P2P Global Investments fund sees large reduction in US consumer loan exposure

By Daniel Lanyon on 13th November 2017

P2P/Marketplace LendingAlternative Credit

The fund has sold the loans in accordance with a new strategy previously indicated to the market.

P2P Global Investments fund sees large reduction in US consumer loan exposure

The £798m P2P Global Investments fund has entered into an agreement to sell a significant proportion of its exposure to US consumer loans.

The transaction represents a reduction of £36.9m net exposure or 4.56 per cent of the fund’s net asset value (NAV) and £167.1m in gross exposure.

The transaction and related provisions are expected to reduce the fund’s overall NAV by less than 1 per cent and will also have the effect of reducing its leverage and FX hedging requirement. 

The fund stated in its September newsletter that the Investment Manager intended to announce a more detailed strategy update to the market in November 2017; this transaction represents an important component of that strategy, it said in a statement.

The Investment Manager now expects to present its more detailed strategy update to the market towards the end of November to coincide with the release of the October NAV announcement, expected to be released before 30th November.

The Investment Manager has reported to the investment trust’s board that it has an “increased confidence that the realigned portfolio will achieve its target returns of 6 - 8 per cent within the 18-month timeframe”.

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