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Finally, the senior secured and high yield corporate bond market is now accessible to the individual investor.
You no longer have to have millions to gain access to this exclusive asset class.
Here at WiseAlpha we are liberating this multi-trillion market for the masses so people can earn high quality fixed income by investing through our Notes and other WiseAlpha Products.
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 our Notes (fractions of bonds) or our other WiseAlpha Products..
Our members can choose from different WiseAlpha Products.
Members can invest in fractions of corporate bonds through our Note(s). References on the WiseAlpha platform to corporate bonds are our Notes.
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.
As a member you are not 'lending' to a corporate borrower. Instead, you are investing in fractions of corporate bonds via our Notes 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 Investments that invests the proceeds in a diversified portfolio of corporate bonds.
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 bond agreement and update our Note holders with any changes to the economic terms of your Notes as a result.
WiseAlpha utilises the services of Global Custodial Services Limited (“GCS”) to provide a segregated client account (held with Santander plc) for un-invested members' cash. GCS is authorised and regulated by the FCA to hold client money. WiseAlpha Limited, which issues the Notes for our members to invest in holds the bonds it acquires with global bank custodians in the same way as a fund.
The following Fees apply to the Notes product. Fees for other WiseAlpha Products are listed on those product pages.
1% Annual Servicing Fee
Based on all amounts invested and collected when the borrower makes an interest payment.
Payable if you sell any of your investments to other investors prior to maturity.
If members sell their Notes on the secondary market, WiseAlpha charges the member a 0.25% Sale Fee based on the principal amount of the Notes that are sold. We only charge the Sale Fee if your Notes are purchased by WiseAlpha on the basis described here, and we deduct this Sale Fee from the proceeds of the sale.
WiseAlpha does not withhold any tax so any income you earn should be included in your annual tax return.
It is our understanding that interest on WiseAlpha investments is subject to taxation while capital gains on principal repayments and liquidation distributions are not. You should consult an independent financial advisor or tax advisor if you have any tax related questions pertaining to your personal tax circumstances.
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.
WiseAlpha charges a 0.25% discount ("Sale Fee") to the prevailing market price on the amounts sold.
The information presented here is for informational purposes only and is not investment advice, guidance, or a guarantee of the performance of any Note or portfolio and may not be relied upon. You should seek independent financial advice if you are unsure about whether WiseAlpha is suitable for you.
Please note as a WiseAlpha member you are not lending directly to the corporate borrower. Instead, you are investing in a Participation Note, or “Note”, which corresponds and is backed by a specific bond investment made through the WiseAlpha platform reflecting the key economic terms of the investment.