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Post by newlender on Jun 19, 2018 12:36:22 GMT
Well, my first ever ISA loan was made on June 19th last year. I was fully funded (£20k) by late summer, added £5k by pre-funding in April and have added £2k since then. Total =£27k
This morning I had made £919 interest and had defaults of £115, making a net profit of £804. As I added the £2k only this month I'll use a rough figure of £25k invested overall to give me a net profit of 3.21% (3.68% before defaults) My portfolio is 85% Core.
Question is, am I taking too much risk for that kind of return? I'm not unhappy and will continue to invest until cash interest rates improve, but it does make you think...…….
(Why don't Zopa do a 'Since inception' statement on the Statements page, by the way?)
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aju
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Post by aju on Jun 19, 2018 15:09:49 GMT
Well, my first ever ISA loan was made on June 19th last year. I was fully funded (£20k) by late summer, added £5k by pre-funding in April and have added £2k since then. Total =£27k This morning I had made £919 interest and had defaults of £115, making a net profit of £804. As I added the £2k only this month I'll use a rough figure of £25k invested overall to give me a net profit of 3.21% (3.68% before defaults) My portfolio is 85% Core. Question is, am I taking too much risk for that kind of return? I'm not unhappy and will continue to invest until cash interest rates improve, but it does make you think...……. (Why don't Zopa do a 'Since inception' statement on the Statements page, by the way?) Or a "Previous 12 months" one as well although to be fair is not that hard to do that one based on the monthly statements, since 2015 anyway. I must do my ISA similarly to see what it comes out. Mine is nearer 22% Plus, 78% Other ( of which Classic (xfrd) 10%, 68% Core). It will be much more difficult to gauge true earnings as well as I have had quite a few bursts of different funding over the year. I'll try and see what I have on the monthlies and also the last 12 months by column counts
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zlb
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Post by zlb on Jun 20, 2018 15:14:42 GMT
I have a roughly similar earnings. The question I ask is, 'is it worth it with the DD* required and with the loan sale fee of 1%' for one year? Although I might prefer the idea of my money being elsewhere, the loan sale fee knocks down earnings by such an amount that I hold off. *DD on platform continuing stability, individual loans, etc.
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ashtondav
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Post by ashtondav on Jun 20, 2018 16:54:50 GMT
Er, sorry, what DD is or can be applied to ZOPA? They’re simple black box accounts from a company that’s been operating for 13 years.
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Greenwood2
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Post by Greenwood2 on Jun 20, 2018 19:31:46 GMT
My Zopa ISA seems OK so far a bit over 4%.
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aju
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Post by aju on Jun 21, 2018 10:01:24 GMT
So i finally got round to having a look at the previous 12 months rolling figures and for me it makes interesting reading when looking at the progress of the ISA side. I have roughly 20% Plus and 80% other in both sides. Up till december the Classic was predominant in the invest side - in the ISA it was not until Feb this year when I transfered 5k Over.
(Not including 0.5% early adopter)
Invest June-May 4.22%
ISA June(26)-June(21) 4.57%
In the more mature Invest side, with relending on, the defaults are much less marked than the defaults in the much less mature ISA. Also the ISA side has and still is having considerable new daily investments made.
Since Nov in the ISA it seems that defaults have now become quite prevalent but fortunately they are all £10 or less due to my strategy of limiting lending rates to keep to £10 loans.
One thing is clear from visible looks at the monthly rates in the ISA, where there is no relend as I am controlling newlend rates, that the defaults are hitting investment harder than in the slower paced defaults rates in the Invest side.
Its seems clear from my monthly cumulative rates that reducing the lending - I transferred 5k from Invest to ISA in Feb - that existing defaults have a higher impact on the lower returns and give a sense of worsening interest rates, this should level out I feel over the next 12 months.
For me a lot of what I am seeing reinforces some views that this is really a 5 year investment prospect not a 12 month one but as I always say "time will tell"!. Looking at this over the next year will be interesting in that I will have stopped injecting new money and only relending will be in effect again. I do believe this will stabilise the defaults situation.
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