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Peer2Peer Finance News | November 18, 2017

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P2PGI continues to grow NAV six months on from strategy change

P2PGI continues to grow NAV six months on from strategy change
Marc Shoffman

P2P GLOBAL Investments (P2PGI) posted its 36th consecutive month of positive net asset value (NAV) returns as it continues its shift from US loans to asset-backed products.

The P2P investment trust has been conducting share buybacks and altering its strategy to more secured loans in an effort to boost its NAV and registered a 0.41 per cent return in May, slightly down on 0.45 per cent in April.

Read more: P2P lenders see opportunity in trade finance

Exposure to US consumer loans has slipped from 56.39 per cent of the portfolio, when the new approach was announced in November 2016, to 41.93 per cent last month, while investment in UK loans has grown from 15.44 per cent to 18.94 per cent.

US small business loans now make up 1.15 per cent, from 3.11 per cent in November 2016, while UK SME exposure has grown from 3.18 per cent to 5.59 per cent.

The biggest growth has been in UK real estate, with exposure increasing to 9.48 per cent in May from 4.56 per cent in November 2016.

So far this year, since the start of January to yesterday’s market close, the NAV return has been 2.04 per cent, while the investment trust is currently trading on a discount to NAV of 9.6 per cent.

The results come a month after it emerged that Pollen Street Capital is to take a controlling stake in MW Eaglewood, manager of P2PGI in an effort to boost returns and diversify the portfolio.

Read more: P2PGI manager defends performance overhaul plan