P2P GLOBAL Investments (P2PGI) has expressed disappointment at missing its half-year dividend target, blamed on lower-than-expected returns in its legacy portfolio.
The investment trust, which has been shifting from consumer loans to asset-backed products, had aimed for a dividend of at least 15p per quarter by June this year, but only hit 12p at the halfway point of 2018.
Stuart Cruickshank, chairman of P2PGI, said the board was still confident that the changes it introduced in its strategic review of November 2017 would boost returns.
“The below target return has been driven by lower-than-expected returns on the legacy portfolio with significantly below hurdle returns being generated in the first six months,” he said.
“Whilst the company is reducing its exposure to these assets they continue to drag on overall returns and limit the ability to redeploy capital into more attractive assets.
“The board is optimistic that the changes initially put into place during 2017, have continued to gather traction and despite volatility within the inherited platforms, the company is positioned to see improved performance in the second half of 2018. “
P2PGI’s half-year report showed its annual net asset value (NAV) return per share was 1.66 per cent as of 30 June, down from 2.4 per cent a year before.
Its discount to NAV has also widened from 11.83 to 15.81 per cent over the same period.
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