P2P lending portfolio review for March 2018

Overview of the month

It’s time for changes ! I finally decided to stop investing in Bondora, as I’m totally unsatisfied by the ever-decreasing returns. The two available options were either selling my portfolio, or stopping the portfolio manager. As I’m not in a hurry to get my funds back, I chose the latter option, which is also more cost-effective as selling my loans would mean offering a discount.

Also, like last month, I withdrew the received interests from Omaraha, as this portfolio is too large compared to other companies, and it’s hard to get it totally invested.

The funds withdrawn from Bondora will be mostly spread between Grupeer, Finbee and CrowdEstate. I won’t reinvest the amount withdrawn from Omaraha in P2P loans, as I need them for a top-secret project I still have to blog about 🙂

Updated reviews

I finally took the time to update Investly‘s review, as its performance had decreased a lot since my initial review. I also mention Mintos‘s new predefined strategies, Grupeer‘s improved liquidity and new development projects, and CrowdEstate‘s / BulkEstate‘s recent improvements. Check them out !

Current performance

Omaraha

Current XIRR is 20.47%, down from 20.84%. Performance is still excellent, but it has become too hard to invest large sums now so I decided to stop reinvesting the interests, basically capping the portfolio’s size to its current amount.

Bondora

XIRR was down again to 13.54%, compared to 14.37% last month. I’ve delayed the decision to cut off my investments from a while, but I can’t delay it anymore.

Grupeer

I managed to get less cashback in March, leading to a slightly down XIRR. It was 14.54%, versus 14.72% on the previous month. Their solid performance never ceases to amaze me, and I’ll allocate most of my withdrawn funds to Grupeer.

Mintos

Once again it was a very stable month for this platform; the XIRR was 12.71%, nearly the same as last month’s 12.69% last month. Several cashback campaigns are active but I have a hard time investing in the matching loans.

Swaper

Another month of increasing returns for Swaper, with a XIRR of 12.16%, up from last month’s 11.90%.

Robo.cash

Like Swaper, Robo.cash results suffered from a cash drag and are improving steadily. XIRR for March was 12.25%, compared to 11.97% last month.

Other companies

As usual, I didn’t compute the XIRR for several companies. I still didn’t write Finbee and Monestro’s reviews, and reports are a bit useless without an introduction to the platform. For CrowdEstate, BulkEstate and Crowdestor, it’s because they’re long-term investments, and most of them will only pay interests after one year.

Aggregate portfolio XIRR

This value is the average of the XIRR for each company, weighted by its amount. This month it’s fallen from 17.72% to 17.34%. The large weight of Omaraha and Bondora explain most of this drop.

XIRR evolution

Remember that values until October (included) were provided by the platform or crudely estimated; from November onwards they were computed using the method outlined in this article.

It’s interesting to see that returns are getting more and more similar from one company to another. I expect the XIRR for most companies to increase a bit : Swaper and RoboCash suffered from a lack of liquidity which decreased returns, while Mintos’s interest rates have increased over time. On the other hand, Bondora’s and Omaraha’s results may keep on decreasing.

Returns by P2P lending company - March 2018

Current allocation

My P2P lending portfolio allocation hasn’t changed much since February, but overall I target a more balanced allocation, along with a slightly higher weight for real-estate crowdfunding companies. I haven’t decided the target allocation yet, but changes will be incremental anyway.

I slightly increased my portfolio in Crowdestor, investing in their crazy opportunity offering a 36% interest rate. To be frank, I’m a bit puzzled that a new platform offers such a risky project; if the borrower defaults, it could be fatal to the company’s credibility. However, as the loan has a 3 months duration, we’ll soon see the outcome of this bet !

Allocation between P2P lending companies - March 2018

New platforms

I’m currently checking two new platforms, in order to determine whether they would bring value to investors. Indeed, I don’t want Alternative Investments to become a catalog of reviews, so I try to find companies that use a different approach or are financially more rewarding.

Also, now that I updated Investly’s review, I still have to rewrite most of Bondora’s one.

 

 

4 thoughts on “P2P lending portfolio review for March 2018

  1. I have a question about your XIRR calculation. When you say “XIRR for this month”, do you really mean only this month or does it include all the previous months and years as well?

    1. It’s the XIRR since I started invested with the company, including interests until the end of the given month. Unfortunately, computing returns for a given month would be extremely painful (it would involve looking at each loan individually); however, the XIRR’s trend is usually sufficient to have an idea of how well a company currently performs.

      1. I see. That’s actually what I thought, but the big fall of your Bondora XIRR made me doubt it. It must have been a very bad month to make the overall XIRR drop so drastically. Makes me glad I don’t invest there.

        1. The quick drop is due to having nearly zero profit on Bondora last month. While I stll received interests, many loans defaulted so my overall portfolio value only stayed stable instead of increasing. I’ll end up recovering part of the defaults, but who knows how much and when…

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