Portfolio update September 2020

Hello fellow investors,

Here we go again for another portfolio update!

I am keeping up with my strategy of focusing on quality over quantity as I mentioned several times. Here are the main drivers and decisions I have made the last few months and that I am enforcing (this takes time! P2P is not as liquid asset as it may looks):


  • Getting out of P2B: I am winding out my exposure to this segment: the current crisis will hit hard small companies and P2B borrowers belong mostly to the subprime segment. Risk of defaults is now pretty high. The falling of several P2B platforms which turned out to be scams is also not making me eager to remain invested in such segment of the market.

    • Stop investing in P2B, leaving TFG Crowd and winding down the P2B part of my exposure on Wiseed.
    • Targeting a portfolio with 2/3 in P2 Real Estate and 1/3 in P2P (buyback loans).

  • Transparency is needed. Some platforms are not enough transparent to my taste or have practices I consider suspicious. Transparency is key to make informed investments decisions unfortunately p2p market has not shined in this regards. Many platforms are now trying to address this weakness and there are welcome noticeable improvements. However, in my opinion, some still lack behind including in my portfolio.

    • Leaving Swaper and TFG Crowd.
      • Swaper provides a buyback by platform whereas it is not owned by the loan originator Wandoo Finance which is a situation I do not like. No published audited financial accounts for the loan originator.
      • TFG Crowd has practices I do not like. For example it proposes to reinvest right away before the buyback of a late loan kicks-in… it would mean, in the best scenario, that the platform has a sufficient reserve fund to advance the amount even before waiting for the 60 days delays (and be relieved by a potential late partial repayment). In worse case, the money does not come from a reserve fund and you understand what I am afraid the origin might be. Another bad practice is that loans do not have a start/end date that are similar for all investors and start producing interests from the first day. It’s appealing for investors but it raises the question as to why a borrower would agree to pay interests during the fundraising? Then the logic would be it gets the money as soon as investors invested even though the minimum amount has not been reached… otherwise why would it pays interests before receiving anything (I work in banking, believe me it is suspicious and highly uncommon practice)? And what if the minimum amount is never reached and the money is already transferred to the borrower and has been used for whatever was the purpose of the loan (fundraising can last quite some time)? Here again the potential misused of the funds makes me want to stay away.

  • P2P: to focus on the higher quality loan originators. Diversification among low quality lenders is obviously a bad idea. Whilst I have not by far been investing in most alternatives and always excluded the weakest ones I still got hit by some loan originators which stop repayments.

    • Reducing the number of loan originators I invest in. Concretely:
      • Leaving Viventor, the platform got affected by multiple lenders running into troubles
      • Reducing the numbers of loan originators on Mintos
      • Not adding new platforms with loan originators for the foreseeable futur.

All these actions were visible in my previous portfolio updates and remain the proper way forward for me. Now let’s see September’s results.

Passive income

Total = € 789.49 (vs € 809.09 in July)

Rent: € 513.56 (stable) from 1 apartment

P2P portfolio: € 215.73 (- 17% vs July)

Cash Dividend REIT (SCPI) : € 34.60 (after tax)

Cash dividends stocks : € 25.60 (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.

My 2 regulated French platforms keep representing the bulk of my portfolio with around 61%.

In September I increased my portfolio size with € 56.3 k, i.e + € 3 k vs last month. Here is the performance of my portfolio platform by platform:

My monthly XIRR in August decreased to 4.91% vs 6.27% in July. The main reasons are I still did not get interests from my largest platform and Viventor corrected a long lasting calculation error… to the detriment to investors (more later) and resulting in a loss for me this month.

Platforms

Now let’s go through the different platforms by order of exposures. I’ll try to be shorter for once 😏. You can always make use of the table of contents on top of the article to navigate wherever you want.

Fundimmo and Wiseed

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 invested in 3 real estate projects in Fundimmo with € 3k in total, € 2k in Paris and € 1k in Toulouse. I have increased my exposure on the platform with the objective now of stabilizing it at € 25k (1 more project). I did not get any reimbursement for the second month in a row. Fortunately this has changed beginning October.

I did not invest on Wiseed, but got several repayments making September the best month ever since I joined. I only will reinvest on real estate on this platform but winding down P2B will be long since a few renegotiations led to extend the bonds until 2025 in one case!! By then the economy (the real one) has plenty of time to spike up again and, I, to decide to restart investing in this segment…

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.

I am now reinvesting in 5 loan originators (Delfin Group, CreditStar, Placet Group, Mogo, Iute Credit). I decided this month to reduce a bit Creditstar following information regarding the loss of license of the local auditor of its accounts. I hope Creditsar will hold on to its promise to have its accounts audited by a proper auditor going forward.

As mentioned previously I decided to exclude Wowwo due to the depreciation of the turkish currency vs euro as I do not have evidence that Wowwo is hedging and cover this risk. For the same reason I do not participate in the cash back campaign running until end October (1% cashback on Wowwo loans). I do not sell, only slowly decrease my exposure by reinvesting in the LOs I previously mentioned.

This months I got € 40 repayments from Varks slightly reducing the amount in recovery to € 975 (half being Varks), i.e 12% of my overall balance. The all Finko group is winding down which is not very reassuring regarding the ability of Varks (Armenian entity of Finko) to settle the entire debts.

Besides Varks, I am mostly concerned by Capital Service for which nothing is curently happening since Mintos’ investors refused the (outrageous) repayment plan.

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 🙂

Robocash

My returns on Robocash look small in September due to the large share of my portfolio in longer term loans from Singapor which are full bullet. However, this will fortunately change from November onward. Indeed, Robocash announced two positive news to investors on the 1st October with longer term loans starting to pay monthly interests and the creation of a loyalty program.

The loyalty program will reward investors the following way:

Apart from the Diamond category you will need to add € 500 before activating your new status and receive higher interest rates.

I might consider adding € 1k to my portfolio to qualify for the bronze status. As mentioned in previous updates, the Robocash group is a solid lender comparatively to what you can find in p2p but it is already my highest exposure to a single group in my portfolio so I need to think about it carefully.

As a reminder, Robocash published its financial accounts for 2019 (summary certified by KPMG). The results for 2019 are positive with $ 15.8 millions profits, i.e 12% net profitability. In terms of financial structure, Robocash group is also pretty sound with own funds of $ 37.8 millions representing 62% of the total balance sheet for $ 7.76 millions of financial debts (without further details in the summary). Most of the past years profits have been kept within the group.

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

Peerberry

Peerberry keeps working well. The filters for manual investing have been updated a month ago which I find now more convenient. I am still missing a filter to select the group LO directly instead of each lender.

The interest rates have increased in September with now 12% for a handful of LOs in particular from Russia. Logically this would mean an increase in lending for those companies which I see as a good news regarding the normalisation of the market. Of course the sanitary situation of the different countries may evolve in the upcoming months and have an impact.

I am investing in both Aventus (80-85%) and Gofingo (15-20%) groups. I have nothing against the other smaller loan originators (Lithome and SIB Group) but I already invest in real estate loans in Lithuania through Estateguru / Evoestate and prefer to focus on the 2 more established LOs of the platform.

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.

Viainvest

The platform is working well and my returns are matching the 12% advertised. My autoinvest is picking up loans from Sweden and Latvia.

I would like to invest a bit more, despite that there is only one loan originator but I am still waiting for Viasms group to publish its audited financial accounts for 2019 which has been taking a long time. According to the platform this is due to the need to get the auditors’ signatures on the local reports. Depending of the countries the deadlines diverge and with covid-19 many countries have postponed deadlines. So I have to be patient 😉

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.

Evoestate

Second month with Evoestate that I added to my portfolio in August. I have had my eyes on this platform for a while.

Evoestate is a real estate crowdfunding aggregator offering currently deals opportunities from 18 real estate platforms coming from 13 different countries. Investors have access to all kind of real estate investments: buy-to-let, fixed-interests development loans, profit-participation (= equity) loans in one place.

I like the principle to have access to so many offers at the same place, overcoming the language issue with summary in English. In addition many real estate platforms do not propose a free secondary market and/or have a high minimum investment amount of € 500 or € 1k. Investing through evoestate allows to invest as little as €50 and to have access to a free of charge secondary market.

I have already invested in 35 different projects from 14 different platforms in deals from 12 different countries. I have now real estate investments in new countries previously absent of my portfolio like Austria, Germany, Italy, Spain, Ireland, United Kingdom and The Netherlands.

If you want to give a try to Evoestate feel free to register using my link. We will both get a bonus of 0.5% for 6 months on all investments you will make on the primary market.

Estateguru

On Estateguru I keep reinvesting whenever I have at least €50 free cash on the account. For the time being I plan to keep it that way.

I have only little number of loans with delays and when i had a couple with over 60 days delays I managed to sell the loans on the secondary market with a premium covering the 2% fee.

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.

Viventor

I kept reducing my exposure on Viventor as I consider most loan originators smaller and weaker. Considering the number of loan originators facing difficulties I think this is the right decision that I took already since end of March.

In September my returns are negative following a correction of Viventor towards all investors. They realised, in the context of the audit following the buying of the platform by the Gielen group, that the late fee calculation was inaccurate… leading to an overcharge to the loan originators for loans with multiples installments since 2015!!! The issue was that the basis for charging late fees was the overall nominal amount of the loan instead of the due installment alone.

I am astonished that such mistake could have lasted so long and that loan originators did not notice there was an issue as well. The result looks very bad for Viventor, the platform deducted monies from investors’ balances. Many, including myself, have had a negative balance for some time. I lost about € 100 of late fees so my profit would have been € 40 without this correction and it would have been a great month thanks to some accrued interests on loans I sold the previous 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.

TFG Crowd

I got the repayment of 1 of my loan in September and withdrew the money. Beginning October I got the repayment of the last loan and I am now awaiting that my withdrawal is validated. Once this is done, I will be fully out and will request the closing of my account 😀.

Swaper

As explained in introduction I am leaving Swaper. The platform has been working well for me but the buyback enforced by a platform not even own by the loan originator is not something I want to keep in my portfolio. In addition the lack of published audited accounts for the loan originator (Wandoo Finance) is also a lack of transparency.

I am still waiting to receive the accrued interests of 3 sold loans but they keep being extended unfortunately.

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.

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 = € 861 (1.52% of the portfolio)

The main criteria used to classify an exposure as defaulted is being over 90 days past due. Exposures in defaults do not mean that recovery are impossible but that the likeliness of losses is high.

It includes my exposures to troubled LOs in Viventor (Aforti (€ 34), Twinero/Presto (€ 304), CbC (€ 34) and Mintos (Capital Service with € 489 since it has not repaid anything and proposed a 40% haircut).

Watchlist exposures = € 517 (0.9% of the portfolio)

It includes my exposures to troubled loan originators on Mintos: Varks (€ 465, i.e. € 40 recovered in September) and Dziesiatka ( 15). Both Varks and Dziesiatka have made regular repayments since their suspension. It also includes my exposure towards Monify on Viventor that was suspended during september for € 37 (50 days delays for the time being). I excluded the investment from Wiseed that was under renegotiation since it has now been finalized and I received already the agreed amount.

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

Cheers!

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