Goji launches UK’s first diversified P2P lending bond

The Peer to Peer sector has recently broken through the £10bn barrier, showing that alternative credit is here to stay. Whilst over 170,000 UK investors are active in the sector, very few access the asset class through traditional advice channels, like wealth managers and financial advisers.

Goji today announces the launch of the UK’s first diversified peer-to-peer lending proposition, Goji’s Diversified P2P Lending Bond, opening access for financial advisers and wealth managers to the fast-growing and attractive P2P and direct lending market.

Goji’s Diversified P2P Lending Bond is specifically designed for the intermediary market. It enables advisers and wealth managers to access a portfolio of over 200 different loans from multiple lending partners, providing a high level of diversification. Platforms in the Bond are selected by our expert team of P2P lending experts and are only invested across following robust, risk-based assessments, and reviewed against ongoing performance criteria.

The Bond targets returns in excess of 5% over a one or three year term, although our bonds are currently yielding in excess of 6.5%.

Until today investors were limited to investing across individual platforms. Goji’s Diversified P2P Lending Bond is the first ready-made product that will provide easy access for advisers and wealth managers to this attractive asset class.

The Bond is eligible for inclusion within the Innovative Finance ISA, offering an attractive, tax-efficient and highly diversified product for investors in the next tax year.

Furthermore, since Goji is regulated as an investment and not a lending platform, investors are afforded additional levels of protection, providing greater comfort for advisers and their clients.

P2P and direct lending investments typically provide net returns comparable to high-yield bonds but with lower default rates and shorter durations, offering steady, low volatility returns. Interest in P2P and direct lending products is growing, fuelled by low yields on traditional fixed income and savings products, increasing levels of inflation and the introduction of the new Innovative Finance ISA.

  • Since 2006, P2P lending has attracted net annualised returns ranging between 4.5%-7%1
  • P2PFA data suggests over 170,0002 retail investors are participating in the sector already. This number is expected to surge following the launch of the Innovative Finance ISA
  • Recent stress tests suggest that these platforms are well prepared to weather economic downturns3
  • The Bond is the first product from P2P and direct lending specialists Goji. Goji already provides Innovative Finance ISA administration to leading platforms such as Downing and Landbay.

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    1Liberum Altfi Returns Index (LARI)

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