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Updates
14 Jan 2021
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5 minute read

Provision Fund and Loan Book Update: Q3 FY21

Explore our quarterly report in relation to the Plenti Lending Platform (PLP) loan book and the performance of the provision fund.

We are pleased to provide a quarterly data report in relation to the Plenti Lending Platform (PLP) loan book. The PLP is a registered managed investment scheme with over 20,000 members (who are predominantly retail investors) and is one of the diverse funding platforms utilised by Plenti to fund loans.

The data in this post provides members who invest via the PLP with transparency as to the credit characteristics of the PLP loan book and information in relation to the Provision Fund. Shareholders in Plenti Group Limited should be aware that the data provided only relates to the PLP and does not provide a complete picture of Plenti's total loan portfolio, including its loans funded via warehouse structures and the Plenti Wholesale Lending Platform.

Shareholders should refer to the quarterly trading update released to the ASX on 12 January 2021 for data in relation to the performance of the total Plenti loan portfolio.

Provision Fund performance and coverage ratio

We are pleased that despite the significant economic disruption caused by COVID-19, the Provision Fund has continued to compensate investors for all borrower late payments and defaults.

The Provision Fund buffer also increased to $20.4 million as at 31 December 2020, representing a Provision Fund coverage ratio of ~177% of expected credit losses. This coverage ratio has increased materially from the 157% reported for the end of September 2021.

Note that the Provision Fund is not an insurance product nor a guarantee. You should read the PDS for more information about the Provision Fund.

Provision Fund and expected loss data as at 31 December 2020

Cash in Provision Fund1 $13,599,762
Expected Provision Fund inflows2$6,773,050
Provision Fund buffer3$20,372,812
Estimated Provision Fund coverage ratio4177%
Claims made on Provision Fund to date100% of late payments and defaults
Claims paid by Provision Fund to date100% of total claim value

PLP lending statistics as at 31 December 2020

Total amount lent5$793,227,217
Total principal repaid$493,922,434
PLP loan book$299,304,783
Number of loans outstanding26,260
Average outstanding loan amount$11,398
Weighted average remaining term37 months

PLP loan and borrower characteristics

Distribution is as at 31 December 2020 and based on principal amount outstanding.

The information contained in this blog is accurate only at the date of publication. Expected losses and the performance of the Plenti Lending Platform loan book cannot be known with certainty and expectations are subject to change. Lender rates may assume your investment is protected by the Provision Fund in the event of any borrower late payment or default, however, there is no guarantee nor warranty as to any protection from the Provision Fund. Fees apply. Capital at risk. See the PDS and SPDS for details.

This information should not be taken as financial product advice and has been prepared as general information only without consideration of an individual’s particular investment objectives, financial circumstances or needs. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) available on our website to decide if this product is right for you. 

All figures stated represent the Plenti Lending Platform (ARSN 169 500 449) only unless stated otherwise.

The availability of the Early Access Transfer Feature is at Plenti's discretion and is subject to the terms and conditions set out in the PDS.

Issued by Plenti RE Limited ABN 57 166 646 635 AFSL 449176. Capital at risk. Past performance is not a reliable indicator of future performance. 

1 Lending statistics since inception

1 Funds currently held as cash at bank

2 Expected Provision Fund inflows represents contracted PLP borrower contributions to the Provision Fund due over the lifetime of outstanding PLP loans, adjusted to reflect expected early repayments and bad debt

3 Provision Fund buffer is the sum of money in the Provision Fund and expected future Provision Fund inflows

4 Provision Fund coverage ratio is calculated as estimated future lifetime losses from the current PLP loan book over the Provision Fund buffer

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Important information*

This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of Plenti as at the date of publication and may later change without notice.

Acknowledgement of Country

Plenti respects and honours Aboriginal and Torres Strait Islander Elders past, present and future. We acknowledge the stories, traditions and living cultures of Aboriginal and Torres Strait Islander peoples on this land and commit to building a brighter future together.

We recognise the Gadigal people of the Eora Nation, who are the traditional custodians of the land on which Plenti’s Sydney office stands, and the Kaurna people as the traditional owners of the Country where our Adelaide team is located.