REWS - renewable energy

spsenthil

Hi Experts,

I am a newbie here and trying to find a way to invest small savings.

I have been seeing news/getting calls about renewable energy investment with fixed returns.
I am unable to use links but if you search for "rews GCI markets" you get a link which talks about investment opportunities and the returns it can generate.
Have anybody heard about this? any members here have invested in these? Any sort of opinion about the above would be of help.

Thanks,
-Senthil

eskbanker

My opinion is that anyone who even considers putting money into high-risk unregulated investments sold via cold calling has way more money than sense, at least initially (it may not take long to reverse the proportions....)

spsenthil

Wish I had eskbanker I have invested my savings in ISA and it returns are less than 1%. I was doing some searches on how to get better returns for ISA and ended up giving my number which resulted in calls. I have no idea about it and that is why asking experts help here to understand what is the risk and would it be worth it?

eskbanker

Forget this sort of 'opportunity' and step back to consider your financial position and where you want to be.

The general recommendations on here are typically along the lines of:

• Start by paying off all debts (if any)
• Build up an easily-accessible emergency rainy day pot of savings in cash deposit form, usually 3-6 months worth of outgoings, using regular savers or current accounts to optimise interest returns in current market conditions
• Get onto the property ladder with assistance from Help To Buy or Lifetime ISAs if beneficial
• Make sure you have adequate pension provision and that you're getting the most free money from your employer
• Once you've covered all of the above steps, only then start to think about investing if you still have surplus money
• Start investing by making use of mainstream investments such as global multi-asset funds offered on high-profile platforms, preferably within an S&S ISA umbrella
• Once you've built up a sizable portfolio (high 5 or 6 figures), only then start thinking about whether there is anything more off-piste to fill gaps in your investments

I'm sure that there will be IFAs on here who'd offer further refined versions of the above but I'm sure you get the picture - whereabouts on that journey are you at the moment?

Dumbov

I was approached by futurefuelrenewables plc which offers a 5 year bond offering 9%/annum and am very dubious but cannot find any useful advice, it's website is very nebulous

bowlhead99

spsenthil wrote: »

I have no idea about it and that is why asking experts help here to understand what is the risk and would it be worth it?

If you go to their site you will not be able to get to the REWS page without clicking through the disclaimer / legal bit.

Examples of things it says:

The investments featured on this website are only suitable for Restricted, Professional or High Net Worth or Sophisticated Investors.

I presume you will not fit into any of the last 3 categories and so you would only be able to buy the investment by saying you want to be classified as a restricted investor - and you can only do that by signing off to say you know what you are doing, you realise you could lose all your money, and still want to go ahead because the amount involved is only a small portion of your liquid net worth.[/quote]

Any person accessing the website and considering potential investment opportunities featured on the website should make their own commercial assessment of an investment opportunity after seeking the advice of an appropriately authorised or regulated financial advisor.

You have no experience with which to make commercial assessments of investment opportunities so investing in this is bonkers. Any regulated and independent financial advisor would tell you to steer well clear and leave complex unregulated investment opportunities to other people, until you have several hundred thousand in proper regulated investments and can truly spare a few thousand quid and afford to lose it all.

The products available are carefully sourced for investors with some degree of investment knowledge and experience, who wish to take an active responsibility for their investment decisions rather than for investors who may prefer to leave those decisions to a Fund Manager.

You do not have the requisite investment knowledge and experience and should use regulated products with a fund manager.

Any 'experts' here would tell you the same thing.

If you have never invested before and currently have all your money in cash, it might be appropriate for you to invest some of that money (e.g. by buying stocks and shares investment funds through an S&S ISA ainstead of leaving all of it in a cash deposit in a cash ISA). Using investments generally gets a better return than cash over the longer term. However, you would do that through a regulated investment product which offers a reasonable level of reward for the risk, rather than through an unregulated product which claims you might get x% per year but you might also get a total loss.

With this one you are lending your money to a small renewable energy business who hope to use it profitably but may fail to pay you back. They say they do not offer investment advice and that investors must seek their own independent advice before making a decision to invest. You would need to spend several thousand pounds on buying expert advice to carry out the due diligence to make this sort of investment. Even if they are teasing you with nice sounding 'fixed' rates of return and a security trustee.

The fixed rates mean nothing if they can't afford to pay them. Having a security trustee is worthless if the assets decline in value or cease to exist. There are literally thousands of proper regulated investment funds you could put millions into before needing to take this sort of 'opportunity'.

jimjames

spsenthil wrote: »

Wish I had eskbanker I have invested my savings in ISA and it returns are less than 1%. I was doing some searches on how to get better returns for ISA and ended up giving my number which resulted in calls. I have no idea about it and that is why asking experts help here to understand what is the risk and would it be worth it?

If you want a better return than a cash ISA why are you not using S&S ISAs instead? Far less risky than random bonds that could lose you all your money and they're protected by FSCS

bowlhead99

Dumbov wrote: »

I was approached by futurefuelrenewables plc which offers a 5 year bond offering 9%/annum and am very dubious but cannot find any useful advice, it's website is very nebulous

The company has been capitalised less than a year and hasn't filed any accounts. They intend to raise money from you, spend it within their business, and hope to pay you back interest. You may never see a penny of the interest, or any of your capital.

To be allowed to invest you will have to sign away any kind of rights as a normal retail customer and certify yourself as a sophisticated investor who understands they might lose everything and meets one of the criteria:

(a) I am a member of a network or syndicate of business angels and have been so far at least the last six months prior to the date below;
(b) I have made more than one investment in an unlisted company in the two years prior to the date below;
(c) I am working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;
(d) I am currently, or have been in the two years prior to the date below, a director of a company with an annual turnover of at least £1 million.

Or, you could instead say you were a high net worth investor who understood he could lose all his money and had annual income of over £100k or investible assets apart from your house and pension of over £250k.

Most 'normal' people do not meet either of the criteria. Some do of course (I could sign either of the certifications). But basically you would be 'signing your life away' to say that you fully understood you could lose your money and you'd had the opportunity to take professional advice before investing. Then you give them the money and see if you get it back. The investments aren't listed on a stock market so you can't sell out once you're in, you just have to wait and hope you get something back.

Most of these unregulated bonds work in the same way whether the underlying assets are renewable energy schemes or property or debt trading or whatever. Unless you are truly a sophisticated investor with a lot of money to invest outside the normal (regulated) investment channels, a high appetite for risk, and time and money to spend on commercial due diligence, all regulated professional financial advisors would tell you to leave well alone.

Dumbov

Thank you so very much indeed for going to all that trouble. Your advice is really wise and the analysis penetrating. I am so glad I posted here. Thank You/

jimjames

bowlhead99 wrote: »

Most of these unregulated bonds work in the same way whether the underlying assets are renewable energy schemes or property or debt trading or whatever. Unless you are truly a sophisticated investor with a lot of money to invest outside the normal (regulated) investment channels, a high appetite for risk, and time and money to spend on commercial due diligence, all regulated professional financial advisors would tell you to leave well alone.

Someone made the very relevant comment a few days ago that even many experienced investors on here would avoid such investments when there are so many regulated ones available.

spsenthil

Thanks all. It was really an eye opener because I was not sure of whether this is a best investment and some of the tips above have been really helpful. I am glad I posted this question here. I think I have will start looking at S&S ISA which seem to be the best at this point