P2P GLOBAL Investments (P2PGI) posted its 33rd consecutive month of positive net asset value (NAV) returns in February, as its exposure to US consumer loans continues to fall.
The London-listed investment fund, which focuses on P2P loans, returned 0.38 per cent of NAV growth last month, up from 0.24 per cent in January. However, this is still significantly below its target return of between six and eight per cent.
As Peer-to-Peer Finance News previously reported, P2PGI is shifting its focus away from US consumer loans towards the UK, SME loans, trade and asset-backed finance.
Read more: P2PGI shifts focus to asset-backed loans
The fund, which is managed by MW Eaglewood – a subsidiary of hedge fund giant Marshall Wace – has 46 per cent of its portfolio in US consumer loans, as of February 2017. This is down from 48.4 per cent at the time of January’s update.
“The investment manager expects to continue on this path and increase the company’s gross exposure to European assets during the course of 2017,” said P2PGI.
“The investment manager believes conditions are more favourable in Europe as collateral performance and the cost of funding remain more attractive than in the US.”
European consumer loans now make up 18.56 per cent of P2PGI’s portfolio, up from 16.5 per cent the previous month.
P2PGI said at the time of January’s update that it may sell of more of its US portfolio and is currently negotiating three new transactions.
Read more: How P2P funds have fared over the past year