World Property Fund (a trading name of myriad linked companies including Mercury-Sloane Investments Limited, Tanzy Estates Property Company Ltd, Lennox Vanguard Property Investment Company Limited, Millerheywood Ltd “etc.”) is offering returns of 10% per year, paid quarterly.
The company’s investments are currently being promoted on Facebook.
Who are World Property Fund?
World Property Fund is the latest venture by owners Greg Heywood and Chris Miller.
Last time we encountered Heywood and Miller was in 2018, when they were running an investment firm called Legend Lane which initially offered all sorts of colourful investments, which included – at the time of our review – a forex investment paying 24% per year and a “Black Cat” investment paying 30% per year from… well, it was a secret. In a Bond Review comment Chris Miller described the “Black Cat” bond as “an opportunity to invest in the creditability of our brand and nothing more”.
Legend Lane’s website (legendlane.co.uk) has since been shuttered. Legend Lane ceased offering bonds in 2019 after becoming tangled up in the Hudspiths Ponzi scheme; Legend Lane invested investor monies in a company called PCIA which in turn invested in Hudspith’s Dubai office. PCIA Limited is currently in liquidation. The current status of any investments in Legend Lane is unclear.
Both Greg Heywood and Chris Miller were previously directors of The Step Properties Holdings plc, which ceased operating in 2008 and was dissolved in 2010. A related company owned by Heywood, Heywood Property Investments, collapsed as a consequence owing £3.6 million to HSBC Bank. Only £1.27 million was recovered from that company.
WPF’s website makes a big deal of Heywood and Miller’s trading history but bizarrely makes no mention of their most recent venture.
Their website claims Heywood and Miller built the “largest mid-cap corporation in the UK” (which is like claiming to be the UK’s tallest medium-sized man) and provides a link to audited accounts for the Heywood Group from 2006. How this ancient history is relevant to WPF is unclear.
How safe is the investment?
World Property Fund claims in its brochure to offer “Exceptional security”.
In reality, as with any loan to an unregulated individual company, World Property Fund is an inherently high risk investment with a risk of up to 100% loss.
Secured lending is not risk-free as there is a risk that if the underlying borrower defaults, the security cannot be sold for enough to cover the loan.
Investors in asset-backed loans have been known to lose 100% of their money when it turned out that there were not enough assets left to pay investors after paying the insolvency administrator (who always stands first in the queue).
This is not in any sense to imply that the same will happen to investors in World Property Fund, only illustrating the risk that is inherent in any loan note even when it is a secured loan.
If investors plan to rely on this security, it is essential that they hire professional due diligence specialists (working for themselves, not WPF) to confirm that in the event of a default, the assets of WPF swould be valuable and liquid enough to compensate all investors. Investors should not simply rely on what WPF tells them about their assets.
World Property Fund describes itself as a “property hedge fund”. Running a hedge fund in the UK requires authorisation from the FCA. World Property Fund has no authorisation from the FCA to run a hedge fund or any other kind of collective investment scheme.
Should I invest in World Property Fund?
This blog does not give financial advice. The following are statements of publicly available facts or widely accepted investment principles, not a personalised recommendation. Investors should consult a regulated independent financial adviser if they are in any doubt.
As with any individual loan note to an unlisted startup company, this investment is only suitable for sophisticated and/or high net worth investors who have a substantial existing portfolio and are prepared to risk 100% loss of their money.
Any investment paying up to 10% per year is inherently extremely high risk. As an individual, illiquid security with a risk of total and permanent loss, lending money to World Property Fund is much higher risk than a mainstream diversified stockmarket fund.
Before investing investors should ask themselves:
- How would I feel if the investment defaulted and I lost 100% of my money?
- Do I have a sufficiently large portfolio that the loss of 100% of my investment would not damage me financially?
- Have I conducted due diligence to ensure the asset-backed security can be relied on?
If you are looking for a “secure” investment, you should not invest in unregulated loans with an inherent risk of 100% loss.
Timely research and analysis, as always, Brev. Too many people think they can rip-off investors, run the scam until the investor flows dry up and/or their investment fails, close their company down, lay low for a year or so, and then start up a new company and do it all over again.
” NO FINANCIAL SCAM/ FRAUD ” HAS EVER ” LOST MONEY TARGETING THE UK PUBLIC. THE FOOLS WILL NOT LEARN AND COME BACK TIME AND TIME AGAIN FOR ANOTHER SPANKING.
“Too many people think they can rip-off investors, run the scam … then start up a new company and do it all over again.”
Not only do they think it – they are right and they do just that, time and time again with the authorities just passive bystanders.
That is what I was thinking since my return to the Uk.. The UK government doesn’t seem to give a toss about not only scammers and corruption, But on many levels. Jeeze, thank christ for the ‘Feds’ and the three BBB’S. Better Business Bureau.. They are on it, soon as they lift the phone AND ITS FREE.
Landed in my mailbox/spam the other day:
“My name is *.* and I am an account manager at World Property Fund. Our business is growing and we are currently looking for introducing agents to help promote and introduce clients to our product.
World Property Fund is an FCA certified property hedge fund, which is ran by industry leading experts with a 21-year proven track record of over £1.2BN. We are a 100% UK asset backed investment and alongside this we are able to offer fixed returns of 10-12% per annum. Our end goal is to hit an IPO, which our founders have previous ran two companies to this level in the past.
The package for you as an agent is very beneficial. You would receive 15% commission which is paid within 14 days of the investor opening an account. We have full marketing tools in place with websites and flipbooks, we also offer full admin support as well.
If this is something you would be interested in learning more about as either a client or an introducing agent.”
So, 10-12% p.a. and 15% commission on top of that? Grr-rr-reat!. And if I were a client, can I pay 15% less? Sure, it’s called “early sucker’s discount”.
Joseph – If they are claiming to be FCA regulated when they are not I suggest you forward the email to the FCA so they can be added to their scam warning list.
You also pay into the same company and bank account as Legend Lane. [Miller Heywood]
Scammers and complete bunch of tossers the lot of them. Only had the pleasure of being interviewd by these jokers and realised what they were. As soon as I expressed concerniwas very quickly hurried out the door. Close them down do it. They are where they say they are tho. Go and pay them a little visit at 110 st leonards Road in Northampton. Poor investors I do feel sorry for the I hope, not so many !!!