New fixed-income investments | Front

New fixed-income investments

New fixed-income investments

New fixed-income investments are suitable for investors looking to add fixed-income investments with a good return to their portfolio. Non-bank financing is a new asset type, which enables direct investments in instruments that banks have traditionally funded from their own balance.

Investment options may include companies’ receivables, notes of small and medium-sized companies, or consumer financing offered to households on the peer-to-peer lending market.

What do our alternative fixed-income investments aim at?

A high return
A compound interest
Limited risk of loss
Good diversification

Why alternative interest investments?

The returns on traditional, i.e. market-based, fixed-income investments are exceptionally low and are likely to remain so for quite a while. Front has been offering investments for several years, and we have often invested in these interesting instruments on the same terms as our customers. We have good experiences of the instruments. The returns have been attractive and clearly higher than those from traditional fixed-income investments. In a nutshell, the idea of non-bank financing is to transfer funds from those with a surplus to those with a deficit in order to ensure that capital resources are used as effectively and profitably as possible. We carry out this vision jointly with our investors and cooperation partners.

“The rapid growth of non-bank financing has considerably increased the opportunities available to investors. We believe that the demand for this kind of financing will continue to increase in the coming years, leading to investment opportunities multiplying. Together with our cooperation partners, we have set up a brand new asset management service, consisting of debt investment options. As our customer, you can invest directly in most instruments or in the investment and service solutions managed by Front.”

Pekka Rikala

CEO Front Group Ltd and Front Capital Ltd, board member, partner

Do you want to be part of the change?

Front has reacted quickly to changes in the investment environment by offering clients a new type of asset. Whether talking about peer-to-peer loans, financing, project funding for businesses or invoice-financing, we expect the investments or the underlying basket to be well-diversified. If this is not the case, as may be in real estate development, we at least want to see safe and reliable collateral.