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Post by vanessaiman on Oct 26, 2016 16:20:23 GMT
Hi vanessaiman - could you please clarify if I invest (eg) £1000 and this gets spread over (eg) 10 loans - do you continue to diversify these funds to get me into 40 loans? so am i reduced on some initial loans and subsequently put into others? and does it always stop at 40 loans? Hi dandy, I hope all is well. If you were to invest £1000 this will be spread across our available loans. Our automatic diversification is a feature that will be worked on but doesn't currently happen. You're correct, it stops at 40 the reason being that there is a very marginal reduction of risk for a portfolio above 40. Please do let me know if you have further questions. Best, Vanessa
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james
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Post by james on Oct 26, 2016 16:54:25 GMT
Wanting to get the money back out, I go to 'withdraw' but can only withdraw invested funds. I had a similar problem and I phoned them up and they were able to manually return my money. The person I spoke to was very impressive. Ant THAT is the sort of feedback that can really help to sell a platform! Problems are inevitable, but impressive customer service dealing with it is very positive.
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james
Posts: 2,205
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Post by james on Oct 26, 2016 17:00:09 GMT
You're correct, it stops at 40 the reason being that there is a very marginal reduction of risk for a portfolio above 40. While I read the paper justifying that, sadly it's wrong. Not about the risk that it considered. About the behavioral finance issues and human retail investors. There is a substantial difference between having 2.5% of your money tied up in a non-performing loan and having say 0.5% tied up and at least 200/0.5% or so is the sort of thing that historically Zopa has done. It's a bit like academic studies that look at annuity returns compared to gilts and conclude that they offer good "moneys worth" then I look at them and observe that they are lousy value for money because twice the inflation-linked income is available from state pension deferral for typical pot sizes at typical annuity buying ages. Right in the bit the paper is considering, wrong in the bigger picture. Naturally the people at Octopus Choice will be very well aware of the risk aspects but the behavioral finance aspects are perhaps an area that may merit some reconsideration.
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upland
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Post by upland on Oct 27, 2016 6:50:40 GMT
Vanessa , One of my loans has finished so I have gone from from being invested in 29 to 28 loans. This £34 has been there for a day but there are 8 open loans. I have £64 in two of my active loans and £2 in another with a spread between these two figures. Why cannot I have some of these open loans to re-invest in. I had to wait some time to invest my interest which is probably where the £2 loan is so that must be quite new and only a few days old ?
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upland
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Post by upland on Oct 27, 2016 6:59:31 GMT
I see that an "Adviser" tab has appeared and their interest rate is about 5.5%. Vanessa , do the advised get a higher interest rate than the un-advised ?
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Post by pedz14 on Oct 27, 2016 7:18:11 GMT
Vanessa , One of my loans has finished so I have gone from from being invested in 29 to 28 loans. This £34 has been there for a day but there are 8 open loans. I have £64 in two of my active loans and £2 in another with a spread between these two figures. Why cannot I have some of these open loans to re-invest in. I had to wait some time to invest my interest which is probably where the £2 loan is so that must be quite new and only a few days old ? Similar position here. One of my loans repaid a few days ago for £17. Have currently got 26 open ranging from £10 - £95. My question is when loans are repaid does that money go to the back of the queue?
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Post by vanessaiman on Oct 27, 2016 8:54:12 GMT
I see that an "Adviser" tab has appeared and their interest rate is about 5.5%. Vanessa , do the advised get a higher interest rate than the un-advised ? Hi upland, Advisers and independent investors all receive the same target rate that is shown on our website. As all the interest rates are targeted around the loans available we wouldn't be able to create two different interest rates. Best, Vanessa
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Post by vanessaiman on Oct 27, 2016 9:00:18 GMT
Vanessa , One of my loans has finished so I have gone from from being invested in 29 to 28 loans. This £34 has been there for a day but there are 8 open loans. I have £64 in two of my active loans and £2 in another with a spread between these two figures. Why cannot I have some of these open loans to re-invest in. I had to wait some time to invest my interest which is probably where the £2 loan is so that must be quite new and only a few days old ? Similar position here. One of my loans repaid a few days ago for £17. Have currently got 26 open ranging from £10 - £95. My question is when loans are repaid does that money go to the back of the queue? Hi pedz14, When the loans are repaid, the money goes into the queue, which has meant that we are unable to trade unless we have the 10 loans available. Best, Vanessa
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littonowl
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Post by littonowl on Oct 27, 2016 10:59:01 GMT
My top up from last week has now been invested - a total of 34 loans @ 4.93% now. Just left with £22 of interest/cap repayment to be re-invested now.
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Post by Financial Thing on Oct 28, 2016 12:59:32 GMT
It would be nice if Octopus worked in the same manner as Wellesley where all investors were invested in all loans. The one feature I see missing from Octopus is auto-re-riversification, similar to how Wellesley rebalances funds across all loans weekly. Otherwise if I deposit more money, it could end up going into the same 10 loans I already hold.
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pauls
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Post by pauls on Nov 1, 2016 10:45:00 GMT
@vanessaim, is that £2.5m still available in the loan book? Thats looking good. I wonder how much investors funds you have chasing that?
Loan book looks quite healthy. Keep up the good work.
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littonowl
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Post by littonowl on Nov 1, 2016 15:20:48 GMT
Nice to see more detail now on the Stats page, including latest wait time (7 days at present) and a full breakdown of all the loans available including property postcode, property value, loan value, LTV and amounbt remaining on loan. This is the sort of information that gives me a lot more confidence to invest in the future. Many thanks vanessaiman for any input you had in this
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ton27
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Post by ton27 on Nov 7, 2016 13:53:23 GMT
I see the "wait" time has now extended to 10 days making any investment that much less attractive. Is the pipeline of loans sufficient to reduce the queue?
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Post by vanessaiman on Nov 8, 2016 12:35:20 GMT
I see the "wait" time has now extended to 10 days making any investment that much less attractive. Is the pipeline of loans sufficient to reduce the queue? Hi @ton277, I hope you are well. The current queue time shows how long ago the last person who was served joined the queue. It doesn’t show how long that person was waiting for their money to be invested – which could be misleading for those behind them in the queue – but instead shows when they first made their investment request. And so it’s a bit more conservative (and transparent) a figure. As always, our lending team are working extremely hard to secure additional capacity, but without compromising on our commitment to high quality underwriting Best, Vanessa
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upland
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Post by upland on Nov 11, 2016 8:27:55 GMT
I put a bit more money in on the 2nd and had a loan pay out so needing re-investment on the 1st. I am still waiting for them both to be invested. In that time I have seen the days waiting statistic go up and down and loans open number also appear. I am still un-invested. This additional waiting time is going to impact on the return. It does not seem unreasonable that every month a couple of the loans that I have part of will pay out (30 loans , approx 12-18 month duration) so the return would actually be reduced quite a bit by the wait time. I wonder if the quoted rates take this into account.
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