Hamburg (www.fondscheck.de) – The nordIX European Consumer Credit Fonds (ISIN DE000A2P37M1 / WKN A2P37M) continues to show good results, according to the experts at nordIX AG.
The consumer credit investment represents the disruption of the banking business.
With the European Consumer Credit Fund, the Hamburg-based fixed income specialist nordIX AG is giving investors access to European consumer credit. The strategy gained 1.33 percent in the third quarter and 4.33 percent since the beginning of the year. The fund has therefore been able to achieve a stable return of 6.5 percent after all costs over the course of the year so far.
The risk indicators also speak for the viability of the fund: the one-year volatility is 0.48 percent, the Sharpe ratio is 4.00. This figure represents a strongly risk-adjusted return. The fund recorded its 23rd positive month in a row in September. The nordIX European Consumer Credit Fund is the first investment fund of its kind in Europe, is not correlated with the capital market and is hardly sensitive to interest rates.
Consumer loans are loans granted to consumers for personal, family or household needs. Digital lending describes the growing granting of loans via online platforms. More borrowers are looking online for quick and convenient deals, allowing lenders to process loans faster, more efficiently and often more cost-effectively than traditional lending. The online marketplaces are in competition with banks, which also makes the conditions for investors on the platforms competitive.
This means: “The principle of the fund corresponds to that of all private debt products, namely lending without a bank. Therefore, the European Consumer Credit Fund stands for the disruption of the banking business by lending money on a small scale. This gives investors access to these loans without to have to pay the bank,” says Claus Tumbrägel, CEO of nordIX AG. “Through our ‘nordIX European Consumer Credit Fund’, we are opening up the opportunity to generate continuous income with a balanced European portfolio through investments in consumer loans and at the same time to commit ourselves to democratizing the credit market,” emphasizes Claus Tumbrägel.
In the past few months, the portfolio management under Claus Tumbrägel has made an increased reallocation from loans in countries that tend to have low interest rates to higher interest loans, primarily from Northern Europe. An increase in interest rates due to the low average term of a repayment loan of 1.6 years in the portfolio is noticeable, and repaid loan installments are immediately reinvested in higher-interest loans with the same risk profile. The following applies: despite increased interest rates, the default rates remained constant, which further underlines the robustness and stability of the portfolio.
The fund management reduces investments if performance weakens and also terminates the cooperation completely if problems arise with platforms. For 2025, management also expects a return of over 6.5 percent due to further diversification, particularly through the further onboarding of platforms in Latvia and Sweden. (10/14/2024/fc/a/f)
