Portfolio update February 2020

Hello fellow investors,

As mentioned in my last portfolio update, the small world of p2p investments remains quite affected since the collapse of Kuetzal and Envestio. Doubts have raised on other platforms, in particular P2B platforms from the Baltics. It’s difficult to guess what will be the consequences. Investors’ behaviour will be key to the survival of the platforms which must prove their willingness to improve transparency.

Many platforms have decided to come forwards with official statements, in order to try to reassure investors, clearing the path about their future developments and distentiating themselves from the shamful scams that were K and E.

I still sustain no loss so far and cross finger that it will remain like this as long as possible. Only a very small part of my portfolio is currently at risk in the platforms under scrutiny.

As regards to my blog, I published 4 articles in February! I published an article where I explain why, after considering it, I prefer to not invest in NEXO, why it is better to use auto invest than Mintos Invest & Access and I also started a “tips” category to help investors:

Don’t hesitate to have a look if you are interested!

Passive income

February 2020 = € 825.56

Rent: € 513.56 (+ 0.95%, yearly adjustment)

P2P portfolio: € 312.00 (- 6.20% vs Jan 2020)

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 € 2.48 (Grupeer) 🤣. Excluding referral income, my p2p revenus actually increased by 5.38%.

Size, breakdown and profits

After 1 year of investments the portfolio is above € 61 K with 10 platforms.

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 as I explained in my January portfolio update.

The XIRR of the overall portfolio increased to 6.65% (vs 5.91% in January 2020). It increases every month but remains low as it is heavily impacted by the two full bullet real estate platforms Fundimmo and Wiseed representing about 47% of the portfolio. The portfolios are too recent to have meaningful returns. In addition, both Fundimmo and Wiseed withhold taxes, therefore the returns are net of taxes contrary to the other platforms.

The XIRR since inception keeps increasing as well with 4.65% (+28 bps vs Jan).

Platforms

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

Fundimmo

I didn’t receive any reimbursement in February.

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 track records is really good since to date no project have defaulted (in 4 years).

Despite my previous decision to cap my investments to € 15 K I have decided to invest in 1 project in Paris 16th district, one of the most demanded and expensive area of Paris, for € 1 K. It’s the first time I invest in a project since last October and my portfolio reaches now € 17 K. The € 1 K minimum investment makes difficult to diversify.

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 you can visit the platform here. There is unfortunately no special offer/bonus for new (and existing) investors.

Wiseed

  • Monthly profit = € 18.23
  • Monthly XIRR = 1.84%

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 € 13,900 :

  • Real estate: € 9.7 K on 29 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. Unfortunately the platform applies a 0.9% flat fee for each investment. For this reason my portfolio has currently a negative XIRR since inception until it reaches additional 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.

I did not invest this month which is rare on this platform. However, for the first time, I received a reimbursement in February, but it was not the one I expected. A project due by next August was reimbursed in advance whereas the one due this month has been postponed by 3 months. I voted in favour of the postponment that is due to some construction delays (it is pre-sold as well). I still get interests on the delay. I decided to withdraw the money since there is currently no project that fit my criteria and I can pay directly whenever I want to invest. I don’t need to have money sitting on the platform.

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 you can visit the platform here. There is unfortunately no special offer/bonus for new (and existing) investors.

Peerberry

  • Monthly profit = € 94.86
  • Monthly XIRR = 12.14%
  • XIRR since inception = 10.79%

I got the silver loyalty bonus since beginning of February (> € 10 K investments) and benefit from + 0.5% on my investments. It should be really visible from the XIRR of March. My monthly XIRR increased from 9.34% to 12.14%, last month’s performance was impacted by a € 3 K deposit. With € 94.86 odf revenue I reach a new record for this platform.

I like the platform and made it the largest foreigner platform of my portfolio. Some of the LOs are small and recents but many belong to the sound Aventus group. Peerberry published some figures from both Aventus and Gofingo groups for 2019 but we are still waiting for the actual financial accounts. The interest rates of the LO credit7.ua (Avenus in Ukraine) have increased up to 15.5% this month and I the share of my portfolio is now 22% on this entity that benefit from a group guarantee. Nonetheless, I don’t plan to increase the share further as I prefer to have a better balanced portfolio.

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 = € 65.88
  • Monthly XIRR = 16.58%
  • XIRR since inception = 13.85%

Last month XIRR with over 25% was exceptional and I couldn’t repeat the performance. It was due to a bunch of Atlantis Financier late loans all re-bought at the same time. However with 16.58% the returns remain impressive and uncorrelated with the interest rates mix of my portfolio. The XIRR since inception is still increasing to 13.85% vs 13.47% one month ago.

Viventor made an announcement in the current difficult context for p2p platforms in order to reassure investors. It has increased its capital significantly, plan to implement pending payments feature and to enable to see loans that have been extended so they don’t appear wrongfully late anymore. Viventor plans to apply for a brokerage licence in Latvia.

In addition, Viventor also announced (only to concerned investors by emails) the deal made with Aforti in order to cover the debts toward the platform and investors. It seems that investor will get their money back including interests (according to a reply from Peerberry posted as a screenshot by an investor on Facebook). It will take up to 3 years.. but this is still a positive outcome, assuming Aforti stay alive until the end. I only have € 34 in Aforti Finance loans so I don’t mind to be patient.

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 and interest rates are pretty good. There is decent possibility to diversify on Viventor.

If you want to give a try to Viventor you can use my link. There is no bonus for new investors with this link but it would help supporting the blog.
In February Viventor created a new referral program valid only for February but just announced on 2nd March that it is extended until further notice. With the promo code ET1848 you would get 1% of your investments on the primary market during 1 month (minimum investment of € 100). I would 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 = € 44.30
  • Monthly XIRR = 10.62%
  • XIRR since inception = 9.57%

My portfolio is still 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 10.62% (+ 47 bps vs Jan 2020). The monthly profit includes € 2.48 of referral income (counted as deposit for the XIRR calculation).

Co-founder Alla Kisika made a video you can watch here on 31 January to emphasise Grupeer’s willingness to increase transparency. I am waiting for improvement regarding information available on the loan originators and deal partners.

Grupeer announced that the new “investor cabinet” should be available in the next weeks and the loan originators financial accounts published in April. Regarding the long awaited secondary market, it is unfortunately postponed to August.

Swaper

  • Monthly profit = € 48.52
  • Monthly XIRR = 12.58%
  • XIRR since inception = 9.67%

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 12.58% in February whereas I am now investing in 14% loans since beginning January. This is still a important increase vs January (10.97%). I am fine with this level of return assuming Wandoo Finance financial situation justify having € 5 K on it. Swaper plan to publish both the annual financial statements of the platform and Wandoo Finance group once finalised, hopefully in spring.

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.

Mintos

  • Monthly profit = € 23.26
  • Monthly XIRR = 10.86%
  • XIRR since inception = 14.52%

I decided to put back some money on Mintos, € 1,500, due to both the increase in interest rates and that I am now more confident with my selection of loan originators. I am still not at the level I used to be last summer but I may further increase in the next few months.

Since I only invest in Varks (Armenia) from Finko group, I did not enroll in the cash back campaign for the Ukrainian entities. However, I decided to enroll in the Wowwo campaign since I decided to start investing in this LO that I had so far not included.

My XIRR in February is stable to 10.86%, – 2 bps vs January. This level remain lower than my past performances due to both the result of my changes in AI strategies, focusing on quality over yields and the impact of the new deposits. I have 23 dedicated AI strategies on the LOs I consider more robusts but some (4) don’t have any loans at the moment. My portfolio is now cleaned of other LOs I used to invest in. I have no exposures in any problematic LOs.

I published an article in February explaining why it is better to not use Invest & Access product but rather use auto invest function. I plan to publish soon a “review”of Mintos where I will focus on criteria to select loan originators. I think this is more useful than a review full of screenshots telling how to sign up and deposit monies…

Mintos finally launched its app. It looks nice but the investment function is still to come.

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.

Estateguru

  • Monthly profit = € 13.19
  • Monthly XIRR = 8.52%
  • XIRR since inception = 7.35%

My current performance is below what I can expect (projects yields 10-12%) because my portfolio is very young – I joined last October – and some investments are full bullet or with interest repayments each 3 or 6 months. I invest manually, usually the € 50 per loans in order to build a diversified portfolio.

As explained in my last portfolio update, Estateguru calculate a NAR of 100.26% for my portfolio. 😂 However, I calculate the performance of all my investments myself and do not rely on the platforms’ calculation.

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 published an article on how to use XIRR to track the performance of its portfolio.

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). I withdrew my available funds (€ 17) on 29 February since it is below the minimum amount and I am ont planning to invest more in March. My real estate portfolio (3 platforms) is big enough for the time being and I may also open an account with EvoEstate in the future.

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.

TFG Crowd

  • Monthly profit = € 2.85
  • Monthly XIRR = 19.21%
  • XIRR since inception = 19.38%

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 decided to hold off on investing on TFG Crowd.

Some concerns have arisen on the projects and the buyback (for defaulted loans) mechanism. To alleviate those concerns, TFG Crowd updated the buyback guarantee explanation and published their roadmap on their blog. In particular, they plan to apply for a FCA crowdfunding licence in UK, which is a regulated jurisdiction, and also for another licence in Germany for projects in EU due to Brexit. These are important announcements but it remains to be seen. They also plan to implement a secondary market (good) this year and an auto invest (not so good for such loans in my opinion) feature. On the negative side it seems the platform is a fan of using stock photos for its projects presentation which is deceitful and raise concerns.

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.
Comments below have not been amended.

  • Monthly profit = € 0.91
  • Monthly XIRR = 11.41%
  • XIRR since inception = 54.97%

In my previous portfolio update I explained with details the reasons that led me to open an account on Monethera about 10 days before the fall of Kuetzal and all the doubts that have raised about the platforms in the course of January. Of course, the timing could not have been more wrong but I fortunately 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.

Monethera published a new post on its blog trying to address transparency issues regarding their due diligence process. In addition, Monethera implemented auto invest function on the platform. I don’t think this feature is useful to investors, and actually even think it is a bad idea considering the nature of the projects presented. Investing automatically is definitely being the dumb money. This feature is only useful to Monethera itself that wants to increase the speed of the funding phase, currently pretty slow. I have seen announcement of a secondary market planned for end-March on Facebook but did not receive anything from Monethera.

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 as Buyback mechanism remains frozen.

In addition, Monethera experiences issues with its banks. They can’t proceed with the withdrawal requests from investors at the time of writing. Paysera asked them to find another bank in order to transfer investors’ monies there… This does not look good at all. I did not request withdrawal myself having almost no fund available on the platform.

I do not provide my referral link to sign-up on Monethera considering all existing doubts about the platform at the moment.

Defaulted exposures and Watchlist

Following the fall of scam platforms and my investments beginning January in 2 high risk P2B platforms, I decided to assess the amount of capital that is at 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 (0.05% of the 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. Following the agreement between Aforti and Viventor the recovery expectations are higher. Nonetheless, I maintain the loans classified as defaulted since they are still over 90 days past due and the recovery process will be very long (up to 3 years).

Watchlist exposures = € 312.03 (0.51% of the portfolio)

It includes my investments in Monethera (€ 106.44) and TFG Crowd (€ 205.61). The Estateguru’s project previously late is now back on track. Interests for the 2 first months have been paid.

Conclusion of the month

As regards P2P, I will keep a look at what is happening for Monethera and TFG Crowd. My monies is locked so I cannot do much but hope they survive until I can exit. I will probably put some more money to Mintos in March. I am holding off on opening new accounts for the time being but keep in mind the possibility to join EvoEstate.

I am not sure what to expect regarding the corona virus crisis when it comes to P2P. If it really triggers an economic downturn I should take advantage of this to buy cheap additional ETFs (already started to do so) and maybe pause my autinvest on unsecured loans P2P platforms. Half of my portfolio is basically real estate with full bullet and mostly without secondary market. There is here nothing to be done apart deciding to reinvest or not.

Right now I have my eyes more on my stocks/ETFs portfolio with the sharp decrease in value due to the corona virus crisis. In the last week of the February the decrease corresponds to almost € 3 K which make my exposures to high risk P2B platforms meaningless in comparison. The split of this portfolio among several funds under managements (3), several pension funds (6), and the ETFs (3) that I handle myself make it very difficult to manage in a flexible way. Some of my investments are blocked for many years to come. I am a long term investor so I know I should not overreact to this situation, arbitrate a bit if needed, and be ready to invest more when it will decrease even further.

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

Cheers!

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