Canadian investment house Alpha Toronto is moving into the UK IFA market with an innovative new legal fund investing in “no win no fee” litigation.
The fund offers a yield of up to 11.25 per cent a year over three years or 10.75 per cent a year over 18 months. Quarterly and monthly inc-ome options are available at a slightly lower annual rate.
The product offers funding, typically around £1,500, for solicitors in “no win no fee” legal cases.
The solicitor is then obli-ged to use part of the money to take out an insurance policy with Winterthur subsidiary NIG. If the case is successful, the solicitor pays the fund back plus interest but if the case fails, the capital is covered by the insurance policy.
The fund, domiciled in Canada, is non-FSA-regulated and hence only available to UK investors through IFAs specialising in offshore markets.
Minimum investment is £70,000 although smaller amounts can be negotiated for advisers with a number of clients looking to invest in the fund.
Commission is also negotiable and there are no exp-licit charges.
Alpha Toronto head of corporate communications Gary Lyons says: “In current vol-atile market conditions, many people are looking to spread their portfolios and secure good fixed investment returns which are not stockmarketrelated. Alpha Toronto offers sophisticated investors high yields with minimal risk and no initial charges.”