News

IF ISA; the facts you need to know

by Andrew Nellies
04/04/2018
IF ISA; the facts you need to know

Innovative Finance ISAs (IFISA) are quickly becoming a popular alternative to cash ISAs, offering enhanced returns that investors simply cannot get by leaving their money in a cash ISA or in their bank savings account.

As many of our clients will be aware, Reyker have been at the forefront of tax efficient savings accounts since the introduction of PEPs back in the early 1980s and ISAs in 1999.  In June 2017 Reyker expanded its service offering further by providing Innovative Finance ISAs wrapper to several IFISA qualifying debentures.

Demand for IFISA qualifying debentures is increasing rapidly as investors look to diversify their portfolios away from standard ISA investments such as Equities, Funds, Investment Trusts and corporate bonds from listed companies. 

IFISAs have expanded investor options in the corporate debt market and now enable investors to purchase debt from unlisted smaller capitalised companies. This change is also proving to be an invaluable funding option for companies to raise capital in a more cost-effective way when compared to the rates they typically would have to pay to banks. 

Therefore, IFISAs are developing into a win-win for both investors who get better income yields and small companies who can raise capital at more affordable rates.

The most recent debenture to be accepted onto Reyker’s IFISA platform is 6% Blueprint Industrial Engineering 2022. This debenture pays a fixed quarterly coupon of 1.50% and more information on the company’s website.

Blueprint Bond Website

IFISA investments may not be appropriate for all investors as they are specifically designed to be held until maturity and there is no natural secondary market liquidity however, the debentures are fully transferable. 

If you would like to discuss IFISA further please contact our execution services team on 020 7397 2596, who will be very happy to help you.

Andrew Nellies

Andrew Nellies

Andrew is our Head Dealer and VIP client relationship manager. A chartered member of the Chartered Institute of Securities & Investment (CISI), Andrew is RDR qualified and holds a CF30 authorisation. He has represented the firm on industry working groups in respect of ISAs and JISAs and has been with Reyker for over 15 years and is sure to provide you with market insight and possible trading ideas on current stock news on his real passions including fixed Interest securities and 'moat' investing.