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SharedImpact to provide early exit opportunities for bondholders

Allia has partnered with SharedImpact to provide an opportunity for early exit for investors in the Future for Children Bond in the event of the death of a bondholder or material adverse change in the bondholder’s circumstances.

The Future for Children Bond is a fixed term investment, and the bonds are only repayable on maturity. They are however transferable and can be sold to someone else. So where bondholders need to recover their investment in extreme circumstances, SharedImpact will, on a best endeavours basis, seek to purchase bonds at a price to be agreed with the bondholder.

SharedImpact is a charity which operates a donor-advised fund, allowing investors to attract tax relief on their money and use it to make loans to charities and other social investments. It has, this week, made its first investment in the Future for Children Bond on behalf of one of its clients.

Paul Cheng, Chair of SharedImpact and a member of Allia, says “We recognise that the risk of being unable to recover your money when you really need it can be a barrier to the take up of social investments. By offering to purchase bonds where we can, we hope to make it that bit easier for investors to use their money for social benefit.”