Robert Carroll, CMO of Avantis Wealth explains how financial investment can drive business for the future.
Who are Avantis Wealth?
Avantis Wealth are a specialist investment broker, offering high return, secured, fixed income investments.
Please tell us about the sector that Avantis is involved in?
Avantis offers alternative investments, primarily bonds and loan notes with property-backed security. This is a sector that has grown substantially in popularity since annual returns of 8% to 15% are achievable and this is extremely difficult to attain with mainstream stocks and shares.
What is ‘Loanership’ and what are the benefits?
Investments are divided into two types. ‘Ownership’ of an asset (an example would be buy-to-let property) and ‘Loanership’, where your funds are lent to a business to enable them to grow and finance projects. The benefits of Loanership, at least how Avantis Wealth practices it, are fivefold:
Fixed income: Your income is fixed in advance so you know what it will be.
Rewarding returns: Typically 8%- 15% annually, something difficult to achieve elsewhere.
Exit strategy in place: You know when your investment matures and how the money will be repaid.
Security is paramount: Often legal charges over property.
Hands off: There is no need for your involvement.
We call the investment approach that includes all five of these benefits the F.R.E.S.H investment strategy. To this we would add most of the investments are short-term, typically 12-24 months. The benefit is that your funds are not locked up for a long period and you are not dependent on a buoyant stock or the housing market at the time you wish to sell.
What are Private Debt Investments?
This is a name for our fixed income bonds and loans, but with a wider spectrum that may include longer term bonds, debt that is not secured and with other characteristics that are not so advantageous to investors.
How does Avantis differ from others offering the same type of investments?
Avantis Wealth delivers three distinct advantages:
- Serious depth of due diligence, available for inspection to all potential investors. In 2019 we investigated 105 investments and selected seven to present to our clients.
- In depth reach into the market-place means we have access to the best investments.
- A focus on delivering rewarding returns but at modest risk – swings the advantage in favour of the investor.
Has Brexit had any affect on the business?
Brexit impacted the market negatively in 2019, right up to the election. Many investors were uncertain what the future would hold, and therefore understandably decided to wait it out. We’ve seen a massive sea-change in sentiment since November. Investors are counting the cost of having money on deposit earning them maybe 1% pa or less, when they could be receiving 12% pa or more! On a £100,000 investment that’s the difference between earning £1,000 a year, or £1,000 a month!
What is the future of the business?
The future lies in ‘sticking to our knitting’ and doing more of the same. Selecting the best investments, subjecting them to extensive due diligence, thus ensuring that investors benefit substantially through earning up to around 15% annually, year in and year out.