CIC Association to launch new investment products

Bond for wealthy donors among several products under consideration

A bond for community interest companies is one of several new products being considered by membership body the CIC Association as it seeks to expand.

The association, which was formed 18 months ago to promote the interests of CICs, wants to develop a standard product that can be used by its members to raise finance.

The bond will be targeted at high net worth individuals and not-for-profit investors, according to John Mulkerrin, co-founder of the association.

"We will probably run a pilot in a social care organisation," he said. "We will look at what happens there, then run a few more pilots to ensure the model works.

"We're aiming to develop low-risk bonds, perhaps backed by property, and higher-risk products that will offer a significant return."

He said the bonds were aimed primarily at CICs that had already been set up but were looking for funding to expand.

Mulkerrin said several other financial tools specific to CICs could also be developed by the association.

CIC shares were another product that needed developing, he said, especially given recent regulatory changes that have improved the dividends CICs are allowed to pay.

Mulkerrin said that the CIC Association was using the expertise of its members. He said he hoped to build up the association's finances by brokering new financial products, selling data and member concessions.

"Until now we've been run on a shoestring, but we're looking to grow into a self-sufficient organisation over the next few months," he said.

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