Crowd-lending portfolio review for June 2019

Website changes

In spite of a sometimes capricious internet connection, I managed to publish two new reviews. In addition, I have decreasing ratings for several platforms (Robocash, Swaper and Bondora); more rating changes should follow. Finally, I resumed working on the back-end of the site in order to improve reviews layout; expect small changes in the next months !

Monethera

Monethera is yet another competitor for Crowdestor, Kuetzal and Envestio. While the platform looks promising, it currently has absolutely zero track record, which should incite investors to be careful.

Viventor

I’m more enthusiastic about this month’s other reviewed platform. I remember looking at Viventor when I started investing in P2P and discarding it because of low interest rates; however, things have greatly improved and now it looks like a worthy competitor to Mintos. For beginner investors, it may even be a better choice thanks to its easier auto-invest configuration !

Noteworthy changes in the crowdlending world

In case you missed them, here’s a summary of the important news you should be aware of.

Kuetzal

The current cashback campaign is still active, for investors who invest at least €1000 in a project. Cashback level will depend on the invested amount, from 1% to 3%.

Envestio

Envestio‘s bank account has changed again. Don’t forget to update it accordingly !

Mintos

Mintos has updated the ratings for several originators; all of these updates are actually upgrades. Details of these changes are available on Mintos blog post.

Individual platforms performance​​

June was basically more of the same; the performance of most platforms was roughly equivalent to May’s.

Mintos

13.26%

Mintos performance was slightly up in June, reaching 13.26% compared to 13.18% last month. If you didn’t do so recently, I advise you to check your auto-invest settings, as it’s currently possible to invest in loans yielding as much as 16% !

Swaper

12.02%

The performance of my Swaper portfolio decreased a bit, from 12.12% to 12.02%. Currently all my funds on the platform are invested; maybe they finally solved their cash drag problem !

Grupeer

14.81%

In spite of lower interest rates compared to last year, the XIRR for my Grupeer portfolio reached a great 14.81%, up from 14.68%. The cashback campaigns help increasing returns, as most return an immediate 1% cashback.

Bondora

6.41%

Once again, my Bondora portfolio lost part of its value, due to too many defaults and not enough recoveries. The XIRR now stands at 6.41%, down from 6.61%. It’s once more the worst result in my whole loans portfolio !

Omaraha

19.73%

The performance of my Omaraha loans portfolio was very stable in June, at 19.73% (last month’s XIRR was 19.72%). I manage to reinvest most of my funds in partially secured loans yielding 23%, although at the same time I try to keep on withdrawing funds in order to have a more balanced portfolios.

DoFinance

10.55%

June was a down month for DoFinance‘s performance; it decreased from 10.69% to 10.55%.

Robocash

11.60%

XIRR for my Robocash portfolio stood at 11.60% at the end of June, slightly down from 11.67%.

Investly

7.94%

Recently, Investly added a few loans that yielded higher interest rates than usual; it allowed my performance to improve slightly, reaching 7.94% (compared to 7.82% in May).

FinBee

12.46%

June was a deceiving month for my FinBee portfolio; the XIRR decreased severely, from 12.74% to 12.46%. Also, auto-invest in this platform is currently unable to invest in business loans; the situation hasn’t changed in 2 weeks, which is a bit worrisome !

Monestro

7.71%

The performance of my Monestro portfolio increased in June, from 7.45% to 7.71%.

Crowdestor

15.75%

June was a great month for my Crowdestor portfolio; the XIRR increased from an already great 15.53% to 15.75%. Many new projects were added in June, and I increased my portfolio size again.

Envestio

17.23%

Another record month for my Envestio portfolio ! The performance reached 17.23%, up from 17.10%. Unfortunately, there were very few new projects, so I now have some idle funds.

Iuvo

12.70%

The performance of my Iuvo portfolio increased slightly, from 12.60% to 12.70%.

EstateGuru

9.16%

One of the projects on my small portfolio is late, which brings the performance down. The XIRR is now 9.16%, down from 9.68%.

Fast Invest

11.76%

The XIRR for my Fast Invest portfolio increased from 11.48% to 11.76%; it’s still below the expected value.

Ekassa

6.82%

I’m honestly a bit puzzled by my Ekassa returns, as the XIRR is down again, at 6.82% (compared to 7.24% in May). I’ll have to dig through the reports to understand the reasons for this bad performance.

Kuetzal

15.49%

The returns for my Kuetzal portfolio keep on increasing; XIRR reached a very satisfying 15.49%, up from 14.61%.

Debitum Network

8.52%

The performance of my Debitum Network portfolio is slowly building up. There’s a new beta version of their website available; it’s a huge improvement from the initial version which was even uglier than Omaraha’s website, so I added this platform to the list of reviews I have to write.

PeerBerry

10.31%

The performance for my PeerBerry platform is very regular; XIRR was 10.31% at the end of June, slightly down from 10.37%.

Bondster

7.51%

My Bondster portfolio’s performance is currently rather low, as is often the case with new portfolios. At the end of June, it was 7.51%; I obviously expect it to increase a lot in the next months.

Viventor

7.88%

Similarly, the XIRR for my Viventor portfolio is only 7.88%.

Other platforms

As usual, I can’t compute an XIRR for CrowdEstate and BulkEstate.

Global portfolio performance

15.44%

My global performance (which is the weighted average of individual XIRR for each platform) was absolutely stable, at 15.44%.

Peer-to-peer lending platforms

14.94%

Overall the returns for most platforms in this category are rather regular. Omaraha is obviously the best performer, and explains the relatively high global performance of my loans portfolio. On the other hand, the decreasing returns at Bondora (which weighs nearly as much as Grupeer) brings the overall returns down.

Real-estate & business crowdlending platforms

15.62%

While these figures don’t include CrowdEstate and BulkEstate, they give a realistic picture of the kind of returns investors can obtain by investing in these loans.

Current allocation

In June I only made small changes to my allocation between platforms. I kept on decreasing the size of my Omaraha‘s portfolio, while increasing Crowdestor‘s and Bondster‘s.

New platforms

I funded a new account at TFG Crowd; this platform features business and real-estate loans with a large range of interest rates (from 8% to 17%). Many loans are covered by a 30-days buyback guarantee, and the funded businesses are located in several different countries, including UK. Overall I’m rather thrilled by my first interactions with this platform, so I definitively plan on reviewing it in July !

7 thoughts on “Crowd-lending portfolio review for June 2019”

  1. Hi Jerome,
    I got that your revision about omaraha is quite warm, but in your portfolio I can see that a quite big percentage of your portfolio is invested in omaraha, so I’m bit confused about that.

    • Hi Fabio,

      When I started investing in p2p loans there were few platforms available; I ended up investing up to 60% of my funds there. Now that many alternatives are available, I regularly decrease my Omaraha portfolio size in order to have more diversification.

      Overall I still enjoy Omaraha, but due to the very poor ergonomics it’s hard to recommend it strongly; in addition, if current rates are great the overall loans volume seems to be a bit low.

      I hope this helps.

  2. Hi Jerome,

    Please tell me: Are the (monthly) interest payments themselves earning interest after being deposited into your various platform accounts? Or do those monies simply sit there, waiting to be deployed once again by your next investment choice?

    • Hi Fred,

      On platforms with auto-invest, interests are usually re-invested as soon as they reach the minimal investment amount – usually 10€ for P2P loans -. However, for platforms with business/real-estate loans, I often have some idle money, as the minimal investment is much larger. As a result I sometimes end up wiring weird amounts to my investment account just to be able to reinvest.

  3. Hi Jerome,

    I’ve just heard back from Envestio and Crowdestate. Both report that as an American, I cannot invest in their opportunities. Is that the case with ALL European platforms?

    • Hello,

      I suspect the situation may be the same for other platforms. According to their FAQ, these two were supposed to be open to investors outside Europe but finally aren’t; many other explicitly state that EU residency is a condition. A few have some unclear wording like Mintos or Iuvo : “(investors) need to have a valid bank account within the European Union or third countries that are currently considered as having equivalent AML/CFT systems to the EU”, so maybe you should try it; also, Flender doesn’t mention anything about investors location so it may be worth a try.

      I’m curious though; how did you plan to manage currency risk and transfer fees ? My experience with a small GEL (Georgian Lari) portfolio on Mintos was rather bad, as the variation of exchange rates killed all my profits. Also I imagine that wiring funds from the US to Europe is rather expensive (which is quite a shame for 2019) !

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