Crowd-lending portfolio review for July 2021

Website changes

I’m very busy on a totally unrelated project, which basically takes all my time. Work on Alternative Investments has thus been rather limited !

However, I took the time to update several reviews, as well as write a review for Afranga. On the other hand, ReInvest24‘s review isn’t written yet… I realize it’s starting to become some kind of running gag.

Noteworthy news from the crowdlending world

Once again, not much happened since the previous portfolio review. However, the end of summer should be different. Indeed, several platforms expect to be granted a licence soon : among them, Mintos, ViaInvest, Twino and Debitum Network.

CrowdEstate

CrowdEstate was granted a payment institution license by the Estonian EFSA. For now, there’s no visible consequence for investors. However, expected benefits include having a unique IBAN for each investor, so funding accounts will be even easier.

Mintos

The recovery process for two former Mintos loan originators was completed.

On a positive side, they managed to recover 100% of the funds invested in Aforti, which is obviously an excellent result. However, things are far from being so good when it comes to E-Cash. The final recovery rate is a pitiful 35% – in other words, investors lost two-thirds of their invested capital ! –

ViaInvest

ViaInvest announced that from now on, the delay required for the buyback guarantee to trigger is 60 days instead of 30. Apart for new portfolios during the initial ramp-up (two or three months), most investors are unlikely to notice any change.

It looks like a two months delay is becoming the norm for most platforms.

Individual platform performance​​

Performance for most platforms was very stable in the last months. In a nutshell, the returns for my most recent portfolios kept on increasing but still haven’t reached their full potential.

Omaraha

18.59%

Since the beginning of 2021, the performance for my Omaraha portfolio is amazingly stable. Although it’s definitively below 20%, it’s still a nearly unbelievable level ! After a large wave of defaults in 2020, the situation seems to be much better this year. Reimbursement from the warranty fund have increased, while the number of defaulted or extended loans has decreased a lot.

Lendermarket

14.39%

The performance for my Lendermarket portfolio keeps on increasing and is now well over 14%. It’s definitively one of the best performers among platforms offering secured loans !

All investors on the platform are eagerly waiting for the 2020 financial report audited by KPMG. It’s expected to be available somewhere in August.

Robocash

12.79%

The performance of my Robocash portfolio is very slightly down this month. It maybe be caused by the decrease of interest rates at the beginning if the year. Overall, the returns for this portfolio are still excellent when considering Robocash Group’s reliability !

Mintos

12.71%

Most of my DelfinGroup loans were bought back by the originator. As a result, I stopped investing in loans from this lending company, and chose ESTO instead. I currently have only four loan originators selected : ESTO, Iute Credit, Eleving group (formerly Mogo), and Wowwo. They make roughly 99% of my active loans portfolio.

I still have some funds in recovery (slightly more than 5% of my overall portfolio). The total amount decreases slowly.

It’s getting harder and harder for me to invest in double-digits interest rates, as most reliable originators on the loan marketplace now offer sub-10% interest rates.

In spite of these much decreased rates, the performance of my Mintos portfolio was globally stable this year.

Afranga

12.1%

The returns for my Afranga portfolio have just crossed the 12% mark. I expect them to keep on increasing, thanks to the very high interest rates on the platform – around 16% -. I increased the size of this portfolio and plan to do it again this summer, as I really appreciate this platform, both in terms of usability and reliability.

PeerBerry

11.5%

My PeerBerry portfolio requires little maintenance and has a very stable performance – it hasn’t moved much in several months -.

ViaInvest

11.18%

Are cash drags over at ViaInvest ? Thanks to a much increased loans supply, it’s now very easy to invest. With returns above 11%, I’m really satisfied with this portfolio.

Crowdestor

11.01%

Although most Crowdestor projects stopped reimbursing, the XIRR for this portfolio is still decent. However, none of the default is currently accounted for. Because of the lack of real recovery process, my trust in Crowdestor has decreased a lot. As a result, I started withdrawing the reimbursed amounts.

Moncera

10.3%

Link many other Moncera investors, I’m disappointed by the much decreased interest rates. Double-digits loans are a very rare occurrence, as most only yield 8% – or even 7% -. Although we have to take into account the reliability of Placet Group, I consider that there are better alternatives available – Robocash, Afranga or ViaInvest all seem to offer a better risk/reward ratio -.

LendSecured

9.71%

After roughly 6 months at LendSecured, the performance for this portfolio is getting closer to 10%. New projects are regularly added; they often take a long time to get funded, which mechanically decrease returns.

Esketit

9.2%

After a few months on the platform, I have nothing bad to say about Esketit. This platforms runs smoothly and the performance is in line with my expectations for a recent portfolio. However, I don’t plan to grow this portfolio much as there are more reliable originators available.

EstateGuru

8.43%

The XIRR for this portfolio had a nice jump in August, as several projects finally were reimbursed. I’m still very happy with my EstateGuru portfolio.

BulkEstate

8.16%

The recovery process for the Aleksandra Apartment loans is finally over, as the refinancing process on CrowdEstate was completed. The final XIRR for this project turns out to be 3.5% – a very small figure, but I’m happy that this default didn’t incur any loss ! -.

Keeping track of the XIRR for my BulkEstate is a bit complicated as partial reimbursements don’t seem to be properly managed.

ReInvest24

7.84%

There was yet another successful exit at ReInvest24. Indeed, the 1st stage of the “Nistor residential project” was completed with a 15.3% annual return.

As I’m currently waiting for an opportunity to reinvest the reimbursed capital, I have some idle funds.

HeavyFinance

4.11%

In spite of the large number of available projects, I’m a bit deceived by HeavyFinance in terms of performance. It barely reaches one-third of the performance for my LendSecured portfolio, which I opened roughly at the same time. Moreover, in addition to the fact that they use the dreaded Paysera, the website’s ergonomics is very bad.

CrowdEstate

3.89%

There are still basically no news regarding most defaulted projects at CrowdEstate. I keep on withdrawing whatever meager reimbursements are made.

Global portfolio performance

3.18%

After taking a huge hit in 2020 because of the many scams I felt for, the performance of my loans portfolio is slowly recovering. I expect some recovery from the ongoing legal effort – especially Grupeer’s, as at least part of the money was invested in genuine loan originators -.

Current allocation

I’ve slightly decreased the size of my P2P portfolio, as I didn’t yet allocate all funds I withdrew from Omaraha.

Please note that, for readability’s sake, platforms which account for less than 1% of the portfolio are grouped in the “Other” slice.

New platforms

I’m probably wasting my time mentioning this platform, and it’s likely that I won’t write about anymore.

However, the transparency’s sake, I had a tiny Monestro portfolio with stratospheric default rates and terrible returns. I expected to never see this money again when… surprise ! I received an email to announce that Monestro would relaunch, and the previously invested funds were available.

Monestro

The previous incarnation of Monestro had an ergonomics on a par with Omaraha‘s – but without the performance -. The new version looks better but is actually rather bad in term of ergonomics.

Loans come from a virtually unknown originator (Punk Finance) and yield a pitiful 10%. Needless to say that many reliable lending companies offer much better returns !

I ended up withdrawing most funds, investing just a tiny amount.

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