I finally returned to work so next month I’ll have a paycheck and will be able to invest more in projects I like.
My 6 months vacation is finished. I visited 11 countries, flew around 20 flights and now I have my passport full of visa stamps. I’ll write sometime later about expenses and stats here on this blog.
Last month’s summary
My UK corporate bonds portfolio reached 2000 GBP this month. I’ve also invested in my first unsecured bond on WiseAlpha. It’s a Pizza Express bonds trading at about 24% current yield. This is because they’re not doing too well and their loans are huge and the probability of default is increased. Rated at CCC- by S&P, it’s price dropped 65%, so I’m taking a gamble here. I’m mostly curious if they can get out of their debt without getting into default. And also I’m not sure if this is riskier than p2p. You can read more about WiseAlpha here.
My real estate crowdfunding portfolio kind of sucks. Some of the platforms I’ve been investing in turned out to be rather disappointing. I’ll add a bit later a few updates on this.
As for p2p lending, August was a good month for my portfolio. I’ve earned 314 EUR in interest payments this month, which means a 1.56% return on my investment (18.75% annualized).
My p2p lending portfolio overview
The largest platforms in my portfolio by far are Fast Invest and Mintos. Out of the 11.000 EUR invested in p2p consumer lending platforms, 7500 EUR is distributed between these 2 platforms. Since I’m not planning to increase my investments in these 2 platforms, while increasing them in others, I’m ok with the current distribution.
All the funds I’ve added in the past few months has been in p2p business lending platforms, and I’ll continue to do this for a few more months.
Below is the detailed list of my portfolio.
|Platform||Invested capital||Current value||Profit||Interest Rate/Annual return||Started Investing|
|Fast Invest||4010||4501 (+59)||491 (+59)||13.34% / 14.12%||August 2018|
|Mintos||3494||3975 (+51)||481 (+51)||14.01% / 11.5%||June 2018|
|Viventor||1103||1157 (+16)||54 (+16)||14% / 14.71%||December 2018|
|NEO Finance||970||933 (+30)||-37 (+30)||15.45% / 11.54%||November 2018|
|PeerBerry||570(-34)||716 (-26)||147 (+8)||12.21% / 11.62%||December 2018|
|EstateGuru||1413||1548 (+43)||136 (+44)||10.97% / 9.78%||August 2018|
|Grupeer||1180||1297 (+14)||117 (+14)||13.51% / 12.64%||December 2018|
|Crowdestate||934 (-31)||993 (+1)||59 (+32)||12.7% / 12.98%||December 2018|
|Envestio||804 (+32)||925 (+45)||121 (+13)||18.36% / 18.48%||November 2018|
|Crowdestor||634 (-13)||689 (+4)||55 (+17)||16.75% / ??||December 2018|
|Abundance||200 (+50) (GBP)||200 (+50)||0||8.75% / ??||January 2019|
|Bulkestate||92.5||100||7.5||14.5% / ??||December 2018|
|Robocash||500||519 (+3)||19 (+3)||12% / ??||April 2019|
|DoFinance||150||156 (+1)||6 (+1)||10.33% / ??||April 2019|
|Swaper||100||103||3||12% / ??||April 2019|
|Bondster||50||52||2||12.55% / ??||May 2019|
|ViaInvest||110||112 (+1)||2 (+1)||11% / 11.55%||May 2019|
|Debitum Network||200||204 (+1)||4 (+1)||10.32% / ??||April 2019|
|Assetz Capital||100 (GBP)||103 (+1)||3 (+1)||5.88% / ??||April 2019|
|Flender||524 (+40)||532 (+44)||8 (+4)||?? / ??||May 2019|
|Kuetzal||394||413 (+7)||19 (+7)||19.12% / ??||May 2019|
|TFG Crowd||1084 (+84)||1100 (+92)||16 (+8)||16.81% / ??||May 2019|
|Monethera||300 (+155)||308 (+158)||8 (+3)||19.35% / ??||June 2019|
|Wisefund||100 (+100)||101 (+101)||1 (+1)||19.02% / ??||August 2019|
|Investly||50||50||0||11% / ??||July 2019|
Legend: the numbers in parentheses are changes since last month (e.g. 383 EUR new deposits).
Besides the now usual 49 EUR per month return (a 1.1% monthly return or a 13.23% annualized return), I’ve also received 10 EUR cashback bonus. I received the bonus because it passed 1 year since I invested 2000 EUR in Fast Invest (a 0.5% cashback). So, I have 1 year since I started investing here.
I enjoy so far the constant and reliable returns, the 3-day buyback guarantee and also the fact that the buyback is guaranteed by Fast Invest, not a 3rd party loan originator.
At 13-14% annual return, Fast Invest is one of the best p2p consumer lending platforms in my portfolio.
While a lot of people complain about the missing details on the loan originators, I would rather prefer more transparency from Fast Invest regarding their financials. I have no idea if they’re doing well or not, or if they’re profitable or not. This being said, I don’t see any reason to move out from Fast Invest as long as the p2p lending industry is still growing fast.
If you’re interested in Fast Invest, you can read more about them here.
I’ve earned 51 EUR from Mintos this month, or a 1.3% monthly return on my portfolio. The annual return (computed by Mintos) is just 11.5%, this due to the low-interest rates I’ve invested in last year. The current average interest rate of my portfolio is 14% but it’s slowly declining because the current average interest rates on the loans I invest in is at 12-13%.
I’m also inclined to start selling some of my high-interest loans (15-16%) on the secondary market. This before another loan originator decided to buy back their loans with high-interest rates and issue instead 12-13% loans.
Mintos investors lived a small drama in August, because of Aforti Finance loans not being paid. I didn’t have any Aforti investments on Mintos, as I only invest in A and B-rated loan originators, but I followed the issue with interest. From what I’ve seen on the Mintos Fellows Facebook group, many people investing in p2p lending are not really ready to invest. The panic was at an all-time high and the general idea was that the sky was falling and the entire p2p lending market was crashing. While we strive to learn as much as we can about investing, I feel it’s of equal importance the ability to handle and manage risk. There’s one book on risk management I read a while ago and I found educational: Risk savvy: how to make good decisions. I might get back to it sometime soon.
While I didn’t have Aforti loans on Mintos, I did have a few of them on Viventor. Viventor promptly added a warning flag on each Aforti loan saying there’s a payments issue with them, so everybody knew what to expect before buying them on the primary and secondary market.
There was a lot of panic selling at discount on the secondary market, and many investors who knew better profited from it.
Meanwhile, Viventor kept quiet and didn’t issue any statement or updates on the issue. Their only update was on August 19th, after the issue was solved. I didn’t like this zero communication policy, and I lost a bit of confidence in Viventor. Given the industry they’re in, the investors should be their primary focus.
I did receive 16 EUR in interest payments this month from Viventor, mostly because some of the loans in my portfolio reached the limit of their buyback guarantee and the loan originators were forced to pay. Around half of my loans are late with their payments, but since Viventor loans also pay late fees, I don’t really mind the delays. Out of the 16 EUR I’ve received this month, 5 EUR consisted of late payment fees.
You can read more about Viventor here.
I’ve decided to invest from now on in A-rated loans without using the provision fund. I’ve also sold a few loans back on the secondary market, and I’ve recovered the fees I paid for the provision fund on them. My profit (or loss) raised to -27 EUR, an increase of 30 EUR since last month.
There are a few reasons why I quit investing with the provision fund activated. The default rate on A-rated loans is predictable and small enough ( around 3% loans late for more than 90 days). Also, Neo Finance dipped its hands into the provision fund and started investing the funds there so they don’t stay idle. Lots of funds sitting around doing nothing doesn’t look good on a new publicly listed company. So, since the provision fund is not as safe as it was before, I decided to manage the risk of default by myself, instead of paying Neo Finance to do it.
PeerBerry, Robocash, doFinance, viaInvest, Bondster, Swaper
This is my payday loans portfolio, and it reached this month 1658 EUR (13 EUR profit). The platforms in this list are more or less the same, and I still need to decide which one I’ll keep in my portfolio.
I don’t particularly like them because of ethical reasons. Payday loans are not really something I want to make profits from. Ignoring the ethical factor, they still present a bigger risk just because governments might decide they want to protect their citizens and limit the huge interest rates the loan originators charge their costumers.
My investments in Abundance are sort of my redemption fund for keeping funds in payday loans. Higher risks, lower returns, all in projects that benefit the environment.
I’ve added 50 EUR this month in a new project they published, a project converting a previously coal-fired power plant into a plant that burns residual waste and generates energy.
I plan to increase my portfolio in environment-based projects, maybe also include other platforms like Trinein my portfolio. The returns are lower, but it’s an industry in rapid development and it’s good for me to keep an eye on it.
It was a good month on EstateGuru and I received 44 EUR in interest payments. This is not going to happen each month, as I had a few loans that matured and only paid interest at the end of the loan term.
It’s been hard to invest lately in EstateGuru. Loans are funded fast and even if the loan volume increased dramatically in the past few months, it’s hard to pick and choose.
I had 300 EUR sitting around in my EstateGuru this month and it took me 2 weeks to reinvest them in new loans. I couldn’t use the auto-invest tool because I only wanted to invest 50-100 EUR in each loan. To be able to use the auto-invest tool with all the filters, I would need to invest at least 250 EUR in each loan.
One of my loans is 50 days late and I’m curious how EstateGuru manages this situation. It’s not the first late loan I had, but I think it’s the first being this late.
Also, EstateGuru promised last month that in August they’re going to release their new secondary market. August is gone, but I don’t see it anywhere. I assume things didn’t go according to plan.
I think Grupeer is the most reliable p2p business lending platform in my portfolio. The returns are stable and predictable each month. There is a constant stream of available loans and the number of loan originators is large enough to diversify my portfolio.
My return on Grupeer this month is at 1.09%, or 13.09% return annualized. Not much different from the returns from the previous months.
You can read more about Grupeer here.
It was a mixed month for me on Crowdestate. On one hand, some of the late lenders in my portfolio finally repaid their loans and I received 32 EUR in interest payments. On the other hand, I still have 3 late loans in my portfolio.
One lender, Nord Company, issued a message saying they’re on track with the due payments. 19 days later, when they were supposed to pay, they said they need more time and they’ll pay back their loans in a maximum of 1 more month. I’d rather have honest assessments when they can actually pay instead of delaying and sending encouraging messages every month. I appreciate the fact that they bother to explain why the payments are late, but I would like to also receive realistic repayment plans.
All the loans I have in my portfolio pay interest in time, and 3 of them reached maturity this month and I received the invested principal back.
I have around 300 EUR sitting around in my account without being able to invest it. Envestio added an auto-invest tool, so maybe they’ll get invested in the near future. If not, in a week I’ll just move them to another platform.
For a platform with no buyback guarantee and high returns, Crowdestor is surprisingly reliant. All payments come on time, the interest rates are great, and there’s a constant flow of available loans.
I just realised I’ve been an idiot and forgot about the auto-invest tool they have and haven’t used it. I’ve seen many projects until now that I wanted to invest but I was never able to do so before they were funded. Now that I remembered Bulkestate does have an auto-invest tool, I’ll add some funds and put the auto-invest too to use.
Debitum Network loved to brag about the fact that they removed all the Aforti loans from their platform in July. So, while Mintos and Viventor investors experienced delayed payments, Debitum investors were safe.
This is definitely an extra point for Debitum Network but at 10%, the interest rates here are a bit lower than what you can find on other platforms.
If you want to learn more about Debitum Network, you can read my review here. If you decide to register using an affiliate link (like this one), and invest at least 250 EUR, you’ll also receive a 10 EUR cashback bonus.
Assetz Capital offers lower returns than any other platform in my portfolio. However, this is also the safest platform I’ve invested in, with investments covered by a fully transparent provision fund and said provision fund covering 4 times the current default rates.
I keep a small stake on this platform mainly because I’ve invested in them on Seedrs (read about Seedrs here). I’ve also invested this month in their offspring (or sister company), Assetz Exchange, that handles buy to let properties.
I keep adding funds on Flender. Each time I receive interest payments, I add the needed amount to reach the 50 EUR minimum and then invest in a new loan through auto-invest.
Lately, the loans I’ve invested through auto-invest don’t even appear in their marketplace. I’m only investing in A and B-rated loans, which have lower return rates (<10%) and I assume on the marketplace higher interest loans look better.
Kuetzal seems to me to be the ugly version of Envestio. Maybe because they display in a similar way the repayment schedule on my investments.
The platform returns are so far very good and the payments come with no delays. My annual return is at around 19%. I’m not ready yet to invest more in Kuetzal, but I’m happy with the platform.
TFG Crowd just announced they’re going to pay interest while the projects are still in the funding phase. This means it doesn’t matter how long it takes for a project to get funded, I’ll receive interest payments from the day I lent my funds.
I’ve invested in 1 more project this month, Laya Cosmetics phase 2. It looks like TFG Crowd releases 1 project at a time, to get them funded quicker.
My annual return so far is at around 17%, and all the interest payments come on time. It bothers me they don’t offer a way to export transactions and portfolio details so I can build my own statistics. I should ask them for this.
Monethera starts to grow on me. They keep adding new features to the website, displaying more details on the projects, adding more structure to the investor profile pages. And I also like how fast they respond when I write them an email. I guess this is one of the perks of being one of the few investors here.
I’ve doubled the amount invested here (from almost nothing in the previous month). The projects on offer look decent, and the interest rates offered are pretty high. Combined with the buyback guarantee they offer, I think Monethera looks decent enough to do a test run on it.
While Wisefund is a very new platform, it looks well thought, with good stats pages and good details on each project. I’ve only invested 100 EUR, spread among all their available projects, and received 1 EUR cashback.
You can read more about Wisefund here.
See you next month.