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Post by wiseclerk on Sept 21, 2016 6:08:57 GMT
Hi stevefindlaywhen I registered I changed the default diversification setting with the aim to spread wider. However when I logged in after money arrived, Bondmason had started investing in 20 GBP chunks. I checked the diversification parameter which was now saying 2%, so I changed that to 1%. No big deal, but I am wondering whether my original choice was not saved, or an override decided to change it for me or I am just confused (misunderstood original paramter choice). |
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amphoria
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Post by amphoria on Sept 21, 2016 15:35:58 GMT
On a similar theme, when the new algorithm was introduced back in August, I am pretty sure that a message popped up on the screen implying that diversification would be automated down as low as 0.5%. As there is not a manual option for 0.5%, do you intend to implement this feature automatically or manually?
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fp
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Post by fp on Sept 21, 2016 17:01:28 GMT
Hi stevefindlay when I registered I changed the default diversification setting with the aim to spread wider. However when I logged in after money arrived, Bondmason had started investing in 20 GBP chunks. I checked the diversification parameter which was now saying 2%, so I changed that to 1%. No big deal, but I am wondering whether my original choice was not saved, or an override decided to change it for me or I am just confused (misunderstood original paramter choice). Its better to have it set at 2% initially, you will get your money invested at twice the speed, then drop it to 1% when fully invested and you will get smaller loan parts on any repaid or new cash which is invested.
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Post by stevefindlay on Sept 21, 2016 20:02:51 GMT
Hi stevefindlay when I registered I changed the default diversification setting with the aim to spread wider. However when I logged in after money arrived, Bondmason had started investing in 20 GBP chunks. I checked the diversification parameter which was now saying 2%, so I changed that to 1%. No big deal, but I am wondering whether my original choice was not saved, or an override decided to change it for me or I am just confused (misunderstood original paramter choice). - if you selected 1%, then it should be set at 1%. Happy to investigate further if you can send us an email: invest@bondmason.com Although, please note that we operate in multiples of £10; and as soon as you earn interest, if you originally invested £1000.00 and at 1% your unit size would be £10; but when you go to £1000.01 overall, your 1% unit becomes £20 (£10.01 rounded up to £20). I realise, in hindsight, that this is a little odd - so it is on the development list to round-down instead of up. FYI - When we started building the system a couple of years ago we had minimum initial investments of £10,000 in mind - hence why it wasn't so material in that context.
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Post by stevefindlay on Sept 21, 2016 20:03:34 GMT
On a similar theme, when the new algorithm was introduced back in August, I am pretty sure that a message popped up on the screen implying that diversification would be automated down as low as 0.5%. As there is not a manual option for 0.5%, do you intend to implement this feature automatically or manually? This is implemented automatically.
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Post by stevefindlay on Sept 21, 2016 20:05:35 GMT
Hi stevefindlay when I registered I changed the default diversification setting with the aim to spread wider. However when I logged in after money arrived, Bondmason had started investing in 20 GBP chunks. I checked the diversification parameter which was now saying 2%, so I changed that to 1%. No big deal, but I am wondering whether my original choice was not saved, or an override decided to change it for me or I am just confused (misunderstood original paramter choice). Its better to have it set at 2% initially, you will get your money invested at twice the speed, then drop it to 1% when fully invested and you will get smaller loan parts on any repaid or new cash which is invested. Correct. This already applies to larger investors, and will be rolled out to all investors over time (subject to each client confirming it in their investment settings). And then on to 0.5% as per amphoria's comment
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amphoria
Member of DD Central
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Post by amphoria on Sept 22, 2016 19:44:38 GMT
On a similar theme, when the new algorithm was introduced back in August, I am pretty sure that a message popped up on the screen implying that diversification would be automated down as low as 0.5%. As there is not a manual option for 0.5%, do you intend to implement this feature automatically or manually? This is implemented automatically. So when does it kick in as I am still getting 1% allocated to most loans (actually 1.2% due to the rounding up to nearest £10).
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Post by stevefindlay on Sept 22, 2016 22:00:25 GMT
This is implemented automatically. So when does it kick in as I am still getting 1% allocated to most loans (actually 1.2% due to the rounding up to nearest £10). It currently applies to larger Clients at present - those with £50,000+. But it will be rolled out to everyone else in due course.
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Post by wiseclerk on Sept 30, 2016 16:47:14 GMT
In my account there are issues with this again. I am allocated 20 GBP loan parts (=2%) while the setting is currently 1%.
I contacted BM for comment.
Minor hassle but still curious how this happens.
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amphoria
Member of DD Central
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Post by amphoria on Sept 30, 2016 17:00:01 GMT
In my account there are issues with this again. I am allocated 20 GBP loan parts (=2%) while the setting is currently 1%. I contacted BM for comment. Minor hassle but still curious how this happens. Have you had any interest payments (actual not accrued)? Bondmason rounds up to the nearest £10 when calculating investments amounts, so 1% of £1000.10 becomes £20.
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Post by wickedxuk on Sept 30, 2016 17:34:06 GMT
In my account there are issues with this again. I am allocated 20 GBP loan parts (=2%) while the setting is currently 1%. I contacted BM for comment. Minor hassle but still curious how this happens. I think Steve already gave a description of this and quoted you in that a few posts up buddy.
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Post by wickedxuk on Sept 30, 2016 17:34:42 GMT
Hi stevefindlay when I registered I changed the default diversification setting with the aim to spread wider. However when I logged in after money arrived, Bondmason had started investing in 20 GBP chunks. I checked the diversification parameter which was now saying 2%, so I changed that to 1%. No big deal, but I am wondering whether my original choice was not saved, or an override decided to change it for me or I am just confused (misunderstood original paramter choice). - if you selected 1%, then it should be set at 1%. Happy to investigate further if you can send us an email: invest@bondmason.com Although, please note that we operate in multiples of £10; and as soon as you earn interest, if you originally invested £1000.00 and at 1% your unit size would be £10; but when you go to £1000.01 overall, your 1% unit becomes £20 (£10.01 rounded up to £20). I realise, in hindsight, that this is a little odd - so it is on the development list to round-down instead of up. FYI - When we started building the system a couple of years ago we had minimum initial investments of £10,000 in mind - hence why it wasn't so material in that context. If this for whatever reason doesn't apply to you, I would email Steve. He always replies very swiftly, my wife has emailed him several times this week and he has responded within 24hours everytime.
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Post by wiseclerk on Sept 30, 2016 17:42:50 GMT
Yes, amphoria, that was the cause. Received the explanation from support too.
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Post by stevefindlay on Sept 30, 2016 19:48:25 GMT
wiseclerk Yes, we round up, but I fully appreciate that really doesn't make sense when investors are investing from £1,000, and the £10 unit quickly becomes a £20 unit. So we will amend the system to round down in due course. Please bear with us until then. [This wasn't originally so much of an issue when designing the system and considering investor minimums of £5,000 or £10,000 - i.e. £100 going to £110]. amphoria wickedxuk Thank you for answering the question!
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Post by wickedxuk on Oct 7, 2016 15:29:09 GMT
My wife and I were discussing our p2p diversification and allocation strategy per loan the other day and she emailed Steve to this effect, but I wonder if it would suite others on this forum?
BM currently makes up 11% of our p2p portfolio and with a diversification setting of 2%/1% and the subsequent allocations we were getting to begin with on BM this actually meant a 0.11/0.055 allocation to each loan overall.
So our suggestion is that for those investors where BM forms a smaller portion of a larger portfolio a larger diversification setting would be useful. Don't get me wrong the small allocations are great for risk aversion however it's just not necessary to have such small allocations especially when this slows the speed of investment down.
We personally would like the option of higher diversification %'s so we can match our investment strategy and reduce cash drag.
Not for everyone but it gets my vote 🖒
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