Mapping out the P2P funds universe, part 2

A look at the difference in risk and return when investing via P2P platforms such as Zopa and Ratesetter, and putting your money in a P2P-lending fund.

It's been a busy time for funds investing in peer to peer lending. Funding Circle has succeeded in launching its first investment trust, raising £150mfor a fund that invests solely in its loans, with a target yield that will probably be around 6.5%. This is an impressive achievement, especially when you compare it to the other big bit of news, which was that investment manager Ranger pulled its imminent C issue of shares the target was to raise £135m.

Our guess is that we'll now see an extended pause for fundraising. The chart below from investment trust analysts at Numis shows the sheer weight of money raised over the last year we'd wager that we'll see no new issuance for at least another six months.

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Funding Circle SME Income150n/a*Nov-156-7%
GLI Alternative Finance542.1Sep-158%
P2P Global Investment464(1.3)May-146-8%
P2P Global Investment C3970.0Jul-156-8%
Ranger Direct Lending1405.5May-1510%
VPC Specialty Lending193(2.3)Mar-158%
VPC Speciality Lending C169(6.0)Oct-158%
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Direct lending6.5-8
Average Equity Income investment trust4.9
UK Equity income3.5
Infrastructure funds5.1
REIT3.8
iShares Corporate Bond ETF3.43
Twenty Four Monthly Income6.8
Asset backed and secured loans funds4.5
Asset leasing7
Ratesetter (3 year)4.8
Zopa3.8
Funding Circle7.1
LARI composite 12 months trailing returns5.95

Sam Hodges writes for AltFi.com