24th Apr 2019 10:11
LONDON (Alliance News) - P2P Global Investments PLC on Wednesday reported a decrease in net assets as the trust continues its run-off of legacy holdings.
At December 31, the investment trust's NAV per share, including income, stood at 963.9 pence compared to 989.4p at the end of 2017, a 2.6% decrease. Excluding income, P2P's NAV per share slipped 4.2%, ending 2018 at 948.5p compared to 990.6p the year before.
Including income, P2P's total net assets decreased 7.2% to GBP733.4 million from GBP789.9 million. Excluding income, the trust's net assets decreased 8.7% to GBP721.7 million from GBP790.9 million.
During 2018, P2P bought back 3.7 million shares.
P2P's annual NAV per share return was 5.2%, which includes 48.0 pence in dividend payments for 2018, 2.1% higher than the 2017 distributed in 2017.
The trust's continuing portfolio returned 84% with P2P's legacy portfolio gaining 16%.
"The result for the investment manager's first full year has seen the company achieving its target net return consistently during the second half of 2018, although this is slightly behind the June 2018 target initially highlighted in the November 2017 strategy update. The company has been able to achieve the target net return as significant progress has been made in transitioning the portfolio to more attractive asset classes and reducing the exposure to the low yielding and volatile legacy assets which have shown continued underperformance," said PSC Credit Holdings, the trust's investment manager.
The lower than expected returns from the legacy portfolio was driven by the UK Consumer portfolio, the investment manager said.
"The company is striving to improve the performance of these legacy assets and is optimising the run off. As part of this process the company successfully sold two charged-off portfolios of legacy consumer assets, a small low yielding consumer mortgage portfolio in May 2018 and a US Consumer portfolio in December 2018," the investment manager added.
PSC Credit said the portfolio remains a "drag" on the trust's overall profitability.
Chair Stuart Cruickshank said: "The board is confident that the revised investment strategy has positioned the Company so that the improved performance of the second half will continue into 2019. The board will continue to be vigilant on the performance of the company and will monitor the progress against the uncertainty over Brexit combined with rising consumer debt levels and potential increases in interest rates."
Shares P2P Global Investments were up 0.3% Wednesday at 828.08 pence each.
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