PEER-TO-PEER investment manager Goji has launched a bond aimed at the advisory market investing in P2P loans across a range of platforms.
The Diversified P2P Lending Bond lets financial advisers and wealth managers access a portfolio of more than 200 different loans from platforms assessed and chosen by Goji.
The bond is targeting a return of five per cent after fees over a one or three-year term and can be included within an Innovative Finance ISA (IFISA).
Investors have to pay a minimum investment of £1,000 and any further subscriptions must be in multiples of £1,000.
The bond must be held until maturity and interest is only paid at the end of the term.
If any loans within the bond are not repaid by the end of the term, Goji will redeem part of the product and then has a period of five years to recover the rest.
“Goji’s aim is to combine traditional financial services expertise with innovative technology to open this exciting asset class for new investor markets,” Jake Wombwell-Povey, chief executive of Goji, said.
“With the launch of our Diversified P2P Lending Bond, wealth managers can engage clients for the first time with a carefully designed product, with risk management and portfolio construction at its core, that is covered fully by the Financial Ombudsman Service.
“The product’s eligibility for inclusion in the new Innovative Finance ISA makes it ideal for investors seeking steady, low-volatility returns in 2017-18.”
Read more: Peer-to-Peer Finance News partners with Goji
David Beacham, head of distribution for Goji, said the bond would help advisers give their clients access to the P2P market.
“The P2P sector has recently broken through the £10bn barrier, showing that alternative credit is here to stay,” he said.
“While more than 170,000 UK investors are active in the sector, very few access the asset class through traditional advice channels.
“Goji’s new proposition allows advisers and their clients to access this high-performing sector through a highly diversified and risk-managed solution.
“It is now the responsibility of advisers to ensure investors can get quality advice when they seek to engage with the sector.”
The bond is the first product from Goji, which also provides IFISA administration to platforms such as Landbay.
Read more: UK P2P market breaks £7bn barrier