locutus
Member of DD Central
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Post by locutus on Jul 21, 2016 12:35:07 GMT
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Kiva
Jul 21, 2016 13:00:04 GMT
Post by stevefindlay on Jul 21, 2016 13:00:04 GMT
locutus The Kiva initiative is completely separate from Client investments. It is paid for out of the BondMason P&L (our revenue), it doesn't impact clients returns or holdings. Sorry for any confusion!
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locutus
Member of DD Central
Posts: 1,059
Likes: 1,622
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Post by locutus on Jul 21, 2016 13:06:36 GMT
locutus The Kiva initiative is completely separate from Client investments. It is paid for out of the BondMason P&L (our revenue), it doesn't impact clients returns or holdings. Sorry for any confusion! Thanks for that. That is more reasonable and also admirable. However, I still have an interest in the long term survival of the platform if I invest so can you please tell me why BM would voluntarily commit 10% of revenue (?) to charitable donations when BM will likely need every pound it can raise to reinvest in its own growth, especially when the business is at such an early stage? Don't set your house on fire to keep others warm is an old maxim that I put a lot of faith in.
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Greenwood2
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Post by Greenwood2 on Jul 21, 2016 14:47:56 GMT
You do hope to get your money back on Kiva, just no interest.
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Post by housepriceanalytics on Jul 21, 2016 18:45:36 GMT
I was also confused on kiva, whether it was with clients' money or not.
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Kiva
Jul 22, 2016 10:29:03 GMT
Post by stevefindlay on Jul 22, 2016 10:29:03 GMT
Just to add a couple of comments: Micro-lending (e.g. Kiva): we do this to support companies and individuals in developing regions, out of our own pocket. As Greenwood2 notes, the expectation is that 95% of funds are repaid over time, despite there being no interest. This isn't guaranteed, but is what Kiva et al have achieved on c.$700M of lending over the last 7 years. We feel that this is a good initiative for us to be involved in, as (i) it is closely aligned to our primary business activity (i.e. lending); (ii) is socially good; and (iii) related to locutus point, shouldn't divert significant resources away from growing our own business and improving our service for Clients. We've update the home page to make it clear that Client funds aren't invested into this initiative.
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