Goji Direct Lending performance highlights market success

By Emily Nicolle on Thursday 1 February 2018

Alternative Lending

The platform has published its returns, 12 months after releasing its first diversified bond.

After launching the UK’s first diversified peer-to-peer lending proposition in January last year, Goji has announced that its Diversified Lending Bond has yielded a positive net return of 6 per cent.

Over 12 months, the Bond invested in more than 1,200 loans, spreading the risk across various direct lending partners and multiple economic sectors, including small businesses, universities and renewable energy projects.

The news posts positive signs for the direct lending asset class, after opening up the peer-to-peer sector to financial advisers and wealth managers. According to the platform, Direct Lending is providing a new opportunity for advisers to support their clients without taking on substantially more risk as interest rates remain low and government debt generates small yields.

Goji’s regulated Bonds are available within its new Innovative Finance ISA, which has also proved an attractive proposition for advisers.

Speaking at AltFi’s seminar on the IFISA this week, fellow competitor Sam Handfield-Jones from Octopus Choice commented: “There’s been a huge amount of focus on Independent Financial Advisors (IFAs) with the IFISA, and that’s going to be a continuing trend.

“Having a middle ground product is incredibly compelling, but there’s massive deviation in what IFAs will recommend. We’re adding about 50 to 60 IFAs to our platform a month, and we’re looking to double that in the future.”

Earlier this month, Goji raised an undisclosed sum of money in a Series A investment round led by Anthemis. The firm stated that the funds will be used for further development of its platform and product pipeline.

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