bg
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Post by bg on Jul 20, 2016 7:24:59 GMT
chris I now have £53,539.18 lent from idle funds in my QAA (alongside £100k direct investment). Has this limit now been raised? I haven't been able to reconcile any of this for weeks now and my query with enquiries@ has also been outstanding for weeks. No the cap wasn't raised. I'm in a board meeting so I can't investigate right now but will look into it ASAP. So now I have £51,857.62 lent from idle funds (I have around £59k actually idle, if I move cash between accounts this amount lent seems to decrease) and it says I have £702.08 awaiting QAA investment (although when I click the drop down it says I have nothing queued for investment). Something is definitely wrong and I'm wondering if interest is even accruing. I emailed assetz@ in May about it but other than an email saying it's been flagged to the developers, nothing.
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Post by chris on Jul 20, 2016 7:27:25 GMT
No the cap wasn't raised. I'm in a board meeting so I can't investigate right now but will look into it ASAP. So now I have £51,857.62 lent from idle funds (I have around £59k actually idle, if I move cash between accounts this amount lent seems to decrease) and it says I have £702.08 awaiting QAA investment (although when I click the drop down it says I have nothing queued for investment). Something is definitely wrong and I'm wondering if interest is even accruing. I emailed assetz@ in May about it but other than an email saying it's been flagged to the developers, nothing. There was an older bug that allowed the cap to be breached, that's since been fixed as far as I'm aware (happy to investigate if people think new funds are able to breach the cap). We haven't forced those additional funds out of the QAA but as funds are moved around the cap won't be breached further so the amount in breach should decrease. If it's listed as being in the QAA then it's earning interest.
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bg
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Post by bg on Jul 20, 2016 7:43:21 GMT
So now I have £51,857.62 lent from idle funds (I have around £59k actually idle, if I move cash between accounts this amount lent seems to decrease) and it says I have £702.08 awaiting QAA investment (although when I click the drop down it says I have nothing queued for investment). Something is definitely wrong and I'm wondering if interest is even accruing. I emailed assetz@ in May about it but other than an email saying it's been flagged to the developers, nothing. There was an older bug that allowed the cap to be breached, that's since been fixed as far as I'm aware (happy to investigate if people think new funds are able to breach the cap). We haven't forced those additional funds out of the QAA but as funds are moved around the cap won't be breached further so the amount in breach should decrease. If it's listed as being in the QAA then it's earning interest. Ok, thanks Chris
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Post by cyrilmadrid on Aug 11, 2016 5:28:24 GMT
Yesterday I tried 30 day access and QAA for the first time. I was surprised to see that the money placed on both accounts was automatically invested.
Not sure I understand how it works.
I thought these accounts would allocate across loans with available units, but currently there is only one deal with unit available, a half dodgy hotel loan. So is it where my money is currently ? Or does it get invested in loans which we do not see on the manual loan platform ?
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happy
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Post by happy on Aug 11, 2016 6:19:47 GMT
The QAA and 30 Day accounts share a common "fund" of loan units that provide an income to support the interest payable (3.75/4.25%) and also pay into the PF as required. The rest is held in cash to provide the liquidity required for these accounts easier access capability. These are total Black Box accounts in that you cannot see the underlying investments. These 2 accounts have an investment cap set by AC that reflects the current investment capacity of the account. Once this cap is hit you cannot invest more until AC push more loan units into the underlying fund and increase the investment cap. If the cap has not been reached investment is instantaneous as it was for you.
It seems that the QAA underwrites many of ACs new loans nowadays and then progressively passes these on as newer loans come to the platform. So bottom line is you are automatically invested into a share of many/most of the more recent loans on the platform.
FYI GBBA/GEIA work differently in that you are automatically invested directly into specific qualifying loans at 7% plus you get PF protection. There is no cash fund and selling requires either another investor buying your loan units or loans being repaid. Although there is no specific cap on the GBBA/GEIA accounts if there are no qualifying loans units available to buy on the market or being sold by existing GBBA/GEIA investors then your money will wait until there is something to buy (potentially swept into the QAA earning 3.7r%)
Hope this helps.
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warn
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Post by warn on Aug 11, 2016 13:36:07 GMT
The QAA and 30 Day accounts ... have an investment cap set by AC that replects the current investment capacity of the account. Once this cap is hit you cannot invest more until AC push more loan units into the underlying fund and increase the investment cap. That was the case until recently, but I believe it has changed (though not rich enough to test it). According to the website, there is indeed a limit (currently £100,000) on direct investment into the QAA, but no limit (other than "account availability", whatever that means) on the 30D. Of course, I may be wrong. Wouldn't be the first time. I'd certainly welcome clarification, just in case I win the lottery.
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happy
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Post by happy on Aug 11, 2016 13:54:17 GMT
The QAA has an individual investor cap of £100k as you say but there is also a cap on the size of total investments. Th 30 Day account is actually part of the QAA "fund" but with 30 Day withdrawal rule applied so it is your combined QAA/30 Day investment that is subject to the £100k personal cap I believe.
If you add up the total for the QAA and 30 day account this is the total that is subject to the overall cap, currently around £30 million but with a bit of headroom at the moment for further investments hence why investments go straight in at the moment.
Once the overall cap is reached then money invested in the QAA/30 Day accounts will queue until space is made by withdrawals or AC raise the cap ( and probably increase the underlying assets to match this increase) even if you have not reached your personal investment cap.
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littleoldlady
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Post by littleoldlady on Aug 11, 2016 14:43:25 GMT
Whilst demand for the QAA/30 day account keeps rising AC will surely put all new loans into it as it should be much more profitable than the other accounts. So the QAA is starving the other funds meaning even more will go into QAA. It is amazing that it is so popular considering the risk level is the same as AC's other loans but offers only a fraction of the interest rate. It started at £1m and has been repeatedly increased to the current £30m. The only advantage is liquidity, but that is not guaranteed and will not be there just when we all need it.
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adrianc
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Post by adrianc on Aug 11, 2016 14:48:16 GMT
It is amazing that it is so popular considering the risk level is the same as AC's other loans but offers only a fraction of the interest rate. Just under half of the money I have in AC is in the QAA earning 3.75%... Why? Because it's waiting to be swept into the GBBA and GEIA, and that's just not happening...
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oldgrumpy
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Post by oldgrumpy on Aug 11, 2016 14:56:10 GMT
I presume AC will insist that QAA is popular so it needs to be increased in size so large proportions of most new loans will have to go in it so that everybody can get 3.75% rather than having money stuck earning 0% (which we all moaned about).
Cobblers.
I don't want my money in the QAA (for more than a week or so), but it is because the MLIA loan allocations are (in the main) too frugal to accommodate my repayments.
edit 18:09 Oooh! There's a £670K 10.56% loans coming up tomorrow. I could clear my four figure QAA money with a chunk that. I wonder what my allocation will be.
< £100?
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Post by chielamangus on Aug 12, 2016 12:41:40 GMT
There is no limit to the level of investment in 30 day notice account - as I have been informed by AC and tested for myself.
Yes, OG, the QAA uses investor money to reduce the amount of investment on the MLIA, as I whinged when it first arrived. It's a clever incentive structure that AC have devised: nobody wants their money lying around earning nothing while loan drawdowns are delayed, so most on this forum appeared to welcome this innovation. And others were attracted by the almost instant access the account offers (subject of course to the money being available). With all that money in the QAA, it had to pay for itself, so of course investors in the MLIA were allocated derisory amounts. We the investors have undercut ourselves, yet no individual can do anything about it. We might not like the QAA, but these days that is where the bulk of any new funds go. If I choose not to take the 3.75 per cent, I don't get any extra MLIA loans to compensate, so I take it, and support the emasculation of the MLIA.
Given the MLIA allocations on loans over the past month, I will be hard put, as my larger historic loans mature, to maintain even 10 per cent of my current investment in the MLIA. That is why I don't see that it has a future. And AC's future investors will be a rather different lot from those of us who were attracted by direct investment in loans that we could evaluate ourselves.
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Post by oldnick on Aug 12, 2016 13:20:51 GMT
There is no limit to the level of investment in 30 day notice account - as I have been informed by AC and tested for myself. Yes, OG, the QAA uses investor money to reduce the amount of investment on the MLIA, as I whinged when it first arrived. It's a clever incentive structure that AC have devised: nobody wants their money lying around earning nothing while loan drawdowns are delayed, so most on this forum appeared to welcome this innovation. And others were attracted by the almost instant access the account offers (subject of course to the money being available). With all that money in the QAA, it had to pay for itself, so of course investors in the MLIA were allocated derisory amounts. We the investors have undercut ourselves, yet no individual can do anything about it. We might not like the QAA, but these days that is where the bulk of any new funds go. If I choose not to take the 3.75 per cent, I don't get any extra MLIA loans to compensate, so I take it, and support the emasculation of the MLIA. Given the MLIA allocations on loans over the past month, I will be hard put, as my larger historic loans mature, to maintain even 10 per cent of my current investment in the MLIA. That is why I don't see that it has a future. And AC's future investors will be a rather different lot from those of us who were attracted by direct investment in loans that we could evaluate ourselves. Lender/investor hat on. Yup, good sum up. I'm gradually reducing my position as the old rates dissappear and hoping my shares come good later on. This business-like attitude from AC is admirable - there is no room for sentiment if there is to be a future for these businesses. The trick for those wanting higher rates is to spot the next promising candidate(s).
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Steerpike
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Post by Steerpike on Aug 12, 2016 13:32:01 GMT
I still have more invested in the MLIA than in any other P2P site.
I'm not sure what I will do as loans mature, I like AC but 3% to 4% isn't very exciting.
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registerme
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Post by registerme on Aug 16, 2016 18:12:20 GMT
QAA was a brilliant innovation for swept cash. However allowing direct investment combined with the lessening rates available on individual loans in MLIA , was, imho, a retrograde step for lenders. I think much the same of the 30day account even though I have a sizeable chunk sitting there simply because of the lack of MLIA opportunities and the slowness of GBBA uptake - I now consider getting >£50 into GBBA a good day  . I understand why AC did it from a business perspective, but I don't like it from a lender perspective. I do wonder what the FCA will make of it, because I can see no functional difference between QAA and a bank account (ie borrow short lend long) bar the lack of FSCS cover, and that's basically regulator arb. Cue Andrew to tell us that the legal advice AC have had says that all is fine and dandy  . |
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Post by Harland Kearney on Aug 16, 2016 19:21:08 GMT
Can't help but agree with Regi, I have drastically downed my investment total in AC only because I can't simply get it invested. There isn't any point in me having Thousands of pounds sitting in the QAA or 30DAA for a small boost over the banks protected rates (though its still on the decrease I'm aware). Lending in the GBBA is incredibly slow, in the past 60 days I've lent only 1.5k out, a extremely shallow amount in all fairness of my totally investment (into the 5 figures).
Though I am planning on keeping my small holding in the 30DAA for diversification and a nice automated fund.
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