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Post by gravitykillz on Dec 2, 2018 11:38:29 GMT
I have totally pulled out of fc due to more losses. Am now 60% in RS and 40% in lending works. Which i believe are safer products.
Funding circle experience has declined since they changed the format. Was fun when you could pick the interest rate.
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Post by mrclondon on Dec 2, 2018 12:09:27 GMT
On the otherhand I pulled out of FC whilst the product was rigged in favour of flippers, and re-entered earlier this year gradually feeding funds into an ISA during February and March.
For each platform I record cashflows into /out of the account so I can calculate the XIRR (AER equivalent).
As of 30th Nov my ISA account is showing a XIRR of 6.02% pa over the 10 months. Few if any of the (yes, sizable number of) defaults have as yet made much progress on recovery front, so I'm very happy with performance thus far, especially as there was some cash drag whilst I was feeding the funds in. (In detail the account has 550 loans; of which 10 bad debt, 13 late and 51 repaid. Of the 10 bad debt 3 were SM purchases, of the 13 late 4 were SM purchases. Of the 550 loans 96 were SM purchases.)
My non-ISA FC account with loans from 2010-2013 has 1 active loan with its last payment this week, and over the 8 years the account has been open the XIRR is 7.4%. Recoveries on defaulted loans have been much higher than I was expecting, but it takes years for this to become apparent.
FC is not a savings account, it is an investment which has to be evaluated over a 10 year horizon.
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Post by gravitykillz on Dec 2, 2018 12:40:18 GMT
I am getting 6.50% on the 5 year with lending works. And that is backed with insurance and a provision fund.
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Post by gravitykillz on Dec 2, 2018 12:42:52 GMT
Oh and me and the mrs got a £50 bonus as well for me referring her.
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Stonk
Stonking
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Post by Stonk on Dec 2, 2018 19:49:04 GMT
FC is not a savings account, it is an investment which has to be evaluated over a 10 year horizon.
With the rate at which one of my loans is repaying, I view FC as an investment to be evaluated over a 10,000 year horizon!
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Post by gravitykillz on Dec 2, 2018 20:39:03 GMT
Funding circle was a good p2p lender between 2010 and 2015. But has since declined. The loans they write are terrible as well. Im sure even my cat would be approved for a FC loan.
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wysiati
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Post by wysiati on Dec 3, 2018 0:23:05 GMT
Funding circle was a good p2p lender between 2010 and 2015. But has since declined. The loans they write are terrible as well. Im sure even my cat would be approved for a FC loan. computer says meow
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r00lish67
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Post by r00lish67 on Dec 3, 2018 3:04:05 GMT
Funding circle was a good p2p lender between 2010 and 2015. But has since declined. The loans they write are terrible as well. Im sure even my cat would be approved for a FC loan. computer says meow And in the olden days your cat's loan could have been called " A Purrrfect investment" or "Invest in Puss" ...or...something better. Edit: A Catalyst for Growth?
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Stonk
Stonking
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Post by Stonk on Dec 3, 2018 10:27:14 GMT
And in the olden days your cat's loan could have been called " A Purrrfect investment" or "Invest in Puss" ...or...something better. Edit: A Catalyst for Growth?
These days it would be "Puss Filling Boots", before grudgingly coughing up furballs for a couple of months and then vanishing into the sunset chasing a speck of dust.
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ashtondav
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Post by ashtondav on Dec 3, 2018 10:38:03 GMT
The returns of the investment trust must approximate lenders' returns. The IT asset value increased 6.2% in 2016 6.5% in 2017 and .......... 2% year to date. These returns include re invested income and capital. Add on a % or so for the IT costs and you would expect the average lender to getting say 3% this year. Total return since inception in november 2015 has been 15%.
The IT has a trailing dividend yield of c6%.
So, quite a distance from "loss making".
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Post by mrclondon on Dec 3, 2018 11:59:02 GMT
ashtondav - worth remembering though that a significant chunk (third ??) of the investment trust is invested in FC America which may be performing differently to UK, and will be subject to currency fluctuations when reporting NAV in GBP.
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ashtondav
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Post by ashtondav on Dec 3, 2018 13:32:51 GMT
ashtondav - worth remembering though that a significant chunk (third ??) of the investment trust is invested in FC America which may be performing differently to UK, and will be subject to currency fluctuations when reporting NAV in GBP. Granted. But it remains a decent approximation - and need a decent alternative!
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Post by hammertime on Dec 3, 2018 16:46:22 GMT
I'm getting 11% A/C. Glad i got out of F/C when i did.
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ashtondav
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Post by ashtondav on Dec 3, 2018 17:26:58 GMT
Not much available on AC at 11%. Good luck with their defaults and "provision fund". Rest assured you won't end up with 11%!
I was simply using the FC IT as a proxy for FC expected returns
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Post by hammertime on Dec 4, 2018 10:39:19 GMT
I have been doing very well for the last year and a half at A/C thank you very much. when the interest rates drop i will move on to pastures new. Much better than F/C and i have had no defaults yet .Maybe you have just been unlucky?.
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