How Acorn Investment Bonds Can Help Investors Build A Secured Income.
Making your money work as hard as you do can be tough – particularly as current interest rates are some of the lowest on record. But while traditional savings returns look increasingly stagnant, eagle-eyed investors are turning to investment bonds as an opportunity to build long-term, secure and reliable income streams.
Investment bonds explained
Property investment bonds are essentially a type of loan agreement between an investor and the bond issuer. Investor capital is given in exchange for regular interest payments (known as coupons) over an agreed term which can range from anything between one and ten years. When that term ends, investors receive back their initial funds.
Why choose bonds over other investment opportunities?
Bonds are generally seen as less volatile than other types of investment assets such as equities but consequently, the returns are (typically) lower. Despite this, investment bonds are considered a reliable and solid source of income depending on how regular your interest payments – subsequently, bonds can prove a valuable asset within a diverse portfolio.
Of course, it goes without saying that the returns you receive will be dependent on the level of investment made in the first place. And while very high yield bonds might appear more eye catching on paper, they’re likely to be intrinsically riskier than (for example) investment grade corporate bonds – so it’s a wise precaution to seek professional advice before making any financial commitments.
Moreover, and perhaps crucially, bonds are flexible yet predictable. With fixed terms for maturity but a choice of when you receive interest, a combination of short, medium and long-term bonds can provide you with regular cash injections.
For investors looking further ahead, Acorn bonds may also be held within a SIPP (self-invested personal pension) or SSAS (small self-administered scheme) depending on your pension provider*.
What are the drawbacks?
While bonds offer stability, they can be vulnerable to inflation. With that in mind, it’s vital to remember that long-term bonds may yield less in real terms than some other investment assets.
Nevertheless, for investors keen on predictable income streams, bonds can provide steady and consistent returns in an ever more unpredictable market.
Why choose an Acorn investment bond?
As an established and trusted housebuilder our selection of investment bonds give you the opportunity to invest in the UK’s enduring property market. Our choice of fixed rate and growth bonds are designed to suit both medium to longer term investors looking for a fixed rate of return. Your initial capital investment will also be returned when the bond matures.
As an additional incentive, investors who are able to reinvest after their initial term, will enjoy a one-off 3% bonus. Plus, you can be confident in the knowledge that bonds issued by us, are fully asset-backed by legal charge and our corporate guarantee.
To date, we’ve returned more than £210 million worth of investments and paid in excess of £39 million in interest and fees. But it’s not our financial accomplishments that set us apart.
Invest in communities with Acorn investment bonds
Investing in our bonds isn’t just an opportunity to explore an alternative asset and strengthen your portfolio. With approximately £1.1 billion of development in the pipeline, it’s a chance to invest in effective and continuous change.
As an award-winning housebuilder with regional expertise, our reputation has grown and we’re now the recommended development partner of choice for many regional and national agents, landowners and surveyors.
Our different by design ethos, influences everything we do, and the majority of our projects are focussed on rejuvenating derelict and redundant sites. Using innovative and sustainable design, one of our key drivers is to provide homes and buildings that people genuinely want to live and work in.
By taking a tailored approach, we can ensure that each project is sensitive to the needs of both buyers and communities. For us, it’s about enhancing the local environment while delivering pragmatic solutions that meet the demand for housing and infrastructure.
As innovators leading the way in bespoke residential and commercial building projects, we’re continually striving for better – enabling us to fulfil commitments not only to our investors, but the communities we help regenerate.
How do I invest in an Acorn bond?
To qualify, you’ll need the minimum investment required and fall into one of three categories:
• Certified high net worth investors
• Certified sophisticated investors
• Self-certified sophisticated investors
*Speak to your pension provider first, do not assume that bonds can be included within your SIPP and SSAS wrapper without financial advice.