SME specialist Seneca Partners now offers investors a Business Relief (BR) qualifying investment with the option to invest for income, paid quarterly – having previously only offered the traditional growth option.
Called ‘Seneca Preference’, the new income paying option, allows investors to choose between a target yield of 3% pa or 5.25% pa, or effectively allocate different amounts between the two options to provide a blended yield which suits them. The income will be paid as dividends in January, April, July and October.
Whilst the income paid to ‘Seneca Preference’ investors will go back into their estate for IHT purposes, the firm believes that investors will be attracted to an investment which can provide them with a regular income but with the added benefit of the capital invested being outside of their estate for IHT purposes. Seneca will control investment in-flows with availability coming in periodic tranches throughout the year.
Business Development Director at Seneca Partners Ian Battersby (pictured above) said: “We have listened to the market in respect of what advisers and their clients would like to see. The opportunity to invest in a Secure Lending Product and obtain quarterly income of up to 5.25% pa, rather than target income which derives from the Stock Market is in itself an attractive alternative for many investors. When the capital sum invested also qualifies for Business Relief then it presents a neat solution. Investors who are looking for income in retirement see the dual attractions as do elderly clients who may have long term care commitments in their thinking.
“Careful deployment is paramount, as always. Lending decisions clearly require deep due diligence and controlling inflows and availability is simply an act of prudency. A £15 million tranche is currently open and we would probably expect three or four similar tranches each year but we will assess in the light of investor demand.’’
