This is the first of several specialist investment accounts that it is planning on releasing in the near future. The Accounts offer an easy way for investors to diversify their portfolios on the peer-to-peer platform.
This account offers a capped 7% per annum gross return. Renewable Energy investments such as on-shore wind farms and solar panels will be included. Investments in this account will be in “projects which are eco-friendly and provide a real contribution to building renewable and sustainable energy sources.” But all loans in the Green Energy Income Account are also available for individual investment through the Manual Loan Investment section.
The loans in the Account generally have a 3 year term, after which the capital should be paid back; although investors have the option of exiting earlier via the Aftermarket. And many of the energy projects included in the account have government support making them more secure.
The Account is backed by the platform’s first provision fund, in which investors are automatically included. This protects them from income delays or income and/ or capital losses on a discretionary basis. It is also the first green P2P product to be backed by a provision fund.
Assetz have lent more to renewable energy projects in the UK than any other platform, having lent £10 million for green projects in the last 18 months.
“Growing numbers of investors want to know where their money is being put to use, and have a wish for it to be used ethically and for the benefit of society. Our new Green Energy Income Account satisfies those wishes and also delivers a great target return of 7% pa gross, more in line with high performance investment funds than bank savings accounts.
“Without doubt, there are good returns to be had from green investments when chosen wisely and especially as all projects within this investment account will have the benefit of Government backed income in the form of Feed in Tariffs as part of the income generated for investors. Our credit team is also extremely experienced, with many years of lending to green and social entrepreneurs behind us: they know what makes a good investment opportunity for investors.”
Assetz are jumping on board a growing trend in the alternative finance space. There are now many platforms that are solely dedicated to funding renewable energy projects. Examples include Abundance Generation, which recently launched a £3.1 million solar project. Another is the US platform Open Energy, which is a marketplace for US renewable energy infrastructure investment. These developments are a reflection of the growing demand from both retail and institutional investors for responsible and ethical investment opportunities.