The uncertainty around Brexit is weighing down the UK economy and adversely affecting growth. Additionally, Sterling’s weakness against the dollar is directly fuelling the rise of inflation. Such a situation is driving Investors towards investments that provide security in this potentially volatile environment.
Your clients have been living with the reality of a low interest rate environment for almost 10 years, and this is expected to continue for the foreseeable future – investors seeking to grow the value of their savings need to consider alternative options rather than traditional cash or stocks and shares ISAs.
With the current inflation rate still relatively high, clients who have their savings on deposit with banks or in Cash ISAs are effectively losing money. According to the Office of National Statistics, the CPI was at 2.3% as at December and if your client was earning 0.5% pa on their deposits, they have lost 1.8% in real terms – a huge price to pay!
2018 saw the FTSE 100’s performance drop to its worst level since 2008 and although there is a chance that 2019 might see an upturn, continued macro-economic instability across the globe has the potential to bring more volatility. Stocks and shares ISAs have traditionally done well over the long term, however, Investors must recognise the potential short-term volatility of the stock market, and the risk that accompanies it.
Across the UK as a whole, a leading real estate services provider expects house price growth to halve over the next five years, from the record growth recorded since 2012. This, together with the Government’s stance towards the private Landlord makes the property market far less attractive to potential investors.
Triple Point Income Service ISA - A predictable alternative
Triple Point’s Income Service generates an attractive fixed return by providing funding through a single holding to thousands of carefully-vetted UK businesses.
The service is engineered to generate a predictable income stream which is uncorrelated to traditional listed equity and bond markets.
Investors benefit from Triple Point’s extensive experience as an investment manager in the Direct Lending sector. Funds raised are used to provide loans, leases and other asset finance to a large and diverse range of UK businesses. As a leader in the private debt market, Triple Point currently manages over £350m of assets in lending and leasing strategies and has provided funding for over 100,000 businesses.
If you are looking to build a balanced investment portfolio that provides clients with dependable returns over a fixed term along with security that exceeds mainstream investments, including direct investments or equity funds, the Triple Point Income Service could be considered for part of the client’s portfolio.
Risk Warning: As with all investments, the Triple Point Income Service places capital at risk. Investor’s may not get back the full amount invested, and interest is not guaranteed. We do not provide investment or tax advice. Tax treatment will depend on your individual circumstances and may be subject to change in the future. Please speak to a financial adviser, who can guide you if you are in any doubt. Investors should only subscribe to the Triple Point Income Service on the basis of the information and terms set out in the Information Memorandum and Investor Agreement.
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