Fund Twenty8 is the first and only fund to passively invest in EIS opportunities. The fund uses a specialised algorithm to automatically build you a diversified portfolio of at least 28 EIS-eligible investments across a broad range of sectors, targeting a return of 20%+ IRR.
By only backing companies that successfully reach their funding target on SyndicateRoom, Fund Twenty8 takes advantage of the expertise of SyndicateRoom’s investor base of VCs, business angels and sophisticated investors.
Fund Twenty8: automatic early-stage diversification. Simple.
What is passive investing?
Active investing allows you to handpick your investments, using your expertise and experience to determine for yourself which deals are right for your portfolio and how much to invest. It’s what private investors on SyndicateRoom do every day through our available investments page and to date have funded over 100 UK businesses.
With passive investing, the decision of which opportunities make up your portfolio is made for you by the fund manager – or determined automatically using a sophisticated algorithm, as in the case of Fund Twenty8. This allows you to gain exposure to a greater number of sectors and opportunities than if you invest only in the sectors with which you are familiar.
When we reviewed the market, there were only single-sector funds and they offered only small portfolios to an investor – around five to eight investments per fund.
We wanted to offer investors a different option. With the rise of passive investing, and the fact that passive funds consistently outperform the majority of actively managed funds, we were surprised to find there were no passive EIS funds already on the market. So we decided to build one.
James Sore, Chief Investment Officer
All investors know that to mitigate risk, one must diversify. It’s the old ‘eggs in one basket’ maxim. By building a portfolio of uncorrelated investments across multiple sectors, you reduce your chances of a single sector experiencing a negative change and it bringing down your entire portfolio; think, for example, of how a shift in oil prices can affect a vast number of investments within that sector.
SyndicateRoom works with companies from all sectors, choosing opportunities to list based on their quality, not their industry, and allowing its investor base of sophisticated investors to decide whether or not they fund by investing directly.
To give you an idea of the breadth, here’s what the sector breakdown of SyndicateRoom’s portfolio looked like in September 2016.