ian
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Post by ian on Sept 11, 2020 7:43:59 GMT
Credit where credit is due, whilst they do swerve certain issues, AC management namely,Stuart & Chris do put their neck on the line and come on this forum and attempt to answer some of our questions. To that end I thought it might be useful having a thread formally requesting information.
Here is my starter for 10.
Given you indicated quote “Cash up and profits looking good for the year”
1. Will you be reversing the cuts in interest rates soon?
2. Could you enlighten us all as regards the cash position for each of access accounts 1/3/20 & 1/9/20? Additionally how much is set for withdrawal?
3. How much exposure do the access accounts have to further tranche funding?
4. At what date do you envisage all redeemed capital will be returned to investors rather than used to fund further tranches.
5. What provision out of Assetz Capitals earnings is now being set aside to fund the provision fund. (excluding lender fees or reduced returns to investors).
Thank you in Advance
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Post by stuartassetzcapital on Sept 11, 2020 17:03:04 GMT
Thank you Ian. Our new 'Ask Our Panel' feature will make sure these sort of questions get addressed and answered where possible on the main website to ensure full exposure of the information to all our investors. No harm in those being copied back over here. The latest lender bulletin is about to be sent out and that says how to send in the questions. In the meantime some are below.
Question 4 is already described as part of the public operation of the AAs. Some of the loan redemptions go to fund withdrawals and the primary way to exit early is demand from other investors. We don't plan to change this operational rule of the AAs.
Question 5 is simple and not likely to be answered again on the main site as its part of our PF description already - other than occasional seed funding of the PF from time to time we don't divert our own earnings over to the PF, it is entirely funded from the difference between MLA rate received and the payable / target rate for the account.
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ian
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Post by ian on Sept 12, 2020 10:31:03 GMT
Thank you Ian. Our new 'Ask Our Panel' feature will make sure these sort of questions get addressed and answered where possible on the main website to ensure full exposure of the information to all our investors. No harm in those being copied back over here. The latest lender bulletin is about to be sent out and that says how to send in the questions. In the meantime some are below. Question 4 is already described as part of the public operation of the AAs. Some of the loan redemptions go to fund withdrawals and the primary way to exit early is demand from other investors. We don't plan to change this operational rule of the AAs. Question 5 is simple and not likely to be answered again on the main site as its part of our PF description already - other than occasional seed funding of the PF from time to time we don't divert our own earnings over to the PF, it is entirely funded from the difference between MLA rate received and the payable / target rate for the account. Thank you for responding it would be useful for items 1/2/3 to be openly detained on the site. As regards 4 - Can I ask you when are you going to adapt to the new Normal market conditions and recognise that you will have little or no new capital in flows. We need AC to come clean with the access accounts and give us investors a realistic timescale when all our capital will be returned. Changing the names of the accounts from 30/90 day to more realistic timescale might be a start.
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Post by stuartassetzcapital on Sept 12, 2020 10:35:06 GMT
Normal Market Conditions for the Access Accounts will necessitate substantial capital inflows again rather than the opposite. Greater demand to invest than withdraw. How long it takes to reach that is very much in investors hands and in turn on their view on economic conditions imposed on all of us.
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puddleduck
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Post by puddleduck on Sept 12, 2020 10:55:07 GMT
Normal Market Conditions for the Access Accounts will necessitate substantial capital inflows again rather than the opposite. Greater demand to invest than withdraw. How long it takes to reach that is very much in investors hands and in turn on their view on economic conditions imposed on all of us. Hello Stuart In my view, this is an existential problem, and I feel it is unlikely the Access Accounts will ever return to normal market conditions. To solve the problem, as you say yourself you need new capital inflow - but there is zero incentive for new investors to invest, and be locked in for an indeterminate amount of time. And there is a risk that requiring new investors to pay back old investors in the withdrawal queue can start to feel a little like a pyramid scheme, although I absolute accept it's not. The other side of the coin is to try to encourage existing investors to cancel their withdrawal requests to try to balance inflows and outflows. But for many / most, the reasons for withdrawing in the first place have not changed, and indeed the situation has got worse - the risk / reward ratio due to the interest rate cuts has substantially shifted, especially for those in 30DAA / 90DAA.
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ian
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Post by ian on Sept 12, 2020 11:34:54 GMT
Normal Market Conditions for the Access Accounts will necessitate substantial capital inflows again rather than the opposite. Greater demand to invest than withdraw. How long it takes to reach that is very much in investors hands and in turn on their view on economic conditions imposed on all of us. Sorry Stuart but this is the new normal - this has been the case for 6 months now. Calling your access accounts 30/90 day accounts is tantamount to fraud and certainly contravenes trade descriptions. There may never be capital substantial inflows (everything AC has done in the past 6 months discourages investors). If you don’t appear to have a plan to deal with the new normal. Can you give us an indication based on current modelling how many years our funds will be locked in these “access accounts”?
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Post by stuartassetzcapital on Sept 12, 2020 11:55:07 GMT
We disagree, This is the usual difficult period between the many boom years as each economic cycle ends and then starts again. Normal Market Conditions are widely expected to return in due course as they always do. There is no evidence at all that the economy will end up suppressed and not growing ever again, indeed the GDP charts show that it is indeed returning. If the facts change we may change our minds of course but no sign of that at present.
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ian
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Post by ian on Sept 12, 2020 12:10:08 GMT
We disagree, This is the usual difficult period between the many boom years as each economic cycle ends and then starts again. Normal Market Conditions are widely expected to return in due course as they always do. There is no evidence at all that the economy will end up suppressed and not growing ever again, indeed the GDP charts show that it is indeed returning. If the facts change we may change our minds of course but no sign of that at present. Maybe if you share with us the levels of net investment in the access accounts over the past 6 months & the amount up for withdrawal/ commited to funding tranches is investors might share your view. To the nearest £m in the past 6 months - how much fresh investment has gone into the access accounts from retail investors? PS don’t recall any boom years 😀
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sl75
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Post by sl75 on Sept 12, 2020 15:52:16 GMT
To solve the problem, as you say yourself you need new capital inflow - but there is zero incentive for new investors to invest, and be locked in for an indeterminate amount of time. On the contrary, there is currently slightly over an 8% incentive for new investors to invest, and be locked in for an indeterminate amount of time.
That's plenty enough for me, and my Access Account balances have gone from essentially 0% of my AC total to 18% and rising, over half of which has been new funds from outside the platform. Most of this is in the 30 or 90DAA, given that I figure there's negligible chance of NMCs returning within that time scale, so might as well get the slightly higher interest rate while I wait.
By the time the incentive goes away (i.e. new investment is only available at par), the perceived problem of being "locked in for an indeterminate amount of time" would also have gone away (the only reasons the incentive of being able to invest at a discount would disappear completely would be that "normal market conditions" have returned, or the market rules have fundamentally changed in some other way).
Unlike previous incentives, this one comes directly from panic-sellers, rather than from AC's balance sheet, so everyone's happy, except for any panic sellers who may later have sellers remorse if/when NMCs return and they realise they've unnecessarily given away the equivalent of more than 2 years' interest just to access funds a few months earlier.
They'll undoubtedly need to attract slightly different types of investors the next time round, as those who previously thought the Access Accounts' disclaimers about not being a savings account were just legal boiler plate with no practical consequences (possibly having been told as much by the unregulated marketing of "refer a friend", where nobody will be checking compliance of everything the friend says), have now discovered that those disclaimers did really mean what they said.
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jlend
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Post by jlend on Sept 12, 2020 20:07:55 GMT
Normal Market Conditions for the Access Accounts will necessitate substantial capital inflows again rather than the opposite. Greater demand to invest than withdraw. How long it takes to reach that is very much in investors hands and in turn on their view on economic conditions imposed on all of us. Should we assume new lending in the Access accounts does not restart until this happens? Are there any thoughts on restarting development loans outside the access accounts in the meantime? Without using the access accounts to fund tranches in new loans.
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Post by investor01010101 on Sept 16, 2020 16:14:42 GMT
With 85% + of my portfolio suspended due to bad debtors including the infamous D******* M***** loan, I ask do AC not care about lenders at all and how do you sleep at night? www.assetzcapital.co.uk#Capitalatrisk. <<<<<<<<<<<<<<<< The truest statement AC have ever made |
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Post by stuartassetzcapital on Sept 16, 2020 19:55:29 GMT
With 85% + of my portfolio suspended due to bad debtors including the infamous D******* M***** loan, I ask do AC not care about lenders at all and how do you sleep at night? www.assetzcapital.co.uk#Capitalatrisk. <<<<<<<<<<<<<<<< The truest statement AC have ever made From a factual basis your portfolio is not in the slightest representative of the loan book. The vast diversification and 100% tradeability of Access Account loans today means that you must be holding a handful of MLA loans - either because large numbers of others have repaid and left you with a few suspended at present or because you got unlucky with a few manually picked ones. We totally care about lenders and their returns and almost every single lender has positive investment returns over their hold period and most have very substantial profits relative to the alternative investments and savings accounts we set out to beat. Perhaps you are one of those handful of unlucky ones but perhaps you have had the past profits and have a few suspended left. I sleep very well as the loan book has risk, and that’s necessary to create these returns but we do not see the data on the loan book as a whole as being in any kind of trouble and are content with the current target rates on the AAs for now and would like to raise them in due course as the next move. Versus the performance of the wider investment asset classes in this crisis we are doing relatively well and don’t see that changing based on data available today. I hope that helps but it’s not advice, just a fair answer to your question.
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travolta
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Post by travolta on Sept 16, 2020 20:13:16 GMT
With 85% + of my portfolio suspended due to bad debtors including the infamous D******* M***** loan, I ask do AC not care about lenders at all and how do you sleep at night? www.assetzcapital.co.uk#Capitalatrisk. <<<<<<<<<<<<<<<< The truest statement AC have ever made From a factual basis your portfolio is not in the slightest representative of the loan book. The vast diversification and 100% tradeability of Access Account loans today means that you must be holding a handful of MLA loans - either because large numbers of others have repaid and left you with a few suspended at present or because you got unlucky with a few manually picked ones. We totally care about lenders and their returns and almost every single lender has positive investment returns over their hold period and most have very substantial profits relative to the alternative investments and savings accounts we set out to beat. Perhaps you are one of those handful of unlucky ones but perhaps you have had the past profits and have a few suspended left. I sleep very well as the loan book has risk, and that’s necessary to create these returns but we do not see the data on the loan book as a whole as being in any kind of trouble and are content with the current target rates on the AAs for now and would like to raise them in due course as the next move. Versus the performance of the wider investment asset classes in this crisis we are doing relatively well and don’t see that changing based on data available today. I hope that helps but it’s not advice, just a fair answer to your question. As another victim of the D...M.. loan, I feel that this particular ' handful' was treated to cavalier practice and large portion of my a/c investment was squandered , I was led to believe that exposure to loans to be evenly distributed only to find you had dropped a huge chunk on a dead horse that continues to be flogged. Unlucky, no. Poorly served,yes. Perhaps you could care to admit that you messed up quite badly here?
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Post by bracknellboy on Sept 17, 2020 7:06:03 GMT
From a factual basis your portfolio is not in the slightest representative of the loan book. The vast diversification and 100% tradeability of Access Account loans today means that you must be holding a handful of MLA loans - either because large numbers of others have repaid and left you with a few suspended at present or because you got unlucky with a few manually picked ones. We totally care about lenders and their returns and almost every single lender has positive investment returns over their hold period and most have very substantial profits relative to the alternative investments and savings accounts we set out to beat. Perhaps you are one of those handful of unlucky ones but perhaps you have had the past profits and have a few suspended left. I sleep very well as the loan book has risk, and that’s necessary to create these returns but we do not see the data on the loan book as a whole as being in any kind of trouble and are content with the current target rates on the AAs for now and would like to raise them in due course as the next move. Versus the performance of the wider investment asset classes in this crisis we are doing relatively well and don’t see that changing based on data available today. I hope that helps but it’s not advice, just a fair answer to your question. As another victim of the D...M.. loan, I feel that this particular ' handful' was treated to cavalier practice and large portion of my a/c investment was squandered , I was led to believe that exposure to loans to be evenly distributed only to find you had dropped a huge chunk on a dead horse that continues to be flogged. Unlucky, no. Poorly served,yes. Perhaps you could care to admit that you messed up quite badly here? I think the term 'cavalier' is a reasonable description of the handling of the v. large loans/connected loans fiasco in the GEIA and GBBA. I wouldn't apply it to much else AC related, but here I would. To AC, who were the ones with the best knowledge of their loan initiation pipeline and likley funds inflow, the reality of how these would play out in terms of loan distribution within the accounts would have been known. In fact I've said before that I think the primary function of these accounts was precisely to act as underwriters of large/outsized loans. They were therefore effectively keeping their fingers crossed that either the loans never turned bad, or that the %age holdings would get diluted before anything bad happened. They didn't, and many of us are stuck with 20% holdings in single (or connected) bad loans.
Whether the plan of making good on the WTs manages to reach full fruition is a moot point. Whether DM ever manages to come right is an even mooter point.
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criston
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Post by criston on Sept 17, 2020 14:11:24 GMT
Now that your company has benefited from cheap government loans, furlough payments, reducing staff salaries & most of all 0.9% pa. charges from lenders; will those lenders charges cease on 1/10/20.
I never agreed to that charge in the first place as your company was not transparent about the benefits your were about to receive from the government.
Therefore perhaps you would enlighten us as to the value of government benefits you have received to date, which I assume will be shown in your accounts.
This is something you could have made public before you are actually asked.
I am not aware of forthcoming information on this point & apologies if this is already in the public domain.
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