P2P Global Investments (P2PGI) saw its net asset value (NAV) decline by 0.14 per cent in June due to its exposure to defunct supply chain platform Urica.
P2PGI wrote off an equity investment worth around £5.5m in Urica last week after the firm put itself into liquidation following a fraud attack in France earlier in the year.
Excluding the one-off write-down of Urica equity, the investment trust’s annualised NAV returns were 6.38 per cent, or 5.3 per cent excluding share buybacks, P2PGI said.
“This is still below the six per cent target set out in the strategy update in November, however, strong progress has been made in transitioning the portfolio to more attractive asset classes and reducing the exposure to the low yielding and volatile legacy assets,” P2PGI said.
“The adverse performance versus expectations has been driven by lower returns on the legacy assets with UK consumer driving the majority of the variance.”
The portfolio, which has been shifting towards more asset-backed products, now consists of 42 per cent of small business finance, 45 per cent in real estate and 13 per cent in consumer loans.
The investment trust is currently trading on a discount to NAV of 15.2 per cent.
Read more: Share buybacks help boost P2PGI NAV