Portfolio update June 2020

Hello fellow investors,

The p2p landscape seems to be differently impacted by the aftermath of the (first wave) outbreak of covid-19. Some platforms of my portfolio seem to have been through this with little disturbance (Fundimmo, Peerberry, Robocash, Viainvest) whilst others have been more impacted (Wiseed, Mintos, Viventor).

The question now are twofold in my opinion:

  • Will there be a second wave that will impact again heavily the economy and people’s lives? If yes we can fear that many platforms and loan originators already weakened may collapse.
  • Even without a second wave, how will the shrink of the economy and the rise of the unemployment rate impact the p2p market?

I do not have the answers obviously but – apparently – I am still confident enough to continue investing in p2p and I even increased my portfolio this month (but maybe I am crazy 🙃). As I mentioned last month, I am aiming at quality over quantity and I am reshaping my portfolio gradually reducing/exiting several platforms and I opened 2 new platforms in May and June (more about this later in the portfolio update). I also reduce the number of loan originators I invest in.

On a more personal matter I crossed back the french-German border in June after 3 months staying in France, going through the lock down and teleworking from a family location. I am still teleworking from home 100% and it seems it will last for many more months, my employer basically stated it will remain the case for the vast majority of employees until there is a vaccin…! Ok, but what if there is never one? Or what if the covid-19 turns into a more or less seasonal virus with regular mutations making a vaccin less efficient? For instance, this is the case of the flue, the vaccin elaborated each year is more or less a “guess” of which strain will dominate the following winter… Needless to say that I am not so happy about this. Teleworking is fine for a while but not for a prolong period of time like this. It also seems silly to be so cautious when at the same time I see groups of over 100 people standing and drinking very close to each other in the city center during the usual street fests regularly organised. The gap between those two situations is pretty weird and, if I catch it, I expect it would be in such big assembly of people.

Passive income

Total = € 745.2 (vs € 872.17 in May)

Rent: € 513.56 (stable) from 1 apartment

P2P portfolio: € 196.97 (- 29% vs May)

Cash Dividend REIT (SCPI) : € 34.69 (after tax)

Most of my dividends in stock and ETFs are automatically reinvested and not included in my passive income. In addition I made around €800 of short term plus value from a few stocks I sold in June. I do not count it as passive income as it does not constitute a regular source of cash flow but it is still a nice feeling to have made over 30% plus value on Boeing and Saint Gobain and around 25% on L’Oreal, Sanofi and Pernod Ricard after holding them all less than 2 months. L’Oreal and Sanofi were already back at a all time high!

Size, breakdown and profits

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.

But now let’s focus on the P2P portfolio in particular:

My 2 regulated French platform keep representing the bulk of my portfolio with around 65%. I am currently making changes in the other platforms with several platforms I am thinking leaving and other I will increase in the future. As you can see I included a new platform, Viainvest this month.

In June I increased my portfolio size with € 46.4 k, i.e + 3 k vs last month. I am back to the level of last September 2019. Here is the performance of my portfolio platform by platform:

My monthly XIRR decreased to 5.40% vs 8.02% in May. The main reason is that I did not get any interests from my two main platforms. Fortunately it won’t be the case in July.

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 and Wiseed

I decided to group my two French platforms on which I mostly invest in real estate. They represent currently together about 65% of my crowdlending portfolio.

My opinion on Fundimmo, French regulated real estate platform.

My opinion on Wiseed, French regulated platform enabling to invest in real estate and business bonds or in equity of start-up.

I did not get any interest in June. I had no bonds coming to maturity on Fundimmo this month. I got a partial reimbursement from Wiseed on a chartered accounting firm for which a 4 monthly installments reimbursement plan has been agreed to settle the annuity due last March. However, it is considered by the platform as only part of the principal. Interests will therefore come with the fourth repayment in September.

I decided to invest in 3 more projects in June on Fundimmo with a total of € 3k: 1 residential project in the heart of Marseille, 1 mixed residential/ commercial project in the 3rd district of Paris and one simple purchase/resale operation of a high standing villa in the south east. After a break in the beginning of the year I increased my stake by € 5k in two months.

Fundimmo announced the reimbursement of at least 1 project in July, I already agreed to reinvest in the same corporate real estate (the invested amount can serve several projects) for 1 more year. I’ll get back only the interests.

The investment on Wiseed in a Cheese Cooperative company located in the Basque country (next to the Pyrenees in South France) I mentioned in my previous portfolio update is still on-going. It has reached the minimum amount of € 400k but it might take a while until it starts producing any interest. This is rather difficult to sell such project when the faith of the reimbursement depend on an upcoming lawsuit against a supplier. I did not really invest in this one for gaining interest.

I am still waiting on the negotiations’ outcome on a couple of other SMEs I invested in. To my knowledge, € 1,400 of my total investments (€ 11,300) are subjects to negotiation repayment plans with Wiseed. The borrowers’ treasury suffered from the lack of activities during the lock down.

Mintos

My opinion on Mintos with my pros and cons, the criteria to look at to invest in loans and loan originators and my views on the pending payments feature.

June has also brought its fair share of suspended loan originators:

Cashwagon (in twice all countries have been suspended): I never invested in Cashwagon which was loss maker. Cashwagon Vietnam lost its licence and is under investigation. Press allegations refer to illegal collect of private data leading to aggressive debt collection behavior. This is denied by the group.

Dziesiatka, the polish lender impacted by the temporary law capping interest rates, for missing the settlement payment twice in a row. Fortunately, I only have € 15 left on Dziesiatka as I was not reinvesting in this one for several months.

Varks, which lost its licence in March, committed to repay all principal amount by the end of 2022 with the bulk of repayments to be expected within 1 year. Unfortunately no interest are accrued since 19 April as per Central bank of Armenia requirement to not charge interests or penalties to borrowers. I received a first partial repayment of my pending payments.

After so many loan originators got into trouble on Mintos I decided to only reinvest in 8 loan originators: Delfin group, Iute Credit, Credissimo, Wowwo, Placet Group, Credistar, Mogo and Esto. Those appear to me the most solid loan originators on the platform. They currently represent circa 60% of my portfolio. I am considering increasing my exposure on Mintos focusing on those 8 LOs since I have clearly less on each of them compared to other comparably strong LOs such as Aventus group, Robocash or Viasms.

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 continues to step up its communication, running regular webinar host by the CEO.

The fund in transit topic remains hot since several loan originators fail to settle for quite some time. The main problem concerns the spanish lender Twinero / Presto (same group) for which a repayment plan until end of the year has been proposed. However, Viventor has sent a counter proposal (I haven’t seen it) likely in order to shorten the repayment period. In the meantime, Viventor decided to suspend Twinero / Presto loans to be traded from 25 June on the platform. On 4th July I actually got a small payment and my funds in transit of Twinero decreased a bit, let’s see if this improve overtime… On the bright side, my funds in transit of MyCredit loans have decreased by 90%, the LO is respecting the repayment plan agreed with Viventor.

Viventor recently published a new statistic page regarding funds in transit, to be updated weekly, in order to provide more transparency on how each LO is performing in that regards. The “My account” page also display the details in funds in transit per LO in your portfolio, no need anymore to download the account statement. Nice and welcome improvement!

The big news of the month has been the announcement of the acquisition of the platform by Gielen group, dutch group owning the main loan originator on the platform: Atlantis financier (also my main exposure). The amount has not been disclosed. I never heard about this group before. It seems a logical move from Viventor and may be positive in the context of seeking the brokerage licence in Latvia to be own by a EU based group rather than a Russian investor. A special webinar has been organised to introduce the guy behind Gielen group and to reassure investors about the strategy going forward.

The performance of my portfolio is a bit disappointing this month with 10.36% XIRR. I believe this is due to the increased proportion of (i) the funds in transit that will only generate cash flow after settlement and (ii) my Atlantis Financier loans that are full bullet and now represent 27% of my portfolio.

For the time being I do not reinvest on the platform considering that several loan originators are struggling. I prefer to focus my investments on less loan originators overall in my portfolio but of higher quality / larger size.

If you to give a try to Viventor you can use my link to sign up. It would help the blog as I would receive €5 and 1% of your investments during 30 days as a publisher. Unfortunately Viventor stopped the previous refer a friend program and there is currently no bonus for new investors.

Peerberry

Peerberry keeps working pretty well. This has not been seen unnoticed and both the investors demand and the tightening of the lending criteria by the loan originators present on the platform have led to a reducing number of available loans and a decrease in interest rates. This is the cost of more stability. I keep reinvesting and fortunately benefit from the additional 1.5% bonus since last April (valid 1 year). I hope the return to a more normal market will increase the lending volume of both Aventus and Gofingo groups and lead to see higher interest rates again.

Peerberry is gradually releasing the financial accounts of the loan originators on the platform. From my perspective this is a good step into more transparency and should definitely be the standard for all platforms. I still think the calendar is pretty long, the same is noticeable for other platforms (still waiting for Swaper, Robocash, Viainvest, etc..). I acknowledge that this year is particular with the covid-19 that may have delayed the auditors’ work and I hope that going forward they will be available a bit sooner.

The platform keeps communicating towards investors and releasing interviews. This is welcome and I think investors can see which platforms put some effort into it. On my portfolio I clearly see that Peerberry with Mintos and Viventor are the platforms that clearly stepped up their communication the last few months. Not surprisingly those are the market places whilst the ‘captive’ platforms working with only 1 loan originator have been overall more quiet.

You can use my link and receive a bonus between 1% and 2% depending on the amount invested during 30 days. I will get the same bonus.

Robocash

I joined Robocash at the end of May. The platform, registered in Croatia, is 3 years old (February 2017) and funds loans of the Robocash Group, created in 2013, which is present in 8 countries in Europe and Asia.

The main reasons for me to open an account on Robocash are the strength of the loan originator, the simplicity of the platform (basically like Swaper) and currently a nice 14% interest rates on all loans. The platform announces that audited financial accounts for 2019 will be available in early July 2020. This was confirm by the CEO in this video. I am waiting for the release of the accounts before I add more on the platform.

I decided to make a first deposit of € 2k at the very end of May. I was just on time to benefit from the 1% cash back offer and got € 20 on 15 June. This has been a boost to my XIRR in June that reached 17.09%😀, thus despite having mostly 3 months term loans that did not provide yet actual cash flows.

You can use my link to sign up on Robo.cash and start earning 14% interests on all loans with BBG and group guarantee.

Estateguru

Estateguru finally enforced the previously announced withdrawal fee of € 1 on 10 June. I decided to withdraw my small available balance before the cut off date.

Nothing particular to report beyond that on Estateguru, I have reinvested on several projects this month. I regularly have early repayments and so far seem to have only 1 problematic loan that is now over 60 days past due. 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.

Estateguru has closed its fundraising on Seedr with over € 925k raised.

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.

Viainvest

I added Viainvest to my portfolio beginning of June with a first deposit of € 1,500. I benefited from a € 15 sign-up bonus and I invested during a cash back campaign of 1% running until the 10th of June. The performance of this month is therefore impacted by this and reached a nice 37.97% XIRR. 😀

Viainvest is a platform based in Latvia existing since beginning 2017 and offering to invest in short term loans, credit lines and business loans originated by the different entities of the group Viasms in Spain, Czesch Republic, Latvia, Sweden and Vietnam. All loans offered on the platform have a 12% interests rate. Apart from the business loans, a 30 days buyback guarantee including interests applies. Business loans have collateral or, like for Vietnam, are guaranteed by the group which therefore has a similar strength as a buyback guarantee. To be noted, Viainvest withhold taxes on loans issued by the Spanish and Czesch entities unless you provide a tax certificate. I therefore excluded those entities from my autoinvest setting.

The main reason for joining this platform are the strength of the loan originator, the simplicity of the platform and the uniform and rather stable interest rate (was 11% before the covid-19 crisis). I am waiting for the publication of the audited financial account for 2019 that should be available pretty soon (legal deadline is end July) in order to invest more on the platform. The outbreak has caused delays in producing audited financial accounts of many companies.

If you want to give a try to Viainvest feel free to register using my link. We will both get a bonus of €15 after you invest at least €50 during the first 30 days.

Swaper

I have maintained only my accumulated profits on the platform and withdrawn the rest gradually since April. I am waiting to see the audited financial accounts for the platform and the loan originator Wandoo Finance. I understood that it should come by the end of July at least for the platform.

When asking Swaper whether there is a group guarantee if the polish or the spanish entity would fail to honor the buyback guarantee I got an interesting reply. The buyback is actually enforced by Swaper directly, not by the loan originator. This is my fault for not having seen that before. This raise the question on how Swaper is able to face the cost of the buyback guarantee. It must be priced between the platform and the group. My concern now is linked to the fact that Swaper is not own directly by Wandoo. To my knowledge there would be a commun shareholder though.

I did not experience any issue with Swaper but i would like more transparency and I will decide what to do after seeing the financial accounts. This month the performance is the best I ever had with 74.16% XIRR which is due to receiving interests from buybacked loans (2 months at once) and the last withdrawals.

If you want to give a try to Swaper you can signup using my link. Investor using my link will get the loyalty bonus of 2% as from first investment for 3 months (all loans at 16%). I would get € 5 which would help supporting the blog.

TFG Crowd

I withdrew early June my interests from April and May. As I mentioned several times already, I am waiting for the maturity of my 2 loans to exit the platform. If everything goes well my last loan ends beginning October 2020.

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 added a “write-off exposures” category 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 (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. I joined both lawsuit and am waiting for the official confirmation that the assignment of my claim to the lawfirm in the Grupeer case is officially validated by the Latvian Police / court. I cannot say more about those 2 procedures as it is confidential for obvious reasons.

Defaulted exposures = € 34 (< 0.01% 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) in Viventor. Exposures in defaults do not mean that recovery are impossible but that the likeliness of losses is high. I moved to Watchlist my exposure to Varks since a repayment plan has been communicated by Mintos and a first payment has been done. I expect though to see my exposure in Capital Service, another loan originator of Mintos, to be included in this category from the next month as it will be above 90 days since the suspension on the platform and no actual repayment plan has been agreed (and I haven’ t received anything).

Watchlist exposures = € 2,745 (5.9% of the portfolio)

It includes my investments in TFG Crowd (€ 200), 1 loan on Estateguru above 60 days past due (€ 50), my investments under negotiation with the borrowers on Wiseed (€ 1,400) and my exposures to several troubled loan originators on Mintos: Varks (€ 602), Capital Service (€ 478) and Dziesiatka ( 15), those figures include pending payments.

Conclusion of the month

I stick to my previous conclusion: I keep focusing on both my two regulated French platforms and some well selected platforms / loan originators that seem more stable and better equipped to face turbulences and a depressed economy. Those international platforms are usually over 3 years old and, besides Mintos, focused mostly on 1 solid group. I will stay away from business loans during the crisis, I am exposed on TFG Crowd and Wiseed on those.

I have still my eyes on a few platforms like Iuvo, Evoestate, Lendermarket and Moncera for different reasons. However some of them are still really young.

I still wonder whether the stock market will keep rising or… finally catch up with reality so I can benefit from a drop… but this seem even more difficult to predict than the faith of the p2p market. I mostly sold some handpicked stocks in June and I only bought a little bit of MSCI World ETF for which I do no matter much the price since I have a very long term perspective.

As I mentioned last Month in my portfolio update, I have joined a program providing advice on French small caps with 1 proposal per month by a trader specialized on this market. This is by nature a pretty speculative market. I have invested in the 2 proposals early June and July. At the moment I am about +5% plus value but it has been very volatile so far.

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

Cheers!

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