Pollen Street done the same5 May 2020 09:54
The £1.8bn Pollen Street Secured Lending investment trust will stop lending in the coming months in expectin of some volatility owing to the continued global spread of the coronavirus, according to a stock market update.
Pollen Street Capital, the manager of the portfolio says that it has not seen a material impact in payment performance yet but that a majority of the underlying consumer and SME payment dates are towards the end of the month meaning they have not yet occurred.
“We expect to see some short-term disruption through requests for forbearance and continue to monitor daily,” Pollen Street said.
Formerly named Peer-to-Peer Global Investments, the fund is invested across property, SME and consumer lending with a near equal split across the three areas.
“Given the uncertain economic environment the manager has adopted a prudent approach with the focus on the existing portfolio and ensuring cash collections remain robust and the appropriate strategies are put place,” it added.
Pollen Street says it is expecting to generate significant cash over the coming months as the loans amortise, repay but not re-investing the cash generated by the portfolio in new investments “for the foreseeable future”.