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

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

“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.”