“Lend-to-save and crowdfunding have become popular areas for investors in recent years and have become an interesting area for debt-focused investment trusts. There are now three investment trusts that put money into these peer-to-peer lending platforms that bypass the banks to connect lenders and borrowers and offer yields of up to 10 per cent.
But these trusts’ share prices trade at a premium to the assets they hold and have hefty performance fees, making them look expensive. So the question you must ask is would you be better off access this growing industry through an investment trust or just going direct to the platforms yourself?”