InvestingZone has unveiled an industry-first, adding a traditional fund to its online portal enabling investors to manage unlisted equities alongside traditional funds.
The addition of the CF Seneca Diversified Income Fund is the first of many traditional funds and trusts InvestingZone aims to add to the online portal in the coming months.
The innovation, which bridges the gap between the two distinct investment propositions, is the latest strand of a significant investment in the platform, which was launched in 2013 with the backing of high-profile angel investor Jon Moulton, as an equity crowdfunding portal.
In 2016, InvestingZone merged with specialist corporate finance house, Acceleris Capital. This partnership is now aiming to disrupt the investment sector by removing the barriers to investing in the unlisted equities market.
The enhanced fin-tech portal allows the public to directly invest in UK SMES – something previously restricted to professional investors and angels – safe in the knowledge that the companies they’re investing in are vetted by credible and experienced corporate financiers.
In doing so investors can take advantage of probably the most generous tax incentive currently available anywhere in the world: the Enterprise Investment Scheme (EIS), means Investors can reclaim 30% of the cost of their investments, (50% of SEIS) and up to 45% loss relief
The CF Seneca Diversified Income Fund, is managed according to the principles of Seneca’s multi-asset value approach and offers investors a diversified, transparent portfolio of value-oriented holdings consisting of directly invested UK equities, overseas equities and fixed income investments managed via third party funds, and specialist investments.
Investingzone have worked with Capita Financial Managers Limited, the Authorised Corporate Director (ACD) of the Fund, to make available one of its open ended funds on the fintech platform.
Investors using the portal can manage their entire portfolio through the one dashboard. And with traditional income funds offering a more diversified return on investment than unlisted equities, they balance the potential risk.
Jean Miller, Founding Director of Investing Zone, said: “We are bridging the gap between unlisted equities and traditional investment.
“It’s an absolute first and set to completely disrupt the industry. The market has never seen a crowdfunding platform able to offer income funds. Now, thanks to our relationship with Seneca Partners users can invest directly in all of these asset classes and build a diversified portfolio.
“Much has been made of a reported shortfall in the total raised by EIS and SEIS funding due to changes in eligibility criteria imposed by the government. But the reality is there’s billions of pounds ready to benefit growing UK SMEs siting with an investor public grown weary of poor savings rates.
“I am confident that this innovative multi-investment vehicle platform can further improve the perception of crowdfunding and attract investors who have never before looked at unlisted equities; safe in the confidence that the EIS investments we are offering are credible and have got the right team behind them to make a return.”
David Thomas, Chief Executive, Seneca Investment Managers, said: “This is an innovative proposition allowing InvestingZone crowdfunding investors to invest in the CF Seneca Diversified Income Fund alongside crowdfunding investments.
“At Seneca we recognise the growing level of self-directed investments, and this is part of our response – enabling investors to access our portfolios in the way that suits them best.
“I’d like to thank both InvestingZone and Capita, the ACD of the fund, for making a success of this innovative project.”
Peter-Hugh Smith, managing director at Capita Financial Managers Limited, added: “We were pleased to work with InvestingZone and Seneca to support this new initiative. Given the changing nature of distribution for UK retail funds, providing investors with greater choice to invest and access funds is a great step forward.”
In the press
BQ Live 01/08/17
FinTech Finance 01/08/17