BondMason provides the “missing link” in financial journalist’s investment portfolio
Experienced investors advise that the best way to minimise your risk while getting a good return is to have a spread of investments.
But how do you undertake all the time-consuming research required if you want to take advantage of the higher returns available in the rapidly growing alternative finance sector?
For former Financial Times senior journalist Andy Davis, who is saving regularly to provide a financial kick-start for his children when they reach adulthood, the solution was straightforward. Andy opened an account with BondMason and lets them do the hard work of analysing hundreds of property lending and direct lending investment opportunities to cherry pick the best ones for him.
This means he now gains the benefits from having slices of a wide range of carefully assessed investments, but without the need for him to do hundreds of hours of research.
Andy worked at the Financial Times for 15 years and was first introduced to direct lending, back in in 2011. He says: “I like the alternative investment class, which is all about generating attractive returns through investing in niches that banks aren't interested in. The issue with a lot of platforms is you have pick the loans you invest in, and undertake the due diligence yourself, which I don’t feel qualified to do. I first heard about BondMason through two different contacts and met CEO Stephen Findlay to find out more.
“If, like me, you don't have the time to do a lot of background research then BondMason offers a good solution. I see them as the missing link in this whole market. They make the process much easier as you are getting the benefit of their expertise, a nice broad spread of investments, and a very good return. They have a good sound approach to managing the risk, and make sure your exposure is risk managed.”
Andy, who now works as a freelance journalist and copywriter added: “They offer a great way to invest across a range of direct lending investment opportunities. I opened my account in April 2016 and I have been saving into it regularly each month without withdrawing any money, as I want to leave my money there, so as it benefits from the high rates of return, which compounds over time’.
“Ultimately, it's for my children, who are aged from 5 to 13. I want the fund to build up, so it will give them a chunk of money when they're approaching 20, which is when they'll be needing help, whether with going into further education or getting started in jobs.
“I look on the money I put into my BondMason account as long term savings. I want to benefit from the compounding interest, so I leave it alone and let the process work. It's not without risk as some of these loans will go wrong. However, I have a good spread so if one fails it is ultimately a small percent and shouldn't affect my overall return much.
“The money I invest into the BondMason account is part of a bigger picture. I have some longer-term stock market investments for the kids. As the stock market is unpredictable and goes up and down, I use this for only long-term investments, so we are able to ride out the bumps.
“My BondMason accounts fit between the very liquid, which I want to be able to cash most immediately, and the very long term which I won't touch for years.
“It's the sort of area I would have previously used a high interest long-term notice bank account, but these no longer exist in any worthwhile form. By contrast, BondMason is delivering a return that is hard to find elsewhere.
“I also like dealing with them. A good example was a while back I noticed the cash was building up in my account and not being invested quickly, so I emailed them to ask why.
“I got a very fast response, explaining that they were waiting for the right quality of deals and there had not been many of them recently. I thought ‘bang on, I couldn't agree more!’
“It was both nice to get a swift reply and a sensible response... something you don't often get these days from companies. It was a good example of great customer service and combined with their diligent attitude, this increased my confidence in the team even further.”
Warning: Nothing in this article should be construed as advice. Your capital is at risk.