daveb4
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Post by daveb4 on Jan 31, 2018 20:59:25 GMT
Diversified 47% on 4 loans rest over about 80 loans. Biggest concern is the amount of interest paid certainly not anywhere near the 6.25% potential in last month.
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Post by chris on Jan 31, 2018 21:41:23 GMT
Nothing has changed. The GBBA2 algorithm is the same algorithm at present as the GBBA1, PSA, and GEIA algorithm. There's no beta testing. Nothing has changed, apart from the rate paid.  The loan matching criteria has changed, it was the algorithm that remains the same.
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Post by chris on Jan 31, 2018 21:43:51 GMT
Nothing has changed. The GBBA2 algorithm is the same algorithm at present as the GBBA1, PSA, and GEIA algorithm. There's no beta testing. what is your latest guess as to when the new algorithm will be rolled out to the old accounts. I have money waiting to be moved to platform which I wont be doing until this happens. I appreciate plans changes and suspect this isn't as easy a change as some might think but would appreciate your best guess. Commercial pressures keep pushing it back. We were targeting February but that's looking exceedingly unlikely now. March / April is more realistic. PF changes, bringing the new diversification algorithm forward onto the existing code base (but leaving the matching algorithm unchanged), and bringing the MLA into the ISA have all been prioritised over the wider changes that the new algorithm forms part of.
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jonah
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Post by jonah on Feb 1, 2018 5:36:21 GMT
Interesting choices. I agree the PF changes (assuming that means paying out for late payments in packaged accounts) is probably a good choice for high priority action and certainly one of the top two or three packaged accounts issues based on discussions here.
Getting MLA into ISA I suspect is quite complex under the hood but again will likely be a popular choice for lenders.
Im not quite sure I see the distinction between “matching” and “diversification” algorithms though? The biggest packaged account concern seem to be over concentrated investment in a small number of loans... can I ask if this is likely to be resolved in the possible February update or more likely to be in an update later in the year?
Also, whilst a minor point... does AC dislike the letter l? GEIA is now GEA and MLIA is going to MLA....*
* for the avoidance of doubt, I know this isn’t an IT issue, more general amusement about rebranding!
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Post by chris on Feb 1, 2018 6:48:42 GMT
jonah - dunno about the dropping of the I. I presume there's a good marketing / branding reason. The matching algorithm is the piece of code which selects where idle funds should be invested. The diversification algorithm is then responsible for taking a lender's existing holdings and swapping them with other lenders to achieve a better distribution amongst all loans.
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morris
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Post by morris on Feb 1, 2018 8:14:05 GMT
I'm drip feeding my funds into GBBA2 for better diversification. Is this unnecessary because the algorithm will do this anyway?
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daveb4
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Post by daveb4 on Feb 1, 2018 21:01:33 GMT
From past experience in last 2 months i funded mine and other halfs account. one account funds went across in about a week the other i drip fed which provided much better results. I am not saying this is guaranteed but worked in my case.
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Post by crabbyoldgit on Feb 2, 2018 7:55:42 GMT
I'm drip feeding my funds into GBBA2 for better diversification. Is this unnecessary because the algorithm will do this anyway? Still required, the new programs have yet to be applied, maybe this month. Looks like the much waited changes are going to be staged over a period of time prob 2 or 3 months instead of a single launch and I am grateful for that. Bitter experiences of new software always seems to result in lots of little issues, bugs and with new hardware as well a slow steady launch will suite me.
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copacetic
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Post by copacetic on Feb 2, 2018 17:48:28 GMT
Commercial pressures keep pushing it back. We were targeting February but that's looking exceedingly unlikely now. March / April is more realistic. PF changes, bringing the new diversification algorithm forward onto the existing code base (but leaving the matching algorithm unchanged), and bringing the MLA into the ISA have all been prioritised over the wider changes that the new algorithm forms part of. For what it's worth I'd suggest reprioritising it as soon as possible as the commercial pressure of losing investors will come into play. I'm a relatively new investor with AC and have a smallish amount in the GEA among other accounts to try it out. I've just had 34% of my GEA investments which were all to the one borrower suspended. This is inadequate diversification across borrowers/loans and flat out useless for a supposedly set and forget account. The early impressions I have formed of AC are they are being femotopence wise and pound foolish with my investments. And once the trust goes it's hard to win it back, just ask Lendy.
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Post by bikeman on Feb 4, 2018 15:37:03 GMT
So my original question was 'where in AC's t&cs does it say that I agreed that an acceptable level of diversification form my investment in the GEA and GBBA to be 20% of my investment in a single loan'.
No one has answered this question (and neither have AC) so I conclude that the t&cs never actually stated this, I was not made aware of it and I never agreed to it.
As such I feel that my next course of action is to formally lodge a complaint that my investment in the GEA and GBBA have been exposed to an unacceptable level of risk which constitutes negligence on the part of Assetz Capital.
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Post by bikeman on Feb 4, 2018 15:50:00 GMT
I found this in FAQs (https://www.assetzcapital.co.uk/invest/faqs), 1 - Investors, D - Assetz Capital Investment Accounts "What happens if there aren't enough loans to allocate my funds to? When you transfer funds into an investment account, the system will automatically diversify your account funds across many matching loans at any given time, with the aim of doing so in an equal and proportionate way and subject to loan availability. For example, if 50 suitable loans are available, the account will aim to invest approximately 2% of account funds into each loan. Likewise, with only five suitable loans, the account will aim to invest approximately a fifth (20%) of account funds into each loan." But that only mentions 20% as an example, not a maximum. It then goes on to say ..the actual extent of the automatic diversification may be limited unless/ until new loans become available.. I take this to mean that the investment will then diversify across new loans thus reducing the amount exposed to any single loan towards the 1% target. In my case 20% of my investment went into a single loan, which within a few weeks this loan was suspended so my investment was never diversified. A COMPLETELY UNACCEPTABLE SITUATION AND BASICALLY INCOMPETENCE ON THE PART OF ASSETZ CAPITAL.
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SteveT
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Post by SteveT on Feb 4, 2018 16:05:42 GMT
Surely it can’t have been a surprise to you that the GBBA would likely stick up to 20% of your funds in any single loan? It’s been discussed on this forum ad nauseum for years (and I see you joined the forum last March).
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Post by bikeman on Feb 4, 2018 16:10:05 GMT
Surely it can’t have been a surprise to you that the GBBA would likely stick up to 20% of your funds in any single loan? It’s been discussed on this forum ad nauseum for years (and I see you joined the forum last March). Unfortunately I joined this forum AFTER investing in the GEA. As to this folklaw about 20% diversification - it's not in ACs t&cs so no I wasn't aware of it and frankly I think it suits AC to allow this misinformation to persist.
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agent69
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Post by agent69 on Feb 4, 2018 16:11:37 GMT
It then goes on to say ..the actual extent of the automatic diversification may be limited unless/ until new loans become available.. I take this to mean that the investment will then diversify across new loans thus reducing the amount exposed to any single loan towards the 1% target. In my case 20% of my investment went into a single loan, which within a few weeks this loan was suspended so my investment was never diversified. A COMPLETELY UNACCEPTABLE SITUATION AND BASICALLY INCOMPETENCE ON THE PART OF ASSETZ CAPITAL. I think your first post summed things up quite well. So: - No guarantee on the actual level of diversification,
- No guarantee that diversification will match you own specific risk profile, and
- No moratorium on defaults when your money is invested.
If you had a loan suspended just after you invested it's not incompetence, it's just bad luck (in the same way that a loan bought on the SM via the MLIA could default the day after you purchased it). Such is the life of a P2P investor. If you can't accept that you need to sell up and move on
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Post by bikeman on Feb 4, 2018 16:18:06 GMT
It then goes on to say ..the actual extent of the automatic diversification may be limited unless/ until new loans become available.. I take this to mean that the investment will then diversify across new loans thus reducing the amount exposed to any single loan towards the 1% target. In my case 20% of my investment went into a single loan, which within a few weeks this loan was suspended so my investment was never diversified. A COMPLETELY UNACCEPTABLE SITUATION AND BASICALLY INCOMPETENCE ON THE PART OF ASSETZ CAPITAL. I think your first post summed things up quite well. So: - No guarantee on the actual level of diversification,
- No guarantee that diversification will match you own specific risk profile, and
- No moratorium on defaults when your money is invested.
If you had a loan suspended just after you invested it's not incompetence, it's just bad luck (in the same way that a loan bought on the SM via the MLIA could default the day after you purchased it). Such is the life of a P2P investor. If you can't accept that you need to sell up and move on
Not quite. I accepted a lower rate of return in the GEA in return for AC using some competence in choosing where to invest my money and providing the backup of their PF. As to selling up an moving on, believe me I wish I could but thanks to ACs excellent choice of loans my entire investment is now locked.
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