Results from the first 5% p.a. fixed-interest bond issuance


#1

I can’t do better than the post that we just shared in our social channels, so I am sharing the content below for your information as well.

This was also a test-run, so was only open for a few days, but it helped us make sure the bidding, allocation and communication processes were working. We gathered some very useful feedback which has been taken on board to make the process easier and clearer, so thanks to all for your comments.


The bidding for our first ever £100k set of 5% p.a fixed interest bonds has been closed, bids allocated and stats in! This has been a journey of over a year to launch a 5% product for everyone, and even though this was only our pilot issue, we are pretty excited by the results.

So how did we do? Bids came in from far corners of the UK. In total, we received over £200k of bids in the last five days!

As promised, we prioritised small savers so we allocated bids from the smallest first. 62 bids were successful, starting from £100. The highest successful bid this month was £20k!

We know an ex-dozens employee managed to nab the highest successful bid (cheeky! but love the faith :fist:). But we’ve also heard some of our friends and parents missed out (hard luck mum - less greedy next time!). If you didn’t make it, don’t worry, next month is our bumper ISA issuance of £1m+, and will be open for bidding tomorrow - Friday 1 March. Closing date will be Monday 25 March. So fingers at the ready!

Bonds can be found at the bottom of the Save section in the app.

Wondering about protection?

We are authorised by the Financial Conduct Authority as an e-money institution (FRN 900894) and also as an investment firm (FRN 814281). The 5% p.a. fixed interest ‘Trust bonds’ are our first proprietary financial product, designed to bear practically no risk. With these bonds dozens deposits the money invested plus the promised interest, into a separate trustee controlled account (where we can no longer touch it). You also have £50k FSCS protection with this product, however in practice we don’t believe you will need to rely on it because your full investment money and interest is held separately for you in the trustee-controlled account. The bond programme currently has a maximum limit of £7m, with expected issuance volumes of between £100k-£1m a month. For details of individual limits and our bidding process please check our website dozens.com.


#2

£20,000! Well done to that person!

Only 62 successful bids as well - I wonder how many unsuccessful bids there were.

Well done to team Dozens!

Edit - @robert, can you transfer an ISA to Dozens yet?

With the bumper issuance next month, there will be a lot of people who have already opened a S&S ISA this tax year.

Cheers!


#3

I’m intrigued to know this too. 62 sounded like a very low number to me. Having said that, with the highest successful bid being £20,000 I guess some people just bid way too high :joy:


#4

Pleased to have been one of the folks skewing that average downwards! I wish I had £20K to stick in a bond!


#5

Not yet. I don’t think we will be able to offer it before the end of the financial year - there are simply too many things to do before that date. It will definitely be possible in the very near future though.


#6

So, let’s do some maths :joy:

1 person bid (and was successful) with 20K…

Leaving 61 people to make up 71K.

But over 200K was bid, so you can assume there were (at least) another 6 people who bid 20K or more!

Even still, that’s a lot less than I thought there would be (assuming my maths is correct!)


#7

So for the next issuance would it be better to add say £500 in one issunace or 5 x £100 issuance?


#8

You can only bid once. So if you wanted to put in £500 in one issuance, you’d have to bid £500.

No guarantee it would be accepted of course, but I’d imagine you’d be ok for March’s issuance!


#9

Cheers @Nick

So as I missed this one, just wondering say I bid £500 on 01/03 does the money need to be in the account on that day for that amount or does it need to be there on the 25/03 or only once the bid has been accepted?


#10

Yes, that money needs to be in the account and transferred to the SAVE section of the app before you place your bid.


#11

It’ll need to be there from when you bid (in your example, on the 1st).

As there is 1 million up for grabs, you’ll have no problem with a bid of £500, so you could in theory wait until the 24th March before bidding.


#12

Thank you both @Albatross & @Nick

The next question you sort of answered @Nick so I assume the cutoff time for the 25/03 is 00:01


#13

No idea on that one.

I wouldn’t want to push it that close though :joy:

If you wanted to leave it till the last minute, just make sure it goes through on the 24th at some point.

I think the cut off for this past one was actually 1pm on the day.


#14

Cheers

If its 1pm on 25/03 then I know it can be closer to a £1000 and if by 00:01 on 25/03 closer to £500 :joy:

But then I have to also convince the wife to allow me to take the savings out of Macrus 1st and the only way she can see it is if i show her in the Dozens app :wink:


#15

@robert will be able to confirm the cut off point for bids to be accepted.

Given the number of customers coming onboard, and typical issuances being £100,000, I’d take advantage of the bigger issuances now, whilst there are fewer customers.


#16

Ok, back to the maths for a moment. I’m not sure how this is 71K :joy:

Shouldn’t it be 80K? Since it was a £100k issuance, and largest successful bid was £20K, that leaves £80K remaining.

It only changes the potential number of other £20K bids by 1 though, so not really a huge deal :joy:


#17

Only 91K was taken though.

Presumably because the next bid after 20K (or a 20K bid that came in later) would have pushed it over the 100K and therefore rejected.


#18

Ah you’re right, I missed that bit… it’s late, I think my brain needs sleep :smiley:


#19

Haha.

I’m just impressed that at least 6 people had the kahoonas to put in 20K or more!

Imagine being rejected though… Something tells me they will somehow get by… :joy:


#20

Feels good to be apart of the first round of bonds.
Definitely going to put a bit more in at the next issuance. :dozens: