In the fall of 2013 we started the world’s first internationally diversified P2P investment fund.
The portfolio is diversified across more than 450 consumer and business loans originated by the world’s leading P2P platforms.
When selecting loans for this portfolio we consider not only the absolute level of interest rate, but also fundamentals that underpin credit quality. Our goal is to select loans that offer the best return/risk ratio. Read more about our investment process.
Investors can select sub-compartments of the portfolio that have pre-stated terms to maturity of 3 and 5 years. Investors can also choose to have distributions of principal and interest quarterly.
Annualised gross return of the portfolio is about 11%, taking in account actual income received to date, fees paid to platforms and actual loan losses. The portfolio is relatively young, with an average age of about seven months. The portfolio is performing better than our expectations. The portfolio receives payments of principal and interest monthly amounting to about 3% of assets. Thus, the risk exposure to each individual borrower declines continually. The cash flow provides opportunity to further diversify the portfolio and re-invest for further growth. We can expect more defaults as the loan book ages. However, thus far the portfolio is performing ahead of our expectations.
The foregoing discussion represents only the opinions of Symfonie and constitutes neither a recommendation to invest nor a solicitation of an investment. Our views are subject to change without prior notice. Performance data are unaudited. They are net of fees paid to the P2P platforms but gross of fees charged by Symfonie for managing and advising on client portfolios. The returns reflect defaults that have occurred to date but do not reflect defaults that may occur in the future. Prior to making any investment in P2P loans investors should ensure they fully understand all the risks of making investments in P2P loans including, but not limited to, the risk that part of all capital invested may be lost. Investors should also consult with their financial, tax and legal advisors. Investing in P2P loans should represent only a portion of an investor’s overall portfolio and does not represent a complete investment program.
The material presented via this website is for informational purposes only. Nothing in this website constitutes a solicitation for the purchase or sale of any financial product or service. Material presented on this website does not constitute a public offering of securities or investment management services in any jurisdiction. Symfonie Capital, LLC is registered with the United States Securities and Exchange Commission as an Investment Advisor pursuant to the Investment Advisors Act of 1940. Our ADV filing is publicly available. © 2014 Symfonie Capital, LLC.
Investing in Peer to Peer loans and startup and early stage companies involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and it should be done only as part of a diversified portfolio. The Investments presented in this website are suitable only for investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. For further information see our discussion of investment risks.