P2P GLOBAL Investments (P2PGI) started 2018 with its net asset value (NAV) up 0.36 per cent, the investment trust has revealed.
The fund’s NAV is down on the 0.55 per cent reported in December but this is the first monthly update using the new IFRS 9 accounting standards.
The new calculations have to take account of potential bad debts in the portfolio, and P2PGI said on Monday that the new calculations had impacted the company’s overall NAV by 2.49 per cent.
P2PGI, the first investment trust to back peer-to-peer loans, has now returned 15.07 per cent since inception in 2014.
It announced a dividend of 12p per share for the quarter.
P2PGI’s manager MW Eaglewood merged with Pollen Street Capital in November 2017 and has been taking part in share buybacks in attempts to boost performance and reduce the discount to NAV.
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 now has just a fifth of the portfolio in US consumer loans, down from 36.9 per cent in July 2017. Its largest exposure is in European real estate, at 21.7 per cent, while 16.9 per cent is in the UK consumer market.
The investment trust is currently trading on a discount to NAV of 14.9 per cent.