DBS

59 GOJI P2P LOAN BONDS ABOUT GOJI Goji is a specialist investment platform which offers investors and intermediaries access to carefully constructed portfolios of direct lending opportunities originated over UK online direct lending platforms. Goji seeks to generate attractive returns and preserve capital by working with the best UK lending partners. Goji works with a number of UK lending platforms to provide them with investment administration and operational capability and currently provides administration to over 10 platforms, 450 investors and £4.1 million of online lending assets. Goji is based in London and was founded in January 2015 by experienced credit professionals who have worked with some of the UK’s largest banks. Before founding Goji, they worked with leading financial services businesses to provide wholesale finance to UK lending intermediaries. DEBT BASED SECURITIES OFFER Goji’s Diversified Lending Bond aims to provide a steady return in excess of 5% pa by investing across a diversified portfolio of carefully selected direct lending opportunities originated by carefully vetted and monitored UK lending partners. Returns are uncorrelated to mainstream assets, higher than those available on cash, but less volatile than traditional fixed income investments like listed bonds. The Bonds are eligible for inclusion within the Innovative Finance ISA. The Bond is issued over 1, 3 or 5 year investment terms as part of a programme of monthly issues. Investors’ returns are dependent upon the performance of underlying loans so performance can be variable. As underlying loans repay interest and capital on a monthly basis, Goji is able to automatically rebalance portfolios and manage interest rate risk and investor redemptions. The regular capital and interest cash flows from the investments into the Bond enables Goji to offer monthly redemptions with 30 days’ notice after an initial three-month period. Goji typically invests in secured assets with quality collateral to ensure downside protection and capital preservation. Goji’s January 2017 1 year diversified direct lending bond is invested in c.600 loans across 7 lending partners specialising in; secured SME, property development, supply chain finance, public sector finance and short term (revolving) SME finance. Each provider was carefully assessed prior to being included within Goji’s portfolio and each is subject to ongoing investment and operational monitoring. All loans are selected in line with Goji’s investment strategy and acquired using Goji’s proprietary investment algorithm. The portfolio seeks to achieve a high level of diversification across loans, lending partners and sectors. All loans are due to mature within the bond term to minimise maturity risk. Gross investor returns on underlying loans range from 4.0% to 13.0%. The weighted average gross return (before fees, bad debts and cash drag) at 8.9%. Goji’s fees are 0.95% per annum of the bond value. CASE STUDY LOAN CLASS ALLOCATION MATURITY DATES OF INITIAL CAPITAL INVESTMENT SME RECEIVABLES SHORT-TERM SME PROPERTY 1-3 MONTHS 4-6 MONTHS 7-9 MONTHS 10-12 MONTHS 60% 50% 40% 30% 20% 10% 25% 12% 12% 52% 0% Both charts above refer to the status of the total bond programme for the Goji Diversified P2P Lending Bonds 37% 32% 18% 13%