P2P GLOBAL Investments (P2PGI)’s manager MW Eaglewood has defended its performance shore-up strategy after coming under pressure on Tuesday from a board announcement that hinted at its possible replacement.
The London-listed asset manager, which is a subsidiary of hedge fund giant Marshall Wace, said it recently submitted a proposal for significant performance upgrades to the P2PGI’s board, also aiming to reverse the heavy trading discounts seen on the fund’s shares.
“The company announced in its January update that it was dissatisfied with the net returns achieved and was undertaking a review of additional steps that may be taken to improve results,” said MW Eaglewood in a statement issued on Wednesday.
“As a result of this review, it has recently submitted to the board for consideration a substantial performance enhancement and discount reduction plan as one potential approach.”
MW Eaglewood’s statement comes after P2PGI unveiled that it had “resolved to initiate a review of the company’s investment management arrangements” following discussions with its current manager and significant shareholders.
An investment advisor involved in the issue told Peer-to-Peer Finance News that clinching a decision on the P2PGI management overhaul is set to be a lengthy process and take months rather than weeks.
The investment trust, the first to buy exclusively into assets issued by P2P platforms, posted a lacklustre performance last year mainly due to its elevated US exposure, which accounted for more than half of its portfolio.
Since then it has shifted exposure towards Europe and UK consumer, SME and asset-backed investments, which boosted its net asset value (NAV) returns but still fell short of bringing them in line with either the broader debt specialist sector or the P2P sector.