You invest in a product or vehicle that invests into selected P2P loans from selected loan originators on selected platforms in the European P2P lending market. Quantrom has developed a selection process to find the most appropriate P2P platforms that cooperate with financially stable loan originators, which place P2P loans on these platforms.
As with all types of investments there are risks associated with them. We have developed a selection process to find the most suitable P2P loans in the EU market and we monitor our portfolio's performance in line with our Risk Management Policy and Investment Guidelines.
Obviously, the main risk of investing in P2P loans is the risk that the borrowers do not repay their loans. We have taken the following measures to reduce this risk: All loans are established according to a set procedure by the platform or loan originator, which must have assessed the borrower's repayment capacity.
For certain types of loans (e.g. mortgages and car loans), collateral is provided that can be applied in the event of a default on the loan, which reduces the risk of capital loss of our investment.
Finally, Quantrom strives to have a very large diversification of P2P loans, across different countries, borrowing purposes (or sectors), various platforms, financially sound loan originators and individual borrowers to further secure your investment.
What are the costs associated with the investment?
A subscription in Quantrom P2P Lending DAC profit participation notes will incur a transaction fee of EUR 50.
A management fee of 1% of the total value of the Company is charged, as well as a performance fee of 10% of the return beyond 7% in annual returns.
What is the minimum investment amount?
The minimum investment amount is EUR 10,000, following the initial purchase you may buy additional notes for a minimum amount of EUR 2,000 per purchase.
How long is the investment locked-up?
The investment is tied up for the initial 12 months, after which you can sell your notes with 1 month's notice.
How can I buy and sell Profit Participation Notes
You can buy/subscribe to notes in Quantrom P2P Lending directly on our website on the dedicated “investing” page. Similarly, you can sell/redeem your notes in Quantrom P2P Lending directly on our website on the dedicated “investing” page.
Is the investment in Quantrom P2P lending guaranteed by a public authority?
Peer-to-Peer, or P2P, lending is a new investment solution that had its start during the financial crisis in the United States and UK. In recent years, the solution is now spreading to Europe, and at present the market in Europe is not regulated by any authority. Loan originators may be regulated and supervised by each country's financial supervisory authority.
The investment is at your own personal risk and investors must be aware of and understand the risks associated with the investment and that you can lose parts or all of your investment in Quantrom.
In fact, investors are not subject to any financial compensation scheme from a public authority.
How liquid is the underlying investment?
Investing in Peer-to-Peer, or P2P, loans is a long-term investment. Signed loan agreements cannot be terminated from the lender and therefore P2P loans are illiquid by nature. There is sometimes a secondary market where loans can be traded, however, it is not particularly liquid.
As a result of this illiquidity Quantrom P2P Lending DAC has a lock-up period of 12 months for new investors.
What currency is invested in?
Investments are made exclusively in Euro.
How can I see the return on my investment?
Every month, you will receive a report per email with a detailed review of the loan portfolio. The report will include the end-of-month price per Notes and the development of the investment since the beginning of March 2017.
