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P2P Managed Account - Funding circle 201403

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Symfonie Capital managed P2P account overview focusing on Funding Circle. Investors can benefit from professional management of their accounts on P2P platforms such as Funding Circle.

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P2P Managed Account - Funding circle 201403

  1. 1. This document contains confidential, proprietary information. Transmission or distribution in any way, manner, shape or form is prohibited without the express consent of its authors, Symfonie Capital, LLC (“Symfonie”). Symfonie is solely responsible for the information and content of this document. This document is not a solicitation for the purchase or sale of any financial instrument. Symfonie has taken reasonable care to ensure the information stated is factually true. However, Symfonie makes no representation or warranties that is accurate or complete. Symfonie is registered with the US SEC as an Investment Advisor. © Copyright 2014, Symfonie Capital, LLC. All rights protected. No copies may be made without express written consent and approval. March 2014 Symfonie Managed P2P Investments Loans Selected for High Income and Principal Stability Product Features Symfonie managed accounts are designed for investors who want their portfolio tailored to their specific requirements, such as maturity and risk ratings of loans in which they would like to invest. While no investment is guaranteed, the rating and maturity structure of peer to peer loans provides some predictability of investment performance. Loans with higher ratings should offer lower overall risk than loans with lower ratings. The maturity structure also provides investors a concrete point in time by which they can expect the return of capital invested. Peer to peer loan platforms provide credit scores that offer an estimated loan-loss rate across groups of loans in each ratings category. Symfonie selects loans based in part on the ratings categories assigned by the Peer to Peer lending platforms. Symfonie also uses its proprietary risk models to select loans within each ratings category that Symfonie believes more likely to produce better risk adjusted returns. Symfonie’s leading investment principal, Michael Sonenshine, has a proven track record of success and more than 15 years of experience analysing and investing in bonds and credit instruments. Symfonie Managed Funding Circle Portfolio Key Portfolio Statistics Number of Loans 152 Average Gross Yield to Maturity 10.8% Expected Net Yield to Maturity 8.9% Average Time to Maturity (years) 3.3 Overall Average Rating B- Loan Maturities 0 - 1 year 3% 1 - 2 years 20% 2 - 3 years 29% 3 - 4 years 13% 4 - 5 years 35% Loan Grades B, 21.8% A, 18.5% C, 59.7% Featured P2P Platform – Funding Circle (UK) Funding Circle sets a benchmark for excellence. Each loan is presented with a set of information about the borrower, its business, the purpose of the loan and the borrower’s financial history. Investors have opportunity to ask questions of the company and to do company financials reports. Further information can be found on publicly accessible sources via the internet. Thus there is ample scope to carry out a sufficient amount of due diligence. Interest rates are transparently set via an auction process. The borrower pays the weighted average rate of interest and the investors each have loan parts reflecting the interest rate they bid. Thus, some investors own loan pieces at better than average rates, others own loan pieces at lower than average rates. Many loan parts are available in a secondary market. Investors thus can purchase in the secondary market and pay a premium ranging from 0.1% to 3% of principal value of the loan part. Funding Circle has originated more than 4,000 loans to date with value of about GBP 230 million.
  2. 2. This document contains confidential, proprietary information. Transmission or distribution in any way, manner, shape or form is prohibited without the express consent of its authors, Symfonie Capital, LLC (“Symfonie”). Symfonie is solely responsible for the information and content of this document. This document is not a solicitation for the purchase or sale of any financial instrument. Symfonie has taken reasonable care to ensure the information stated is factually true. However, Symfonie makes no representation or warranties that is accurate or complete. Symfonie is registered with the US SEC as an Investment Advisor. © Copyright 2014, Symfonie Capital, LLC. All rights protected. No copies may be made without express written consent and approval. Symfonie Managed P2P Investments Loans Selected for High Income and Principal Stability Portfolio Diversification Portfolio Comparison Vs. Funding Circle Universe Additional Notes S:ymfonie Capital - London +44 20 8616 7311 Prague: +420 222 191 008 info@symfoniecapital.com www.symfoniecapital.com Sector Allocation Leisure & Hospitality, 9.1% Other, 16.7% Wholesale, 2.2% Consumer Services, 1.5% Education & Training, 0.3% Finance, 1.2% Manufacturing and Engineering, 9.3% Professional and Business Support, 9.5% Property and Construction, 18.1% Retail, 10.2% Transport and Logistics, 4.2% Agriculture, 1.2% Automotive, 5.6% I.T and Telecommunications, 7.0% Healthcare, 3.8% The portfolio presented represents the Symfonie standard allocation in a managed account across credits and risk levels. Actual client portfolios may differ depending on client preferences and availability of loans. Portfolio FC Turnover 0-350K 31% 30% 350K-700K 17% 23% 700K-1.5M 22% 24% 1.5M+ 29% 23% Net Profits 0-20K 29% 26% 20K-50K 27% 26% 50K-100K 16% 24% 100K+ 27% 24% Average Loan Size 68,273 55,950 Portfolio FC Debt Outstanding 0-15K 28% 30% 15K-75K 27% 28% 75K-300K 20% 23% 300K+ 24% 19% Assets 0-125K 32% 37% 125K-350K 20% 24% 350K-850K 23% 19% 850K+ 25% 20% Average interest rate 10.8% 8.7% The average borrower in the portfolio has been in business for 11 years (FC 13.4 years). Source: Funding Circle database, Symfonie Capital estimates.

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