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Post by stevefindlay on Jan 18, 2017 15:52:35 GMT
My return to date is abysmal - a net £14 on a total investment of £4k deposited as follows: Nov 08 £1000 Nov 28 £1000 Dec 09 £1000 Jan 03 £1000 My settings are and always have been at 2% and autobid is on. My current investment is 58% even with the bids in January being at £90 which is higher than 2%. I am hanging in patiently because I like the concept and ease of investment but am not happy. ton27 - I'm sorry that you are not happy with performance to date. What you have seen in your account is the impact of cash-drag during the initial investment period (first month following each deposit); which has been compounded due to your deposits being spread out. The long run target is 7%+ p.a.; and we expect ~28 days for full deployment for each investment. So in the first month on each investment the expected return is ~3.5% (annualised) - that is, on average 50% of your funds are deployed on each day throughout the first month. Looking at your account, if you ignore the most recent deposit (Jan 3rd), then the longer-dated deposits are at 3.2% p.a. annualised. Which is a little behind expectations, but not unexpected given the Christmas period. Regarding the £90 allocation - the 2% setting is rounded up to the nearest whole £10. As you have over £4,000 invested (because of your return) your 2% setting is now at £90 (as opposed to the £80 that you are expecting?)
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ton27
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Post by ton27 on Jan 19, 2017 12:57:33 GMT
Thanks for the response stevefindlay which makes me a little happier. As I said earlier I will hang in for a while on the basis that it should improve. I am a little reluctant to invest more than £100 in any loan but realise that a 1% allocation will, in the future slow things down. Is it possible (in the future perhaps) to put in a monetary amount rather than a percentage?
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Post by stevefindlay on Jan 19, 2017 19:02:41 GMT
. Is it possible (in the future perhaps) to put in a monetary amount rather than a percentage? We've debated this over on the "Improvements in BondMason thread" - I can see the demand for it. At present, we are likely to introduce a 0.5% setting first. We may then introduce more advanced settings in the future, which may include absolute investment amounts.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jan 20, 2017 12:14:56 GMT
I am a newbie to this platform and I have not read all 20 pages here so apologies if duplicating.
Suppose I invest £1000 to start with, intending to increase this to £10K as my funds get invested and I want max 2% per loan when I reach the £10k. I would like to increase the Preferred Investment Concentration to 20% whilst I have £1k there then reduce it to 10% when I put in the second £1K and so on. But the only options are 1% and 2% so I can't do this. Also I note that I don't always even get 2%, so on some loans at least increasing the limit would not result in any more being invested.
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Post by stevefindlay on Jan 20, 2017 15:52:36 GMT
I am a newbie to this platform and I have not read all 20 pages here so apologies if duplicating. Suppose I invest £1000 to start with, intending to increase this to £10K as my funds get invested and I want max 2% per loan when I reach the £10k. I would like to increase the Preferred Investment Concentration to 20% whilst I have £1k there then reduce it to 10% when I put in the second £1K and so on. But the only options are 1% and 2% so I can't do this. Also I note that I don't always even get 2%, so on some loans at least increasing the limit would not result in any more being invested. littleoldlady - the only settings at present are 2% and 1%. However we are working hard to improve the loan allocation speed, and are aiming for this issue (slow deployment) to fall away in the coming weeks / months. Until then, please excuse the standard 7-28 days to be fully allocated. (And welcome to our platform as a newbie!)
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guff
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Post by guff on Jan 20, 2017 20:00:12 GMT
Both accounts hit 100% today. If they maintain close to that level then I may be tempted to throw some more your way stevefindlay.
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adrianc
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Post by adrianc on Jan 21, 2017 9:05:02 GMT
I can't see BM maintaining their performance given that in the last month, all my lending except once has been at below 7%. Also, I'm concerned that scaling back the invoice factoring will impact expected returns. My NY toedip is now up to 66% lent, 24 investments, at a snidge under 8% average. 14 are 7% or below. At the other end, there's 9 at 11% or above. Most of the loans are very short-term, though, with 17 of the 24 only having one more payment. Have to say, though, my FC "training" has that last detail worrying me gently... Last payment or two is when you get shot...
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jan 21, 2017 10:56:21 GMT
Some of the invoice financing loans are just up to a month or 3 when they start Adrianc. Not like a fc property loan in the aspect of going pop towards the end.
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Post by wickedxuk on Jan 21, 2017 10:56:26 GMT
It's also worth noting that the returns figure on the summary page is only and average of all the rates you have in your portfolio. Not a true weighted return. For someone that dumped a big lump sum not a problem as most loans will be of equal value however for those of us that have drip fed money in as it got invested this means a spread of loans at a different rate and value. Therefore the headline rate on my summary page is actually pretty inaccurate. I see no reason this can't be made a weighted return using a simple sum product equation. stevefindlay can we implement a weighted return rather then a simple average?
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Greenwood2
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Post by Greenwood2 on Jan 21, 2017 14:15:49 GMT
I was told that the 'Your Current Return' is the weighted average after 3rd party fees and before BM fees, so it's pretty much impossible to reconcile with the individual loan rates (since we don't know the individual platform fees).
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Post by portlandbill on Jan 21, 2017 15:34:00 GMT
I dipped my first toe over New Year, and am now 14% invested, six loans. Let's see how quickly it builds up. Hmm, I did the same just after the New Year, now ten loans and 21% invested Now 28 loans and 71%. Looking good.
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Post by wickedxuk on Jan 21, 2017 19:07:39 GMT
I was told that the 'Your Current Return' is the weighted average after 3rd party fees and before BM fees, so it's pretty much impossible to reconcile with the individual loan rates (since we don't know the individual platform fees). I just asked this over email and stevefindlay said it was a simply average across all loans.
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Post by stevefindlay on Jan 21, 2017 19:21:24 GMT
It's also worth noting that the returns figure on the summary page is only and average of all the rates you have in your portfolio. Not a true weighted return. For someone that dumped a big lump sum not a problem as most loans will be of equal value however for those of us that have drip fed money in as it got invested this means a spread of loans at a different rate and value. Therefore the headline rate on my summary page is actually pretty inaccurate. I see no reason this can't be made a weighted return using a simple sum product equation. stevefindlay can we implement a weighted return rather then a simple average? We're updating the headline return statistic, to make this more accurate. However, it is likely this will still be an average of the loan rates to give an indication of risk. (Perhaps we should rename it?) We are also adding a separate chart showing deployment / cash drag, as we would like this be more visible over time. (And we are also adding monthly statements) All of these to give more visibility over how returns have been achieved and are coming along.
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Post by stevefindlay on Jan 21, 2017 19:29:46 GMT
I can't see BM maintaining their performance given that in the last month, all my lending except once has been at below 7%. Also, I'm concerned that scaling back the invoice factoring will impact expected returns. We are in the closing stages of gaining exclusive access to a large (and growing) portfolio of asset-backed loans priced at 9-12%. As well as adding another exclusive property lender (with a phenomenonal track record over 10 years) with rates of 7-9%. These relationships (alongside our existing ones which have provided loans at an average of 8.5% to date) continue to give us the convinction to maintain the 7% target. Nonetheless, we would agree that we expect rates and returns to continue to fall across P2P lending in 2017.
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Greenwood2
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Post by Greenwood2 on Jan 21, 2017 20:48:05 GMT
I was told that the 'Your Current Return' is the weighted average after 3rd party fees and before BM fees, so it's pretty much impossible to reconcile with the individual loan rates (since we don't know the individual platform fees). I just asked this over email and stevefindlay said it was a simply average across all loans. Not what I was told a few months ago, maybe they have changed it? If so that means it will need correcting for 3rd party fees which means it is over estimating rates (before BM fees), I was happier with the previous definition. I queried it because I couldn't calculate the 'Your Current Return' value from my loans either by averaging or by weighting. too many loans now to try and check it, until we get a download facility.
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