P2P GLOBAL Investments (P2PGI) has stepped up its share buybacks and confirmed that it will pay “a stable 12p per share dividend” during the transition period as it repositions its portfolio.
The P2P-focused investment fund, which recently saw its manager MW Eaglewood merge with Pollen Street Capital, unveiled its new portfolio strategy in November.
It said at the time that it will continue repositioning to specialist and secured assets with a higher risk-adjusted return and will accelerate the reduction in exposure to US consumer loans.
It also announced that it would ramp up its share buybacks as part of efforts to reduce the discount to net asset value (NAV).
P2PGI said in its latest monthly update that it returned 0.4 per cent of net asset value (NAV) growth in November.
This is an improvement from a 1.3 per cent drop in NAV during October, which it attributed to its sale of US consumer loans.
But the fund was still trading at a 19.91 per cent discount to NAV as of 29 December 2017.
“As per the strategy statement announced at the end of November, the investment manager has made substantial progress, and its efforts to reposition the portfolio are well underway,” P2PGI said.
“With increased confidence in its ability to deliver a sustainable target return to shareholders, the company announced that it will pay a stable 12p per share dividend during the transition period.”
In the period after the 30 November strategy announcement until 19 December, the company bought back 741,973 shares, in line with its “more pro-active” share buyback programme, it said.
The management mega-merger was first announced in May 2017, after P2PGI undertook a review of its investment management arrangements following poor returns and heavy trading discounts on the fund’s shares.