BondMason Core Service Wind-Down

We’re here to answer any questions you may have
Why is the BondMason Core investment service in wind-down?

With lower rates, less availability of loans, and increased operational and regulatory costs, it is increasingly unlikely that we will be able to deliver the same attractive returns in coming years through our BondMason Core service .

We feel that a net return of 3-4% or so, is not commensurate with the risk clients would be taking with their capital in this sector, even if we were to put an alternative structure in place such as a fund, which may also include a provision fund.

It is for these reasons, effective immediately, we have taken the decision to put our BondMason Core investment service into wind-down.  

Please find below answers to the questions you may have regarding the winding down of the BondMason Core investment service:

Q: What is wind-down?

BondMason Core will no longer be making investments in underlying loans from approved P2P and Direct Lending partners, which in the past have allowed clients to purchase Receivables (cash receipts).

The current book of AUA (Assets Under Administration), will be wound down meaning that as and when an underlying loan repays, they will not be replaced. Instead, clients that own part of that Receivable, will receive back the capital invested and any interest received relating to that receivable.

Q: What happens next?

Clients will receive monthly repayments into their nominated bank account at the beginning of each month as the underlying loans repay capital and interest.

Q: Do I need to do anything

Please check that your Nominated Bank Account details are correct (as per clause 2.1.2 in the Terms and Conditions)

Simply login to your dashboard via: www.bondmasoncore.com . Go to ‘Your Details’. Click on the ‘Bank Details’ to check the bank details you provided.

If you have yet to provide your bank details please enter them, they should be the same as the account the funds where sent from. Alternatively, if you wish to update your current bank details please email a copy of your previous bank statement, and your new bank statement to operations@bondmason.com.

Q: What has happened to accrued interest / why has my balance dropped over the last couple of days?

We have removed accrued interest to simplify the audit and collection process. You will still receive interest due to you.

Q: Can I liquidate my positions?

No, this is not possible during the wind- down phase, no receivables are to be bought or sold, so you cannot liquidate your positions.

Q: Why can’t I liquidate everything?

Your investment has been used to purchase underlying loans and as such, your funds are invested in live loan opportunities. You will need to hold that receivable until such time as the loan is redeemed. Whilst the loan is still performing, you will continue to earn interest on your capital.

As per clause 1.9.3 in our Terms and Conditions, liquidity is not guaranteed. We work on a best endeavours basis, however contractual terms of the receivables agreement will affect liquidity available. Direct Lending is best viewed over a minimum 12-18 month term.

Q: How long will it be before I can expect to receive back all my capital invested?

The average term of the underlying loans which make up our loan book are typically 9-12 months in duration. As such, we expect that the majority of clients’ investments should be returned within a similar period. The term and expected end date of each receivable is available to view from your dashboard.

It is important to note that typically, 30% of loans will go over term. If a loan is on Watchlist / Recovery, the expected repayment of capital and interest will take longer and there is a chance that you may not recover your investment (or any interest) in full.

Q: Where is my cash held?

Once the underlying loans repay, cash will be held in a segregated bank account.

Q: Will I still earn interest on capital invested?

Subject to an underlying loan performing as expected, you will continue to earn interest.

Q: Will I still have access to my dashboard to view my balance?

Yes, you will be able to log in to your dashboard as normal and will be able to view your balance.

Please note: there is a new website address for viewing your BondMason Core investment account at www.bondmasoncore.com.

Q: When will I receive back cash that is not deployed?

All cash not deployed will be returned to investors within the first week of the month. This will be an automated service.

It is important for clients to check that we have your correct bank details. 

Q: Some of my loans are flagged as Watchlist / Recovery. When will I receive back my capital back?

BondMason will continue as normal to follow up with Lending Partners should a loan be on Watchlist or in Recovery. During the wind-up a receivable status can be one of the following: Live, Repaid, Watchlist, Recovery, or Write-off. The status of a loan will be changed to repaid if we receive repayment in full. Watchlist or recovery status will be applied if the Lending partner notifies us the loan is in arrears or default, the method used for changing a loan status is the same as in previous operating environment. Bondmason Core will continue to recover a remedy as far as possible any loans on watchlist or recovery by working with our Lending partners.

Q: Will I lose money?

Your money is not covered by the Financial Services Compensation Scheme (FSCS). As with any investment your capital is at risk and returns are not guaranteed. The value of investments may go down as well as up and you may not get back the original amount invested.

A write-off loan status will only be applied if the lending partner has formally crystallised the loss and notified BondMason Core.

Q: What about losses?

In the unlikely event that there is a write-off, we will continue to work closely with our lending partners to recover as much as possible. After a loan is marked as ‘write-off’, should funds be recovered these will be distributed to all those who held that Receivable, even if your account has been closed.

Q: Will I still be charged a fee?

As we are still providing a service and will continue to work with lending partners to ensure all loans are repaid, we will continue to charge annual fees.

Q: What does this mean for me as a customer?

Our commitment is to always put our clients first. We will continue to monitor all loan positions and work closely with our respective lending partners until all loans are repaid in full, or in the case of loans on watchlist / recovery, we will continue to work closely with our lending partners to ensure that we achieve the best possible outcome.

Q: Can you make a referral to a platform?

A few clients have asked us this, and in the next few weeks we may be able to share details of some of our platforms. However, we cannot advise.

Q: What should I do with my money?

We cannot advise, but we will be sharing details of some of our platforms over the next few weeks.

Q: What happens if another platform goes into Administration?

In the unlikely event that another of our Lending Partners go into Administration, we will work closely with the Administrators to ensure that maximum recovery is achieved for our clients.

Q: What is next for BondMason?

The property market has many different facets and we are continually seeking new opportunities for investment that can offer an attractive risk-adjusted return for our clients

We have identified a property-based investment service that is built on a long-term trend and market need, which we have been following for some time.  We consider that the investment case is compelling, and this is something we are excited about. 

As soon as we have finalised the details in the coming weeks, we will provide you with further information.  (The launch of this new service is not linked to the decision to wind down the BondMason Core service – they were intended to be sister services).

Q: I have Referred a Friend. Will I still receive my cash reward?

Yes, we will continue to honour any Refer a Friend payments as and when they mature. These will be paid directly to your bank account. 

Q: I still have questions about the decision to wind-down BondMason Core. Who can I contact?

Stephen Findlay (CEO) will be hosting a series of webinars to discuss this decision with as many clients as possible, 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 30th at 10am
  • Thursday, May 30th at 4pm
  • Friday, May 31st at 12noon
  • Monday, June 3rd at 3pm

Any clients wishing to contact us to discuss their account can continue to do so: invest@bondmason.com or 01582 802 000.

 

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