Portfolio update January 2020

Hello fellow investors,

Here we go for the first review of 2020.

January has been quite eventful in the small world of p2p investments. Fortunately I have been spared by the events so far, being invested neither in Kuetzal nor in Envestio. Nevertheless, it is clear to more and more people that crowdlending, being still mostly unregulated, carry on risks beyond the mere risk of losses caused by defaulted projects. There is the risk that crowdlending platforms are being used as a vehicle to put in place a potential scam (and embezzle investors’ money). Investigations are still at a preliminary stage and investors in those two former P2B platforms will have to be patient and active (lawsuit class actions are on the way) before having a clear picture of the situation.

Now back to my portfolio. I may have made my first mistake in light of the events see above mentioned and of further uncovered information. I indeed open two accounts in high risks P2B platforms, Monethera and TFG Crowd,  just before the fall of Kuetzal. But we will come to that later.

Passive income

January 2020 = € 841.35 (+ 13.3% vs Dec 2019)

Rent: € 508.71

P2P portfolio: € 332.64 (+ 42.3% vs Dec 2019)

Currently my monthly passive income is composed of the rent for one apartment and the revenues from my p2p portfolio. All income coming from investments in stocks, bonds and ETFs are automatically reinvested.

My P2P portfolio income includes my referral income of € 39.03 (100% Grupeer).

Size and net investments

After 1 year of investments the portfolio is getting close to € 60 K with 10 platforms.

I could add on top of that a little € 1.5 K for the crowdequity part.

2019 overall net investments in crowdlending of € 53,700.

I invested € 4 K in January 2020 in 5 different platforms.

Breakdown and profits

I have created a page with all sign-up bonuses for the platforms I invest in that you can visit here. I chose to not include Monethera for the time being. I explain why in the dedicated part on Monethera in this portfolio review.

The XIRR of the overall portfolio increased to 5.91% (vs 5.11% in December 2019). It remains low as it is heavily impacted by the two full bullet real estate platforms Fundimmo and Wiseed representing close to 50% of the portfolio. The portfolios are too recent to have meaningful returns.

As you can see, compared to my portfolio presentation in December, I have opened 2 accounts with TFG Crowd and Monethera and made small investments, just days before the fall out of Kuetzal… Obvioulsy, if I had a crystal ball I would have hold off in particular in the case of Monethera.

Now let’s go through the different platforms by order of exposures. I therefore will finish by the new ones, being the smaller stakes in my portfolio. You can always make use of the table of contents on top of the review to navigate wherever you want.

Platforms

Fundimmo

I didn’t receive any reimbursement in January. I started to invest on Fundimmo in February 2019 and, so far, I received early reimbursments for € 3 K in last October & November.

Fundimmo is a French real estate platform connecting investors to real estate developers seeking to complement their own funds by issuing full bullet bonds with fixed rate of circa 8-10%. Those rates are pretty similar to other real estate platforms in France. The RE developers are of good quality and usually have already secured a bank loan.

I have not invested since last October as I consider the share of my portfolio high enough. Also the € 1,000 minimum per investment makes difficult to diversify. I am thinking capping my exposure at € 15 K on this platform (still € 16 K now) for these reasons despite the excellent track records (0 default in 4 years).

If you want to know more about this platform click here to see my opinion.

This platform is more suitable for people understanding French (no English version). If you are interested and want to give it a try you can visit the platform here. There is unfortunately no special offer/bonus for new (and existing) investors.

Wiseed

I didn’t receive any reimbursement in January. My first reimbursment is planned for February 2020.

Wiseed is a French platform offering mostly real estate deals and the possibility to invest in start-up’s equity. In addition, few business deals are available from time to time. I am invested since January 2019 in all 3 categories with overall € 14,400 :

  • Real estate: € 10.2 K on 30 deals
  • Business: € 2.7 K on 6 deals
  • Equity: € 1.5 K on 5 start-up

On the real estate part the business is fairly similar to Fundimmo, albeit the minimum investment is € 100 – only platform in France I found with such threshold. Unfortunately the platform applies a 0.9% flat fee for each investment. For this reason my portfolio has currently a negative XIRR until it reaches the first repayments. The track records on the real estate activity is also very good with only 1 deal that went into default in over 4 years.

In January I invested € 200 in a start-up named Pokawa specialised on Poke bowl (hawaiian food). The activity is both generated by orders (delivery) and people going in one of the 20 restaurants open to date in several cities in France. The company plans to grow internationaly and the purpose of the financing is to open new restaurants. Investing in a 3 years amortisable bond at 7% may not look so appealing by Baltics P2B platforms’ yield standards but at least I know the company is real 😋. I have seen the CEO interviewed on TV and I have friends who have ordered and eaten their food so… definitely a real company (and it’s good) 🤗!

If you want to know more about Wiseed platform click here to see my opinion

This platform is more suitable for people understanding French (no english version). If you are interested and want to give it a try you can visit the platform here. There is unfortunately no special offer/bonus for new (and existing) investors.

Peerberry

  • Monthly profit = € 73,95
  • Monthly XIRR = 9.34%
  • XIRR since inception = 10.50%

After € 2 K in December I invested another € 3 K in January in order to qualify for the silver loyalty bonus (> € 10 K investments). From 1st February I get + 0.5% on my investments. It should be visible from the XIRR of March. Due to the large deposit this month my monthly XIRR decreased from 11.23% to 9.34% but this is only temporary.

There is a good loan supply at Peerberry despite the increase in investors base and interest rates are stable, even slightly up for some LOs at the end of January. Some of the LOs are small and recents but many belong to the sound Aventus group. Some benefit from a group guarantee – actually given by the Polish entities.

I think the platform has a good potential whilst still lacking some features in terms of statistics and a secondary market for the longer term loans in particular.

Peerberry created a new sign-up offer. Until end-May 2020 you can receive 0.5% of all your investments using my link. I will get the same bonus as you.

Viventor

  • Monthly profit = € 101.40
  • Monthly XIRR = 25.16%
  • XIRR since inception = 13.47%

Well, well, what the hell happened this month that I doubled my monthly XIRR with over 25% and got € 101.40 profits??? I simply got a batch of Atlantis Financiers loans repayed. Those loans are full bullets and were late for most of them when I got the reimbursment all at once after 60 days delays… which is not the Buyback duration (90 days for this loan originator)! I suspect those loans having been extended since this information is not visible to the investors on the platform (CEO explanation on Facebook). Indeed, I have now again € 100 of Atlantis Financiers loans which are above 60 days late and have not been reimbursed yet. Those ones have likely not been extended like the others.

I am satisfied with the functionning of the platform, this is basically the only one (with Swaper) for which I never invest manually. I have no cash drag at all. Interest rates are pretty good and all loans come with BBG and pay interests on delays. There is decent possibility to diversify on Viventor.

Viventor announced on facebook they have reached an understanding with Aforti and are working on a detailed plan for future repayments. More details should follow soon. Let’s hope for a proper solution and finally clarity that investors are waiting for since last summer. I have personnally € 34 in Aforti Finance loans so nothing to worry about.

Viventor created a new referral program valid for February only. If you sign up and enter my promo code ET1848 you will get 1% of your investments on the primary market during 1 month (minimum investment of € 100). I will get the same bonus as you.

Grupeer

Grupeer has stopped its activities and there is a high probability that it is a scam.
Comment below have not been amended.

  • Monthly profit = € 81.22
  • Monthly XIRR = 10.15%
  • XIRR since inception = 9.26%

My portfolio is recent (October 2019) and I expect the XIRR to increase progressively. About 25% of my portfolio consists in development projects with full bullet loans, hence the monthly XIRR of 10.15% (+ 53 bps vs Dec 2019). The monthly profit includes € 39.03 of referral income. I counted it as deposit for the XIRR calculation and, therefore, it does not impact it.

Co-founder Alla Kisika made a video on 31 January that was sent out to investors together with a long email to both reassure investors in the current difficult context and to emphasise Grupeer’s willingness to increase transparency. You can see the video here.

Grupeer announced on a Facebook thread that the new “investor cabinet” should be available in February. I hope we will finally have all the information enabling us to see our diversification level (breakdown by LO in particular) and better filtering possibilities to look for loans to invest in! The secondary market is still planned for 2020 but will not be released at the same time. I am waiting for those improvements to materially increase my investments at Grupeer.

Swaper

  • Monthly profit = € 45.18
  • Monthly XIRR = 10.97%
  • XIRR since inception = 8.92%

I finally started to benefit from the 2% loyalty bonus (balance over € 5 K for at least 3 months). From the 1st January i now grabb loans at 14% and should see the returns impacted from February XIRR when the first repayments will occur. The platform is 100% passive as all loans are issued by the same group (Wandoo Finance), owning Swaper, and are basically all similar with 12% (or 14%) and usually 30 days maturity.

Despite the actual increase of loans founded on the platform, there is still a lack of supply and I regularly have 5-10% cash drag on my account. In consequence my XIRR was 10.97% XIRR in January (- 34 bps vs Dec 2019). I expect being somewhere in the 12 – 13% with the repayments of loans at 14% in February.

If you want to give a try to Swaper you can signup using my link. Unfortunately there is currently no offer for new investors. I would get € 5 which would help supporting the blog.

Estateguru

  • Monthly profit = € 8.13
  • Monthly XIRR = 5.48%
  • XIRR since inception = 6.83%

I joined Estateguru in late October 2019 and I invested so far € 500 each month. I invest manually, usually the minimum of € 50 as I want to build a portfolio as diversified as possible from the start. My current performance is below what I can expect (projects yields 10-12%) because my portfolio is very young and some investments are full bullet or with interest repayments each 3 or 6 months.

I calculate the performance of all my investments myself and do not rely on the platforms’ calculation. I wanted to show you a nice example as why it is better to do so. You will see below my NAR calculated by Estateguru: 😂

The NAR was 0% since the beginning despite having received interests from some projects in December. In January, project #402 was fully repayed after only a few days providing an excellent 100.26% return to investors 😆, and Estateguru is simply considering this as the performance of my entire portfolio. I do not know if the NAR of the platform always only considers finished investments in the calculation but it seems odd to me. I may publish an article on how to easily track the performance of its portoflio. Maybe this can be of interest to some readers.

I like the platform, Estateguru is often considered as one of the safest/ more conservative real estate platform out there and so far they have a good track records at managing defaults (no capital losses). Still, I would like to see more projects from outside the Baltic countries. They have plan to expand the numbers of deals from Spain and Finland in particular.

If you want to give a try to Estateguru feel free to register using my link. We will both get a bonus of 0.5% on all investments you will make on the primary market for the first 3 month.

Mintos

  • Monthly profit = € 16.27
  • Monthly XIRR = 10.88%
  • XIRR since inception = 14.82%

My XIRR in January is down to 10.88%, – 250 bps vs December. This is result of my changes in AI strategies, focusing on quality over yields. I have 22 dedicated AI strategies on the LOs I consider more robusts. I implemented this changes in beginning December and the impact is now visible. My portfolio keeps cleaning itself from the other LOs gradually. I have no exposures in any problematic LOs.

I may add some more money on Mintos in the near future considering the interest rates are up again and I have now delimited more properly the LOs I want to invest in, not relying on Mintos ratings anymore. I think Mintos is a platform worth belonging to a properly diversified p2p portfolio. There is no other platform offering such large choice of LOs and high level of liquidity. You need to be aware that some LOs are more fragile and decide whether you want to avoid or still invest in them.

If you don’t already invest in Mintos, and want to give it a try, feel free to register using my link . We will both get a bonus of 1% for 90 days based on your investments.

TFG Crowd

  • Monthly profit = € 2.76
  • Monthly XIRR = 19.56%

I added TFG Crowd on 1st January and invested in 2 projects, few days before the fall of Kuetzal (12 January) as I was thinking adding business loans exposure to my portfolio. My objective was to allocate up to 5% of my portfolio split into 2 high risk platforms in 1 year horizon in a very gradual way (i.e. € 1,000 – € 1,500 each).

Considering what happened with both Kuetzal and Envestio my timing could not have been more wrong and in this uncertain environment I will probably hold off a bit before deciding to invest more or not on TFG Crowd.

The reasons for chosing TFG Crowd are the following:

  • They have projects in many countries, including in western Europe which enable a better diversification and to not be more exposed to the Baltic countries;
  • There is no early exit/buyback by platform putting at risk the platform;
  • They have a buyback fund which I consider more appropriate and less risky guarantee for the platform itself. Once it is gone, it is gone and the platform is not impacted beyond. There is temporary a buyback guarantee EXTRA without limit in 2020 to let the buyback funds grow to a more meaningful size. I don’t like that but as it is temporary I accepted the risk (that was before the recent event).

Considering the features of the platform they are not at risk directly but the current atmosphere must impact them in terms of speed of funding. More transparency is needed and they are working on providing more information on the platform such as due diligence process, etc.

If you are interested in joining TFG Crowd you can do so by using my link. Unfortunately there is no bonus for new investor. I would get € 20. In any case please keep in mind that the platform is still young and on the high-risk spectrum of P2P lending.

Monethera

Monethera has stopped its activities and there is a high probability that it is a scam.
Comment below have not been amended.

  • Monthly profit = € 5.53
  • Monthly XIRR = 134.94%

I opened an account on the platform and invested at the same time as TFG Crowd for the reasons explained before. The objective was always to go little and slow. As mentioned the timing could not have been more wrong. Fortunately I only invested € 100 in one project and then the € 5.50 cash back in a second one, so nothing to worry about in terms of amounts.

I asked Monethera about their early exit mechanism by platform end-December before deciding to invest because I do not like this feature. I decided to still invest there because it is mentioned in the FAQ the project of implementing a secondary market. I asked them whether the plan is to replace the buyback by it and the reply was not that clear which should have been enough for me to hold off and not opening an account… Unfortunately I did not listen to my inner voice 😟. For me it simply does not make any sense to keep such feature if you have a secondary market. Here again my thought was: I will go slow and with little money so by the time they implement the secondary market (they replied it’s for 2020) it will be fine.. well things go much faster than I anticipated.

Following the fall of Kuetzal and Envestio people started to worry about other high risks P2B platforms such as Monethera. Many buyback requests have been initiated and Monethera announced a temporary suspension of this possibility. Considering the situation this was the right decision.

However, investors have started to look for information more carefully and serious doubts have arisen regarding the existence of the company Richly Pacific International with whom Monethera announced to have an agreement in December to buyback 95% of future defaulted loans for up to € 3 millions. According to ICRIS (Integrated Companies Registry Information System) the company is dissolved since over a year. Monethera claims this is an issue with the register and tried to clarify and reassure investors in the following statement.

I do not have a crystal ball and do not know how it will turn out but it is clear to me that I won’t invest my money anymore in Monethera unless they manage to increase drastically the transparency and address all issues raised by investors. For now my money is locked, potentially until September if the buyback is not unfrozen but it maybe the best thing to keep it that way.

I do not provide my referral link to sign-up on Monethera considering all existing doubts about the platforms at the moment. I think this is more aligned with my own policy to not invest there under the current conditions.

Defaulted exposures and Watchlist

As I explained in this review I may well have made my first real mistake as a p2p lending investor. Also I decided to assess the amount of capital that is at obvious risks in my portfolio. Of course it will not capture all future defaults. I will have more that I will not see coming due to the limited information that we have on the projects we invest in.

Banks determine their level of defaulted exposures and also classify under “Watchlist” the exposures for which there are signs of upcoming difficulties of repayments. I decided to retain this classification myself:

Defaulted exposures = € 34.53 (0.06% of portfolio)

The main criteria used to classify an exposure as defaulted is being over 90 days past due. This is the case of my Aforti loans in Viventor. Exposures in defaults do not mean that recovery are impossible but that the likeliness of losses is high. Depending on the outcome of the discussions between Viventor and Aforti this will translate into losses or not.

Watchlist exposures = € 155.53 (0.26% of portfolio)

It includes my investments in Monethera (€ 105.53) and 1 project in Estateguru that is late (€ 50) for… the very first interest repayment! This is not a good sign that after Estateguru contacted the borrower it has announced needed 1 more week to pay the first monthly interest payment.

That is all for this portfolio update! If you have any comment don’t hesitate. 😊

Cheers!

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