The finance industry is overflowing with jargon and, against an evolving backdrop, even the most seasoned investor may find themselves grappling with some terminology.
No one should ever commit to an investment without understanding the small print and we’ve made it our mission to ensure Wellesley investors are astute and educated on our products.
Below sets out some of the main features of The Wellesley Property Bond in plain English.
Listed on the Euronext Dublin
Wellesley Property Bonds are publicly listed on Euronext Dublin (formerly the Irish Stock Exchange). This means that the Central Bank of Ireland has approved the Secured Note Program as complying with the EU Prospectus Directive following a full review. The Euronext Dublin is ranked No.1 for bond and investment fund listings worldwide and has over 36,700 securities listed.
To be accepted by the exchange is a hallmark that The Wellesley Property Bond adheres to high criteria.
ISA eligibility
The Wellesley Property Bond is an ISA (individual savings account) eligible product. This means that investors don’t have to pay tax on the interest earned on their £20,000 per annum provided it is held in an ISA account. They can of course invest more than £20,000 should they wish, however interest will be taxed at the usual rate beyond this.
Security
The Wellesley Property Bond is secured against loans made on UK residential property. This means that should a loan default, Wellesley will attempt to recover funds by selling the assets (the properties). For further information on our loans, please click here. Please note that the sale of the assets may not cover the original investment amount and investors’ capital is therefore at risk.
How it works
Customers can subscribe to The Wellesley Property Bond at any time up until the submission deadline. At this point, the bond closes to new investment and the process of issuing and listing it on Euronext Dublin will begin. This typically takes a few days.
Once the bond is issued, it will begin accruing interest. Interest is paid into a customer’s holding account monthly and, once funds are cleared, customers are free to reinvest or withdraw their holding at any time. Full capital is returned to a customer’s holding account on maturity which is the end of the fixed term.
Minimum investment
The Wellesley Property Bond is open to investment from and in multiples of £1,000. This is because when you invest into any bond product, you are essentially purchasing units. The cost of a unit in The Wellesley Property Bond is £1,000. There is no maximum investment on The Wellesley Property Bond.
Interest
The Wellesley Property Bond pays interest at a fixed rate. This means the rate agreed when subscribing to a bond is the amount that an investor will receive throughout the bond duration. This rate will never change.
Financial Services Compensation Scheme (FSCS)
As with all investments, your capital is at risk and interest payments are not guaranteed when you invest in The Wellesley Property Bond. This means that investments are not covered by the FSCS.
Since launching our first bond in 2014, we hold a 100% track-record in paying all capital and accrued interest to investors across our bond products.
Who can apply?
Investors must be over the age of 18. Investors must also be a resident of the UK, Channel Islands or Isle of Man to apply for the bond.