New GLI peer-to-peer trust targets 8% dividend with low fees


#1

Originally published at: http://whichinvestmenttrust.com/new-gli-peer-to-peer-trust-targets-8-dividend-with-low-fees/
The new trust will source loans from an established parent company and will have by far the lowest fees in the burgeoning peer-to-peer investment trust sector. Fast Facts New investment trust providing P2P and other alternative finance loans Targeting an 8% annual dividend Manager an established player in the sector Follows several other new players…


#2

After reading this I was kind of scratching my head because this felt different somehow, though I wasn’t sure why. Then it came to me, this is a different sort of narrative from some of the other new P2P IPOs I’ve heard of recently. It talks about things they don’t mention like fees, remuneration, and conflicts of interest.

I hadn’t even realised that it was missing from the likes of P2P Global. Not to mention that Goldsmith fund.

Not sure if I’d rather invest in the parent company though, GLIF because that will have the platform stakes and I’m all for growth right now but the 8% income here would be nice for my Mum.


#3

Although the headline fees sound reasonable, GLIF will also benefit from the fees charged by the platforms through which the new trust’s cash is invested. GLIF’s future annual reports could make for an interesting read if they show how profitable those platforms are becoming!


#4

This looks great. An 8% yield should it achieve it is just what I want at my time of life. Happy it doesn’t come with rip off charges too.

@arkwelder The benefit GLIF will come by you mention is as a result of their business model to invest in providers of finance and is not therefore an additional fee upon the shareholders of the new trust.They charge fees to everyone who sources loans on the platforms.

One point I would add is GLIF is a vital element to this whole investment and perhaps an article on it would be of use. Perhaps you could approach Jeff Miller and ask him to write a short article explaining the relationship between both funds and how he will ensure the loans are selected will due care and attention @whichinvest


#5

Exactly, @mammon. The platforms will still be charging their fees to the new IT (in the absence of a prospectus which states differently). This will have the effect of reducing the returns which accrue to the IT, just as would be the case if the platforms did not charge a fee and those of the IT were higher.

Basically, a captive set of monies is being raised for investment across GLIF’s own subsidiary platforms, and this is cash that might have otherwise gone to competitor platforms. So the increase in available funds on GLIF’s platforms should increase their attractions to potential loanees which should lead to an increase the long-term viability and profitability of those platforms. And these benefits will accrue to GLIF and it’s shareholders. Not a criticism of what is happening, just an observation. But it does explain why the fees on the new IT can be lower than on existing P2P trusts - ultimately, the managers are making their profits via an alternative route, i.e. the fees charged by their platforms.


#6

Prospectus is due in the next couple of week. We’ll share a link when it’s released.


#7

With an upcoming IPO I think there will be restrictions on what the manager can and cannot say, especially to a retail audience like this.


#8

When will this offer open and close? I can’t see any dates.

Also I would like to see the prospectus, but as long as that is ok I think I would like this. If I put £10,000 in to this and got £800 a year in a dividend I would be very happy with that. Especially is the share price value at least kept its value or went up a little bit.

You could make a 40% return just from the dividend alone no. Across five years I mean.


#9

We’ll have to wait until the prospectus is released but I think this sound very interesting. It does sound a bit like they’re separating the income from the capital, which is a perfectly appropriate way to approach it. I would like a little bit of equity involvement here too though.

It would be more interesting idea still if they permitted this new vehicle to have an equity stake in one of more of the platforms it’s sourcing loans from.