Investing in films used to be the province of very wealthy investors and movie studios. Yet it is now possible to back independent film projects using an innovative finance ISA. The Fyzz ISA is the UK’s first ISA which is targeting upcoming, independent film projects. It is the brainchild of The Fyzz Facility Capital, an existing film finance company which has a seven year track record supporting independent films.
How can an ISA help with investing in films?
When investing in films it is important that the fund is being managed by experts who have an established track record in the market. The team behind The Fyzz ISA have invested more than $280 million in over 200 feature film loans since 2010, using The Fyzz Facility, their lending company. They have co-financed the likes of Wind River, written and directed by Taylor Sheridan (of Sicario fame) and Silence by Martin Scorsese.
The Fyzz ISA makes loans into projects that are secured ans asset-backed (linked to contracted revenue streams and distribution agreements). Returns are therefore not dependent on the ultimate execution or the box office performance of a specific project.
The ISA’s investments are diversified across a large number of entertainment lending opportunities to create a portfolio that further mitigates saver risk.
“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 while at the same time offering investors returns competitive with other alternative sectors,” says Wayne Marc Godfrey, the joint CEO of The Fyzz Facility. “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.”
By launching an ISA, The Fyzz Facility is offering UK investors the prospect of backing movie projects for as little as £2,000 (up to a maximum of £20,000). They can now invest alongside wealthier investors in backing independent film projects. The ISA is offering returns of up to 5% per annum over a 60 month term, along with the normal tax benefits of ISA products.
Other movies which have benefited from The Fyzz Facility include 47 Meters Down and Jackie Chan‘s The Foreigner. Upcoming projects the company is currently backing include Three Seconds with Rosamund Pike and Clive Owen; The Strangers: Prey At Night with Mad Men’s Christina Hendricks; and Destination Wedding with Keanu Reeves and Winona Ryder.
The Armchair Trader says:
Innovative finance ISAs are a new form of UK ISA that allow investors to invest in a portfolio of loans, for example through a peer-to-peer lending platform. Interest earned from such loans are tax free because of the ISA wrapper. Innovative finance ISAs are really intended to help channel more private capital into sectors of the economy where commercial banks are not actively lending. With yields on government debt still very low, it is the more nimble, active lending companies that are able to produce a superior income flow for investors through direct, secured lending strategies.
The Fyzz Facility Capital PLC (TFFC) has created its Innovative Finance ISA in partnership with Northern Provident Investments Limited, who are Authorised and regulated by the Financial Conduct Authority.
