jlend
Member of DD Central
Posts: 1,840
Likes: 1,465
|
Post by jlend on Feb 8, 2019 13:56:49 GMT
It's not particularly easy to find the balance and coverage ratios of the provision funds. The FAQ stateswhich is apparently refering to the page reached by clicking on the 'Read More' button under the heading 'How the account works.' on each account's advertising page. Summarising the data (last updated 30th September 2018) | Account | Url | Balance | Expected
Loss | Coverage
Ratio | | Property Secured Account (PSA) | Link | £240,000 | 0.30% | 3.76x | | Great British Business Account (GBBA) Series 2 | Link | £334,000 | 0.25% | 3.27x | | Quick Access Account (QAA) | Link | £1,100,000 | 0.66% | 3.22x | | 30-Day Access Account (30DAA) | Link | £2,000,000 | 0.66% | 3.22x |
What is not clear is the state of the provision fund for the accounts now closed to new investments i.e. GBBA Series 1 and GEIA.
A stress test was last carried out on the GBBA1 and GEIA in June 2016. This is a snap shot of the GBBA1 and GEIA figures taken from the website on November 2017 prior to the figures being deleted from the website and not replaced. Great British Business Account 0.27% Assetz Capital Stress Test Expected Loss 4.33x Assetz Capital Coverage 0.39% BOE Stress Test Expected Loss 3.00x BOE Coverage Green Energy Income Account 0.06% Assetz Capital Stree Test Expected Loss 4.00x Assetz Capital Coverage 0.08% BOE Stress Test Expected Loss 3.00x BOE Coverge I cannot see a reasonable rationale why these figures have not been updated for over 2.5 years. I would have thought they would be reviewed at the same time as all the other provision fund protected accounts, the last update being September 2018. Hi stuartassetzcapital are there any plans to refresh the figures? Thanks in advance.
|
|
jlend
Member of DD Central
Posts: 1,840
Likes: 1,465
|
Post by jlend on Feb 8, 2019 14:48:58 GMT
Thanks for pointing this out sl75 . If Assetz has nothing to hide, they won't be afraid of us quoting the figures here. Actually someone already quoted the GBBA amount above, though not obviously. In any case, this is an Independent Forum. My accounts show: Green Energy Account Series 1: remaining Provision Fund amount £156,000.00. Great British Business Account Series 1: remaining Provision Fund amount £974,000.00. Without knowing how much remains invested in these accounts, it's impossible to know what this means, but the sums look entirely inadequate. The sums indeed do not appear to be calculated in real time. Some transparency on the state of these funds from Assetz is sorely needed IMHO. I did ask AC last year if they would be kind enough to tell us how much was invested in each of the GBB1 and GEIA accounts. They refused, which is a shame as it would give us some idea of the risk while we haven't had an updated stress test for these accounts for over 2.5 years now. Hi stuartassetzcapital, is there any possibility AC could reconsider and let investors know how much in total is still invested in each of the GBBA1 and GEIA accounts, together with how much is currently suspended in these accounts? Many thanks in advance for your consideration.
|
|
Brainer
Member of DD Central
Posts: 186 
Likes: 323
|
Post by Brainer on Feb 8, 2019 19:22:16 GMT
Green Energy Income Account 0.06% Assetz Capital Stree Test Expected Loss Lol. Looks like they're going to be at least 2 decimal places out, quite possibly closer to 3.
|
|
|
|
Post by bikeman on Feb 8, 2019 21:12:35 GMT
Straight comparison between AC (secured) and FC (essentially unsecured beyond PGs) doesn’t mean a lot. But AC's loans are not secured - often the security is based upon the value of the completed project and a guarantor who has nothing (or quickly moves it). Borrowers get the loan upfront, make one payment and then default. There's no security because work never started, the borrower has no assets and the guarantor runs off. Loaning to Ltd companies who create a web of cross guarantees with their other companies, none of whom have any trading history is a mugs game. I'm only surprised that the loans pass due diligence. Such as it was with the I** loans.
|
|
|
|
Post by mrclondon on Feb 19, 2019 13:17:03 GMT
The website has just been revised with 31st December 2018 data | Account | Url | Balance | Expected
Loss | Coverage
Ratio | | Property Secured Account (PSA) | Link | £322,000 | 0.30% | 5.10x | | Great British Business Account (GBBA) Series 2 | Link | £474,000 | 0.25% | 4.15x | | Quick Access Account (QAA) | Link | £1,400,000 | 0.58% | 4.23x | | 30-Day Access Account (30DAA) | Link | £2,500,000 | 0.58% | 4.23x |
For reference the 30th September 2018 data was
| Account | Url | Balance | Expected
Loss | Coverage
Ratio | | Property Secured Account (PSA) |
| £240,000 | 0.30% | 3.76x | | Great British Business Account (GBBA) Series 2 |
| £334,000 | 0.25% | 3.27x | | Quick Access Account (QAA) |
| £1,100,000 | 0.66% | 3.22x | | 30-Day Access Account (30DAA) |
| £2,000,000 | 0.66% | 3.22x |
|
|
jlend
Member of DD Central
Posts: 1,840
Likes: 1,465
|
Post by jlend on Feb 19, 2019 13:22:07 GMT
The website has just been revised with 31st December 2018 data | Account | Url | Balance | Expected
Loss | Coverage
Ratio | | Property Secured Account (PSA) | Link | £322,000 | 0.30% | 5.10x | | Great British Business Account (GBBA) Series 2 | Link | £474,000 | 0.25% | 4.15x | | Quick Access Account (QAA) | Link | £1,400,000 | 0.58% | 4.23x | | 30-Day Access Account (30DAA) | Link | £2,500,000 | 0.58% | 4.23x |
For reference the 30th September 2018 data was
| Account | Url | Balance | Expected
Loss | Coverage
Ratio | | Property Secured Account (PSA) | Link | £240,000 | 0.30% | 3.76x | | Great British Business Account (GBBA) Series 2 | Link | £334,000 | 0.25% | 3.27x | | Quick Access Account (QAA) | Link | £1,100,000 | 0.66% | 3.22x | | 30-Day Access Account (30DAA) | Link | £2,000,000 | 0.66% | 3.22x |
Still nothing from GBBA1 or GEIA ?
|
|
cb25
Posts: 3,528
Likes: 2,668
|
Post by cb25 on Feb 19, 2019 13:37:14 GMT
jlend I've just emailed AC to ask where I can find such data on GBBA1. Doubt it will generate anything, but we can't really complain if we've not asked.
|
|
cb25
Posts: 3,528
Likes: 2,668
|
Post by cb25 on Feb 26, 2019 16:58:52 GMT
Having emailed AC today asking for an (overdue) answer to my week-old question about where I can find PF data on GBBA1, all I received was: "Unfortunately, I am unable to provide immediate feedback to you regarding your question as this is something which will require input from multiple departments within our business. I will contact you again within the next 5 working days with either a full response or at the very least an update on progress."
---
19/3/19 - query now 4 weeks old and no answer from AC
|
|
|
|
Post by geoffrey on Mar 1, 2019 11:18:59 GMT
Hopefully the proposal from Assetz regarding the I******** loans will go a long way towards righting the potential Provision Fund shortfall on the GEIA series 1 account at least.
|
|
jlend
Member of DD Central
Posts: 1,840
Likes: 1,465
|
Post by jlend on Mar 1, 2019 11:31:35 GMT
I find it interesting that the coverage ratio for the QAA and 30DAA is identical.
Stuart recently posted that the PFs for these two accounts are separate.
I assumed that means the PF contributions for the 30DAA would be lower as the account pays a higher interest rate to lenders.
Hence I expected that the coverage ratio would have been lower on the 30DAA.
I guess I have missed something in my understanding.
|
|
theta
Posts: 46
Likes: 44
|
Post by theta on Mar 3, 2019 16:05:39 GMT
I assumed that means the PF contributions for the 30DAA would be lower as the account pays a higher interest rate to lenders. Hence I expected that the coverage ratio would have been lower on the 30DAA. Or it could be that the difference in interest rate between QAA and 30DAA is purely for liquidity, not credit, risk assumed. Similar to the rate difference between instant access savings and time deposits in a bank (both without credit risk given insurance). If this is the case, then the PF for both accounts are proportionally identical, similar to the underlying investments (effectively both parts of a bigger shared pool).
|
|
jlend
Member of DD Central
Posts: 1,840
Likes: 1,465
|
Post by jlend on Mar 3, 2019 18:40:31 GMT
I assumed that means the PF contributions for the 30DAA would be lower as the account pays a higher interest rate to lenders. Hence I expected that the coverage ratio would have been lower on the 30DAA. Or it could be that the difference in interest rate between QAA and 30DAA is purely for liquidity, not credit, risk assumed. Similar to the rate difference between instant access savings and time deposits in a bank (both without credit risk given insurance). If this is the case, then the PF for both accounts are proportionally identical, similar to the underlying investments (effectively both parts of a bigger shared pool). From Stuart. Are there separate PFs for the QAA and 30DAA or it is one pool of money? They are separate.
|
|
theta
Posts: 46
Likes: 44
|
Post by theta on Mar 3, 2019 22:09:00 GMT
"Separate" doesn't necessarily invalidate "proportionally identical", in line with the pool of loans that each of the access accounts participate. I can see two possibilities:
A. Same % of weighted average rate is set aside for PF. Say WA rate is 8%, and 1% is set aside as PF, then each of the access accounts has equal PF cover (even if they are in separate funds).
B. The bulk of the difference between the capped rate and the WA rate across the loan pool is going to a PF for each access account. This means the QA would have the biggest PF and the 90DA the smallest. This only makes a difference if PF funds keep accruing, in which case QA would start having proportionally higher PF, and increasingly so, compared to the other accounts.
I suspect that the first possibility above is the case (hence the coverage in the table at the beginning of the thread is the same for QA and 30DA accounts). It would be good if we had some clarification here from AC.
|
|
cb25
Posts: 3,528
Likes: 2,668
|
Post by cb25 on Mar 21, 2019 14:42:09 GMT
I emailed AC a little over 2 weeks ago to ask about the GBBA(1) PF: "Do you have current ‘investment account expected loss’ and ‘provision fund coverage’ figures for this fund?"
AC's Answer: You can find our current expected defaults and losses data here on the Defaults and Losses Page :- www.assetzcapital.co.uk/key-investing-information/defaults-and-losses/ The Show me more button on the GBBA1 will also show you the current Provision Fund amount (see below) This account is now closed to new investment. Withdrawals from your investment are possible subject to other lenders being willing to buy your saleable loan holdings on the secondary market. A request to withdraw cash from this account will put the relevant amount of your saleable loan holdings up for sale. Assuming these loan holdings sell on the secondary market it would release cash back to you for withdrawal or moving to another account. Please note that suspended loan holdings are not saleable. Suspended loans will be recovered by realising the relevant security and any recoveries will be returned to you as cash. The recovery of loans takes time and different types of security may require shorter or longer periods to realise. Each time the recovery of a loan is concluded (i.e.: all avenues of realisation have been explored fully) we will check to see if there is a shortfall of capital and, if so, we will check at that time the balance of the Provision Fund. If the Provision Fund balance is sufficient to do so a discretionary payment may be made to make good some or all of any capital loss. As each remaining loan is recovered we will advise of the Provision Fund balance remaining. The current balance of the Provision Fund for this account is £1,008,000.00. If you wish to know how much of a particular loan is in a specific account, please let me know the loan name in question.
----
I take that as "No, we don't"
|
|
|
|
Post by hammertime on Mar 21, 2019 16:23:26 GMT
Let them know the name of the company in question simples ?
|
|
