Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355 
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Post by Neil_P2PBlog on Feb 15, 2017 23:50:54 GMT
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Ukmikk
Member of DD Central
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Post by Ukmikk on Feb 16, 2017 9:38:57 GMT
Neil, thanks for this. A useful intro for the uninitiated such as myself. Will be interested to see if any of these can actually be purchased in an ISA. Cheers.
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Post by stevefindlay on Feb 16, 2017 9:48:26 GMT
Neil - thank you for sharing - that is a useful overview. In terms of different characteristics - you may also want to look at (1) the use of leverage in the funds and (2) different fee structures. Also, you're very welcome to re-use our re-based NAV and Share Price analysis of these funds in 2016 - charts here: www.bondmason.com/managed-p2p-lending-funds-review-and-comparison (please just provide a link back & attribution)
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Post by davee39 on Feb 16, 2017 10:28:44 GMT
P2P Global is in the FTSE 250. I am buying monthly through Hargreaves Lansdown Savings scheme. I would expect it to be available in their ISA
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
Likes: 209
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Post by Neil_P2PBlog on Feb 16, 2017 12:40:52 GMT
Great tip on Hargreaves Lansdown davee39, they allow them all in the ISA! |
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Post by charles on Feb 22, 2017 16:06:00 GMT
I used to cover these Investment Trusts as an equity analyst in a previous life - they're relatively new kids on the block (but so is the whole industry, really).
Attractive because they trade on massive discounts to NAV (we're talking c.20%, or more in some cases), and promise hefty yields, which are very attractive in this current environment. The key issue in my mind is the management fee structure in P2P Global Inv (which is the largest by far, and which I hold personally in my ISA), but with the others, it's the wide bid-offer spreads and relatively low liquidity (e.g. VPC Specialty Lending, was on a huge discount at one point, but the spread was something like 6%, couldn't bring myself to do it).
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nick
Member of DD Central
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Post by nick on Feb 22, 2017 19:56:22 GMT
I used to cover these Investment Trusts as an equity analyst in a previous life - they're relatively new kids on the block (but so is the whole industry, really). Attractive because they trade on massive discounts to NAV (we're talking c.20%, or more in some cases), and promise hefty yields, which are very attractive in this current environment. The key issue in my mind is the management fee structure in P2P Global Inv (which is the largest by far, and which I hold personally in my ISA), but with the others, it's the wide bid-offer spreads and relatively low liquidity (e.g. VPC Specialty Lending, was on a huge discount at one point, but the spread was something like 6%, couldn't bring myself to do it). The fees for P2PGI are 1%/15% which are quite high for a fixed income fund.
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Post by charles on Feb 26, 2017 14:26:53 GMT
I used to cover these Investment Trusts as an equity analyst in a previous life - they're relatively new kids on the block (but so is the whole industry, really). Attractive because they trade on massive discounts to NAV (we're talking c.20%, or more in some cases), and promise hefty yields, which are very attractive in this current environment. The key issue in my mind is the management fee structure in P2P Global Inv (which is the largest by far, and which I hold personally in my ISA), but with the others, it's the wide bid-offer spreads and relatively low liquidity (e.g. VPC Specialty Lending, was on a huge discount at one point, but the spread was something like 6%, couldn't bring myself to do it). The fees for P2PGI are 1%/15% which are quite high for a fixed income fund. True, but then again, it's what the market will bear. I'm a holder of P2PGI myself because it's by far the largest, most liquid alternative finance trust out there. I like the unimaginatively named SQN Asset Finance (ticker: SQN) (surprise, it invests in Asset-backed finance), but it's on a double digit premium to NAV. Ranger Direct Lending (ticker: RDL) is also one I like, which trades on a sizeable discount - c.20% - to NAV. They had a bit of a scare recently with one of the underlying lending platforms, Argon Credit, to which they provided a credit line, going under Chapter 11, but they have sinced seized the collateral and expect to fully recover. Argon was an unsecured subprime lender charging anywhere from 19% to 95% p.a. I also think RDL is unique among the P2P inv trusts because it has very significant (c.30%) exposure to institutional investment grade, real estate-backed loans of the kind we offer on Property Crowd (whose cashflows and capital are more secure, being backed by such brick & mortar assets), and based on their monthly factsheets / quarterly reports, this could well be a sector they increase allocations to over time considering the favourable risk/reward profile.
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