MONEY&CO is introducing a managed portfolio product that it says will offer extra security to investors by ensuring more diversification.
The peer-to-peer business lender, which was founded by City ‘superwoman’ Nicola Horlick (pictured), is planning to discontinue single-loan offerings in favour of a “portfolio approach”.
“We are sticking with our successful strategy on loan origination,” said Horlick. “We originate primarily property-backed loans where our lenders take a first charge against the underlying property – typically the loan will be no more than two thirds of the market value of the underlying property asset. We’re also willing to facilitate loans where the security is a business-critical asset (eg. a printing press for a printing company).
“To offer extra security, we’re placing more emphasis on diversification. We’ll be looking to market a portfolio of property- and asset-backed loans to lenders and Innovative Finance ISA (IFISA) investors.”
Money&Co, which launched its IFISA in March 2017, will be discontinuing its single-loan offerings. Investors in a single-loan offering that Money&Co recently helped to originate for a borrower, Grounds Investment, will be unaffected, although no new money will be taken.
Any future loans for Grounds Investment will be included in the new portfolio product, which is IFISA-eligible.