Portfolio update April 2020

Hello fellow investors,

We just had another incredible month. Half of humanity has been in some sort of lock down because of the covid-19 virus and the (long term) consequences only start to unfold. Many states have put in place measures to alleviate the immediate economic consequences on the population and the companies, in particular the small businesses and the corporate of more impacted sectors (tourism, airline companies, etc.) and the real impact is still yet to come.  In the USA, the number of additional people filing for unemployment benefits every week is scary as hell. It’s a much sharper increase than in 2008/2009. Less and less people believe in a steady recovery, V is not going to be the letter of the year… you can forget about it (let’s hope for a U… not a L 😫). The success of the on-going loosening of the lock down in several countries, in particular in China and in Europe, will be scrutinized by the entire planet and is key to limite the consequences of this crisis. 

So, now that I have made sure everyone is depressed… what can we do? 😅

  1. Stay healthy! Please be careful for yourself and be mindful of more fragile people 🤗
  2. Stop listening to the news! It’s not going to kill the virus and only will impact your mood. I should listen to my own advice…
  3. Watch out for investments opportunities! We are now in a very special situation where everything point out to a massive depression and yet the stock market has rise again far from the lowest point observed in March… Can it last? That’s the big question but I would spare some cash now to be prepared…
  4. And… what about p2p? Well, it all depends of your risk appetite as always. There are nice opportunities but they come at higher risks than before…

In March investors have panicked and many tried to exit by initiating massive sales of loans. It has continued in April but seem to have stabilised a bit on the second half.

But enough of introduction and let’s see the numbers.

Passive income

April 2020 = € 950.97

Rent: € 513.56 (stable) from 1 appartment

P2P portfolio: € 392.80

Dividend REIT: € 44.61

This my highest p2p passive income so far. March would have been even higher (€ 490) but I have written off both Grupeer and Monethera entirely. No income from the blog. I do not expect to repeat this performance in the coming months since my portfolio is reduced.

From the first time I received dividend from my investment in a SCPI (French unlisted REIT – commercial real estate). All other income coming from investments in stocks, bonds and ETFs are automatically reinvested. Overall it is as well my highest monthly passive income ever.

Size, breakdown and profits

Considering the current crisis and lock down still in place in several countries I have reduced my portfolio the last 2 months. Grupeer and Monethera have been a great help to achieve this in March…

I am coming close to my target portfolio under the circumstances since I am constrained by exposures on real estate platforms without secondary market (Fundimmo, Wiseed). My portfolio decreased to € 43.4 K with 8 remaining platforms.

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

After the awful monthly – 62.25% XIRR portfolio for March due to the writing off of both Grupeer and Monethera I reach this month my highest monthly XIRR by far with 10.58%.

The XIRR since inception reached 5.49% on my 8 platforms but remains in negative territory if I include the platforms I have written off (-5.84% ‘up’ from -7.25% last month).

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 one reimbursement in March and my monthy XIRR is the highest I ever had on this platform with 9.41% (after tax) and I got € 106.92 net profit close to my record last month (€ 122.63).

So far, out of the € 20K i invested since February 2019, I got € 6K 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

2 reimbursements of my projects have been announced for May and I will get back over € 1,400 soon so I will still reinvest a bit if I like the projects. I invested in 1 project for € 100 on the platform in April which consists in acquiring a landscape and build 4 residential buildings totaling 23 apartments close to Strasbourg in eastern France. 56% of the project is already pre-sold.

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 € 13,800 :

  • Real estate: € 9.8 K on 30 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.

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

Mintos

After € 4.5k added in February and March I realised I may have been a bit over my head considering the current situation of the market and decided to reduce by € 1k this month. I am currently still reinvesting on Mintos.

Mintos decided to reintroduced a fee of 0.85% on the secondary market. It unpleases investors of course but makes sense from the platform’s perspective. The panic sales of loans with big discounts has attracted the remaining buyers to focus solely on the secondary market. LOs have struggled to attract investors’ funds on the primary market and led them to rise interest rates. This also has dried Mintos’ revenues. After the introduction of the secondary market fees, the numbers of loans has reduced a lot.

More and more lenders have troubles on Mintos including some of my main LOs with Varks and Capital Services… I only include LOs affecting my portfolio here, there are jut too many troubled ones this month.

Varks (Finko in Armenia), lost its licence end of March and is now under liquidation. It was my main exposure with 10% of my portfolio…

Capital service is suspended from primary and secondary markets since 6 April du to missing settlement on Mintos. No plan to repay the outstanding amount has been communicated to investors yet.

Alex Credit (Ukraine) is suspended from primary and secondary markets due to missing settlement twice in a row. I only have one small piece left for € 3.86 since i stopped investing in this LO since last December.

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 🙂

Peerberry

I have no complain about Peerberry but in the current context I decided to lower my stake. Most of my loans are on Aventus group and that was a lot of money on 1 single loan originator (about € 9k), no matter how sound it is. I started withdrawing money since end of March. My plan is to maintain circa € 2k on Peerberry with € 300-400 on Gofingo and the rest on Aventus. I wait for maturity on my exposures towards Lithome (€ 86).

My monthly XIRR is amazing with 25.66% this month, but impacted by the withdrawals. I was proposed by email to get a nice +1.5% bonus on my loans – just after losing the +0.5% linked to my former silver status – simply by expressing my interest in replying to the email. This offer not only applies to new investments (I still did a bit) but also to existing loans! 😍

Peerberry enhanced the information on the platform regarding the loan originators and the speed of the platform. An interesting interview of Aventus by Explore P2P blog has been published. It explains how the group is coping with the crisis in its different markets and the challenges stemming from the new regulation (cap in interests in Poland), lock down, the FX risks (Kazakhstan and Russia), etc. My opinion is that Aventus group is a serious loan originator, better placed than many to go through this crisis, and for that reason is currently the one I have the most invested money in. Even following the on-going decrease it will still be the case. 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.

Viventor

Viventor has started to run webinars with the LOs in order to reassure the investors community. There are quite a lot of interesting information in those making worthy to spend 1.5 hour watching them.

Early April, Viventor has implemented “funds in transit” feature in order to avoid liquidity risk for the platform (e.g. what happened with Aforti). However, for some LOs the funds remain in transit for even longer than on Mintos. Viventor plans to introduce interests on the funds in transit. The upside is that withdrawals are now executed in a timely manner again.

The performance of my portfolio on the platform is still excellent with 20.49% XIRR in April. Since beginning of the year my XIRR are > 16.5% each month and reaches 14.73% since inception (10 months).

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

Estateguru

Nothing particular to report on Estateguru. I did one small withdrawal which was 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 with BBG in my opinion. I don’t reinvest for the time being but if lock down loosening is a success in most countries and we regain a bit of visibility on the global economy I would consider increase again my exposure on Estateguru.

Estateguru is currently raising money on Seedr and has reached its objective even before the campaign was enlarged to the public (at first reserved to Estateguru investors). This has a lot to do with the target being € 350k only but still it shows the trust of investors in the platform. I am no expert in Baltics crowdfunding platforms’ valuation but € 28 million seem quite high to me in particular considering the uncertainties the industry is facing. now.

If you want to give a try to Estateguru feel free to register using my link. We will both get a bonus of 1% the first month and 0.5% for the 2nd and 3rd month on all investments you will make on the primary market.

Swaper

As mentioned last month I am reducing on Swaper considering the main markets being Spain and Poland. This process goes smoothly. It takes a bit more time than expected since some borrowers make use of their possibility to extend loans.

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 end. As for Poland there have been difficulties for several LOs there (Aforti, KFP (Iuvo), Capital service) so I am cautious.

The performance is the best I ever had so far on Swaper with 18.54% XIRR in April, probably positively affected by the withdrawals.

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.

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 since last month.

I only can cross finger that they will survive until next October which is 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. Early April I deposited a bit of money in order to reach € 50 and be able to withdraw my available balance.

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 in March I even add now a category “write-off exposures” that is the only place in my portfolio updates where I will directly mention my stakes at 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. I am in the starting block to join the lawsuits and monitor closely the Telegram groups dealing with that.

Defaulted exposures = € 685.84 (1.58% 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 (€ 651.31 including pending payments for € 83), loan originator that is now under liquidation. I do not expect to lose it all.

Watchlist exposures = € 252.95 (0.58% of the portfolio)

It includes my investments in TFG Crowd (€ 202.95) and 1 loan on Estateguru (€ 50) that is above 30 days past due.

Conclusion of the month

I am not leaving p2p investments segment but I am reducing my exposures on most of the platforms simply by stopping reinvesting (I don’t sell on secondary markets). I am planning to start reinvesting more on real estate platforms once the lock down in France will be considered finished with a higher degree of certainty. Same for Estateguru, I prefer to let a couple of months before reinvesting. As for unsecured loans, I am focusing on the more sounds LOs such as Aventus on Peerberry and Credissimo, Mogo, DelfinGroup, Creditstar, Iute on Mintos. I do not plan to invest in business loans before a long time.

Besides p2p I am looking closely to the stock market to invest in ETFs and stocks. Despite the crisis and the difficult situation in many countries the stock markets increased sharply most of the month. I invested € 2.8k in April in stocks after € 7.8k in March and my custody account is back in green. If it were to drop again I will definitely take advantage of it to invest more there. I also invested € 500 in Bitcoins in April through Revolut but sold a previous crypto position on another platform (Binance) with an XIRR of 14%. Same as for stocks, if I see some opportunity I have free cash to invest (including from the reduction of my p2p portfolio).

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

Cheers!

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