Discussion
I think these got a mention this lunchtime on R4 Moneybox
https://www.bbc.co.uk/sounds/play/m0003cgg
https://www.bbc.co.uk/sounds/play/m0003cgg
p1doc said:
that is why I was going to spread y money into different ifisa provider but likely to just keep relendex and put rest into stocks and shares isa I have already but poorly performing due to brexit so was looking for alternatives
Spreading your investments around isn't diversifying if all the underlyings are turd - see 2009 for how it can go wrong 
that is why I have 2 stocks and shares isas 1 cash isa and 1 ifisa with ifisa only 5% of isa savings-aware is a risk so wondered what other peoples opinions were in finance section.
so likely put money into stocks and shares instead-underperforming at 2% at present but hopefully should improve, thought it might be related to brexit as now lots of stocks in European/uk companies like shell etc
so likely put money into stocks and shares instead-underperforming at 2% at present but hopefully should improve, thought it might be related to brexit as now lots of stocks in European/uk companies like shell etc
I guess most Relendex lenders are aware of the main forum for info on their loans, to which Relendex occasionally chips in http://p2pindependentforum.com/board/107/relendex Hard to tell how many loans have gone rogue - maybe only one so far, where there's talk of a claim against the valuer's PI cover.
To me it seems the biggest threat is they're just not originating sufficient new loans to cover their admin costs. Eg £10m pa at a 1.5-2% spread doesn't cover much overhead. Despite this news of institutional funding line http://www.p2pfinancenews.co.uk/2018/11/19/relende... all they seem to offer still is ~£500k loans to manky man-and-his-dog developers with manky 1-3 unit projects. They just haven't scaled up to chunkier projects whose developers presumably have access to commercial bridge finance. If I were committing funds to Relendex I'd want to know more about the reference in their FAQs to having a 3rd party lined up to run off existing loans, enforce security etc should they go titsup https://relendex.com/faq
fwiw, I was a minor early stage equity investor way back in 2012 who's since been diluted into oblivion. I sense they were a genuine bunch, at least in those days, but failed to appreciate the IT, marketing and regulatory challenges. Rumour had it that the onboarding process for borrowers was clunky and inefficient at first. FCA authorisation took till 2017. Possibly the substantial investment last year by Wigoder will finally turn them around and raise their profile? Not sure why the 3S Russian trio got involved. Communication with small shareholders is infrequent.
To me it seems the biggest threat is they're just not originating sufficient new loans to cover their admin costs. Eg £10m pa at a 1.5-2% spread doesn't cover much overhead. Despite this news of institutional funding line http://www.p2pfinancenews.co.uk/2018/11/19/relende... all they seem to offer still is ~£500k loans to manky man-and-his-dog developers with manky 1-3 unit projects. They just haven't scaled up to chunkier projects whose developers presumably have access to commercial bridge finance. If I were committing funds to Relendex I'd want to know more about the reference in their FAQs to having a 3rd party lined up to run off existing loans, enforce security etc should they go titsup https://relendex.com/faq
fwiw, I was a minor early stage equity investor way back in 2012 who's since been diluted into oblivion. I sense they were a genuine bunch, at least in those days, but failed to appreciate the IT, marketing and regulatory challenges. Rumour had it that the onboarding process for borrowers was clunky and inefficient at first. FCA authorisation took till 2017. Possibly the substantial investment last year by Wigoder will finally turn them around and raise their profile? Not sure why the 3S Russian trio got involved. Communication with small shareholders is infrequent.
p1doc said:
that is why I have 2 stocks and shares isas 1 cash isa and 1 ifisa with ifisa only 5% of isa savings-aware is a risk so wondered what other peoples opinions were in finance section.
so likely put money into stocks and shares instead-underperforming at 2% at present but hopefully should improve, thought it might be related to brexit as now lots of stocks in European/uk companies like shell etc
Which S&S is this? Even Vanguard 100 has managed 6.4% over the past 12 months.....https://www.trustnet.com/factsheets/o/acdv/vanguard-lifestrategy-100-equityso likely put money into stocks and shares instead-underperforming at 2% at present but hopefully should improve, thought it might be related to brexit as now lots of stocks in European/uk companies like shell etc
p1doc said:
that is why I have 2 stocks and shares isas 1 cash isa and 1 ifisa with ifisa only 5% of isa savings-aware is a risk so wondered what other peoples opinions were in finance section.
so likely put money into stocks and shares instead-underperforming at 2% at present but hopefully should improve, thought it might be related to brexit as now lots of stocks in European/uk companies like shell etc
I think that if you’re just putting 5% at risk and are fully aware that these instruments are completely mispriced from the outset and that potentially, much, most or all of that 5% could be lost then it’s not the end of the world. so likely put money into stocks and shares instead-underperforming at 2% at present but hopefully should improve, thought it might be related to brexit as now lots of stocks in European/uk companies like shell etc
The issue with these instruments is that retail consumers are investing huge percentages of their wealth into what is really a big gamble rather than actually being an investment.
The gamble in question being that the investment capital will be returned in X years time by the seriously shonky builder who has been rejected by all conventional lenders because either they or their project is a pile of turd or even nonexistent, or a fellow consumer that just about has the ability to fill out a P2P half page application form instead of applying for a Vanquis card.
Taking a 5% capital hit if it all goes horribly wrong isn’t the end of the world and I would say that you are in the complete minority of those who self regulate their risk.
The part I would look at is that remaining 95%. The stock element appears to have underperformed although that could just be market timing if you only set things up a short while ago?
Brexit probably hasn’t had the effect that you might think due to the constituents global exposure and Shell is up something like 20% since Brexit and I suspect the recent downtrend has more to do with the end of last year when the price of oil plummeted from $75 to $45 and bigger macro economic concerns than Brexit which is arguably almost irrelevant to a dual listed global oil company that trades in a USD denominated product.
It might be worth asking one of the IFAs on here or posters in general to comment on the 2% return and how it was derived?
p1doc said:
I already have meeting with my IFA next week as concerned re underperforming fund
was thinking about doubling my IFIA to 10% but likely just keep at 5% at present which I can afford to lose, it is just the other 95% I am concerned about now lol
thanks for all the input
What's the name of the fund? was thinking about doubling my IFIA to 10% but likely just keep at 5% at present which I can afford to lose, it is just the other 95% I am concerned about now lol
thanks for all the input
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