BondMason Core Investment Service

Track record
Defaqto 5 star rating
Clients first

MAY 2019

Important Announcement from Stephen Findlay, CEO

The BondMason Core service is now in wind-down and we are no longer taking any further investments.

We now find ourselves in a position whereby we predict that over the next few years it will be increasingly difficult for us to continue to enable clients to achieve an attractive risk-adjusted return from our property-backed lending model.

Therefore, we have made the decision to put our BondMason Core service into wind-down. We believe that this is in the best interest of our clients, reflecting our continued commitment of putting our clients at the forefront of everything we do.

Defaqto 5 Star Ratings applies to BondMason Core product only. Defaqto is a financial information business.

We are proud of our track record

Our clients have benefitted from attractive risk-adjusted returns sourced from direct lending, including peer-to-peer lending and property-backed lending.

We are proud of our clients' returns*:

clients have achieved an average net return of 6% p.a.;
£55M+ invested over 4 years;
£20M+ of client funds
£2M+ of net interest paid (after defaults and losses).
no client has experienced a net loss, with total write-offs currently standing at less than 0.5%.

*Performance statistics based on the current valuation of the underlying portfolio, which is performing in line with expectations and past performance, and includes accrued interest due to clients. The final picture will be known in 12-18 months once all the underlying positions have repaid.

Why we have taken the decision to wind-down BondMason Core

Over the last 5 years we have seen more and more institutional investors enter the property lending market, seeking to achieve attractive returns. This influx of new capital has led to a reduction in rates payable by borrowers (which is good for borrowers, but not great for lenders), and a reduction in the availability of attractive lending opportunities.

Looking ahead, we are concerned about economic uncertainty, and the impact on lender returns. We now find ourselves in a position whereby we predict that over the next few years it will be increasingly difficult for us to continue to enable clients to achieve an attractive risk-adjusted return from our property-backed BondMason Core lending model.

From our Company’s perspective, we are also experiencing an increase in operational costs, including from insurance, regulations and client acquisition, as the market responds to the failure of some operators in the space. As a business, we are reluctant to pass these costs on to our clients.

We would like to thank all of our clients who have entrusted us with their capital to date, and we wish you continued success with your investment activities,

PLEASE READ

Important Information

What happens next?

Existing clients will automatically receive monthly repayments into their nominated bank account at the end of each month as the underlying loans repay capital and interest. We expect half of funds to be returned within 6 months and the significant majority of funds to be repaid within 12-18 months.

You will be able to view the status of your receivable’s investments via your dashboard as usual. However, please note that there is a new website address for viewing your BondMason Core investment account at: www.bondmasoncore.com

You may find our FAQs page answers any questions you may have.

We will also be hosting a series of webinars over the coming few days to enable us to discuss this decision with any clients that should wish to, first hand. If you would like to participate in a webinar, please email Rach at rachel.billington@bondmason.com with your preferred time:

- Thursday, May 30^th at 10am

- Thursday, May 30^th at 4pm

- Friday, May 31^st at 12noon

- Monday, June 3^rd at 3pm

However, any clients wishing to call us to discuss their account can continue to do so: invest@bondmason.com or 01582 802 000.

Please see our FAQ page

Looking ahead

We have identified and experienced first-hand the challenges that many private buy-to-let landlords are facing, arising from tax increases and regulatory changes.

We are working to put the finishing touches on a new investment opportunity in the residential property market – unlike any other currently available in the UK - which should be open for most everyday investors, and which we hope will be available through an ISA or SIPP.

As soon as we have finalised the details in the coming weeks, we will provide further details. (We would like to reiterate though, that the launch of this new service is not linked to the decision to wind down the current receivables business).

Thank you again for your support, and we wish you continued success with your investment activities, with us or any other provider, and we hope to be able to assist you again in the near future.

BondMason Core Investment Service

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