Looking For Stable Investments That Don’t Compromise on Returns?

Looking For Stable Investments That Don’t Compromise on Returns?

Joel Colman

Joel Colman  -  19th January 2024

UK government bonds provide consistent – if low – fixed returns

Government bonds – known as gilts in the UK and other Commonwealth countries and treasury bonds in the USA – are a consistently safe choice for risk-averse investors.

Gilts are fixed-income products, which means you receive a fixed coupon payment at set intervals for the duration of your investment. Offering a low risk of default, the name ‘gilt’ is taken from certificates with gilded edges issued by the British government.

Currently, gilts with short timeframes are paying higher rates than long-term investments

When you invest, you receive regular coupon payments that reflect the market interest rate at the time the bond is issued. Interestingly, there’s currently a rare irregularity in this market: bonds with shorter timeframes are trading at higher yields that those with longer time horizons.

However, before you invest a significant chunk of your wealth in UK government bonds, bear in mind that the Bank of England controls UK interest rates, which influence coupon rates on bonds. Rates are currently high, but they’re volatile – which means that things can change quickly. Additionally, the interest rates offered by government bonds are lower than inflation rates – see the table below.

Alternative fixed-income investments offer significantly higher returns than gilts…

There is another option: alternative investments – those that aren’t tied to the traditional asset classes or stocks, bonds and cash – such as those sourced by the Hays Mews Capital Alternative Investment Division.

We focus exclusively on fixed-income opportunities, which are similar to gilts in that both the term and the interest rate are fixed in advance. The crucial difference? The rates that our product provider partners offer are significantly higher than those offered by the UK government – as high as 18% per annum with some investments. In addition, the products we recommend have shorter timeframes, generally just 12 or 24 months.

In fact, as illustrated in the table below, with Hays Mews Capital Alternative Investment Division, you’ll make over twice as much as you would by investing in the UK government bond market. As a result, our proven model is attracting high-net-worth investors from around the globe in growing numbers.

UK Government BondsHMC Alternative Investments
Terms2 years, 5 years, 10 years and 30 years12 or 24 months
Growth Rates4.49%, 4.02%, 3.96% and 3.75% per annum respectivelyBetween 12% and 18% per annum
GrowthFixed growth but likely to change when renew as gilt prices change dailyFixed growth
ProtectionUnderwritten by UK governmentRobust security measures including debenture, first legal charge, insurances and capital guarantees
Track RecordNever defaulted and have 100% payment recordNever defaulted and have 100% payment record
InflationCurrently below inflation ratesAbove inflation rates

…but with equally robust investor protection

Of course, gilts offer high investor protection as they’re unwritten by the UK government. But the same is true of the fixed-income products sourced by the Hays Mews Capital Alternative Investment Division. From debentures and first legal charges to insurances and guarantees, the providers we work with are committed to robust security measures that offer the highest levels of investor protection.

What’s more, we only partner with providers who have a 100% track record on both interest and capital repayments. Our meticulous approach to due diligence encompasses sector screening and accounts analysis – we look for companies who share our values and commitment to excellence.

Discover a better way to invest

By combining consistently strong returns with high levels of security, our fixed-income investments give you a better way to invest. Diversifying your portfolio, they balance risk and return to keep your long-term financial goals on track while markets are turbulent and inflation is high.

Joel Colman
Joel Colman

Joel Colman

Co-Founder Director

Do you have questions about alternative fixed-income investments? I’d love to tell you more. Simply use the link below to book a confidential chat with me at a time that suits you.

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