We care about our clients and want you to make a good return on your money. To help, we’ve outlined our three key tips for getting the most out of your time with BondMason.
1. Sit back
Deploying your money through BondMason is simple and straightforward. You remain in control of your funds at all times and can choose what you would like to do to suit your circumstances. Many of our clients however, take an ‘invest and sit back’ approach.
The auto-bid tool enables you to easily allocate capital across a broad selection of loans and lenders – choosing a concentration level of 1% or 2%. Once you have set your investment preferences simply sit back, relax, and monitor your investment performance from your online dashboard.
Our Investment Team has over 80 years’ experience in investment institutions including Fidelity, Blackstone, Ares, Lloyds, Babson and JP Morgan, and essentially do the legwork for you. They;
- conduct due diligence to source the best lending partners (to date they have reviewed over 100 platforms and just 33 have been selected as BondMason lending partners)
- vet every loan using vigorous selection criteria, with a focus on asset-backed lending
- manage and monitor loans throughout the duration of their terms.
2. Look to the longer-term
There is no tie-in period so should you need your money you can liquidate your funds at any time. However, to make the most out of your time with us and to target a gross return of up to 8.0% p.a., it is best to take a medium to longer term view your investment period.
Taking a longer-term view of your investment factors in aspects such as cash drag and loan repayments.
Cash drag is essentially the impact of un-invested cash on clients’ overall returns. Our aim is to keep the amount of time for capital to be fully deployed at an of average 28 days. However, because we will always prioritise the quality of loans over deployment rates, the reality is that there will be some periods when this figure alters slightly. For example;
seasonal peaks and troughs - sourcing quality loans during quieter months, can be more challenging when a wave of new investors come to the platform all at the same time, then it could have an impact on the allocation rate.
Cash drag may have an initial impact, but should not materially impact the overall target return - particularly when looked at over a minimum investment period of 12 – 18 months.
3. Be patient
BondMason’s clients have achieved an average gross return in excess of 8.0% p.a. in 2015*, 2016 and 2017* (*part periods). We pride ourselves on our consistent performance and therefore, loan selection is central to everything that we do.
Your ‘My Summary’ dashboard enables you to drill down and view all your live loans and their status. We take a precautionary, transparent approach and you can see this reflected on some additional tabs that show the journey a loan can take through the duration of its term. For example:
The watchlist is essentially our experienced investment team doing their job. We take a prudent approach to lending and often flag loans in Watchlist as a precaution. Consequently, when a loan goes over term or if there is any other reason it has been flagged by our Investment Team we mark it as Watchlist.
This does not necessarily mean the position will result in a loss. The clear majority of Watchlist names repay successfully; in fact, over 90%+ of loans listed in watchlist will repay in full.
Of course, all loans have an element of risk attached and there is the chance that some watchlist loans may move across to default, but don’t be unduly concerned with the loans on watchlist – it is our investment team carrying out thorough due-diligence and taking a cautionary approach.
Investments are marked as default if they have moved beyond Watchlist status and often reflect a lack of engagement by a borrower or the beginning of a recovery process, for example the engagement of a recovery lawyer. Investments in default may or may not lead to a loss and depend on several factors including the nature and value of our security. Again, the majority of ‘Default’ names repay successfully and in full.
Essentially, be patient and let loans run their course. The vast majority of loans do repay in full and we keep a close eye on any that we’ve flagged. Overall, we expect a loss ratio of 0.5% to 2.0% p.a. across the portfolio.
In summary, investing is a long-term game and some losses along the way are inevitable. However, our rigorous approach has meant that since our establishment in 2015, on average, BondMason clients have achieved an average gross return of 8.0%+ p.a. So:
1. Sit back - let us do the leg work
2. Look to the longer term - view your investment period as a minimum term of 12 – 18 months.
3. Be patient – let loans run their course – the clear majority of loans repay in full
If you would like more detail analysis of BondMason’s performance you may wish to look at our Statistics page.
*Warning: nothing in this article should be construed as advice. Your capital is at risk.
Getting started is easy
Getting started is easy. In just a few simple steps you can create an account and start targeting gross returns of up to 8.0% p.a.1 and with no tie-in3 there is no reason to delay.
1. Your returns: BondMason clients have achieved an average gross return in excess of 8.0% p.a. from April 2015 to April 2017 (before fees). Your capital is at risk and BondMason is not covered by the FSCS or regulated by the FCA. Please see our statistics page for investment performance details. 2. You are not lending: BondMason Ltd enables each client (buyer) to purchase specific Receivables based on cash actually received by the seller relating to peer-to-peer loans (P2P loans), asset-backed loans and receivables purchase agreements made by the seller on other finance platforms. The resulting "Receivable Purchase Agreement" can also be sold (and purchased) on BondMason 3. Liquidity is not guaranteed: we aim to provide liquidity within 7-14 days. This is not a guarantee. Please see below for full disclaimer and T&Cs