book of business, mitigate the risk of losses. Of course, past performance is not a guide to the future. Capital is at risk.
An experienced lender
Triple Point has invested over £1 billion of client money since 2004. It has provided £350 million of leasing and lending finance and is one of the top four public sector lessors, having provided more leases to the NHS than any other lessor.
The bonds use the same strategy as Triple Point's top-rated estate planning product.
Receive the income tax free in an ISA
Interest earned from Advancr Bonds is normally subject to income tax at your marginal rate. If you are an individual investor, basic rate tax is withheld on all interest payments. However, no tax is withheld – or due – if you hold the bond in an ISA. This is possible by either subscribing to the Advancr IFISA (up to £20,000 this tax year) or by transferring existing ISAs into it.
Tax benefits depend on circumstances and tax rules can change.
Wealth Club aims to highlight investments we believe have merit, but you should form your own view. You should decide based on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 22.12.17
We, Wealth Club Limited, refer to the £100 Million Fixed Rate Triple Point Advancr
Secured Bonds (the "Advancr Bonds"). In consideration of Triple Point Advancr Leasing plc offering to grant
its consent to our use of the Base Prospectus dated 3 April 2017 (the " Base Prospectus") and any final
terms ("Final Terms") relating thereto, relating to the Advancr Bonds in connection with the offer of the
Advancr Bonds in the UK (the "Public Offer") during the Offer Period and subject to the other conditions to
such consent, each as specified in the Base Prospectus and any Final Terms, we hereby accept the offer by
the Company in accordance with the Financial Intermediary Terms (as specified in the Base Prospectus) and
we are using the Base Prospectus and any Final Terms in connection with the Public Offer accordingly.
- Secured bond
- Target raise
- £5 million
- Rate of interest
- up to 5.90% AER plus 0.5% p.a. bonus
- 1, 2 or 3 years
- Income payments
- Monthly or at maturity
- ISA available?
- Minimum investment