|
|
Post by stevefindlay on Jun 22, 2017 10:53:30 GMT
We've added a cash deployed chart to everyone's dashboard, to enable you to easily track deployment and cash drag over time:  We are currently estimating an average of 4 weeks to be fully deployed from initial deposit. And then you should be 98%+ invested thereafter. |
|
|
|
Post by wiseclerk on Jun 22, 2017 13:39:37 GMT
I do like the chart. It easily allows investors to grasp how fast cash is deployed!
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493 
Likes: 190
|
Post by TheDriver on Jun 25, 2017 6:16:29 GMT
I agree the chart is a good step towards increasing visibility of performance, but I'd question whether from a marketing point of view it is an optimal time to introduce when that performance is decreasing!
One could say congratulations on being brave enough to improve transparency - which it obviously does - but that doesn't align with the reluctance to admit the increasing time to invest; viz, the original quote of "7 - 28 days" to full investment was only changed to the current "average 4 weeks" when it seems that figure itself had actually beeen exceeded - in my case now over 2 months. It would be interesting to have a straw poll of results by others posting their time to full investment, and when that was - easy to see with this new graphic.
Note that whatever tye of average is being used, to get a "4 week average" means a significant proportion would be experiencing less than the 4 weeks quoted.
|
|
|
|
Post by stevefindlay on Jun 25, 2017 20:11:49 GMT
TheDriver - it's true that average deployment has moved out to 4 weeks - to get a minimum of 50+ positions. This is driven by record client inflows. We encourage clients to consider their P2P Lending investment over a minimum 12 month period. Whilst we've been able to fully liquidate clients within 48 hours if their circumstances change etc, the minimum 12 month view (we feel) is the best timescale to consider an allocation to this asset class. On this basis, the impact of the initial deployment over 4 weeks doesn't acutally have a material impact on overall performance over the long run; and the diversification over 50+ loan positions should be the priority. Indeed, the average gross performance of clients who've been with us 12 months or more, has been 8.0%+ pa. in each of 2015, 2016 and 2017 to date. Regarding transparency, absolutely: we aim to make things as clear as possible so clients can take informed decisions about their investment allocations. Thank you for your post.
|
|
dermot
Member of DD Central
Posts: 863
Likes: 517
|
Post by dermot on Jun 28, 2017 15:39:32 GMT
after a patchy several months a while back, I've been sitting at 98% or 99% most of the time - but dropped to only 95% the last few days.
Oh, the horror!
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Aug 10, 2017 3:43:40 GMT
TheDriver - it's true that average deployment has moved out to 4 weeks - to get a minimum of 50+ positions. This is driven by record client inflows.
No, I don't think it is, that's my point! Everyone on here is reporting significantly longer, and no sign of twice as many 2 WEEK investors to balance that. When it WAS 4 weeks, the site was claiming 7 - 28 days, and now it seems to be 2 months, you are CLAIMING it's 4 weeks. I am not unhappy with performance, because I see the most important thing as minimising bad debts, which is fairly successful for me at present with just 2 on my Watchlist. If that changes too much I will just vote with my feet and move elsewhere. However, I am never comfortable when someone dogmatically denies the obvious, as that might translate to any aspect of responsibility and result in questionable judgements. As an aside, my % invested has been dropping for the past week, to 92 from the above-claimed 98+; is anyone else experiencing similar? edit: just noticed on FAQs that investment level is predicted to track 92 - 98%, which seems more realistic!
|
|
|
|
Post by stevefindlay on Aug 10, 2017 8:08:56 GMT
TheDriver - it's true that average deployment has moved out to 4 weeks - to get a minimum of 50+ positions. This is driven by record client inflows.
No, I don't think it is, that's my point! Everyone on here is reporting significantly longer, and no sign of twice as many 2 WEEK investors to balance that. When it WAS 4 weeks, the site was claiming 7 - 28 days, and now it seems to be 2 months, you are CLAIMING it's 4 weeks. I am not unhappy with performance, because I see the most important thing as minimising bad debts, which is fairly successful for me at present with just 2 on my Watchlist. If that changes too much I will just vote with my feet and move elsewhere. However, I am never comfortable when someone dogmatically denies the obvious, as that might translate to any aspect of responsibility and result in questionable judgements. As an aside, my % invested has been dropping for the past week, to 92 from the above-claimed 98+; is anyone else experiencing similar? edit: just noticed on FAQs that investment level is predicted to track 92 - 98%, which seems more realistic! - the average deployment period is currently 4 weeks. To calculate the average we look at the: - the deployment rate over the course of the last 12 months
- the deployment rate across all clients and investment settings
- the deployment rate across all deposits: i.e. whether they are an initial deposit or subsequent deposit
The slowest rate of deployment tends to be:- when there is a seasonal slow down in the number of new loans coming through: e.g. Jan, Summer.
- on initial deposits (vs. top-up deposits)
- when investment settings are set to 1%
The fastest rates of deployment tends to be:
- during busy period for new loans: Sep, Dec, March
- on top-up deposits
- when investment settings are at 2%
The 4 week average is for clients over the last 12 months at a 2% setting.
Two things to note:
(1) We are working on something (aside from building lender relationships) that should significantly improve rate of deployment. But this is still a little while away
(2) (As you note) We would always prefer to be chastised for slow(er) deployment than a reduction in quality of the loan book. We suggest that this asset class should be viewed as a 12+ month investment, with patience being key, and this is the mindset that goes into balancing rate of deployment vs. filtering the best opportunities.
I hear your frustration though - and please don't think we are resting on our laurels on this. Now that we are into our third year of consistent average gross returns for clients (8%+ p.a.); the rate of initial deployment is one of our last biggest challenges (whilst protecting loan quality).
|
|
|
|
Post by stevefindlay on Aug 10, 2017 18:37:51 GMT
Repeating a post form another thread
Adding some statistics to this (based on deposits in 2016 and 2017 to date):
- The average time for any balance to get deployed is: 30.2 days (1st quartile is 7.1 days; 3rd quartile is 42.1 days)
Looking at deposit sizes:
- The average time for deposits less than £10,000 is 26.1 days
- The average time for deposits less than £25,000 is 28.0 days
- The average time for deposits less than £50,000 is 28.6 days
- The average time for deposits less than £100,000 is 29.5 days
- The average time for deposits less than £250,000 is 30.1 days
So the size of deposit does have some impact on the rate of deployment, but not much.
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Aug 11, 2017 6:05:34 GMT
Above, <snip> We are currently estimating an average of 4 weeks to be fully deployed from initial deposit. I reiterate, performance is currently fine, it's the management of expectations causing any minor frustration! This clearly says CURRENTLY 4 weeks to fully deploy, whereas the current experience is much longer. There seems to be confusion between CURRENT AVERAGE (which I accept is over a year or so) and CURRENT ESTIMATE which suggests (at least to me!) the projected timescale for new funds, which currently appears significantly longer |
|
|
|
Post by stevefindlay on Aug 11, 2017 8:54:12 GMT
Here is a chart of the average time to get fully deployed over time, based on a rolling average of the most recent 100 deposits (blue line) and the most recent 250 deposits (grey line).  Some observations: - The average time since January 2016 has been 30.2 days, per my post above.
- In the first half 2016, the averages were brought down as we brought on more loan providers.
- The lowest average deployment period was 7 days in September 2016; which then led to a significant influx of new capital, pushing out the average to almost 60 days (which was then exacerbated by slower availability of new loans over the Christmas period)
- Throughout 2017 the average has been reasonably consistent around the 4 week mark, and we are currently seeing a downward trend (i.e. faster allocations)
- The chart show deployment periods for all clients (1% or 2% investment settings), so a 2% setting should lead to faster allocations.
TheDriver - respectfully, you are basing your comments on limited anecdotal observations. The data clearly supports the correct expectation of 4 weeks to be fully deployed. |
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Aug 23, 2017 9:28:43 GMT
I think this explanation proves the misleading expectation for deployment of initial investment, as stated in the "Cash Drag" thread.
My situation is that having finally reached 100% deployment after 2 months, it's been a steadily downward trend to currently 89% investment. While I can accept 10% uninvested capital in a good-quality hands-off fund, I aim to be at least 95% invested in my actively managed portfolios. I trust there is some weighting given to prioritise reinvesting repayments over new funding, as in other platforms' algorithms?
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Aug 27, 2017 15:16:26 GMT
Downward trend continued this week, ending at 87%; I feel an email to BM is warranted, to find out the answer to my query posed lastly, above.
|
|
|
|
Post by stevefindlay on Aug 30, 2017 12:50:16 GMT
The allocation algorithm is sought to be as fair as possible: ensuring both new clients and re-investing clients are allocated fairly in order.
We are looking at ways to improve the algorithm so that every clients' deployment period is closer to the mean.
The overall deployment drop at the moment is being seen by many client, and is driven largely by the seasonal slow down of new loans. The deployment chart from this period last year is also quite telling. Hopefully we won't see deployment periods extend out in the same way.
Regardless, we are doing what we can to ensure clients are able access to returns from good-quality loans.
|
|
savernake
Member of DD Central
Posts: 174
Likes: 142
|
Post by savernake on Oct 18, 2017 10:02:17 GMT
The Cash Deployed chart on my dashboard hasn't been updated since 13th October, even though I've had new loans in the days since then.
Its not a huge issue, but its usually updated daily and I'm wondering why it's now got a few days behind.
Anyone else noticed this discrepancy?
|
|
TheDriver
Member of DD Central
Slightly bonkers
Posts: 493
Likes: 190
|
Post by TheDriver on Oct 18, 2017 18:59:16 GMT
I notice mine's also stalled, but at 99% I haven't had any new loans since 12th either!
|
|
