12 Month Results
The first year results of investing through the Moneything platform are as follows –
|Expected ROI (Annualised)
|Actual ROI (Annualised)
The ‘Expected ROI’ figure is taken from an approximate average across all my loan holdings stated return on the Moneything platform. The ‘Actual ROI’ figure is sufficiently close to expectation in my opinion. In fact Moneything was one of my standout performers in 2018. 18.00% of the loans I’m holding have fallen in to the category ‘Non performing’ in this period, this means they are currently not paying interest and could eventually fall into full default if they continue to not perform. 18.00% is higher than an industry expectation of 10.00% but I have relatively few loans in comparison to the entire loan book.
There has only really been one substantial issue with my experience with the Moneything platform in this period, and that’s deal flow. A single substantial loan was launched on the platform using a innovative offer, it failed to fill, was pulled and relaunched using a different offer. It did eventually fill but both attempts took up several months and Moneything tend to focus on one deal at a time. There were a couple of other loans of a different asset security type but these were relatively small and filled very quickly (hours not days).
By the end of this period company stats were £91 million in originated loans. £22.6 million live loan book and 5197 active lenders. There has been a lot talk around Moneything in recent months about the potential introduction of discounted/premium secondary market. It’s an interesting idea that some platforms have already delivered very well while some platforms have attempted it with less successful results. It’s an innovation that generally increases liquidity but depending on how it’s presented it can catch out less experienced lenders who pick up dumped loans that turn out to be much higher risk than they understand. There has been no confirmation to date on this innovation or indeed a proposed introduction date.
I’m happy enough with Moneything to keep in my portfolio for the next period. As stated deal flow has not been great, in fact I actually withdrew idle funds from the platform as I had nowhere to put them without going beyond my comfortable loan limit, they were effectively dead funds/causing cash drag. It’s frustrating because this portfolio is in stage one growth, meaning I want to be depositing not withdrawing. I will look to re-deposit on the announcement of new offerings.
6 Month Results (MLA Account With Cash Sweep to QAA Only)
The first 6 months results of investing through the Assetz Capital platform are as follows –
|Expected ROI (Annualised)
|Actual ROI (Annualised)
The ‘Expected ROI’ figure is taken from the dashboard readout as the average rate across all loans invested in. The ‘Actual ROI’ at 5.66% is a little underwhelming to say the least. In this 6 month period I would say Assetz have displayed one of the most impressive loan generation rates I have come across. Unfortunately though with volume of loans comes volume of late payments and problematic loans. I would say Assetz have displayed a considerable level of vigilance in dealing with problematic loans, despite carrying so many loans they have been very quick to suspend trading of loans when problems arise and for the most part late payments are rectified within a few weeks.
Cash drag has been a bit of an issue when assigning funds to loan offerings too. It can take anywhere from 12-36 hours for allocated funds to be accepted to an existing loan. A new loan can take longer as it needs to be filled before being activated. That said Assetz do operate a sweep function which ‘sweeps’ idle and awaiting allocation funds into the Quick Access Account (QAA) where in earns 4.10% pa. So it doesn’t really explain the deficit, even when considering the relative infancy (account rollup) of the account I still would have expected to see a rate closer to 7.00%.
The Assetz Capital platform also like to run ‘Cashback’ promotions and in this period they ran a promotion called the ‘Summer Holiday Cashback’. Essentially they offer an additional 1.00% cashback on newly lent funds either within a set deadline or to a set total pot of funds. As a big retailer might say ‘every little helps!’
A new Assetz Platform
Assetz Capital have announced the launch of a new platform, Assetz Exchange. The platform will focus on equity offerings in Buy to Let and Homes of Multiple Occupancy. Investors will buy shares in a property with a hope for future appreciation in the property/share price alongside receiving a rental dividend. The platform is due to launch in early 2019. I will publish more on this in due course.
I’m relatively happy with my experience of Assetz Capital so far, the company seems to be a professional, competent and well run outfit. The loan offerings are of a relatively higher quality then some other platforms. I’m a little mystified by the wide deficit in the ‘Expected’ and ‘Actual’ rates but it’s too early to draw any definite conclusion as to the cause. So Assetz will remain in my portfolio for now and I will look to increase my holding with them in the short term.