Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Marshall Wace P2P trust to target 6-8% yield

Marshall Wace P2P trust to target 6-8% yield

Marshall Wace's peer to peer investment trust will target annual net asset returns of 5-15% and 6-8% income through 'exposure to the new generation of non-bank finance,' as traditional banks become increasingly reluctant to lend. 

The first UK listed vehicle of its kind, P2P Global Investments will invest in loans that have come from peer to peer lending, which became FCA regulated last month.

Now that high street banks are forced to hold higher levels of capital, online peer to peer lending has become more popular as it allows borrowers and lenders to communicate directly, with the lender potentially benefiting from lower rates.

The P2P trust has agreements with global platforms, including UK loan platform Funding Circle, and will buy loans produced by these companies using money generated by investors. 

The trust announced its intention to float on the London Stock Exchange last Friday, with a minimum investment of £1,000. The vehicle is looking to raise £200 million, but could lift this to £300m.

It will distribute more than 85% of its profits via dividends, with a yield target of at least 6-8% per annum.The management fee is 1% of net asset value per annum,with a yearly performance fee of 15% with a high water mark.

Marshall Wace is a hedge fund manager running £18 billion, while sub-manager Eaglewood Capital Management is an investment adviser specialising in peer to peer lending.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter