happy
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Post by happy on Jan 25, 2016 21:03:06 GMT
Hi, After some months trying to build a diversified portfolio in the MLIA with limited success due to the lack of new deals, static SM etc. and in a desperate attemp not to put any more money into unsecured fixed rate loans with Frosty Conversations I recently dipped a rather large toe into the GBBA and got 60% fairly rapidly invested, but surprisingly in just 3 loans. I assume there is a 20% limit on investment into a single loan and would therefore expect to see a few more big loan chunks being purchased to get me to 100% shortly with the up-coming drawdowns.
My question is this: will the GBBA diversify further for me in any way going forward or am I stuck with these 20% loan chunks as these are an order of magnitude bigger than I would normally happily invest in one loan even with a PF. Also, is any diversification dependent on having new loans arriving into the GBBA or is there some background diversification process amongst exisiting GBBA loan part holders to even things out?
Many thanks for the help.
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jonah
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Post by jonah on Jan 25, 2016 21:24:35 GMT
Assuming you mean GBBA instead of mlia at the start of paragraph two, it's a good question. chris tweaked the algorithm used in GBBA just before all the loans dried up, so mine is 99.x % invested, but very imbalanced. I've not seen it try to rebalance beyond putting interest into different loans which will take a very long time to get there, but as I've said, the loans just haven't been there. So up to either time to tell, or Chris! |
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Post by chris on Jan 25, 2016 21:29:59 GMT
At the moment it has a 20% maximum per loan to get your funds deployed. It will then diversify over time, with another improvement to that mechanism planned in the next couple of weeks now that the deal flow is picking up nicely. Having loans available let's me do some more interesting things in that regard.
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happy
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Post by happy on Jan 25, 2016 21:48:30 GMT
Thanks Jonah and Chris for the feedback. Sounds like a little bit of patience and some more deals will sort everything! FWIW Chris, I think AC really is the best platform bar none, that is once you get your head round the fact that is does most of the hard work for you  |
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tomtom
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Post by tomtom on Jan 25, 2016 23:12:33 GMT
I have been looking at the GBBA account and had a little ammount waiting for it to be invested and have now moved most of it out and my question is what is the advatage or disadvantage of using this account rather than just investing direct into the various loans. This question all so applies to the green account.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jan 25, 2016 23:25:55 GMT
I have been looking at the GBBA account and had a little ammount waiting for it to be invested and have now moved most of it out and my question is what is the advatage or disadvantage of using this account rather than just investing direct into the various loans. This question all so applies to the green account. Both protected by a provision fund and do the work for you. You dont have to worry about reviewing individual loans and setting buy orders on each loan you wish to invest in. Against that you have no control what it invests in and you dont get the full interest rate. GEIA obviously has a distinct lack of loans to invest in.
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tomtom
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Post by tomtom on Jan 25, 2016 23:38:32 GMT
Good point. any idea what percentage of investers use this account rather than invest direct into the loans?
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tomtom
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Post by tomtom on Jan 26, 2016 8:19:17 GMT
Is any money waiting to be invested in this account still earning the going rate or only when it is allocated units?
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SteveT
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Post by SteveT on Jan 26, 2016 8:32:57 GMT
Is any money waiting to be invested in this account still earning the going rate or only when it is allocated units? If you've set it to be swept into the QAA whilst waiting to be invested then it will be earning 3.75%. If not, then it will be earning nothing.
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Post by chris on Jan 26, 2016 9:00:28 GMT
Good point. any idea what percentage of investers use this account rather than invest direct into the loans? A healthy majority of investors use one or more of our investment accounts but we don't publish precise figures.
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oldgrumpy
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Post by oldgrumpy on Jan 26, 2016 9:09:12 GMT
Good point. any idea what percentage of investers use this account rather than invest direct into the loans? but we don't publish precise figures. What does the unhealthy minority do? 
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tomtom
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Post by tomtom on Jan 26, 2016 11:33:47 GMT
A healthy majority of investors use one or more of our investment accounts but we don't publish precise figures. What does the unhealthy minority do? Wished that they had
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SteveT
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Post by SteveT on Jan 26, 2016 11:49:12 GMT
Despite the steady stream of shrapnel acquisition in my MLIA, my relatively-recently opened GBBA remains dead to the world, still holding 3 uncomfortably large chunks of 201, 222 and 223, about 50% unlent cash (kicking its heels in the QAA) and nothing else bar some pico-parts.
I'm forcing the pace by filling up the MLIA daily from the GBBA's idle cash but I'm surprised the GBBA isn't benefiting at all from the recent spate of selling. Hopefully it will wake up when all these upcoming new loans draw down ...
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Steerpike
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Post by Steerpike on Jan 26, 2016 12:29:55 GMT
Despite the steady stream of shrapnel acquisition in my MLIA, my relatively-recently opened GBBA remains dead to the world, still holding 3 uncomfortably large chunks of 201, 222 and 223, about 50% unlent cash (kicking its heels in the QAA) and nothing else bar some pico-parts. I'm forcing the pace by filling up the MLIA daily from the GBBA's idle cash but I'm surprised the GBBA isn't benefiting at all from the recent spate of selling. Hopefully it will wake up when all these upcoming new loans draw down ... Similar situation here and my GEIA has managed to get hold of £16.35! However, looking at the overall Assetz model and the range and diversity of (apparently) upcoming loans, I have been moving funds in from other platforms and thinking that Assetz will soon become my biggest and most important P2P site.
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duck
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Post by duck on Jan 26, 2016 12:53:09 GMT
My partners GBBA has been running since 04/08/2015 and as chris has said it will diversify over time. Currently she is invested in 45 different loans although 5 of these have 'holdings' below 1p.
She has 0.25% of the total fund (initial investment and interest paid so far) in the QAA.
Currently 2 loans break the 20% max at 20.393% & 20.100% - these two loans were bought when the account were set up and were initially at a higher %. As new loans are released I expect these two to settle at 20% or below.
As an early adopter of the GBBA (when there was a fair number of new loans being released) I feel that her account settled down well, however it is obviously taking longer for those that set up an account later.
Whilst I'm a MILA investor only I applaud AC for setting up this account, since it appeals to a different type of investor and so far, from my experience, it does exactly what it says it will do.
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