Investment risks
As with any investment, there are risks when investing through A.S.K. PARTNERS FS LIMITED (“ASK Private Client”). The information on this page explains some of the key risks and characteristics of investments available through the platform. It should be read alongside the information provided for each investment opportunity.
The risks described below are not exhaustive and are not a substitute for reading the relevant offer documents. You should only invest if you understand how the investment works, the risks involved and are comfortable that it is appropriate for your own circumstances.
Your personal decision to invest
Every investment decision is your own. ASK Private Client arranges investment opportunities and carries out due diligence before opportunities are made available to investors. However, this does not eliminate investment risk or guarantee that an investment will perform as expected.
Neither ASK Private Client nor ShareIn Limited provides personal financial, investment or tax advice. Before investing you should read the relevant offer documents carefully and consider obtaining independent professional advice if you are unsure whether an investment is suitable for you.
Returns are not guaranteed
When you invest through ASK Private Client, you are investing in an Instrument Creating or Acknowledging Indebtedness (ICAD) issued in relation to a specific underlying commercial real estate loan.
Each investment is issued by an ASK group vehicle and relates to a specific underlying commercial real estate loan. The terms of the investment set out how payments are made to investors. Where difficulties arise in relation to the issuer or the underlying borrower, payments to investors may be delayed, reduced or, in some circumstances, not made in full.
Each investment has a target return, but neither the return nor repayment of your capital is guaranteed.
Returns depend on the underlying borrower meeting its obligations under the loan. If the borrower fails to repay, or the recovery process is unsuccessful, you could receive less than expected or lose some or all of your investment.
A higher target return generally reflects a higher level of investment risk.
Innovative Finance ISA
Some investments may be eligible to be held within an Innovative Finance ISA (IFISA). Holding an investment within an IFISA may provide tax advantages, but it does not reduce the investment risk or protect you against losses.
Your capital remains at risk in exactly the same way as if the investment were held outside an IFISA.
Losing all of your investment
These investments are classified as high-risk investments.
Although the underlying loans are typically secured against commercial real estate, security is intended to reduce risk rather than eliminate it. The value realised from any security depends on the circumstances at the time and may not be sufficient to repay investors in full.
You should be prepared to lose some or all of the money you invest and should only invest money that you can afford to lose.
No access to the Financial Services Compensation Scheme
Investment losses are not protected by the Financial Services Compensation Scheme (FSCS). The FSCS does not compensate investors because an investment performs poorly or because a borrower or issuer fails to repay.
In limited circumstances, FSCS protection may apply in relation to certain claims against an FCA-authorised firm, but it does not insure your investment against loss.
Lack of liquidity
These investments are intended to be held until maturity.
You should invest on the basis that your money will remain invested for the full investment term.
Where transfers are permitted, they will be explained in the relevant documentation. However, there is no guarantee that another investor will be willing to purchase your investment, so you should not rely on being able to exit early.
The need for diversification
Diversification helps reduce investment risk.
Rather than concentrating your investments in a single opportunity or asset class, you should consider how each investment fits within your wider portfolio.
As a general guide, retail investors should not invest more than 10% of their net assets in high-risk investments.
Past performance
Past performance is not a reliable indicator of future performance. Previous returns achieved on ASK Private Client investments, or on similar investments, do not guarantee that future investments will achieve the same results.
Each investment opportunity should be considered on its own merits, taking into account its particular risks, security, borrower and commercial terms.