Octopus Choice – the adviser-focused secured lending product distributed by Octopus Investments – is celebrating its first birthday in style after reaching £50 million of assets under management.
Octopus began piloting Octopus Choice last May, giving hundreds of financial advisers the opportunity to trial the product while still in its early stage of development.
Fast forward a year and Octopus Choice has come a long way – thanks in large part to the ongoing support and feedback from hundreds of financial advisers across the UK. Let’s take a look at some of the headline numbers:
Peer-to-peer lending with Octopus Choice
Peer-to-peer (P2P) lending has been rapidly growing over the last few years. Its mainstream appeal has perhaps been boosted by the launch of the ‘Innovative Finance ISA’ in 2016. The Innovative Finance ISA allows interest generated through qualifying P2P products to be included within the tax-free wrapper. Although the ‘peer-to-peer’ concept may be relatively new, for Octopus Choice the underlying asset class is one of the oldest around: good old-fashioned secured lending. It lets investors earn interest by investing – alongside Octopus – in loans backed by real bricks and mortar. It harnesses the expertise of Octopus Property, which has lent more than £2.3 billion since 2009, and lost less than 0.1%. But please remember that past performance isn’t a reliable indicator of future results.
Octopus Choice will be launching its own later in the year, after receiving its full authorisation from the FCA at the end of 2016. “But for all this dramatic growth, we realised that many advisers remained cautious of the sector”, explains Richard Wazacz, who helped create Octopus Choice.
“Despite having their investment permissions automatically widened to include advising on online lending, many we spoke to had reservations: the lack of track record on the part of many product providers; the uncertainty around the underlying lending criteria; and the inability to easily administer client portfolios. We launched Octopus Choice as an adviser-focused alternative.”
Please visit Octopus Choice to find out more information on their current opportunities. Your Capital is At Risk.