sl75
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Post by sl75 on Jul 31, 2015 22:28:11 GMT
... was mentioned by ashtondav over on the official Zopa forum: talk.zopa.com/topic/9424-funding-circle-investment-trust/But strangely, no mention here, or any that I can see on the FC website, not even in the "press releases" section (although google found a couple of news outlets mentioning it, so presumably FC issue press releases somewhere else...). Anyone familiar with where these things get officially announced manage to track down any more details? e.g. is it an institutions-only fund, or one that Joe Public can buy units of? ISA-eligible? Actual launch date? |
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blender
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Post by blender on Jul 31, 2015 23:05:07 GMT
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Post by GSV3MIaC on Aug 1, 2015 7:20:05 GMT
I wonder why Furtive Capital haven't mentioned it in their blogs or over in the other forum. Sounds like a good source of capital but further dilution of the P2P concept, since the new capital will not be 'bidding', as such.
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jonah
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Post by jonah on Aug 1, 2015 7:27:43 GMT
I hope they aren't going to use auto bid to put the cash into FC....
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registerme
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Post by registerme on Aug 1, 2015 9:48:22 GMT
I hope they aren't going to use auto bid to put the cash into FC.... I hope they do use autobid!
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SteveT
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Post by SteveT on Aug 1, 2015 9:50:57 GMT
More likely to buy WLs
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blender
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Post by blender on Aug 1, 2015 10:18:15 GMT
They will be looking for new sources of cash, and so not much benefit in trumpeting on the platform. There will be issues of equal access raised - both with the partial loan lenders and the whole loan lenders. Autobid would clearly be equal access, but with whole loans both the partial and whole loan existing lenders will wish to be very sure that First Choice are not able to cherry pick loans for their own product. I doubt they would, but it would need to be demonstrated that they did not - high levels of transparency. It look like a good development to grow the demand side.
No way at present to provide separate property loan and business loan investment trusts - which I think would help Finding Cash develop the property business.
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jimbo
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Post by jimbo on Aug 3, 2015 1:27:34 GMT
An Investment Trust/Closed Ended Fund is, I think, 100% the correct vehicle for this. It means people can cash out by selling their shares but the trust will not need to sell their loan investments to meet redemptions - unlike open ended funds.
Pleased also to see one that won't have any rip-off performance fees attached...
Will be interesting to see how this impacts on whole loan demand though. Are we going to be left with even fewer table scraps on the partial loan market, or can FC grow an even larger loan pipeline...?
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Post by GSV3MIaC on Aug 3, 2015 7:42:57 GMT
Perhaps they can/will use it on the property loans which are clogging the system, and which don't seem to be WL possible? That would get them the target yield.
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blender
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Post by blender on Aug 3, 2015 8:46:36 GMT
Perhaps they can/will use it on the property loans which are clogging the system, and which don't seem to be WL possible? That would get them the target yield. Agreed. I think if I were Finding Cash I would worry about how to present the diversity issue on a property IT. We may have to watch for a proposal to take x% of all listed property loans into the FC property IT, rather than a whole loan or enhanced Autobid approach. If x is variable it would match the size of the IT to demand and give the diversity required asap, while using the partial board to take up the rest of each loan and keep it more honest in terms of rate setting. And there goes our 2% cash back. This relies on the IT attracting new money, with an ISA wrapper presumably. The ISA issue must be overhanging the launch of new products.
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SteveT
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Post by SteveT on Sept 7, 2015 9:16:41 GMT
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jonah
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Post by jonah on Sept 7, 2015 10:08:32 GMT
Whilst ISA has been mentioned the other thing which may make this interesting is in a SIPP.
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Post by mostlywrong on Sept 7, 2015 10:53:24 GMT
It might be worth mentioning that anyone who wants to invest in P2P via an investment trust, can already do so. One option is here: www.iii.co.uk/research/LSE:P2P/fundamentalsI strongly suggest that you read the small print before investing. Note that it is a young fund and does not have a track record but the famous Mr Woodford has, apparently, invested some of his fund's money therein. From my perspective, the advantages of an investment trust include a simplified tax structure and liquidity. I now have a portfolio of duff FC loan parts that will, supposedly, pay back over the next 5-7 years. Should I croak tomorrow morning, my executor faces a very long haul! MW |
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