Canadian investment company Alpha Toronto has launched a fixed return fund, unrelated to the st...
Canadian investment company Alpha Toronto has launched a fixed return fund, unrelated to the stock market, which instead generates returns from UK "no win no fee" litigation.
Furthermore, UK investors can only access the fund through IFAs.
The fund generates its fixed returns using a novel process. When a solicitor accepts a case on a "no win no fee" basis, Alpha advances them money to meet the costs. The average loan per case is currently £1,500. It is a condition of the loan that a proportion of this money is used to purchase insurance cover. NIG, a subsidiary of Winterthur, will provide the policy. The remainder of the loan is naturally used to finance other elements of the case.
If the solicitor fights the case successfully then the loan is repaid from the winnings. If the solicitor is unsuccessful then the loan is repaid to Alpha by NIG. Alpha subsequently claims it receives repayment whether the case is won or lost.
The minimum investment is approximately £70,000. Funds must be invested with the company for either 18 or 36 months. The 18 month fixed yield on sterling investments is up to 10.75 % p.a., whilst the 36-month fixed yield is up to 11.25% p.a. There are no initial charges, no maximum investment level and commission payable to IFAs is negotiable.
Commenting on the fund Gary Lyons, Head of Corporate Communications, said: "In current volatile market conditions many people are looking to spread their portfolios and secure good fixed investment returns which are not stock market related. Alpha Toronto offers sophisticated investors high yields with minimal risk and no initial charges. I believe that our fund will be of great interest to anyone with a substantial capital sum who wishes to lock in high fixed returns".
The fund is domiciled in Canada. Sales offices are located in Quebec, London and Marbella. Custodian to the fund is CIBC Mellon and the auditor is BDO Stoy Hayward.
IFAs interested in the product can call 0207 629 6662
Banned for a total of 34 years
Self-administered pensions reported net investment £4.7bn in Q2
Was responsible for IT and transformation
There are 1,840 asset management firms with £8trn AUM
Also unveils trust IPO raised £100m