corto
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one-syllabistic
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Post by corto on Sept 23, 2021 9:18:29 GMT
I got out of AC last year, ISA transfer. Moved it all to an ISA with Fundsmith - up 17% since Jan 21. I have come to realise that the returns (afer losses) in P2P for me aren't worth all the hassle. My Fundsmith account is down 1.2% after a month since I decided to dip my toe into equities for the first time in 8 years (coincidentally lost 1% immediately then too and scarpered). Those historical numbers looked FANTASTIC, but, everybody repeat after me, "past performance is not a guarantee of future returns". I'm just hoping that the brains behind Fundsmith can dig me out of a hole rather than bury me in it. You have to compare with what the rest of the market does; especially similar sorts of investments. A months is no time anyway; and a 1.2% drop much on the small side. Fundsmith has a volatility of 13%. Expect that level of fluctuations.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 23, 2021 9:43:10 GMT
I don't see anything appealing in isolation or relatively compared to other platforms. I don't see any evidence or actions that suggest they care.
Nearly 5 years with AC. My accrued interest is now 10% of my total interest paid. My defaulted/late capital trapped in closed business accounts with no provision funds apparently is now 36% of my total interest paid. I don't think I've had any capital losses yet but I don't know how to check that, don't see that stat in my account.
Where does it end and what is my final return going to be?
The worst part by far is the lack of DD incentive and the resulting misalignment with investors interests regarding additional charges for non-performing loans. If it isn't greed and they need to do this for survival then I want out either way.
You will have had eligible capital losses for the BBA. Go to tax statements, use custom dates to generate a tax statement from 6 Apr 2015 to 5 Apr 21 and total for loans declared as losses (and recoveries from them) is down the bottom - you can then use the download CSV button at the bottom to show a spreadsheet of the individual qualifying loans. You will have to separate out the BBA data from MLA data if you use both (cant advise on that as MLA only) and organise it to see net losses. If you just one a particular tax year then do the same for the relevant year. There is indeed no declared loss stat, as AC have never crystallised a loss yet, still waiting on the functionality ... more important part of that is the decluttering of loanbooks and accrued interest. That said AIUI most loans in the BBA will still be expected to make recoveries as those that arent will have been paid out by PF ... maybe not true for more recent defaults.
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alender
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Post by alender on Sept 23, 2021 10:08:47 GMT
I got out of AC last year, ISA transfer. Moved it all to an ISA with Fundsmith - up 17% since Jan 21. I have come to realise that the returns (afer losses) in P2P for me aren't worth all the hassle. My Fundsmith account is down 1.2% after a month since I decided to dip my toe into equities for the first time in 8 years (coincidentally lost 1% immediately then too and scarpered). Those historical numbers looked FANTASTIC, but, everybody repeat after me, "past performance is not a guarantee of future returns". I'm just hoping that the brains behind Fundsmith can dig me out of a hole rather than bury me in it. Give it time, they perform well over a medium to long term and they are a good fund. Your AC AA funds would have been down a lot more when the SM opened.
For me moving from AC to REITs, miners and energy companies so far has proved to be one of the best moves I have made.
There are so many better investments than AC at present.
If I look at my largest investment with ex AC funds Supermarket REIT it has gone down probably a bit more than 1.2% in the last month but overall substantially up in about 6 months. Not sure how AC can compete with companies like this. From new report, assets value up, income up, dividend up, higher yield than ACs AAs. Assets in retail park properties rented to big supermarkets with RPI inflation linked rents, no reduction in dividends in Covid Criss, in fact they are now rising. This is not the best of my investment I made with ex AC money but one I believe is on the safer side and IMO much safer than AC.
I personally do not see the point in waiting from AC to throw a few occasional scapes at retail investors while concentrating their efforts on Government schemes.
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trium
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Post by trium on Sept 23, 2021 13:53:17 GMT
Another vote today - borrower to stump up 2% just for arranging. At least AC made some effort to justify the charges this time.
I do recognise that AC have greatly improved transparency when it comes to how much they make from originations, arrangements, "monitoring", etc. Not all sites have done so and it may be unfair that AC attract criticism while other sites escape it because people can't complain about things they don't know about.
Nevertheless, most re-fis recently have been at lower rates than the original loan. Fair enough, going rates have fallen. So I'm not sure why extensions are costing borrowers so much more. On the face of it, I benefit from a (slightly) enhanced return but the shaking down of my borrower significantly increases the risk of trouble ahead.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 23, 2021 14:25:08 GMT
Another vote today - borrower to stump up 2% just for arranging. At least AC made some effort to justify the charges this time. I do recognise that AC have greatly improved transparency when it comes to how much they make from originations, arrangements, "monitoring", etc. Not all sites have done so and it may be unfair that AC attract criticism while other sites escape it because people can't complain about things they don't know about. Nevertheless, most re-fis recently have been at lower rates than the original loan. Fair enough, going rates have fallen. So I'm not sure why extensions are costing borrowers so much more. On the face of it, I benefit from a (slightly) enhanced return but the shaking down of my borrower significantly increases the risk of trouble ahead. Need to put the fee in context. There will be a cost of drawing up the legal docs etc for the extension and there will be a minimum cost level for that. This is a small loan so 2% only represents cĀ£1200 and Id be surprised if minimum legal costs are much lower than that. I would be surprised if a short term re-fi will be a on a lower rate than an extension as the risk is higher than the original loan, hence the rate bump and the workload is likely to be higher hence the fee bump. There is considerable uncertainty over exit, if there wasnt it wouldnt need a planned extension, time pressure which will require more AC activity. Havent done detailed analysis but I suspect most re-fi are either long term so risk profile is less of a factor than fall in market rates or a shift in risk profile from development to exit bridge where most of the development risk has passed. IIRC to two AC refi in pipeline fit those profiles. As for transparency on loan pricing - AC is meeting the regulatory requirements, if other platforms arent as transparent that suggests they arent and that raises the question why would people invest in platforms that arent compliant? PS Can anyone explain why 9.9% + .5% = 10.49% or is just another AC typo
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 27, 2021 22:36:21 GMT
PS Can anyone explain why 9.9% + .5% = 10.49% or is just another AC typo Somebody has noticed - another AC typo - really need to higher a proof reader.
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deltron
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Post by deltron on Sept 30, 2021 14:07:58 GMT
PS Can anyone explain why 9.9% + .5% = 10.49% or is just another AC typo Somebody has noticed - another AC typo - really need to higher a proof reader. Oh the delicious irony  (*hire). No harm intended.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,315
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Post by ilmoro on Sept 30, 2021 14:48:35 GMT
Somebody has noticed - another AC typo - really need to higher a proof reader. Oh the delicious irony (*hire). No harm intended. Well done! You've passed the interview test. The job's yours. š
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Balder
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Post by Balder on Nov 6, 2021 10:05:27 GMT
I got out of AC last year, ISA transfer. Moved it all to an ISA with Fundsmith - up 17% since Jan 21. I have come to realise that the returns (afer losses) in P2P for me aren't worth all the hassle. My Fundsmith account is down 1.2% after a month since I decided to dip my toe into equities for the first time in 8 years (coincidentally lost 1% immediately then too and scarpered). Those historical numbers looked FANTASTIC, but, everybody repeat after me, "past performance is not a guarantee of future returns". I'm just hoping that the brains behind Fundsmith can dig me out of a hole rather than bury me in it. How are you doing now? As of 5/11/21 19.5% on the calendar year.
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Post by Harland Kearney on Nov 6, 2021 14:43:38 GMT
My Fundsmith account is down 1.2% after a month since I decided to dip my toe into equities for the first time in 8 years (coincidentally lost 1% immediately then too and scarpered). Those historical numbers looked FANTASTIC, but, everybody repeat after me, "past performance is not a guarantee of future returns". I'm just hoping that the brains behind Fundsmith can dig me out of a hole rather than bury me in it. How are you doing now? As of 5/11/21 19.5% on the calendar year. Can't see why anybody would judge equitiy performance over a 30 day period. Even a calandar year is cutting it slim. Fundsmith is at a all time high so lets hope Deltron didn't do the classic retail return of negative... All in good faith, my Fundsmith is up over 60% from COVID lows where I invested a large portion. Even dipped my Toes in the predictable October sell offs and those parts are up a healthy 6%? Wait is this a Assets Capital board? No wounder its off topic, hows the queue going? 
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alibaba
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Post by alibaba on Nov 6, 2021 16:41:54 GMT
Hows the queue going
Been trying to remove funds for two years, still have 40k stuck in GBBA1, GBBA2, MLA and GEA,
Wise decision on your part.
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mogish
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Post by mogish on Nov 9, 2021 10:38:08 GMT
Hows the queue goingBeen trying to remove funds for two years, still have 40k stuck in GBBA1, GBBA2, MLA and GEA, Wise decision on your part. indeed. Luckily I dont have such a large sum still stuck in GBBAs however the small amount I do have seems to be making little progress to resolve and be released. Admittedly out of all the loans in default, the largest 2 account for most of my funds. Whether we ever see anything back from the scottish castle or 7 london properties remains to be seen .
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ton27
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Post by ton27 on Nov 9, 2021 13:00:38 GMT
Do not think we will get much, if anything, back from either so reliant on AC provision fund position improving.
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alibaba
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Post by alibaba on Nov 9, 2021 13:15:48 GMT
Do not think we will get much, if anything, back from either so reliant on AC provision fund position improving. I have come to the conclusion that the provision fund is a figment of imagination on the part of AC
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Post by Harland Kearney on Nov 9, 2021 15:16:18 GMT
Do not think we will get much, if anything, back from either so reliant on AC provision fund position improving. I have come to the conclusion that the provision fund is a figment of imagination on the part of AC It is a sales technique to fish Retail under the guise of "protections", no provision can adjust for the loss to inflation of funds being held this long at this point. All risk adjusted return targets should completely exclude PF from any platform not just AC. Completely useless paper when push comes to shove. Unfontunely the fellow with the large amounts in these loans was automatically allocated them, you could get upto 20% exposure in one single loan at any time. I renember selling out of that one, still a very small holding left in those defaulted loans now though.
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(*hire). No harm intended.
