The WiseAlpha platform has launched fractional investing for Sterling corporate and government bonds.
This move, the platform says, enables all retail investors to enter a market that was previously closed off due to high cost barriers to entry.
Rezaah Ahmad, CEO of WiseAlpha, said today, “Our purpose is the democratisation of the corporate bond market. The FCA and UK government recently expressed a desire to widen retail participation in this market. At WiseAlpha, we were ahead of the curve, making it easy and affordable for individual retail investors.”
Corporate Bonds can give predictable income and equity-like returns without the same level of volatility. It has been almost impossible for individual investors, even HNW investors to access the bond market in any meaningful way despite the government and corporate debt securities market being valued at nearly €128 trn by the ICMA.
Every investment required a huge amount of complex paperwork and a minimum investment of £100,000 per bond turning into a predominantly institutional market.
WiseAlpha’s proprietary tech platform, the firm says, ‘makes the whole process easy, with its Fractional Bond product reducing the minimum investment to just £100 so that individual investors can easily buy the bonds of FTSE companies such as Ocado and Marks & Spencer or international firms like Apple’.
This, the firm says, gives retail investors direct access to an entire asset class that they didn’t have access to before and can place the entire pool of Sterling corporate bonds and government bonds into their ISAs.
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