P2PGI NAV grows again but legacy issues remain

P2P GLOBAL Investments (P2PGI) saw its net asset value (NAV) returns improve slightly in May but has warned it is still suffering from legacy portfolio issues.

The alternative finance-focused investment trust reported a NAV total return of 0.42 per cent during May, up from 0.41 per cent in April.

This took its NAV performance since inception in June 2014 to 16.68 per cent.

It follows a strategic review last year that has seen the investment trust move away from pure peer-to-peer loans, towards more asset-backed securities and a reduction in exposure to US consumer loans.

P2PGI’s exposure to US consumer loans has fallen from 24.6 per cent last November to 17.7 per cent in April while its biggest holding is now in European real restate at 28 per cent.

The update said a portfolio of legacy assets were sold off during May, but the remaining holdings continue to make minimal returns.

“The legacy portfolio continues to run off albeit with some volatility and minimal return contribution,” P2PGI said.

“In optimising the run off of these assets the company successfully sold a charged off portfolio of legacy consumer assets and a small low yielding consumer mortgage portfolio for a profit in May.

“This uplift offset a provision taken against a legacy US portfolio where we expect to incur write offs and a mark down on a UK equity position with whom the company is no longer originating assets.”

Last month it emerged that the fund’s manager Simon Champ had departed “by mutual agreement,” according to a P2PGI spokesperson.

Champ was chief executive of MW Eaglewood until it merged with Pollen Street Capital to create PSC Eaglewood last year in an attempt to boost performance and reduce its discount to NAV.

His role will not be replaced but responsibilities will be shared among other staff.

P2PGI is currently on a discount to NAV of 14.6 per cent.