Jockey club Racecourse Bond

Roddy Owen

Roddy Owen

At the Start
Joined
Jan 28, 2009
Messages
2,705
Location
Amersham
Have any of you had a look at this bond? returns about 7.75% but the top 3.5% of that comes as goods. Being used to fund Cheltenham new facilities amongst other things. Open to subs between £2k and £100 k
 
Hi Roddy , hope you are in as good as form as your nags. I have applied for a decent amount , I threw it past my broker who in turn checked out with a guy in London who specialises in bonds. All came back very well with one comment being its safer than in the bank.
 
It needs to be remembered that this is not a retail corporate bond, and there is therefore no market for your stock. This means you cannot exit before the end of the 5 year fixed term and have no access to your capital.
 
Benny are you involved in this kind of thing, because one question I cant seem to get an answer to, is that if I put it in my sipp do I still qualify for the 3% perks?

tks
 
Hi Frontrunner, yes I work for a well known investment broker.

As I understand it you wouldn't be able to put it in your SIPP, or certainly not take the extra interest in 'perks', as this would constitute taking benefits from your pension pre-retirement. A bit like if you hold a share in your SIPP you can't have the dividends paid out.
 
Yes they can apply for it , but didnt have any idea about perks, phoned the helpline but might as well phoned my polish cleaner after she had a bottle of vodka.
 
Roddy - my dad has a load of onions in the back garden. How many can i put you down for? I've also applied for this....
 
frontrunner said:
It is sippable Benny ,but I fear you are right about the perks , just cant get confirmation of anybody.
Click to expand...

Looking at the website it stresses the 3% in reward points is optional - I assume this is to make it sippable if you opt out.

Taking this 3% out of the equation, and considering the inability to sell before the end of the term, I think there are better options with a similarly low risk profile for your SIPP.
 
With this sort of product, it's the illiquidity thing that's the problem.

If you're a racing fan looking for some more fixed income in your portfolio, and you're prepared to hold to maturity, then it's worth a look, no free lunch though.
 
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