The Enduring Appeal of the Bond

Each kind of investment has its own particular appeal, yet some seem to endure more than others. Political developments and currency fluctuations can have a significant impact on certain investment types, as shown by the upcoming referendum in the UK as to whether or not the country wishes to remain part of the European Union.

It’s not just a Brexit decision that could wobble financial markets. The impact of the uncertainty of the referendum itself is already being felt. The value of sterling has dropped and the FTSE 100 also seems to be showing sensitivity to the announcement of the ballot.

Then there are things like the UK budget announcement on 16 March 2016. While that didn’t rock the value of the pound too much, it certainly had the potential to and investors are always cautious of what a budget could hold. One example is the previously announced stamp duty rise, which is set to come into force on 1 April 2016 and which has made buy-to-let investment in the UK more expensive. Landlord tax changes have also made UK property investment less appealing, with investors increasingly looking for alternative types of investment in order to garner better value and better returns.

With financial uncertainty seeming set to continue until at least the referendum date of 23 June and with a Brexit vote potentially triggering a period of economic uncertainty alternative investments such as Shenton Holdings’ fixed rate mini bond have become particularly appealing in investors’ eyes.

The asset-backed bond offers a two-year, fixed rate investment at 9% per annum, with interest paid quarterly. The minimum investment is £1,000 and the full amount is repaid at the end of the two-year period. Investment in the bond is available up until 29 April 2016.

Whatever the outcomes of the budget and the EU referendum in the UK, investors should pay particular attention. The impact of both of these financial and political events is likely to be significant and investors would be wise to seriously consider the merits of bonds as their next investment vehicle.


For more information please contact Shenton International on 0207 243 2000 or info@shentoninternational.com.