The fund expects to provide a dividend of 15p per quarter by the end of the second quarter of 2018; this would represent a yield of 7.8%; the fund shared that it had a pipeline of attractive yielding assets of £400m and will increase share buybacks. Source
Simon Champ is a pioneer in the lending space creating the first publicly traded investment vehicle; P2PGI launched in may of 2014 in a £200 million IPO and they have now raised a total of £900 million; Champ shares how he first became interested in this space and how much the industry has changed since the fund first launched. Source
P2P Global Investments' shares fell 20.7% on the London Stock Exchange in 2016; the fund's portfolio manager Simon Champ provides some insight on the fund's performance; the underlying assets reported a lower than expected 4.1% return due to increased delinquencies from loans at the midpoint of their duration; hedging costs have also been a factor with approximately 60% of US loans in the portfolio; as the investable market expands the fund is likely to increase its investment in European loans to help diversify away from currency risks. Source
According to a report by AltFi, P2P Global Investments (P2PGI) is continuing their share buybacks; P2PGI has purchased shares on 14 days in the past two months with buybacks ranging from 3,400 to 50,000; the fund currently trades at a 25.3% discount to net asset value; contributing factors to recent performance have been cash drag from currency hedging, level of defaults and volatility surrounding Brexit. Source
P2PGI entered into an agreement to sell over $1bn worth of US consumer loans; the sale will reduce the funds net asset value (NAV) by less than 1 percent and effect their leverage & hedging requirement; the move is part of a broader strategy the fund laid out in September. Source.
P2PGI aims to raise £209 million through the deal and is working with Deutsche Bank to facilitate the Zopa loan book securitization; the portfolio will contain 31,153 loans with an average weighted interest rate of 7.2%; according to AltFi, P2PGI will hold a material net economic interest for the duration of the transaction and will also purchase at least 5% of each class of notes. Source.
P2PGI will be increasing its allocation to asset-backed loans in its investment trust; the firm will primarily focus on secured real estate loans however it will also be increasing its allocation to invoice credit lending and other secured lending investments; the increased focus on secured loans follows a previous announcement on targeting UK originated loans. Source