Funding Circle slow selling

criston

Selling times now at least 76 days & rising.

Crayfish88

I am wondering if the slow rate of sales is being exacerbated by Funding Circle winding up it’s UK quoted Investment Trust in April? This Investment Trust invested in FC loans and the Trust has decided to wind up the Trust due to falling returns. I think this Trust owned a little over 10% of loans originated by FC.

criston

You also have to wonder if the Investment Trust wind down jumps the queue, or is given priority over ordinary sellers.

Selling times now at least 78 days & rising.

aroominyork

hahnchen wrote: »

I have a standard Funding Circle account, and an ISA with them. Their rates are poor. I've opened both about 18 months ago, with thousands in both.

My annualised return is 2.7% and 3.3%. If we look at a chart of annualised returns over time, I understand that I am in the trough of lowest returns - (google funding circle investor returns change over time)

However, at my current rates, if I follow that trend, I am unlikely to even hit the lowest bound of their current projected 4.5% return. When I opened my accounts, the project return was 7.5%

We can also see that the riskiest loans in years 1-2. I would like my returns invested in safer older debt (which is taking months to sell according to this thread), yet every day Funding Circle keeps adding the risky new stuff to my portfolio. Funding Circle are clearly prioritising onboarding more borrowers over servicing existing investors.

That would be fine if the new borrowers had a consistent quality. But looking at Funding Circle's default rate by year, it is quite obvious that as volumes have increased, standards have slipped. (google - funding circle statistics)

Earlier this year I also noticed low returns on my account. I phoned and asked whether the estimated returns shown on my home screen were the same average returns which appeared on every investor's screen or were specific to my portfolio and took into account the level of defaults on my loans. They spent ten minutes trying to avoid answering the question but eventually admitted they were average rates and that I was earning less. They then said the way to achieve those rates for myself was to invest more; assuming my new loans performed better, this would improve my average return. Having lost confidence in the company I then started the long and laborious task of getting out of FC completely.

dread_uk

Had a bout 6k in FC for about 6 months now, in an ISA.

Just logged in for a quick look and noticed I have £174.50 I can transfer out, I have my balance set to auto invest, never seen it get past about £10-£30 before, I'm slightly concerned that FC isn't getting the business it once was.

Should I be concerned ?

criston

Investor Liquidity

Now at least 80 days to sell loan parts.

See the following.

Close gap between, ' . com'

http://p2pindependentforum. com/thread/14673/selling-loans-frame-updated-daily?page=1

Alexland

dread_uk wrote: »

Should I be concerned ?

Hmm some messages including my response to this question appear to have been removed from this thread. I don't believe they said anything unreasonable.

Alex

criston

Now at least 82 days to sell loan parts.

See the following.

Close gap between, ' . com'

http://p2pindependentforum. com/thread/14673/selling-loans-frame-updated-daily?page=1

criston

Now at least 84 days to sell loan parts.

See the following.

Close gap between, ' . com'

http://p2pindependentforum. com/thread/14673/selling-loans-frame-updated-daily?page=1

criston

Now at least 86 days to sell loan parts.

See the following.

Close gap between, ' . com'

http://p2pindependentforum. com/thread/14673/selling-loans-frame-updated-daily?page=1