FundingSecure has received its HMRC approval and launched its IFISA; FundingSecure offers secured loans and markets annual returns of 12% to 16%; investors can invest up to GBP20,000 ($25,569) in the IFISA in 2017 according to UK regulations. Source
One of the key pieces to the new MIFID II regulations is more transparency around investment fees; robo advisors have made their products more transparent and less complex, seeing that traditional advisors are now forced to be more transparent robo advisors might begin seeing business headed their way; before MIFID II investors incurred costs which were not required to be disclosed for buying and selling of shares, taxes, custody, slippage and more; implementation has been slow as incumbents try to adjust to the new regulatory requirements. Source.
Kevin Caley from ThinCats writes on the evolution of the P2P lending industry and why financial advisers should consider the investment for their clients; reports on the industry's growth and the comparable returns of the product; notes the introduction of the IFISA as a factor for greater investment and increased acceptance from financial advisers. Source
LendingRobot shares returns for the second quarter; aggregated return for the LendingRobot series was 2.7% year to date; there are currently four risk-based funds in the series ranging from short term conservative to long term aggressive; loans included in the funds are from Lending Club, Prosper, Funding Circle and Lending Home; the series funds are available to accredited investors for investment. Source
We had an all-star panel of the pioneer fund managers at LendIt 2016 to discuss how to prepare their portfolio for a market downturn. The managers were beginning to see greater dispersion in returns and started to question whether a downturn was coming. However, as we have seen, the bull market continued its historic rise throughout the year. Nevertheless, it was great to hear firsthand from these managers on how they stay prepared for a market correction. Source
You can view the video here:
Dan Loeb of Third Point is the latest hedge fund to invest in marketplace lending; the hedge fund manager has reported a 10% allocation to marketplace loans and says that he will be reducing his investment in structured credit and specifically residential mortgage backed securities to allocate to the fixed income alternative; Loeb says he is working with marketplace lenders on securitized portfolios and is excited about the investment opportunities available in the marketplace lending market; the firm also has a venture capital business, Third Point Ventures, which is invested in SoFi, Upstart and Swift Capital. Source
New research from Equifax Touchstone shows that automated investment has become a wider trend in P2P and wealth management; 82% of 141 surveyed investment advisors said they have a consistent approach to allocation and monitoring for clients; P2P platforms like Funding Circle recently removed self selection and instituted an autobid process for investors; John Driscoll, director at Equifax Touchstone, tells AltFi, "This approach helps strike the right balance between risk and return, particularly important in a world of increased market volatility."; according to Driscoll the FCA has been a main driver of this trend to ensure risk is maintained correctly for investors. Source
The Victory Park Capital Specialty Lending Fund reported a net total return of -1.47% for the fourth quarter of 2016 with its marketplace loan investments dragging on total return; while reporting a loss for the fourth quarter, the fund says "…there has been further progress in the reallocation of capital to balance sheet investments"; the fund increased its balance sheet investments to 51% of the fund's net asset value in the fourth quarter, up from 22% at the beginning of the year; firm continues to reallocate its fund and is also buying back shares. Source
MoneyLion provides customers with a range of services for managing their finances and also includes credit products; the platform incorporates a unique rewards program that can help customers receive loan discounts and rewards from endorsements and on-time payments; company is a featured applicant in the 2017 Benzinga Global Fintech Awards competition; led by co-founders Dee Choubey, Chee Mun Foong and Pratyush Tiwari, the company raised $650 million in debt financing in September 2016 and $22.5 million in a Series A equity funding round in December 2016. Source
Citigroup’s new robo-advisor will be free for customers who have at least $50,000 in deposits or investments; this is the...