* Lowest and highest Yield to Maturity of bonds on the market. Pre-tax and fees. Prices can go up or down.
Global banks control the corporate bond market and generally only allow minimum purchase sizes of £100,000+ preventing everyday investors from getting access.
Investors on our platform purchase Fractional Bonds, which correspond to fractions of corporate bonds, and therefore can gain access to a wide range of bonds from some of the UK's largest companies.
Now you can buy many corporate bonds and create a diversified portfolio that delivers solid, predictable income.
High yield corporate bonds have outperformed UK equities and investment grade bonds over the last 20 years both in terms of returns and price volatility. Learn more
Source: Bloomberg and ICE Data Services. Data as of 18 Oct 2019.
Past performance is not a reliable indicator of future performance. You should not rely on past performance as a guarantee of future investment performance.
As the UK’s leading digital corporate bond market WiseAlpha employs multiple layers of investor protection to ensure the highest level of trust amongst our users. These include:
WiseAlpha is regulated by the Financial Conduct Authority (FRN: 751087)
All bond assets are held with Bank of New York Mellon, the largest custodian in the world. Our digital bond programme is overseen by an independent Trustee and administrator, IQ-EQ, the fourth largest investor services firm in the world.
Got questions? We’ve got answers.
We're the UK's leading digital bond market giving investors access to the world of corporate bonds. Our members can invest in well known British brand name companies via Fractional Bonds or other WiseAlpha Products. Investors now have the ability to access one of the most attractive mainstream asset classes and are now able to build affordable and diversified portfolios. In this way WiseAlpha is leading the way in democratising what we believe is one of the best risk-adjusted asset classes.
Members wishing to sell their investments prior to their maturity dates can do so by creating a sell order on the Market page or relevant product page. Liquidity on our secondary market is dependent on there being an available and willing buyer at the market price. You will receive your cash in your account once another member has purchased the investments you are selling. To date everyone who has wanted to sell their investments has been able to do so. However, liquidity is not guaranteed.
WiseAlpha charges a 0.25% discount ("Sale Fee") to the prevailing market price on the amounts sold.
WiseAlpha utilises the services of Global Custodial Services Limited (“GCS”) to provide a segregated custodial client account (held with Lloyds Bank plc) for un-invested members' cash. GCS is authorised and regulated by the FCA to hold client money. WiseAlpha plc, which issues the Fractional Bond for our members to invest in holds the bonds it acquires with high grade global bank custodians in the same way as a fund.
Our Fees are described further here.
Interest from WiseAlpha Fractional Bonds is currently paid to investors without any tax being deducted. Interest from WiseAlpha Investment Bond is paid to investors with withholding tax being deducted, except for investors who hold these products in their IF ISA and SIPP accounts.
Any income you earn from your investments in WiseAlpha Products forms part of your overall income and is subject to personal or corporation taxation rules. Interest payable to holders on money invested is charged to income tax in the tax year the interest is received. For example, interest received on 31 December 2018 is received in and taxable for the tax year 2018/19.
You should declare any interest and capital gains to the HM Revenue & Customs on a self-assessment tax return if you are an individual or inform your local tax office. If you are in any doubt about your tax position you should seek independent tax advice.
Members can purchase Fractional Bonds or invest in other WiseAlpha Products.
Our members can also use our Robowise automated investment service which diversifies their money across different Fractional Bonds on the market and gives them the choice of two income and risk based portfolios: Balanced or Adventurous.
Fractional Bonds are issued by WiseAlpha plc (Ireland), which is designed to be a bankruptcy remote special purpose passthrough vehicle. WiseAlpha Technologies Limited (UK) promotes and arranges the purchase of Fractional Bonds and other WiseAlpha Products. Only WiseAlpha Technologies is authorised and regulated by the Financial Conduct Authority (FRN:751087).
Members can also invest in our managed Smart Interest Bond product which offers different fixed rates for terms between 1, 3, 5 and 7 years. This product is also available for IF ISA and SIPP account holders. The Bonds are issued by WiseAlpha Limited (UK) and promoted and arranged by WiseAlpha Technologies. Only WiseAlpha Technologies is authorised and regulated by the Financial Conduct Authority (FRN:751087).
As a member you are not 'lending' to a corporate borrower. Instead, you are investing in Fractional Bonds which are further described here. It is important that you read the Risk Statement, Investor Agreement and FAQs before investing.
When investing in our Smart Interest bond product you are investing in a bond issued by WiseAlpha Limited that invests the proceeds in a diversified portfolio of corporate bonds and Fractional Bonds.
Yes, bond prices can go up or down based on factors which may include financial performance by companies, interest rates, changes in the economy and special events e.g. Brexit or a number of other variables.
WiseAlpha updates the prices of the bonds each business day between 8am and 10am that correspond to each Fractional Bond. It is important to bear in mind that while prices might fluctuate during its life, bonds are contractually required to repay at par (i.e. 100 or face value) so there is an expectancy of capital return which is not the case with equities. Therefore price fluctuations tend not to be as volatile.
A default is when a bond issuer has not met one or more covenants or scheduled payments under its bond agreement. Usually a bond issuer will inform its investors prior to when a default happens that this may occur. In this instance the bond agreement is usually amended by consent of the required number of investors but in the event this does not happen and an issuer breaches a covenant or payment it will be in default and investors can enforce their security over the assets of the company.
WiseAlpha as holder of the underlying bond will vote on any amendments to the bond agreement and update our Fraction Bond holders with any changes to the economic terms of your Fractional Bonds as a result.
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