Latest news with #Belong
Daily Mail
6 hours ago
- Business
- Daily Mail
Should you invest in care villages that pay YOU an income? Belong's social bonds promise a 7.5% return
Care village operator Belong has issued a second 'social bond', this time offering investors the chance to earn a 7.5 per cent income. The charity runs eight communities for elderly residents, two thirds of whom have dementia, and has a new one under construction. It plans to buy up its last bonds and use any surplus generated in the new bond issue for charitable activities, including building more villages. Belong is giving holders of its older bonds, issued in 2018 with a 4.5 per cent return, the option of exchanging them for its new one, as well as seeking new investors. Although 7.5 per cent-plus is a much better rate than you can get from a savings account, people should always tread with care when buying debt via bonds like this. That is because the money you make back depends on the issuer - whether a charity or a business - being able to pay you back. A retail bond or a mini-bond from a business, or a social bond like Belong's, is an investment only for those willing to take a risk and do their research on the issuer's financial strength - find out how below. Individual investors can also buy bonds known as 'gilts' from the UK government - which has never defaulted - or spread their risk in a bond fund rather than lending to a single borrower. Last month, the Treasury issued a new gilt paying investors 5.375 per cent interest until January 2056. Belong's bond will be tradeable on the London London Stock Exchange's Orb market. Bonds which can be traded on Orb allow investors to make money early if you sell when they trade higher than the offer price, but you can also lose if the price is lower. The Orb market offers an exit route for investors who want to get out. This differentiates Belong's bond from 'mini-bonds', which must be held to maturity and have fallen out of favour after a series of scandals. But all standalone bonds, including ones from charities like Belong which want money for a good cause, have always come with serious risk warnings, including from This is Money whenever we write about them. - Unlike with a savings account, you are not protected by the UK's Financial Services Compensation Scheme, which guards against losses of up to £85,000. - The varying interest rates on retail bonds and mini-bonds reflect the amount of risk attached to them - generally speaking, the higher the rate on offer, the higher the risk. - You should beware of putting too much of your money into one or just a handful of bonds. - It's worth considering a corporate bond fund, which will lend to large firms and spread your risk. - Bonds held in an Isa can deliver tax-free income, but investors should investigate the potential tax liabilities on individual investments. Scroll down to find a checklist on how to research the prospects of individual bonds. What do you need to know about the new Belong bond Belong runs villages with a mixture of accommodation, community and hospitality venues, which serve more than 1,000 people across north east England. They include a children's nursery, and a village centre open to the public, plus a full range of care and nursing facilities to look after people until they die. Belong says: 'The model is a positive evolution on traditional, clinical and institutional care settings, instead promoting wellbeing through homely, smaller group living arrangements, surrounded by amenities.' Some 65 per cent of its customers are private self-funders, with the rest funded by local authorities and the NHS, and the occupancy rate is 96 per cent. The charity says it has almost doubled revenues over the past five years to £51million. The last bond issued in 2018 with a 4.5 per cent return raised £50million, and matures in 2026. Its latest bond requires a minimum investment of £500, and purchases of at least £100 a time thereafter. The issue price is 98 per cent, which means for the minimum investment of £500 you pay £490, and for each further £100 you pay £98 (not including broker fees). This means that if you hold the bonds to maturity, and you get your capital back, the return on investment or 'yield' would be 7.99 per cent rather than the headline 7.5 per cent rate. Holders of the previous bonds can sell them for £98 per £100, and buy the new ones at £98 per £100, allowing them to switch without investing any more cash. The first interest payment - or coupon - is due in January 2026, and bi-annually after that. The bond is expected to mature in July 2030, though the final legal maturity date is in July 2032. The official purchase deadline is 30 June, and the new bond is expected to start trading on London's Orb market on or around 8 July. If you are considering investing, you should read Belong's prospectus here. What to check before buying social, retail and mini-bonds * Any investor buying individual shares or bonds would be wise to learn the basics of reading a balance sheet. When looking at bonds, research all recent reports and accounts from the issuer thoroughly. You can find official stock market announcements including company results here. * Check the cash flow is healthy and consistent. Also look at the interest cover - the ratio which shows how easily a firm will be able to meet interest repayments on its debt. This is calculated by dividing earnings before interest and taxes (known as EBIT) by what it spends on paying interest. Read our guide to doing investment sums like this here. * It is very important to find out what the bond debt is secured against, and where you would stand in the queue of creditors if the issuer went bust. This should be included in the details of the bond offer but contact the issuer direct if it is unclear. * Consider whether to spread your risk by buying a bond fund, rather than tying up your money with just one company or organisation. * Inexperienced investors who are unsure about how retail or mini-bonds bonds work or their potential tax liabilities should seek independent financial advice. * If the interest rate is what attracts you to the bond, weigh up whether it is truly worth the risk involved. Generally speaking, the higher the rate on offer, the higher the risk. * If the issuer is a listed company, before you decide whether to buy it is worth checking the dividend yield on the shares to see how it compares with the return on the bond. Share prices, charts and dividend yields can be found here.
Telegraph
11 hours ago
- Business
- Telegraph
New bond paying 7.5pc interest launched – should you buy it?
Investors can beat top savings interest rates thanks to a new 'retail bond', which pays the equivalent of an annual rate of 7.5pc until its maturity in July 2030. The rate far exceeds the current best five-year bond listed on The Telegraph's best buy list – currently Raisin UK's 4.26pc offer. So, what's the catch – and should you buy? The fixed-rate bond, which will be traded on the London Stock Exchange like a share, is being offered by Belong, a care home operator with a special focus on dementia patients. Belong, a charity established in 1991, currently has eight villages in north England, with a ninth site due to open next year. While the 7.5pc interest, paid twice a year, is likely to appeal to savers and investors alike, there are key differences between savings accounts and so-called retail bonds. Cash held in savings accounts in the UK is protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per institution. Belong's retail bonds, however, are not covered by the scheme – if the charity were to go bust, there would be no guarantee that investors would receive their money back. While these bonds have risks, they are not 'mini-bonds', the advertising of which has been banned by the Financial Conduct Authority (FCA). The most well-known mini-bond scandal was that of London Capital & Finance, which has been described as Britain's biggest Ponzi scheme. Belong's retail bonds, however, will be traded publicly on the London Stock Exchange, so investors have the reassurance that the stock exchange's requirements have been met. When it begins trading on July 8, the bond will be available via stockbrokers AJ Bell, Hargreaves Lansdown and Interactive Investor. By being listed on the stock exchange, the bond also offers itself up to scrutiny by the market, which can signal its collective opinion via its price. If the price of the bond falls, for example, holders may be alerted to concerns over Belong's financial health and could have the opportunity to exit, albeit at a probable loss. Nonetheless, retail bonds are far from risk-free. Holders of a retail bond issued by Wasps, the rugby club, received just £7.4m back out of a total £35.2m when their bonds matured in 2022, after the club went into administration. Proceeds of Belong's new 7.5pc bonds will be initially used to cover a tender offer for holders of the existing 4.5pc bonds, which are due to mature next year, in order to ease its refinancing risk. Any remaining capital raised has been earmarked for 'charitable objectives', including the development of new care villages. If Belong goes bust, the bonds may remain listed on the stock exchange, which means investors could still sell their bonds – but again, this would almost certainly be for much less than they paid. Value investors may be tempted to scoop up the bonds at a discount if they believed they would be repaid through the sale of Belong's assets. There is no guarantee that Belong's bonds would remain listed in the event that it went bust – this would be up to the London Stock Exchange. Retail investors hoping to purchase the bonds have until June 30 to do so, with a minimum initial subscription amount of £500 and increments of £100 thereafter. Interest payments will be made on January 7 and July 7 each year, with the first due in January 2026. Rachel Springall, of consumer finance website Moneyfacts, said: 'Investing puts any capital at risk, so this option will not be suitable for every saver. Seeking advice to go over all the options out there while also considering someone's appetite for risk is essential. 'Those who prefer a more traditional savings account will find the top access accounts and fixed rate bonds pay above 4pc, and they can earn over 5pc on some regular savings accounts.'
Yahoo
3 days ago
- General
- Yahoo
Nurses shortlisted for award for their work with dementia patients
Two Atherton nurses are up for a top award for their jobs" target="_blank">work supporting older people. Specialist dementia nurses at not-for-profit care village, Belong, have landed a coveted finalist shortlisting at the Dementia Care Awards 2025. Belong Admiral Nurses, Bridget Lawler and Caroline Clifton are up for the Admiral Nurse Award which recognises innovation, and 'real-world difference' made by those working in the role in partnership with Dementia UK. The pair help Belong customers and their families navigate dementia with advice and signposting throughout the journey, for example, assisting arranging assessments with healthcare professionals, sitting in on social services meetings, or advising how to secure finance. More: Walking frames get 'pimped up' for a very good reason at this Bolton care home More: Ceremony to mark start of £38M transformation of services at Royal Bolton Hospital More: Mum of 3-month-year-old's challenge to fundraise to pay for her cancer treatment They are also typically a first port-of-call for new customers, visiting their homes to guide them and offer moral support as part of the moving in process into the Mealhouse Lane village. Now, the duo has been nominated for the accolade owing to the success of B's Memory Cafe, a widening of their service to people living in the local area. The monthly drop-in invites guests for a coffee and a chat, often alongside an activity or entertainment, giving a welcome chance of respite to those attending. Caroline Clifton, admiral nurse at Belong, said: 'People often come to us when a parent or partner has had a dementia diagnosis but they're unsure of what to do or where to turn, and that's where we come in. We've always been there for Belong customers and we're pleased to offer our help to those living in the community, too.' In the lead-up to the upcoming summer awards, the pair has been championing Dementia Action Week as the spotlight is shone on the national campaign to promote awareness of the importance of early diagnosis. Belong Atherton's doors continue to be open for meet and greets with management, personal tours of its state-of-the-art village, and a chance to enjoy onsite facilities including, bistro, salon, and specialist gym. Bridget Lawler, admiral nurse at Belong, added: 'We're really pleased to receive a Dementia Care Awards nomination. It's always encouraging to hear how our work helps so many people and to be recognised at national level is a fantastic achievement.'
Tom's Guide
21-05-2025
- Business
- Tom's Guide
Telstra's announced another round of price hikes for its internet and mobile plans — and just days after network coverage accusations
Just days after being accused by Vodafone of providing misleading cellular network coverage claims to customers, Telstra has announced a new round of price adjustments across its postpaid mobile, mobile broadband and NBN plans. Price hikes seem to be increasing in frequency at Australia's largest telco, with Telstra's last mobile plan price hike rolling out just 7 months ago, in October 2024. The newest changes, set to take effect on July 1, will see increases of up to AU$7p/m on some plans, however, Telstra is also lowering the price of its two fastest NBN plans. Unfortunately, all of Telstra's mobile broadband plans will become more expensive, though the Medium plan will get a larger data allowance. The prices of only three plans will remain unchanged, with the Premium and Starter mobile plans, as well as the entry-level (12Mbps) NBN plan escaping unscathed. For a complete rundown of Telstra's upcoming price adjustments and how they compare to current pricing, simply check out the tables below. Postpaid plans: Current price Price as of July 1 Mobile bundle (25GB) AU$52 AU$57 Basic plan (50GB) AU$65 AU$70 Essential plan (180GB) AU$75 AU$80 Mobile broadband plans: Current price Price as of July 1 Data bundle (10GB) AU$10 AU$15 Small plan (30GB) AU$25 AU$30 Medium plan (100GB, up from 75GB) AU$58 AU$65 NBN plans: Current price Price as of July 1 Basic (25Mbps) AU$89 AU$93 Essential (50Mbps) AU$105 AU$109 Premium (100Mbps) AU$110 AU$113 Ultimate (250Mbps) AU$130 AU$129 Ultrafast (1,000Mbps) AU$150 AU$139 Given the ongoing cost-of-living crisis in Australia, you could be forgiven for wanting to look elsewhere for a cheap mobile plan or cheap NBN plan. As expected, Telstra's decision to increase pricing has been met with pushback from the Australian Communications Consumer Action Network (ACCAN), which released a statement saying "the price increases will place an impost on millions of Australians already under financial pressure." ACCAN CEO Carol Bennett also encouraged Australians to "assess their data needs and compare major telco offerings with smaller providers" and pointing out that these "may offer better value while still using the capacity of a major network.' So if you're feeling the pinch from Telstra's mobile plan price hikes but still want access to Australia's largest network, you may want to consider some Telstra network mobile plans from alternative providers. For convenience, we currently think these two plans from more-affordable Telstra network providers are particularly good value: Belong 160GB SIM Only Plan | 160GB data | No lock-in contract | AU$55p/m Wholly owned by Telstra, Belong is an excellent option for those looking to access Australia's largest network for less. For just AU$55p/m, this plan gets you a massive 160GB of monthly data, which works out to just AU$0.34 per GB. On top of that, you also get 5G network access (capped at 250Mbps). Total minimum cost is AU$55 (1-month) | Total cost for first year: AU$660 Tangerine | 150GB data | Unlimited calls and texts | No lock-in contract | AU$58p/m This SIM-only plan from Tangerine offers 150GB of data each month, with a double data bonus on the first three months for new customers. It uses parts of the Telstra 5G, 4G and 3G network and speeds are capped at 250Mbps on 4G and 5G, but for just AU$58p/m, this is a cracking deal. Total minimum cost: AU$58 | Yearly cost: AU$696 Of course, if an alternative mobile broadband or NBN source is what you're after, you should know that the best-value internet plans are generally much more affordable than Telstra's pricing. You can find our reader's favourites in those categories below.
News.com.au
19-05-2025
- Business
- News.com.au
‘Alarming': Vodafone accuses Telstra of misleading millions of Australians
Vodafone is calling for the ACCC to investigate claims rival telco Telstra has made about its coverage, alleging the company has 'been misleading Australians for more than a decade'. Vodafone's owner TPG Telecom has reported the allegations and says it is considering taking legal action against Telstra, claiming the telco has 'dramatically overstated' the reach of its mobile network by as much as 40 per cent and used the inflated figures to make 'unfair comparisons' against other operators' coverage. According to the allegations put forward to the ACCC, Telstra asserted it offers more than double the service available from Optus and about three times the area available through Vodafone and its owner TPG Telecom. Vodafone is leading the charge with the accusations, but similar claims have been made by other providers that use the Telstra network, including Belong Aldi, Tangerine, Woolworths and More Telecom. TPG Telecom group executive consumer, data, and analytics Kieran Cooney said the alleged conduct was 'alarming'. 'It appears Telstra has tricked Australians into paying top dollar for coverage they simply can't get on a regular mobile phone,' he said. 'We are shocked that Telstra appears to have been overstating its coverage by so much for so long and we are calling on them to make it right.' Telstra said its service was the 'largest and most reliable mobile network in Australia' since 2009, and has claimed to cover '99 per cent' of the population. The telco giant then advertised coverage spanning 3 million sq km in 2025, which Vodafone alleges was overstated by nearly 1 million sq km. This equates to roughly the size of Victoria, NSW and the ACT combined, Vodafone says. The accusations claim Telstra also based its advertised mobile network coverage on external antenna and repeater usage, which Vodafone claims is expensive and 'not many people have'. Mr Cooney argued the company may have misled its customers 'into believing they can get coverage in places that require special equipment'. 'By overstating the coverage available to most Australians by such an enormous amount, Telstra and its resellers have no doubt retained customers or attracted customers that might otherwise have chosen Vodafone or other TPG Telecom brands such as TPG, Felix, Lebara and Kogan,' Mr Cooney said. Telstra has denied the claims made by Vodafone and TPG, though has been accused of making changes to its website following the allegations, including removing claims its network covers 'more Australians over an area of 3 million sq km'. TPG Telecom have filed a report to the ACCC and are considering legal action to try to force Telstra cease the claims and pay compensation. An ACCC spokesperson said it was 'considering the specific issues raised by TPG' and 'recognises the importance of accurate mobile coverage claims, particularly for regional and remote consumers'. However, the ACCC said 'mobile operators do not have a standardised or consistent approach to the coverage maps they publish via their websites and in advertising'. 'We continue to urge mobile operators to provide comparable coverage maps, which would enable consumers to compare mobile networks on a like-for-like basis,' the ACCC spokesperson said. 'There is no legal requirement for mobile network operators to provide this, but the ACCC has been advocating for more transparency for consumers for some time.' According to the 2023 Mobile Infrastructure Report, the ACCC 'found that Telstra's outdoor coverage as a proportion of its external antenna coverage was significantly less than that of Optus and TPG Telecom'. The report found, based on the coverage maps provided, that 48 per cent of Telstra's network could only be accessed by external antennas compared with 17 per cent from Optus and 26 per cent from TPG. 'Telstra subsequently revised its methodology in predicting its 4G outdoor coverage,' the statement read. 'In 2024, we discontinued coverage analysis in the report due to our inability to access the underling methodologies used by mobile network operators to produce their coverage maps.' A Telstra spokesperson denied the accusations and said 'no matter how you look at it, Telstra's mobile network covers more of Australia than any other'. 'Any suggestion that we've misled the public about the size of our network is completely untrue,' they told NewsWire. 'Using our coverage maps, customers have always been able to determine our level of coverage with and without an external antenna, so they always knew what to expect based on the device they're using. 'Many customers in regional and remote areas benefit from using external antennas to maximise their coverage. This is why we have used this as the basis for our coverage footprint. 'Now that Vodafone has communicated to us how it's chosen to calculate its coverage footprint, to help the public understand the difference, we're highlighting that our three million square kilometres of coverage is based on using an external antenna.' The spokesperson said the coverage maps highlighted 'the many towns, highways and places where we've invested to provide coverage and Vodafone hasn't'. 'We're all for transparency and industry consistency in how we report coverage and would gladly put our maps up, side-by-side, so that Australians can see the difference,' the spokesperson told NewsWire. 'On any measure, Telstra's network is at least one million square kilometres larger than Vodafone's – that's an area more than 14 times the size of Tasmania.'
