Heritage enters the crowdfunding market with fixed interest investment paying target 6.25% per annum
Heritage Crowd Ltd has launched an Innovative Finance ISA through its crowdfunding platform, with the aim of offering retail investors the chance to earn returns from fixed income investments.
Heritage Bond Series 1 invites minimum investments of just £500, with the opportunity for people to transfer their existing ISAs and gain a target fixed return of 6.25% per annum for five years.
Crowdfunding is one of the fastest growing segments in investment markets, providing public access to potential returns from fixed income or equity participation with relatively low investment levels.
The Heritage Crowd platform is the exclusive channel for the Bond Offers of Heritage Financial Holdings plc. Each bond will aim to manage investment risk by allocating funds to a diverse security pool.
This first Bond Offer from Heritage Financial Holdings plc aims to manage risk by spreading lending across five companies operating in diverse industry sectors. The sectors range from property development and manufacturing to the capturing of new growth markets such as blockchain technologies.
It is intended that such diversification is further increased – thus reinforcing Heritage’s strict risk management strategy – with future bond series looking to invest in other new growth businesses.
Jesse Johal, director of Heritage Crowd, said: “We are delighted to be launching Heritage Bond Series 1 on behalf of Heritage Financial Holdings plc. It gives normal investors the chance to earn target returns from a business lending strategy that traditionally benefitted only the wealthiest few.
“We believe this Bond Offer is particularly suited to people who wish to take advantage of the tax-free IFISA programme, perhaps through transferring some or all of their existing ISAs.”
He added: “The business strategy of Heritage Crowd is to provide investor access to this Bond Series while strictly observing regulatory requirements. Overlaying this with institutional standards of research and due diligence provides ‘four eyes’ investor comfort.”
Information: Heritage Crowd Ltd (FRN 802335) is an Appointed Representative of ShareIn Ltd (FRN 603332), which is authorised and regulated by the Financial Conduct Authority. ShareIn provides the technological infrastructure and compliance framework for raising capital through crowdfunding.
The shareholding and management of the regulated crowd platform are intentionally independent of Heritage Financial Holdings’ management and investment structure.
This is to ensure robust regulatory management and corporate governance by skilled individuals. Additionally, an issuance by a UK public limited company assures the highest available standards of independent scrutiny and auditing, which we believe should provide added comfort to investors.