We present summary statistics from P2P platforms where we and our clients have invested. We’ll update these results every month, so watch this space.
Our lending fund is an internationally diversified portfolio of more than 450 loans. We’ve carefully focused our selection of platforms to include only those with a track record of more than three years and a comprehensive credit rating system.
Key Portfolio Statistics
- Number of Loans: 1 488
- Average Gross Yield to Maturity: 11.1%
- Expected Net Yield to Maturity: 8.9%
- Average Time to Maturity (years): 3.4
- Average Loan Age (years): 0.98
- Number of Loans Defaulted to Date: 52
- Loan Loss Impact on Portfolio: 0.19%
- Overall Average Rating: B-
The range of investment alternatives among P2P sites is continually expanding. Our dedicated team of investment professionals constructs and manages portfolios to suit clients’ specific requirements for loan duration, loan grade, loan sector, country and currency.
Tailored Portfolios for Institutional Investors
Performance by Site
|Statistic||Lending Club||Prosper||Funding Circle||Bondora|
|Average Gross Yield to Maturity||11.8%||12.1%||10.4%||26.1%|
|Expected Net Yield to Maturity||8.1%||9.0%||8.3%||15.5%|
|Average Time to Maturity (years)||3.9||3.9||3.0||2.1|
|Average Loan Age (years)||1.27||0.7||1.3||1.4|
|Loan Loss Impact on Portfolio||0.90%||1.48%||0.80%||19%|
|Overall Average Rating||B-||B-||B-||C-|
About the Sites
Prosper (www.prosper.com) and Lending Club (www.lendingclub.com) are the largest and most reputable sites in the world today. They’ve issued more than $5 billion of loans to more than 250,000 consumers and small business in the US. These lenders provide a significant amount of data about each borrower, which allows investors such as ourselves to use analytical tools that can help us avoid loans that could generate losses.
Funding Circle (www.fundingcircle.com) is the premier site in the UK dedicated to providing loans to businesses. To date they have issued loans totaling more than £275 million across more than 4,500 borrowers. Notably, the UK government is supporting P2P sites such as Funding Circle by making lending capital available to the site. Funding Circle makes much detail available to investors about the businesses borrowing. Investors can see the names of the businesses seeking loans, their financial performance, credit history and the directors responsible for managing the business. Investors can also ask questions to the directors prior to investing. In nearly 95% of cases the directors of the business personally guarantee the loans.
Bondora (www.bondora.com) is a relatively small lender based in Estonia. Over the past year Bondora has expanded its lending activities and now issues loans in Slovakia, Spain and Finland. Bondora have clearly defined lending rules and a process of verifying data about each borrower. Bondora clients pay interest rates of between 10% and 30%. Such high rates of interest can compensate for the relatively high rate of losses that can be expected. Bondora seems to excel at knowing its borrowers well and finding ways to help the borrowers repay their loans. This may mean that loans are refinanced or restructured when borrowers encounter problems. We believe that so long as borrowers are willing and able to repaying, Bondora will find ways to work with the borrower. The risk for investors is that loans may be repaid over longer periods than the investors would originally anticipate. At the same time, Bondora are serious about taking legal action and turning to court appointed executors when it becomes necessary. According to Bondora investors on the platform have made returns in excess of 17% per annum on average.