Portfolio update July 2020

Hello fellow investors,

Here it is, the heart of the summer 😊, time for most wanted and deserved holidays! I hope you take some and enjoy!

While I am on the sea side, I try to cut myself a bit from all this media madness surrounding covid-19. I feel like journalists are happy to see the number of cases rising again in several countries. It give them something to talk about all day long and to feed the insatiable beast that 24/7 TV Channels have become. In the process they can blame hundreds of time per day “the young” for their careless behaviour. I find this very convenient to adopt such moral high ground when you know your audience is in average older and has been carefully handled to make sure they remain in constant fear for many months. “Olalala… they go outside and talk to each other without a mask 😱…” says the journalist to his guests… all mask-less in the studio 🧐.

From time to time the right-thinking journalist explains, looking disabused, almost disappointed: “but despite this increase in infection rate… why is there not more people hospitalized or even dying? Ah yeah.. because they are young”, now starting to look jealous, thinking of good old time when s/he could get out, have fun without a mask, and have a life! Anyway, crazy time.

Regarding this crisis and its impact on the economy, I think we are still in an ‘in-between’ zone right now. The numerous lock down have produced their first effects and all the large economy have published historical decrease in their GDP for Q2 of more than 10%… scary. In addition, many company belonging in very impacted sectors such as tourism, air company, oil/energy sector, etc… also started to published their results with huge losses. At the same time this crisis is very discriminative as sectors are very differently impacted. Still many believe the worst is yet to come with an increase in bankruptcy from September onward when credit vacations and state support programs will come to an end or at least decrease in importance overtime.

What about p2p in this very promising future? Unfortunately I still did not find a crystal ball but, if I wanted to exit, I think the ship has sailed anyway for me. Most of my portfolio is full bullet without secondary market so better to hang on tight! 😆

I keep reshaping my portfolio considering the economical prospects, aiming at quality over quantity by reducing the number of loan originators to the most solid ones, staying away of business loans (I have put on run-off my exposure to that segment), and keeping a large part of the portfolio on real estate. Nothing better than a tangible asset in troubles times.

Now let’s start, shall we?

Passive income

Total = € 874.36 (vs € 745.22 in June)

Rent: € 513.56 (stable) from 1 apartment

P2P portfolio: € 281.35 (+ 42.8% vs June)

Cash Dividend REIT (SCPI) : € 33.39 (after tax)

Cash dividends stocks : € 46.06 (after tax)

My ETFs are accumulated and dividends are therefore automatically reinvested. Those dividends are not included in my passive income.

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

My 2 regulated French platform keep representing the bulk of my portfolio with around 62% (65% last month). I am currently making changes with several platforms I am thinking leaving and other I will increase in the future. No new platform this month.

In July I increased my portfolio size with € 49.8 k, i.e + € 3.4 k vs last month. Here is the performance of my portfolio platform by platform:

My monthly XIRR in July increased to 6.97% vs 5.40% in June. The main reason is that I got some interests from my 2 main platforms contrary to the previous month. Actually my monthly profit should have been higher considering that one platform made a mistake impacting my returns… more later on.

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 62% 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 finally got some interest from both platforms this month with 1 project repayment from Fundimmo and 2 from Wiseed… instead of 3 due to an operational mistake.

I am not happy with Wiseed this month. They managed to make 2 mistakes affecting my returns. For one bond, I received an email from them explaining that the annual interest repayment went only to part of the investors (in excess). I am one of the unlucky guy who got nothing. Now Wiseed is contacting those investors to get refunded the interests in excess before correcting their mistake… In addition, the platform withheld too much taxes by mistakes on another project repayment and still has to correct this. First time I am affected by such operational mistakes since I joined in January 2019.

I am still waiting on the negotiations’ outcome for one SME I invested in € 1k. For the other projects that are struggling following the lock-down, postponements have been agreed and I will get reimbursements mostly in Q4 2020.

On Fundimmo, I decided to reinvest right away the principal on the same real estate developer with the same condition. I also invested € 1k in a new project consisting in building a new residence of 23 apartments in the wealthy West suburbs of Paris. 37% are pre-sold.

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.

As mentioned in my previous monthly update, from now one I mostly invest in 8 loan originators that appear to be the strongest in my opinion (Delfin group, Iute Credit, Credissimo, Wowwo, Placet Group, Credistar, Mogo and Esto). I decided to make a new deposit of € 2.8k beginning of the month. I have indeed much less on each of them than on other loan originators individually on other platforms (Aventus, Robocash, Viasms). This is still the case after the deposit.

My overall amount in troubled LOs, including pending payments, is close to € 1.1k, i.e 13.6% of my portfolio. As mentioned previously, I am mostly concerned by Varks and Capital Service. Varks has made some payments in June and July and I recovered about € 100 so far. Unfortunately, Capital Service has now entered a Covid-19 protection framework in Poland. It enables CS to freeze any repayment of liabilities to Mintos investors and it has to present a repayment plan. This does not sounds good at all for investors. In the last update on suspended loan originators, Mintos mentioned having received a repayment plan from CS – but did not validate it so far – and will communicate it to investors.

This month Mintos also published its audited consolidated financial accounts for 2019. This is the first time the platform published consolidated account including the holding and the intermediate companies created to enable investors to invest in loans in certains countries where the direct structure is not possible. Overall Mintos has made a loss of € 0.9 million whereas account for 2018 of the marketplace alone was slightly positive.

New T&C have been communicated and should be enforced from 12 August. The new version has raised some concern on social media since it foresees the creation of a fee (article 10.1) for investors to cover expenses of Mintos in the context of recovering funds from loan originators in troubles. More generally, Mintos is entitled to compensation by investors for costs induced by collection activities (article 10.4) and Mintos has priority over investors in the payment waterfall (article 10.5).

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

Peerberry keeps working 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 added € 500 to the platform in July. Fortunately I 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 has gradually released the financial accounts of the loan originators on the platform.

Upcoming: (i) brokerage licence application is still on-going with the objective of getting the licence before end-year; (ii) update of the statistics on the investors’ portfolio to come with also improvement in the manual investment layout and (iii) a mobile app’.

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.

Viventor

I keep reducing my exposure on Viventor as I consider the loan originators as smaller and potentially weaker.

On the funds in transit I got most of my Kreddy BA funds that were stuck for quite some time. Some investors noticing the payment finally arrived bought the same day my Kreddy BA loans on the secondary market with 1% discount that I placed over a month before. Clearly no coïncidence there 🙂

Following the suspension of Twinero/Presto meetings have taken place with the LO and it is clear now that due to financial difficulties it can’t service properly its loan portfolio and collect repayments itself. Viventor, together with its sharholder Gielen Group (owning as well Atlantis Financier LO) are assessing the best way forward: (i) take over the loan portfolio and collect repayments itself, (i) take over Twinero/Presto LO entirely or (iii) sell the loan portfolio to a third party at a discount. The last option would entail significant loss for the investors and is not favored by Viventor.

I am exposed at € 290 to Twinero/Presto loans, mostly in funds in transit as I stopped investing in them for several months.

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.

Robocash

I recently joined the platform and most of my loans are 90 days term loans which explain the low profitability with only € 2.93 and XIRR of 1.72% in July but I have over € 42 of accrued and not yet paid interests.

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. I am still waiting for the group to publish its audited financial accounts before deciding to invest more on the platform. This should come very soon.

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

Not much to say about Estateguru this month. I simply reinvest whenever I have €50 free cash on the account.

I only have 1 late loan over 60 days, the borrower keeping paying interests with about 2-3 months delays. Let’s see how it goes in the next months, the deadline of the project is December 2020.

As I am reshuffling my portfolio, I have the objective of keeping platforms with at least € 2k investments. Below this figure I find it a bit meaningless and not worthy to manage and follow. Estateguru is slightly below but I intend to keep it that way for now and see how the real estate market in the core markets of the platform evolve. It takes more time for the crisis to materialise on the real estate market.

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% for 3 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. It has been working very well so far, auto invest picking up loans very quickly.

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 (12% now, it 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 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 decided to sell all my remaining loans on Swaper after having left only accumulated profits last month since there is little sense to keep a platform open for only € 300+. Unless I am really impressed by future financial accounts of Swaper and Wandoo Finance I will likely leave the platform. I will receive the accrued interests of the loans sold when they will be finished in August and September.

This platform has been working very well (an actual passive investment) and I have no complain about it but I want more transparency and I don’t see the benefit of keeping a platform for only a few hundred euros. Considering there is only 1 group of LO it requires for me to be strong enough to justify at least € 2k investment.

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

Nothing new to say here as far as I am concerned. As I mentioned 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.

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 lawsuits but I cannot say more about those procedures as it is confidential for obvious reasons.

Defaulted exposures = € 831 (1.67% 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:

  • Viventor: Aforti (€ 34), Twinero/Presto (€ 290) and MyCredit (€ 25) for which I have funds in transit for over 90 days.
  • Mintos: Capital Service with € 482 since there has been no repayment plan agreed on since the suspension of the LO more than 90 days ago.

Exposures in defaults do not mean that recovery are impossible but that the likeliness of losses is high.

Watchlist exposures = € 1,862 (3.7% of the portfolio)

It includes my investments in TFG Crowd (€ 200), my investments still under negotiation with the borrowers on Wiseed (€ 1,000), 1 late loan on Estateguru over 60 days (€ 50) and my exposures to troubled loan originators on Mintos: Varks (€ 582) and Dziesiatka ( 15), those figures include pending payments.

What’s coming for my portfolio?

  • I plan to leave Viventor, Swaper and TFG Crowd.
  • I’ll have have a look at the audited financial accounts of both Robocash group and Viasms groups before investing more on the last 2 platforms that joined my portfolio.
  • No plan to reinvest in business loans in the current economic context and probably for the upcoming year.
  • I keep looking at potential new platforms (Iuvo; Evoestate and Lendermarket in particular) but there is no rush in my mind.

And my investments in general?

  • ETFs: I restarted my monthly investments in MSCI World since end of June. I invested much more in March/April in order to benefit from the drop and made a little break before restarting. I did not yet restart investing on MSCI Emerging Market since I want to re-balance to a 80/20 among this 2 ETFs vs 70/30 now.
  • Stocks:
    • I invested € 1k in Air France-KLM shares after it disclosed a € 4 billion losses. The French state is also shareholder and re-stated it won’t let it down… I am aware it’s a gamble but one I am willing to risk. I also bought more of Danone and Thales shares in July.
    • Since June 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 3 proposals since early June. At the moment I am about break even but it has been very volatile with regularly daily 8-10% changes.
  • Gold is rising. I invested in a 100g bar last November that is now showing a very nice plus value. I did not decide to reinvest in physical gold as it is less convenient to trade. I see this investment as very long term. However, I invested a small amount on paper gold through Revolut in July, converting LTC and BCH to XAU, following!
  • My crypto are also rising currently. I only monitor this, I am fine with a small part of my overall worth in crypto but I don’t want to make this asset class an important part of it.
  • Crowdequity: so far my 5 start up I invested in in H1 2019 have gone through the lock down and are still breathing… Several of them could benefit from the upcoming national/european funds for green economy part of the larger funds to support the economy.

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

Cheers!

Vues : 145

Leave a Comment