Symfonie P2P Notes

Introduction

Symfonie P2P notes enable investors to invest in P2P and leave the work to Symfonie. Each note is a loan to Symfonie P2P Investments, LLC which invests in P2P loans. Three year notes pay 8 % – 10% anually Maturities are 1 to 3 years. The Notes are collateralised with underlyhing investments in P2P loans. Notes can be denominated in USD, GBP, EUR, and CZK according to investor preference. There is no guarantee or insurance, but we maintain additional assets in the portfolio that form the basis of additional collateral to help protect our lenders. P2P Notes are ideal for investors seeking capital protection and a steady rate of return.

8 % – 10% coupons
1 year to 3 year maturities
Capital preservation reserve pool
Internationally diversified, currency hedged
Invested with P2P platforms with proven success
Professionally managed note pool
Minimum investment – EUR 1000 (or local currency equivalent)
Open for international investors

Notes are collateralised

Money invested in Notes is placed into a professionally managed Trust. The assets of the Trust create a collateral pool maintained to protect the Note holders’ capital. The collateral pool is invested into a diversified portfolio of P2P loans originated by the world’s leading P2P platforms. The trust is managed by Symfonie Capital, LLC. Click here to read about the Symfonie track record.

Your investment professionally managed

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 high interest, but importantly, are likely to be repaid in full and on time.

Built-in buffer helps protects your capital

The Notes pool maintains a reserve that helps ensure Note holder capital is protected. So while an investment in the Notes is not guaranteed, the protection for Note holders is enhanced. We do this by setting aside a portion of the interest pool earns and by supplementing the pool with some of our own capital.

Principal and interest paid quarterly?

Of course! We can arrange to have principal and interest payments delivered to you quarterly. Or, you can reinvest into new P2P notes. The choice is all yours.

Receive regular reports

We want to keep you well informed. You’ll receive portfolio updates throughout the year to let you know how the note pool is performing.

Profit sharing income booster

When your notes mature you can receive an additional interest payment based on the net income the portfolio is earning over and above the coupon rate. We call this “excess profit.” You’ll receive 75 % of the excess.

Risk warning: 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. Investing in P2P loans should represent only a portion of an investor’s overall portfolio and does not represent a complete investment program.

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.

Our Key Investment Criteria

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.

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.

The following is a general list of questions investors considering making an investment in Symfonie P2P Notes often ask. The list does not represent the complete set of information and does not constitute an offer of investment advisory services or a solicitation of investment.

What is a Note?

A Note is a loan. When you purchase a Note you are lending money to the Note Issuer.

Who is the Issuer?

Symfonie P2P Lending Trust is the issuer of the Notes.

Symfonie P2P Lending Trust is a special purpose Trust legally established under the laws of Delaware, USA. The only business the Trust can conduct is investing in P2P loans, bonds and other fixed income instruments.

How does the Trust work?

The Trust borrows money from investors. The Trust invests that money into P2P loans, bonds and other fixed income instruments. The principal and interest the Trust receives from its investments is used to pay principal and interest to the Noteholders.

Does the Trust use leverage?

The Trust can only invest its equity capital plus the loan proceeds from the Noteholders.

How is my investment protected?

All the assets in the Trust are legally the property of the Trust and held for the benefit of the Noteholders. The money cannot be used for any other purpose than to invest in P2P loans, bonds and other fixed income instruments and to repay Noteholders.

Symfonie Capital, LLC, manages the investments of the Trust. Symfonie Capital, LLC is registered with the US Securities and Exchange Commission as an investment advisor.

Is my investment insured?

No. There is no guarantee or insurance.

Can I lose money I invest in the Trust?

Yes. If the loans in which the Trust invests are not repaid the Trust won’t have enough money to repay its Noteholders, so you can lose money.

Does the Trust have a Loan Loss reserve?

Yes! Symfonie Capital LLC and its affiliates placed reserve capital into the Trust. Also, money the Trust earns over and above the interest used to pay Noteholders is maintained as reserve capital in the Trust.

How does the Loan Loss Reserve Work?

The Loan Loss Reserve is a source of cash and investments the Trust can use in order to ensure that payments of interest and principal due to the Noteholders can be made.

Currently the loan loss reserve is 3%. This means that for each $100 the Trust borrows from Noteholders the Trust holds $103 of assets. In practice this means investors don’t lose principal unless at least 3% of the loans the Trust invest in default.

What happens when P2P loans the Trust owns are not repaid?

Each P2P platform where the Trust invests money has its own procedures, but generally speaking, money the Trust invests in loans that are not repaid is lost.

How can I make money even if loans are not repaid?

P2P loans earn interest. So long as the overall portfolio is earning more interest than the percentage of loans that are not repaid, the P2P investor makes money. For example, if a P2P portfolio is earning 10% annually and 2% of the loans are not repaid, the P2P investor still makes about 8%.

How does the Interest Bonus work?

Part of the interest the Trust earns over and above the money used to pay interest and principal to the Noteholders is set aside and held in the Loan Loss Reserve. This is call „excess interest.“ When notes mature 75% of the excess interest earned is paid to the Noteholders as an additional interest payment.

What fees do I pay?

None! There is no fee to charged to purchase notes and there is no fee charged when notes mature.

What happens if I need my money before maturity?

The Trust can only pay to Noteholders the income and principal it is receiving from its investments and there is no secondary market for the Notes. Consequently, one of the risks Noteholders face is that they will only be able to collect their investment back according to the schedule of principal and interest payments for the Notes they are holding.

Can I transfer or sell my Notes?

There is no public market for sale or transfer of the Notes. It is possible for Noteholders to assign, sell or transfer their notes on the basis of a private transaction, provided it is compliant with anti-money launder rules and regulations.

Will I receive reports about my investment?

Of course! Symfonie Capital provides Trust Noteholders a quarterly update about the peformance of the portfolio. The Trust will also provide detail about the amount of interest and principal paid to the Noteholders.

Are the Notes Taxed?

The Trust may be required to withhold tax on distributions of income. Noteholders may benefit from reduced withholding tax according to double taxation treaties. Taxation of income earned will depend upon the Noteholder’s tax jurisdiction. Noteholders are advised to consult a professional tax advisor prior to investing.

How do I fund my investment account?

We accept only bank transfers from bank accounts held in the name of the account owner. When you set up your investment account we will provide you banking instructions.