The portfolio has been being rotated towards speciality lending assets by Pollen Street Capital for more than a year.
P2P Global Investments has updated on its numbers for the month of May showing the investment trust had to write down a further investment in Urica, first signalled last year.
May's returns were impacted by a one-off write down, 0.25 per cent of the total net asset value (NAV) of the fund as receivables relating to the legacy exposure to URICA Europe. Aside from the URICA writedown, the monthly return was 0.53 per cent.
Analysts at Liberum said the hit means further delay to the re-establishment of its target dividend
“The URICA Europe writedown is undoubtedly frustrating and we believe this may delay the potential dividend increase by a further quarter to Q3. The fund's NAV total return in the two months to May is 7p (0.7 per cent) and we therefore would expect the dividend to remain at 12p for Q2.”
Urica, a French invoice financing platform, when into liquidation one year ago due to major fraud. P2P GI had initially lost its equity stake in the platform but had boped to get back loan assets it also held.
The fund’s capital exposure to URICA via a revolving credit had been amortising and the remaining exposure was expected to be collected in full. However, last month the French Courts accepted a claim submitted by the French tax authorities after the statutory deadline against one of the debtors, where a material recovery had previously been expected.
P2P GI said in an investor update: “Given the acceptance of the claim by the Courts and the Manager’s assessment of the debtor’s assets it is now considered unlikely that a material recovery will be achieved. Following the write down, the Company no longer has any material credit exposure related to URICA. There remains some administration work to complete the final aspects of the workout and closure of the platform, which is expected to be completed before the end of the year.”