Pulford Trading Limited

add

Restricted

Only available to High Net Worth or Sophisticated Investors, or those receiving advice from an FCA regulated financial adviser

add

Estimated 5-10% LTV

loan-to-value of the bond.

add

1 year minimum term

on the bond.

info

Pulford Trading

Pulford Trading Limited has operated successfully for over seven years, building shareholder value through investing over £270 million in asset-backed projects.

As at 31 December 2019 it has a portfolio of over 40 asset-backed projects, ranging from data centres to care homes.

This bond is classified as a Speculative Illiquid Security because Pulford owns a company that lends money to other businesses developing property. As a result investment is restricted to High Net Worth or Sophisticated Investors, or those receiving advice from an FCA regulated financial adviser.

Pulford.png

What do I need to know before investing?

  • Not available to everyday or restricted investors

    The Financial Conduct Authority (FCA) have temporarily restricted the promotion of some bonds to unadvised retail investors from 1 January 2020, pending a consultation. 

    The new rules apply only to what the FCA term 'speculative illiquid securities' (SIS). This basically means unlisted debentures or preference shares issued by a company that then uses the funds raised to lend to or invest in other companies, or to purchase or develop property that is not for its own use.

    Pulford Regular Access Bond is a speculative illiquid security and therefore investment is restricted to High Net Worth or Sophisticated Investors, or those receiving advice from an FCA regulated financial adviser.

    If you would like a copy of the offer document please email crowdfunding@downing.co.uk or call 020 7416 7780.

    You can find out more about the FCA ruling here.

  • Where is my money invested?

    Your money will be invested into a bond from Pulford Trading Limited (Pulford). The bond provides a flexible way to put your money to work in the short-term, while maintaining access to your funds. 

    Your money will be invested into businesses with strong underlying asset values, providing an element of risk mitigation - so if a business does fail, there should be some recoverable value. 

    Pulford has a portfolio of 42 asset-backed projects, valued at more than £260 million, as at 31 December 2019. The portfolio is diversified across different sectors ranging from data centres to care homes, either through direct holdings or through a lending business. 

  • What are the risks?

    As with all investments, the Pulford Access Bond has risks that you should be aware of and comfortable with before you invest. 

    • Capital is at risk and returns are not guaranteed.
    • Investors are recommended to spread their funds across a number of investments to diversify risk and not place too much capital in a single investment.
    • The Financial Services Compensation Scheme (FSCS) for deposits does not apply to Downing Bonds. There may be circumstances in which investors can claim up to £85,000 of compensation where Downing LLP is unable or unlikely to honour legally enforceable obligations against it (e.g. claims for fraud or misrepresentation). However, investors will not be able to claim under the FSCS simply because a bond fails to repay capital or pay interest
    • Past performance is not a reliable indicator of future performance.
    • Any estimates, forecasts or projections of anticipated revenues, site values, costs, or inflation are based on what we believe to be reasonable at the time of writing and are not guaranteed.
    • Pulford expects to be able to return your interest and capital within three months of your request, which can be made any time after nine months from issue. However, should requests for redemptions exceed expected cashflows of the company, there may be times where they cannot honour redemptions within three months.
    • The UK government could retrospectively change the level of subsidies.
    • Many industries have been or will be affected by the Coronavirus (COVID - 19) pandemic, including sectors into which Pulford Trading invests. The government are offering considerable stimulus packages to support these industries and to protect the UK economy. In addition to this, Pulford Trading is protected by asset-backed investments, meaning the bricks and mortar should still hold value even in the event the business does not perform. Considering the relatively low LTV of the bond, Downing believes that this will not have a long term effect on the ability of the borrower to service the bonds. However, please note that this is an unprecedented event and it is difficult to predict what lasting effects it will have on businesses and the economy.

    For a full list of risks please see here.

  • How we manage our bonds?

    Downing is an experienced investment manager, with over 30 years' experience and over £1 billion of funds under management. 

    We arrange the deal between the lenders (you and any other Downing managed funds) and the borrowers. Downing's responsibilities include: 

    • Sourcing the projects
    • Carrying out extensive due diligence
    • Arranging payments to and from the lenders and borrowers
    • Managing the register of bondholders
    • Acting as receiving agent and security trustee
    • Monitoring the investment 
    • Navigating and executing exits

    Pulford is overseen by an independent board which meets three times a year and reviews all new opportunities before investment.

  • What are the charges?

    There is an annual monitoring fee of up to 0.5% p.a paid by Pulford to Downing LLP. This charge is contingent on bondholders receiving their capital back in full. It will be repaid by Downing if this is not the case. This charge excludes VAT.

  • Why invest in a regular access bond?
    • You can invest in regular access bonds through our innovative finance ISA and some self-invested personal pensions (SIPP).
    • There are weekly tranches, so your capital will be invested within seven days of Downing receiving the funds.
    • You can request your money back at any time after the initial nine month holding period and Pulford expects to return your funds within three months (subject to liquidity).

We're here to help

For more information please email us at crowdfunding@downing.co.uk, use the chat function or give us a call on 020 7416 7780.