8.5% Annual Returns with Socially Responsible Corporate Bonds
Social responsibility is something that businesses and consumers are increasingly starting to take note of, particularly in the current political and economic climate. Businesses seen to be acting in a socially responsible way, offering socially responsible products or services, can curry favour with the wider public, ensuring they are perceived as thoughtful, forward-thinking institutions that take their role in the corporate world seriously.
As consumers, there are numerous ways in which we can become more socially responsible. From volunteering our time to good causes, to refusing to buy products from companies with a bad track record of paying low wages or that destroy the environment, we can use our purchasing power to make a difference.
There is also another way to support such businesses, and that is through socially responsible investing (SRI). Championing companies that are working hard to create a safer, fairer and healthier planet is at the heart of this type of investment and many investors are beginning to explore these options, do their research and seek out the most attractive offers on the market.
Most SRI investing is done through stock mutual funds, with people buying stock directly from the issuer of from a third party. By investing in companies like this, you can make a difference socially, as well as enjoy attractive ROI. One such investment that caught our eye is a socially responsible, ISA-friendly offer with an 8.5% return over five years. Not only is this rate far better than anything you’ll find in a bank or building society, it also delivers significant energy savings in excess of 10% year on year, meaning your investment counts.
The issuing company invests in advanced technology that can reduce, produce and manage energy for specific client needs. Investment in the technology, combined with specialist know-how, generates immediate and sustainable cost savings for energy clients, plus long-term, sustainable returns for the company and investors. Using remotely controlled systems and the latest gas micro turbine generators, they undertake a full site energy analysis. From there, they can reduce the energy required, produce it more efficiently and manage the usage in smarter, more environmentally friendly ways.
Because the company’s contracts typically run from two to 15 years, they become partners with their clients in the fullest sense of the word, developing mutual trust and an in-depth understanding of their business and evolving energy needs. A key part of the partnership is helping clients take control of their energy – helping them address energy proactively, by giving their employees the power to make a difference through the decisions they make every day, both big and small. That in turn helps reduce their carbon footprint.
Put simply, they take the risk, their clients get the results. They choose the right technology for each client, based on their scale, sites and needs and typically deliver significant energy savings. Meaning it’s good for you as an investor and it’s good for the wider worldwide community. It’s certainly a different way of thinking about investment, but something that you shouldn’t dismiss without proper consideration.
SOCIALLY RESPONSIBLE CORPORATE BOND OFFERING 8.5% OVER FIVE YEARS
KEY FEATURES
Minimum investment: £5,000
Annual returns (net before tax): 8.5%
Income paid: Quarterly in arrears
Capital growth potential: No
Option to ‘roll up’ interest: No
Location: UK
Investment term: Five years
Investment type: Indirect participation/corporate bond
Currency: GBP
Special features: ISA-friendly investment
Stock Exchange-listed: Listing pending
Available to cash investors: Yes
Available to pension investors: No
Restrictions: Restricted investment subject to status