- WiseAlpha is a new online platform that allows members to invest in well-known UK companies by gaining exposure to senior secured corporate loans
- Investors can earn an attractive rate of interest
- WiseAlpha is an alternative to stock markets, Peer-to-Peer investments and corporate bonds
- New members will qualify for 0% Service Fees for five years on investments made before September 30th1
WiseAlpha, a new online investment platform has launched successfully in the UK and offers investors annual returns in the range of 4-6%2. WiseAlpha members can earn attractive rates of interest on a selection of corporate loan based investments in blue-chip UK companies (often household names). These are the same companies major financial institutions lend to.
WiseAlpha founder and CEO Rezaah Ahmad comments:
“The corporate debt investment market is one of the largest markets in the world but has so far remained in the hands of the largest financial firms who charge significant fees to investors for the privilege to gain exposure to the market – we believe it is time this changed.”
“We believe that senior secured loans are an attractive asset class but the market has been slow to adapt to changes in financial technology and has limited investors of all sizes accessing it. WiseAlpha is aiming to change that and bring a wider investment audience to the asset class.”
Senior Secured Loans: an all-weather asset class
Senior secured corporate loans have the potential to offer better yields than investment grade bonds and are linked to LIBOR such that their coupons rise with interest rates.
Rezaah Ahmad comments:
“Unlike most fixed income bonds with low coupons and extended maturities, senior secured loans should perform well in a rising interest rate environment,”
The loans wiseAlpha lists on its platform are secured on the assets of the company and this collateral backing offers a degree of capital and structural protection for investors.
Studies show that the senior secured asset class also compares favourably on a risk-adjusted return basis versus alternative asset classes such as high yield bonds and equities.3
Investors who use the stock market to invest in dividend or income stocks can have variable cash yields and may be exposed to volatility risk in the price of the underlying shares which can fluctuate dramatically with changes in the performance of the company or in times of stock market or economic turbulence.
For risk averse and income driven investors senior secured loan investments are potentially an attractive alternative to equities because of the contractual income yields and typically lower price volatility.
How wiseAlpha works
The platform enables members to gain exposure to senior secured corporate loans on a company by company basis.
There are no advisors, no funds and no complicated administration charges and conditions. The wiseAlpha platform lists corporate loan based investments of blue chip British companies where the loans have already been issued by major international banks and the companies sometimes have annual revenues in excess of £1bn and have been around for many years.
Interest is received by investors on a quarterly or semi-annual basis with the principal paid at maturity or during the life of the investment. WiseAlpha collects the interest and distributes it to members and provides account management and reporting tools so members are able to manage their investments in an easy way. Investors can access their money by using wiseAlpha’s matched bargain based sale process which provides for the matching of buyers and sellers to enhance potential liquidity4.
Who can become members of wiseAlpha
WiseAlpha do not discriminate between different types of members. We expect our members to range from professional fixed income investors such as private family offices, third party managers of money, private banks, pension and insurance companies down to approved individual investors looking to earn an attractive rate of interest for their money. Members of wiseAlpha can invest from £100 up to tens of millions of pounds in a single investment.
Investment banks and specialist credit funds can also become members and utilise the wiseAlpha platform to sell senior secured loans they have underwritten or hold in order to reach a wider investment audience.
Quick and Easy account opening
Investors can open an account online within a few minutes by providing their details and then transfer money using their debit card or via bank transfer. All investor money held and assets purchased are independently administered by Apex Fund Services Ltd, a $40bn global fund administrator which is authorised and regulated by the FCA. Client balances are held in an account with an FCA authorised custodian. With a few clicks new members can create a purchase order by selecting different loan based investments of major British companies from the wiseAlpha platform. Members may also choose to utilise the wisePortfolio selection tool to diversify their investment across a number of wiseAlpha Notes.
As part of WiseAlpha’s commitment to the investment market new members who sign up and make investments before 30th September 20151 will qualify for 0% annual service fees for five years on the amount deposited and invested. After this period, members will pay an annual service fee of 1% on total monies invested.
As an example if a new member deposited and invested £10,000 within the qualification period and selected a loan investment with an annual interest yield of 6% they would expect to receive £600 per annum over 5 years (the total amount is £3,000) with 0% Service Fees charged. In year 6 their return would reduce to 5% or £500 per annum.
WiseAlpha also charge a 0.25% Sale Fee for investments sold via the wiseAlpha matched bargain based sale process.
Rezaah Ahmad added: “Through wiseAlpha we are hoping to innovate the investment market and provide a new way to invest, so that our members can earn attractive returns by earning income from investments in major British companies.”
WiseAlpha Technologies Limited (FRN:657355) is an appointed representative of Kession Capital Limited (FRN:582160) which is authorised and regulated by the Financial Conduct Authority in the UK
WiseAlpha Technologies Limited is a limited company, registered in England and Wales (No. 08967521), with registered office at 14 Bonhill Street, London, EC2A 4BX, United Kingdom.