P2P GLOBAL Investments (P2PGI) posted another month of net asset value (NAV) growth in December in spite of challenging market conditions.
The alternative finance-focused fund reported a monthly NAV return per share of 0.78 per cent in what proved to be a difficult month for stock markets across the globe. On an annualised basis, the investment trust’s NAV has returned 9.31 per cent.
Performance was boosted by several one-offs. These include the proceeds from selling two performing loans at a premium to carrying value and an increase in the value of the quoted equity portfolio, as well as the sale of a portfolio of US consumer loans.
The investment manager also completed its annual IFRS 9 provisioning review, which resulted in a small increase in portfolio provisions. This was down to greater global economic uncertainty.
Read more: P2PGI’s NAV improves in October
In light of this, P2PGI is transitioning its portfolio towards specialist lending assets. It initiated a new origination relationship with a real estate platform in the US in December as part of this shift.
At the end of December, the continuing portfolio represented 84 per cent of net assets, up from 75 per cent at the end of September. The run-off portfolio has reduced to 16 per cent.
Analysts at Numis noted that the investment team has made “significant progress” in repositioning the portfolio, which explains why returns have picked up in recent months.
They said annualised NAV returns in the second half of 2018 averaged 6.7 per cent, with new assets delivering a yield of 9.8 per cent (net of defaults). Trading on a 13 per cent discount to NAV, the analysts believe the investment trust offers value.