P2P trusts: 'We only invest in loans we know will stand up to 2008 market conditions'

Trend comes under fire

Hardeep Tawakley  Hardeep Tawakley
clock • 5 min read

As peer-to-peer lending comes under fire from critics, including former FSA chairman Lord Adair Turner, Hardeep Tawakley looks at three P2P trusts and asks the managers about their investment strategies and how they control risk in their portfolios

P2P Global Investments Less than 18 months after launch, P2P Global Investments (P2PGI), the first peer-to-peer lending investment trust, was already one of the biggest trusts on the London Stock Exchange, having raised over £800m through several fundraisings.  The trust targets an annual 6%-8% dividend yield by investing in over 180,000 loans from 16 carefully selected platforms from a global base of more than 200. Many of the platforms, particularly those based in the US, are not available to individual investors. The majority - around 60% - of P2PGI's lending book is from US cons...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Alternatives

Trustpilot