High Risk Investment Funds
High return fund fails to find favour
A fixed-income fund offering a guaranteed return of 15 per cent
per annum is failing to excite product providers, who are refusing
to include it in their portfolio bond investments.
The product carries no charges, bar early redemption and invests
in compensation claims deriving from the UK personal-injury market
through associated companies. It has claimed to have taken US$20
million to date and expects to reach US$50 million by 28 February.
It’s being offered by Bahamas-based Imperial Consolidated
and purports to offer a “level of security to investors beyond
any usually associated with the lending industry”.
High Risk Investment Funds & Security
Security is provided in the form of guaranteed loan repayments in
“no win, no fee” cases. The fund is being pushed by the
recently opened Spanish branch of the operation headed by former Cyprus
broker Robert Raven. But life companies are shunning the product.
A spokesman for one, who wished to remain anonymous, said: “They
are trying to portray a 15 per cent return as a no-risk investment.
But there is no such thing as a free lunch.”
High Risk Investment Funds - Scottish Provident International
Scottish Provident International is one provider who looked at offering
the bond, but backed away. It was unhappy at the compulsory one-year
lock in. Irish Life International is currently accepting the fund
in personal portfolio bonds. Imperial Consolidated refused to disclose
which other providers were accepting the fund.
Philip Saunders of Investec Asset Managers said: “I have never
heard of the company, even though they claim to be highly regarded.
“It’s a Bahamas-based fund and one would have to ask
why that has to be the case. It’s also extrapolating double-digit
returns with no up-front charges, despite having no track record.
“I would be very surprised if investors are going to get the
return they are being led to expect.”
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