Portfolio update March 2020

Hello fellow investors,

The current situation is… bad… I wanted to find a more fancy word but there is just nothing coming to my mind that describe properly at the same time the sanitary implications of covid-19 outbreak, the impact on so many peoples’ life and the economic consequences.

As it is a blog on p2p investments I will not procrastinate on the sanitary consequences. The impact on global economy is huge already with several billions of people that need to stay home most of the time, borders are closed between many countries, companies struggles to survive and people start losing their jobs. Contrary to previous crisis the lag between the stock market reaction and the impact on the real economy is almost inexistant… and this has a huge consequence on the p2p industry!

Investors are panicking which endanger even more the platforms and the loan originators. We can see a impressive rise in available loans on several platforms, even more on secondary markets (panic sales), and an increase of the yields offered in an attempt to attract the investors still willing to invest.

Platforms come forwards with official statements, webinar, etc.. in order to try to reassure investors. Some loan originators did the same.

My portfolio has been heavily affected in March with the 2 scams of the month (should we make a pool to decide which are the ones to fall in April/May?): Monethera and Grupeer. I am not surprised at all by Monethera, I basically regretted investing there about a week after opening the account… but Grupeer came out more at a surprise.

Passive income

February 2020 = € – 4 371.19

Rent: € 513.56 (stable) from 1 appartment

P2P portfolio: € – 4884.80

The huge loss come from the write-off of both Monethera and Grupeer. I am still hoping to get back part of it in the context of class actions lawsuits to come though. I decided to join both of them and follow the development on Telegram groups. Without these developments, March would have been my best month ever (€ 490, i.e +58%!!) and, actually, with Monethera falling alone as well… No income from the blog.

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.

Size, breakdown and profits

For the first time since I started investing in p2p my portfolio decreased this month. I started by adding € 3k on Mintos in March but this was more than offset by repayments of real estate projects and withdrawals. The write-off of 2 platforms on top of that sharpened the drop. My portfolio decreased to € 52.2 K with 8 remaining platforms. I have invested more on the stock market this month both in ETFs (MSCI World and MSCI Emerging Markets) and stocks (L’Oreal, Danone, Air Liquide, Sanofi, Pernod Ricard so far) for overall € 7k.

I have created a page with all sign-up bonuses for the platforms I invest in that you can visit here. I decided to remove TFG Crowd considering that I am not confident about this platform.

The XIRR of the overall portfolio for March is obviously very negative with – 62.25% since I consider my investments in both Grupeer and Monethera gone in my reporting.

Update 04.04.2020: Portfolio Performance software being better than me at calculating XIRR, I know now that the XIRR since inception of my portfolio at end-March is actually -7.25%. This is indeed “shittily negative” but at least accurately determined. 😉

Previous comment : The XIRR since inception calculation did not make any sense and I removed it. I got a value of 0.000000298% … whereas I have an accumulated loss since inception of € 3,103. Reducing the accumulated loss is actually giving a negative XIRR. In such circumstances this information becomes meaningless anyway and I chose to label it “shittily negative”, I think it speaks by itself and it’s there to last considering the time it would need to get out of this newly created category 😀

Platforms

Now let’s go through the different platforms by order of exposures. You can always make use of the table of contents on top of the article to navigate wherever you want.

Fundimmo

I received two reimbursements in March, one being in advance (6 months instead of 1 year). My monthy XIRR is the highest I ever had on this platform with 9.14% (after tax) and I got € 122.63 net profit that is record for any platform in my portfolio.

So far, out of the € 20K i invested since February 2019, I got € 5K of projects reimbursed successfully. There are still no default on this platform in over 4 years. However, considering the current situation with the restrictions in place in France due to covid-19 I decided to not invest in any new project for the time being. € 1k minimum investment per project in such context is too high for me.

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. If you want to know more about this platform click here to see my opinion and here to visit the platform. No sign-up bonus exists for registering and investing there.

Wiseed

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 € 13,700 :

  • Real estate: € 9.7 K on 29 deals
  • Business: € 2.5 K on 5 deals
  • Equity: € 1.5 K on 5 start-up

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 considering the current situation in France and the restrictions imposed to deal with the covid-19 outbreak. I received the money I invested in one business deal in late January as the borrower raised in parallel the amount it needed and decided to not make use of the money raised on Wiseed. For this reason I recovered the € 1.80 of fees I had paid. My approach on both Wiseed and Fundimmo is wait and see as there is no secondary market anyway. The teams are good professionals and the deals of quality. Obviously, I am more worried for the € 1.5k start-up equity investments.

If you want to know more about Wiseed platform click here to see my opinion and you can visit the plaftorm here. No sign-up bonus exists for registering and investing there.

Peerberry

I have no complain about Peerberry but in the current context I decided to lower my stake. Around 85% of my loans are on Aventus group and that is a lot of money on 1 single loan originator, no matter how sound it is. I started withdrawing money at the end of the month (€ – 2k) and will continue in April. I am not leaving the platform, anyway my longest maturity is December 2020 and there is no secondary market. I have not decided yet at what level I will maintain my investments.

I order to reassure investors in the current situation, Peerberry announced that both Aventus and Gofingo have extended the group guarantee to all their lenders and showed that they have enough resources to face liabilities towards investors. Audited accounts should be published by end of H1 2020.

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

Mintos

I decided to put back again € 3k on Mintos beginning of March after € 1.5k in February due to both the increase in interest rates and that I am (was) more confident with my selection of loan originators.

Due to the current panic, induced by the covid-19 crisis, the number of loans has increased in both the primary market and the secondary market. Interest rates have rise and heavy discounts are offered on secondary market. I used my last € 1k entirely buying discounted loans. This explain my record monthly XIRR this month with 23.09%!

However, more and more lenders have troubles on Mintos and one my LO, Varks (Finko in Armenia), lost its licence and is now under liquidation. It was my main exposure with 10% of my portfolio… Only the future will tell but I am not sure whether I’ll be able to recover my money there even exercising patience. I have currently € 645 on Varks as well as € 20 in pending that are still not repaid. This is more than my accumulated profit on Mintos. In addition, Alex Credit (Ukraine) is suspended from primary and secondary market due to missing settlement twice in a row. I only have one small piece left for € 3.86 that was extended twice and is now late since i stopped investing in this LO since last December.

Until this month I always managed to dodge the bullets but everything has an end and I couldn’t avoid Varks’ one. Let’s see what I decide for the future, I will not add more money in the next month on Mintos but so far I reinvest everything.

If you don’t already invest in Mintos, and want to give it a try, feel free to register using my link . It would help the blog 🙂

Viventor

Viventor has started to run webinar with the LOs in order to reassure the investors community. The first one was Atlantis Financier and the second one with Kviku is coming.

Viventor experiences some delay in order to process withdrawals which in the current context is worrisome for investors but just implemented “funds in transit” feature which is the same as “pending payments” on Mintos. This should avoid that Viventor put the money on the investors accounts before receiving the funds from the LOs. This is what happened with Aforti in the past and in this current situation, with more investors pulling out their investments than new money coming in, that could prove to be a deadly practice. I am therefore happy they implement this feature.

Aforti missed its payment to Viventor at the end of March. Viventor mentioned they are executing in full their legal claim towards Aforti Factor (the entity that missed the payment). It remains to be seen in practice what it means for the investors.

The performance of my portfolio on the platform is still excellent with 16.52% XIRR in March, stable versus February.

If you use the promo code ET1848 when signing in you will get 1% of your investments on the primary market during 3 month (minimum investment of € 100). I would get the same bonus as you.

Grupeer

I don’t even know where to start and if there is any point to explain the all thing… The conclusion is rather clear though: Grupeer is a scam with in particular several loan originators that are fakes.

On 31 March Grupeer issued a statement explaining that due to covid-19 crisis they can’t continue to proceed with investors payments. This is obviously a bad faith statement with the only intention to gain some time. There is no reason that the entire business must be suspended. Disclosing financial difficulties on some lenders would be one thing but this is different…

Grupeer always had many transparency issues such as: (i) who is really responsible for the buyback (contradicting itself several times), (ii) not publishing the financial accounts of the lenders, (iii) all the ties between Grupeer and Finsputnik and Primo Invest were never really clearly stated and explained on the platform, or (iv) who is the real CEO between Alla Kisika and her brother (she contradicted herself as well).

After watching the interview done by another blogger I decided to stop reinvesting and to withdraw the interests (portfolio too recent to get any capital back…) but my first withdrawal on 18 March was never processed, as well as the second on the 28. It seems I was one day too late for the first one…

Bottom line, I consider that most of my portfolio is at high risk. I think there is a possibility to recover part of it since some loan originators are real but the overall picture is not yet clear to me and very worrisome at the very least.

I follow the discussion taking place on Telegram with the purpose to start a class action lawsuit that I intend the join.

I have decided to write-off the entire portfolio even if I think a part should be retrievable with time and probably under a legal procedure. There are some real loan originators that should fulfill their obligations towards investors.

Swaper

Considering the lack of appetite from investors these days and the increase in loan origination by Wandoo Finance, Swaper increased the interest by 2%, i.e. 14% for all loans or 16% when you invest at least € 5K.

Considering the crisis and that the main loans come from Spain (heavily impacted by covId-19 and under lock-down currently) and Poland (also impacted and with a new cap on interest rates) I decided to decrease my portfolio by stopping autoinvest.

I am not planning to leave the platform but I want to see how things evolve. In particular how long the lock-down in Spain will last and if I see LOs from Poland suffering or not. On the bright side, I think this month no blogger will mention they have cash drag on Swaper 😀

The performance is the best I ever had so far on Swaper with 13.33% XIRR in March.

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

Nothing particular to report on Estateguru. I did two small withdrawals which were processed very fast. Interest rates have slightly increased as well. Of course real estate will suffer from the crisis but the existence of collateral (1st rank mortgage on all loans) make it still safer than unsecured loans in my opinion. I don’t reinvest for the time being considering that more and more countries are on lock-down which doesn’t enable construction work to continue (may freeze it entirely or slow it down) and should impact the sector. I hope we will see mostly delays and not bankruptcies but only time will tell.

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

After what happened in March with both Grupeer and Monethera, I decided to not include anymore the referral link for TFG Crowd in my portfolio update and bonus page.

I only can cross finger that they will survive until next October which the latest maturity of my loans… Unless they actually create the secondary market they promised in their roadmap and some investors are still willing to buy there.

In my 8 remaining platforms, excluding therefore Monethera and Grupeer, this is the only one I really want to exit.

Monethera

As I explained in my previous portfolio updates, I have had doubts on this platform basically since the beginning. Monethera failed for a long time to honor withdrawal requests of many investors, accumulated issues with the banks, has a dodgy third-party buyback guarantee, etc..

On 27 March, Monethera sent an email to all investors basically saying they temporarily stop all activity due the state of emergency in several EU countries related to the Covid-19 crisis… The virus is the perfect excuse for them to stop everything but the problems are older and not linked to the crisis directly. For this reason many investors think Monethera is a scam in the same veine as Envestio. Investors are already going ahead with the objective to build a class action lawsuit against Monethera. I am joining this lawsuit and already contributed to the fund raising. All interactions take place on Telegram. The same law firm than for Kuetzal and Enviesto will handle it. I am not aware of the specificity but it seems there are ties between Monethera and Envestio.

Write-off, Defaulted and Watchlist exposures

Since the portfolio update of January, I included this category in order to flag my investments at high risks within my portfolio. With the falling of 2 platforms this month I even add a category “write-off exposures” that will be the only place in my futures portfolio updates where I will mention Grupeer and Monethera going forward.

Write-off exposures = € 5,375.09 (outside of the portfolio)

This include the overall balance of Monethera and Grupeer at the time they announced stopping their activities. I still hope I could recover part of it through legal actions but this will take a long time and the outcome is very uncertain. The loss in capital is € 5,100 and in interests € 275.09.

Defaulted exposures = € 700.14 (1.34% 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 (€ 34.53) in Viventor. Exposures in defaults do not mean that recovery are impossible but that the likeliness of losses is high. I also include Finko Varks (€ 665.61 including pending payments), loan originator that is now under liquidation.

Watchlist exposures = € 208.66 (0.4% of the portfolio)

It includes my investments in TFG Crowd (€ 208.66)

Conclusion of the month

Here we go! My first real loss has happened… and the winners are Monethera and Grupeer. I can’t know if this is all gone but for sure I won’t get it all back and as I explained I prefer to write-off the entire amount. Therefore you won’t see Monethera and Grupeer in my portfolio update from next month apart in the “write-off exposures” section.

I’ll remember this loss as it wipe out all my accumulated income from p2p and much more! 🙁 I don’t even know if it will be possible to compensate this over a reasonable period of time as I can expect more losses ahead in the context of this crisis and I am also reducing the size of my portfolio.

For the time being the only platform I am reinvesting is Mintos. I do not sell anything but I stopped reinvesting on the other platforms and withdraw the available amount at least as long as lock down impact so heavily the economy.

Besides p2p I take advantage of the drop in stock market to invest in ETFs and stocks and will continue to do so if it were to drop further.

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

Cheers!

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