|P2P Global Investments
||EPS - Basic
||Market Cap (m)
|Equity Investment Instruments
P2P Global Share Discussion Threads
Showing 426 to 448 of 450 messages
P2PGI's NAV at 28 February was 1001.6p which represents a NAV return of 0.38% in the month.
Total exposure to US consumer has reduced to 46% of NAV compared to 55% at the end of December. This reduction is set to continue with the manager seeking to increase gross exposure to European assets over 2017. Collateral performance and the cost of funding are more favourable in Europe than the US.
As previously announced, the manager is reviewing its performance and is considering additional steps to improve results. The outcome of that review will be announced in due course.
February's return of 0.38% includes an uplift from share buybacks which we estimate added 0.09% during the month. Share buybacks have added a further 0.10% in March to date. We estimate the underlying income return was broadly in line with January which represents an increase on Q4 2016 and we believe this is due to a reduction in the implied impairment rate and the lower management fee. We calculate the implied annualised impairment rate in the month was c.4.5% compared to c.5.0% during Q4 2016. The share trade on a 20.4% discount to NAV.|
|I have checked with my HK desk and NY desk and this is part of what came back...
"The management team is weak, based in London where most of the assets are sourced in the US".
That is only one reason why I am now clearing out of this business especially as Lending Club is still involved.
Thanks to those for posting and good luck Mr Woodford who now must try and sort this terrible fund and its team........|
|How does one get a job at Marshall wace? If I'd underperformed for 3 years I'd get fired. These guys get a performance fee.|
|Price of 775p today and falling. Without the share buyback (using borrowed money) where would it be? Probably in the 600's. Listen to what the market is telling you Marshall Wace.Get rid of that performance Fee or at least set up an appropriate hurdle rate.|
|I still say both.............loose holders and higher defaults on the US portfolio.|
|I dont think the mkt makers are forcing anyone out. The returns just haven't been that good to justify a higher share price. If investors expect say a 6% yield then 800p seems fair.
Why the returns have been low is another issue. Seems like it's default rates have been somewhat higher. Plus the costs (including the ridiculous performance fee) are eating away at the returns.|
|Who is frightning who............the MM forcing out weak holders so the stock can be passed onto Marshall Wace and the management?
Something fundementally wrong with the loans...................?|
|I really do agree and once the business gets back on a sounder footing then they can have a bonus.............SO MR CHAMP will you agree as I am sure you or your office reads these posts.|
|If the greedy performance Fee of 15% becomes the next charge reduction then the fund becomes investable again. The disastrous decision to hedge is costing us around 0.6% per annum (per Liberium) and a performance Fee given this situation just makes the whole thing ridiculous. We can all accept higher than forecast impairments as that is the risk we are prepared to take but the focus now must be on a lower cost structure.
|If they don't then we should use this site to make sure the management listens to us...........I have a contact I can approach inside the business.........|
|According to that liberium note the monthly return without one offs is 0.34% which is 4% a year.
The reduction in fees will add another 0.5% to make this a 4.5% a year investment.
The portfolio manager needs to find a way to bump up the return another 1.5% a year to get to 6%, or else the discount will remain. They could start by including a hurdle rate for performance, which should add another 0.5% to make 5% a year. On top of that, hopefully they can cut down on their admin costs etc. The buy backs if they continue this year should actually add back about 1% but those cant continue indefinitely I guess.
Lets hope they announce something interesting next month.|
|Bought again at under £8...........and I will continue to do so because of what the management is doing and that is to orgainse a price of around £875p or more for a 10% price increase.|
|one by one our predictions are coming to fruition. buy backs, cuts in fees etc.
now just need a full on winding down.|
P2P Global Investments (Mkt Cap £669m)
Further reduction in management fee
P2PGI's NAV at 31 January was 997.87p which represents a NAV return of 0.24% in the month. NAV performance was negatively impacted by equity revaluations (-8bps), FX hedges (-5bps) and the sale of a US consumer loan portfolio (-9bps) which together reduced the monthly return by 0.22%.
The investment manager has permanently waived the fee charged on leverage. The management fee will be 1% of NAV with effect from 1 January 2017.
P2PGI has also completed a sale of US loans as it seeks to reduce exposure to the US. This was highlighted last month as higher quality US loans have experienced a tightening in yields. Better opportunities are emerging in UK and European SME and in real estate lending. US consumer now represents 48% of the portfolio compared to 55% at December 2016. Cash balances have risen from 8% to 13% of NAV over the month.
We calculate an underlying income return of 0.34% after adjusting for share buybacks and the 0.22% impact of capital adjustments mentioned above. We calculate share buybacks added 12bps to returns in January and a further 9bps in February. The estimated underlying income return of 0.34% is an improvement on Q4 2016 and we believe this is due to a reduction in the implied impairment rate. We calculate the implied annualised impairment rate in the month was c.4.5% compared to c.5.0% during Q4 2016.
The amendment to the management fee is the second reduction since launch. At IPO the management fee was equivalent to 1% of gross assets. This was amended in mid-2016 when the fee on levered assets was reduced to 0.50%. The latest reduction announced yesterday should increase annualised NAV returns by c.50bps based on current debt levels. The change is a reflection that returns have been below expectations for some time and the manager has indicated a review of additional steps is taking place in order to improve returns. No detail has been provided on what the additional steps may be but a possible change could be the introduction of a performance fee hurdle.
P2PGI currently trades on a 19.8% discount to NAV and in our view the company's NAV performance needs to be able to deliver a 6% dividend yield on NAV in order to drive a material re-rating.|
|Reputation is important if these guys are ever to come out with a new concept in the future.
They need to get the discount to under 10% and with the Trump Bump this should be done asap. As to a recession - perhaps in 18 months time as the market starts to anticipate on............we shall have to wait and see so in the meantime a good buy at under 800p.|
they are already doing it. Buying back 15%.
If the discount remains, I think they will authorise more hopefully until discount gets to perhaps 10% more in line with other trusts. Unfortunately by then the NAV may have fallen if/when a recession kicks in.|
|Why would they want to reduce the fund size when it would mean lower revenue for Eagle)wood?|
|This is the bit I like............
"The Investment Manager is dissatisfied with the net returns achieved by the trust and is currently undertaking a review of additional steps that might be taken to improve results."
Therefore they should sell the portfolio slowly or as and when and buy back shares in the market.................get the fund down in size and put any new ideas for the future to a shareholder vote............that will bring the big holders out of their closets!|
|cant believe they were charging that in the first place. Charging money on equity invested, fine. The leveraging that equity to borrow more and charging more fees for that portion, not cool.
Nice they have broken down the monthly return though. Bit more clarity. without the one offs would have been a semi-reasonable 0.46% month on month, though fx hedging and equity movements are not really one offs.|
|Interesting that in this month's update they have announced a permanent waiving of the annual management charge on the leveraged portion of the fund. Shows they are finding it harder going than originally anticipated.|
|Last week in the Wall St Journal there was bullish point made on P2P.......it said words to the effect that the shares were undervalued.........|
|See - moaning stops - and she goes up lol|
|.... a bit like being on a small boat that's sinking where no matter how fast you are bailing out the water it makes no difference because of all the little holes.... ( forgive the crude analogy but it makes me smile on this dreary January day!).|