ISAsDec 13 2017

Innovative Finance Isa investing in movies launches

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Innovative Finance Isa investing in movies launches

An Innovative Finance Isa specialising in loans for film and entertainment projects has been launched.

Rolled out by the team behind more than 200 independent film projects since 2010 it is intended to offer returns of up to 5 per cent over a 60-month term.

The Fyzz Isa is offered through The Fyzz Facility Capital and its sister company The Fyzz Facility - an asset-backed lender to the entertainment industry with a seven-year history of loan-based investments in feature film and television projects.

Savers will be able to follow the projects they are supporting from pre-production all the way to the big screen.

Wayne Marc Godfrey, joint chief executive at The Fyzz Facility, said savers can be "reassured" by the fact all Fyzz Isa loans made into projects are asset-backed - linked to contracted revenue streams and distribution agreements.

As a result, the returns are not dependent on the ultimate execution or box office performance of a given project, he said.

Mr Godrey said: "When we started The Fyzz Facility in 2010, we had the mission to build a business that would support the creation and production of world class independent films through a debt-based lending strategy that offers investor returns competitive with other alternative sectors.  

"Over the last seven years The Fyzz Facility has more than made good on its intention and has established itself as one of the pre-eminent lenders in the industry."

The minimum investment amount is £2,000.

The charges include an account opening fee of £50, a subscription fee that is 0.75 per cent of each subscription, a transfer fee of £100 plus 0.75 per cent of the total funds held and and annual administration fee of £50 plus 0.75 per cent of the total funds held.

Through the Fyzz Facility, the team behind the Fyzz Isa have invested more than $280m (£210m) in more than 200 feature film since 2010. 

They have co-financed films such as Wind River starring Jeremy Renner of Marvel Studios' Avengers and Martin Scorsese’s Silence.

Recent in-house productions include 47 Meters Down and Jackie Chan's The Foreigner, which has generated more than $135m (£101m) at the box office worldwide and is to be release through Netflix in the UK on Friday (15 December).

Robert Forbes, chartered financial planner at Staddon Forbes, said that while the Isa will attract film enthusiasts he also cautioned against the financial risks attached to these type of investments.

He said: "Innovative Finance Isas give people choice. In itself, it is not a bad thing, but people have to be careful of the counterparty risks if someone does not pay their bills because a lot of these companies live hand to mouth and do not have a lot of cash reserves."

ima.jackson-obot@ft.com