VPC record revenue pushed down by marketplace loan losses

VICTORY Park Capital Specialty Lending (VPC) delivered its highest ever net revenue return in October, only to see it pushed down by capital losses.

The alternative finance focused investment trust reported a monthly revenue return of 0.85 per cent, but this was offset by capital losses of 0.59 per cent, pushing its net asset value (NAV) return for October to 0.26 per cent.

Exposure to balance sheet loans continued to provide the bulk of returns, up 0.90 per cent, and equity investments returned 0.39 per cent, according to a portfolio update released on Tuesday.

However, the returns were pushed down predominantly by a 0.73 per cent decline in marketplace loans.

It comes after VPC reported improved returns in the third quarter, as it continues to re-position its portfolio towards balance sheet lending.

The London-listed trust announced late last year that it was winding down its underperforming marketplace lending portfolio, after losses triggered substantial writedowns.

Its return so far this year is now at 2.25 per cent, which is an improvement on the 0.85 per cent reported for the whole of 2016.

The investment trust is currently trading on a discount to NAV of 17.1 per cent.

Read more: P2P trusts reap rewards from changing focus