View more on these topics

7Ci launches “high yield, no risk” investment vehicles

Seven Continent Investment has launched three property investment vehicles that it claims are high yield with no risk.

7Ci says the ‘25 per cent guaranteed return’ sees investors providing private financing to a development company in return for guaranteed returns of 25 per cent in the first year, payable as 6.25 per cent of the investment sum per quarter.

The ‘financial partnership’ guarantees returns of between 40 and 70 per cent on a two-year investment and the ‘100 per cent return’ option guarantees the initial investment sum will be paid back in full after 36 months.

7Ci says investors’ money is secured against land or property, free of debts and confirmed by an independent valuer to be worth 100 per cent of the sums held, and put in the hands of UK overseas property solicitors, ILP, to hold the security in escrow.

7Ci fund and private finance director Mike Powell says: “Our returns are absolutely guaranteed, deliverable at fixed points in time, providing certainty and confidence in the investment.”

Torquil Clark investments director Philippa Gee says the words ’25 per cent guaranteed’ and ‘risk free’ don’t tend to go hand-in-hand.

She adds that while she doesn’t know the finer details of the products, there are a few warning bells that ring immediately.

She says: “You’ve got to be incredibly cautious about these kinds of schemes and the actual risks involved. Advisers need to rip the products to shreds, understand them inside and out, find out how they’re able to guarantee it and why and on what basis. You can’t just accept what’s presented to you. You have to be able to dig deep and make the product stand up in your own opinion.”

Recommended

‘Consumerism will boost EMEA region’

Investment opportunities in emerging Europe, the Middle East and Africa will increase as the region develops, says Fidelity International.The fund firm believes that growing consumer demand, increased infrastructure spending and improved utilities will change the market structure.It says that while the region is dominated by the energy and financial sectors, representing 51 per cent of […]

July’s house price growth lowest since June 2006

House prices in England and Wales increased by 0.1 per cent in July, the lowest rate of growth since June 2006 according to the Land Registry’s monthly House Price Index.The average house price rose to £181,460. London continues to lead the rest of the country when it comes to house price growth with an increase […]

The heir apparent

What new inheritance tax proposals could mean for financial services

Tech-based loan broker Citri offers a network alternative

A technology-based mortgage broking firm has been set up in partnership with The Mortgage Times.Citri has been created by former Axa distribution director Keith Atkinson, who worked at Allied Dunbar and Positive Solutions. It is funded entirely by private equity finance.Atkinson says he is setting up Citri as an alternative to the network model.He says: […]

The future of active management is now

Fees under pressure. Regulatory moves against closet indexers. Rapid advances in financial technology. Shifting sentiment among investors. Such mounting challenges have led to widespread speculation about active management’s shrinking future. But a closer look inside intelligent portfolio construction today tells a story of expanding roles, added value, and innovative risk-adjusted, lower-cost solutions. Four investment experts […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment