Wise Alpha - Invest in bonds?


#1

Just got an exclusive access to this investment opportunity on Crowdcube called Wise Alpha. It’s already 150% overfunded now. Anybody heard of this?

"FCA-authorised WiseAlpha aims to be a world-first market, offering everyday investors access to senior secured and high yield investments in companies like Virgin media, Ocado and Vodafone. Since its second Crowdcube raise in 2017, the company has placed over 75 investments yielding between 3-15%. "

Achievements so far:

  • Directly FCA authorised and regulated in Sept 2016

  • Winner of Best Investments Provider at the British Banking Awards (2018)

  • High profile press including City AM, Moneyweek, The FT, and Bloomberg

  • Over 4,000 registered members and growing

  • Over 75 different investments made with market leaders e.g. Virgin Media, Ocado, Vodafone, yielding 5-15%

  • Launched SIPP account product

  • Beta-launched Automated Investing with our ‘Robowise’ product for testing

  • Planning to launch European investments in beta imminently

  • Built an API that will allow digital banks and wealth managers to connect to our market/partner with us

We aim to continue liberalising more markets, further automate, create ISAs, and build our presence in Europe.


(Emma) #2

They did a Q&A on Monzo community last week


#3

Thanks. I’ll have a look. :rose:


(Andrew Clark) #4

I really like this idea and while not sure how big the market would be for something like this it seems like it has potential. I’ve invested enough money to hopefully get some merch. (Wise Alpha, if you’re reading this make sure the merch involves socks!!!)


#5

Somewhat on topic :smile: Chilango are raising money through a bond right now. Website is well put together, I think they might be going direct this time around.

Wonder if WiseAlpha will include these sort of bonds in time.


(Harry) #6

I like the access this gives you to the market. The interesting thing is that you don’t actually purchase the bond direct - you buy a contract note from WiseAlpha that is linked to the performance of the bond.

Subtle but significant difference.

I certainly think they’re different and have a space, would be interesting to discuss the merits of this vs Corporate Bond ETF though…


#7

Discovering personal finance plays like this is why I like Monzo/Freetrade communities. I won’t invest as I’ve maxed out private equity investment amount that I’m comfortable making, but just by having a :eyes: at them I’m definitely interested in using their platform for fixed income in the future.

This would be a great question to ask on the Monzo WiseAlpha Q&A as I’m interested to know the answer too. I want bonds in my DIY portfolio but pulled out of the Pimco High Yield Bond on Freetrade precisely because I am not certain of the yield & was spooked by the global bond sell off.


(Harry) #8

It’s great isn’t it! Property partner is another DIY portfolio app/platform I’ve come across - kind of like property stock exchange but limited to UK rental.

I suppose it boils down to the same as an equity investment - do you have conviction in a particular company enough to invest in them, or do you wish to spread your risk across a range of companies (ETF). There’s also a discussion to be had about liquidity and range of investment available.

Example from me: I like Ocado, with Freetrade I can take an equity stake, but they’re very pricey at the moment. With WiseAlpha I could get exposure to the company through debt instruments. Not a like for like comparison, but you get the idea - hopefully they scale tonhave a wide range and a more liquid secondary market.


(Yogesh) #9

Pitch looks interesting. Are there any similar providers in US? Just wondering is wisealpha really first one to provide this service?


(Dave Smith) #10

I’ve invested in this, not as much as I put into Freetrade though. I don’t think Bonds have as much appeal as stocks. But I figured it was worth a small punt, Valuation/equity on offer didn’t seem too ridiculous