Not at all hot on the heels of the ThinCats Lending Club comes AIP, auto diversification across at least 10 loans.
One of the problems with TLCs was end of term liquidity, not yet sure how AIP handles this aspect.
And if TC is anything to go by 10 loans is not nearly enough for diversification, losing 10% on one default is far too big a risk.
It's not easy to fully diversify with Archover, as I've found to my cost. The same dozen or so companies keep the ball in the air through refinancing. I only managed a decent return with FC by investing in over 500 individual loans. Diversification is the key driver with any P2P investment.
There is no investment plan available at the moment as far as I can see despite it being heavily plugged by Archover on their home page. I transferred some ISA funds to the platform to put in it but it took so long for the transfer that it had filled by the time it arrived. Now the funds are just sitting in in the account idle. hugoarchover not impressed.
I am thinking of dipping my feet into Archover, I am more likely to dip into their ''The ArchOver Investment Plan'',
As there individual loan contributions are too high for me.
Any further opinions of users?
I have invested in two of their plans. The only thing I would say is that the first payment is slow to come in. I invested in investment plan 1 which was drawn down on 31 October but did not get the first interest payment until 10 January. I have also invested in plan 3 which was drawn down on 20 December and have yet to receive a payment on that (promised for the end of this month)
Edit: Come to think of it I have not received the second payment for investment plan 1 as yet which I would have thought should have been paid on 10th Feb hugoarchover ?
Just as an update, I have invested in 5 of the investment Plans. They split each plan between the loans they have under filled and do not put more than 10% of you £250 (This is the minimum that you can invest in an Investment Plan). However each of the next Investment plan's have been placed in similar loans as the previous. So after 5 investment plans, I am only invested in 10 loans, some of which they have invested my money more than once of each investment plan in the same loan.
This offers poor diversity and increases your risk. I am not impressed by this and will see how they respond to my queries before investing further.
ArchOver's Investment Plan was created with the purpose of giving Lenders access to a portfolio of businesses using a lower threshold of disposable income. With ArchOver's usual minimum pledge amount of £1,000 for investing into particular projects, it would take a much higher investment threshold to achieve the same levels of diversity offered through the Investment Plan taking into account that the Plan splits Lenders' pledges between at least 10 separate businesses.
The Investment Plan therefore allows Lenders who have potentially less available disposable income to instantly have a similar level of diversified risk as someone who may have been investing with ArchOver for several years. This offering is packaged within specific Investment Plans, and as stated on our website, investing in separate Investment Plans might not guarantee the same level of diversity offered within each particular plan, as each Plan allocates 10% of its worth to the next 10 secured projects which come to our platform.
ArchOver is looking to add many new businesses to our Platform once they pass through our credit process in order to provide greater levels of diversification to both our Investment Plan, and our Platform offerings as a whole.
If you have any further questions, please don't hesitate to get in touch on 0203 021 8100, or email us at [email protected]
Interesting thread - thanks to all for sharing their views.
I am an existing investor in Archover. I like their proposition of funding with secured corporate loans of various categories of risk. This offsets investment with other platforms more focused on consumers or property.
There are two things I would however want Archover to look at before investing more. I am on hold currently.
1. More loans to companies secured and insured on their receivables. This is of course a product already offered by classic banks, but it's a nice risk offer. I dont like the slightly opaque security on offer in some loans which seems to be creeping in.
2. Minimum loan size if still £1k is far too high. My own modelling would want to see a £250 minimum to spread risk across say £10k more attractively. Defaults happen, and have happened, which doesn't worry me. But the loan size makes them have a disportionate impact on your ROI.