Understanding how to liquidate investments

Hi WA folks.

I am not an intelligent bond investor, but it hasn’t stopped me investing in the company and the platform. I’m glad I did because both investments look solid. However, I would like to invest more in the actual platform. I am 100% investing via Robowise and the returns are very modest, less than the model suggested. Perhaps that is Covid related, perhaps not.

Perhaps I am losing out on bigger returns because I am not buying into separate bonds, or via the flexi investment account. Why? because I am not clear on the best route to take.

The other barrier for me investing more, and perhaps the biggest one, is being unclear how to liquidate my investment when I want too (in part or all).

Can you post any instruction or link that explain in detail how this process works and what risks or considerations I need to make.

Thanks

Chris

1 Like

Hi Chris,

first of all thanks for investing with WiseAlpha ! I will answer your questions separately here below:

  • Robowise and the market place (i.e. investing in individual fractional bonds) are two different products, and we cannot say that one is better than the other. If you believe that you are the kind of investor that have the time and the skills to properly research the companies issuing our fractional bonds you might prefer to cherry pick them through the market place, however, if you want to take a more passive approach and simply create a diversified portfolio with less of an hands- on approach Robowise is probably better suited for you.

  • As with regards to the liquidation of your investments, WiseAlpha offers a secondary market when you can place sell orders to liquidate your positions. Liquidity varies as it is the case for any financial product.

Please let us know if you have any more doubts. Happy to help.

Thanks,
Andrea

ok, a follow up question.

How buoyant is the WiseAlpha secondary market?

What data can you share that helps me understand the time to receive my money if I sell my Robwise investments?

1 Like

Never waited more than a few hours to sell a £1k position, but it’s usually in the order of minutes.

2 Likes

Hi Chris, It really depends on how big the position is. We can never guarantee liquidity as it depends on demand but to date, everyone who’s looked for liquidity has found it. Very large positions can take a couple of weeks to close at most but most find liquidity very quickly. -Lizzie

Thanks for the replies Lizzie, and to nlopes for giving me a sense of how the reality is from a user perspective, that is valuable feedback and what I was looking for.

1 Like

Everytime I have sold a bond it has gone within a day or two. Most positions around £500 to £1K

2 Likes

Actually it depends on what you are selling - I tried to sell Pizza Express and had to cancell my sell order after a few weeks. I guess the same would apply to bonds in Debenhams and the like.

I’ve had a similar experience:

  • If a bond’s status on the market is ‘total available’ (ie fully invested) then it can sell almost instantly.
  • If there are 10s of £k ‘available now’ then there’s a queue, and that needs to be sold first before getting to yours. Typically this could take a day or two in my experience.
  • Perhaps for the special situations or higher-risk bonds (e.g. pizza express mentioned above), where there’s limited demand from other investors, it could take a lot longer.

Cheers,
Mark