Crowd-lending portfolio review for October 2021

Website changes

I once again didn’t have much time to work on the website. I plan to update most reviews this month, as well as finally remove the ones which are too outdated and see little interest from my readership. I also expect to finally review Kviku and Esketit.

Noteworthy news from the crowdlending world

Most recent news revolve around platforms getting licences, and financial reports being published – apart from the most awaited one, Lendermarket‘s CreditStar -.

Esketit

There seems to be some confusion between the loan originator behind Esketit, which is Cream Finance, and the totally unrelated crypto project Crypto Rules Everything Around Me. The latter recently made the headlines after suffering a large hack, which caused some worry among several Esketit investors.

So, to reiterate : Esketit as well as the lending group Cream Finance have nothing to do with crypto.

EstateGuru

EstateGuru announced a new feature called “Instant Exit”. It allows users to resell selected projects with a whooping 35% discount. I fail to see the point of it, as most loans on the secondary market sell for a premium.

In addition, the maximum discount for secondary market was increased from 10% to 20%.

Iuvo

Iuvo has launched IuvoUP, a product similar to Bondora’s Go & Grow. Few investors will be interested in it, however. Indeed, it’s only available in Bulgarian Lev (BGN), and has very low returns : 4% yearly for a 12 months duration, and 3% for a 6 months duration.

Lendermarket

Lendermarket provided its financial report for 2020, audited by GrantThornton. The platform is far from being profitable, with a loss around €400,000. Note that this isn’t the long-awaited and still unreleased financial report for the platform’s loan originator CreditStar.

LendSecured

LendSecured announced an upcoming merger with Lande. Only one platform will remain once the merger is completed, which should take 4 – 6 months.

Mintos

Several large and reliable originators such as Iute and Eleving Group (formerly Mogo) successfully issued a large volume of bonds. They used these funds to buy back loans on Mintos, leaving many investors with a lot of uninvested cash. Moreover, the loans currently issued have even lower interest rates than earlier this year – double-digit interest rates are a rarity for quality loan originators -.

PeerBerry

PeerBerry announced its relocation to Croatia, as they considered that Latvia’s requirements for obtaining a licence would hurt their business interests.

ReInvest24

ReInvest24 announced a partnership with Kirsan; this large group now holds 18% of the platform’s capital. Having such a large investor gives ReInvest24 even more credibility.

In addition, the financial report for 2020 were published. It shows a tiny profit (14k€), just like the previous year.

Finally, the platform is currently running an Autumn bonus campaign. New investors can receive a bonus ranging from €25 (for investments between €500 and €1,999) to as much as €200 when investing more than €10,000. Investments between these two thresholds will result in a €50 bonus. The campaign will last until the end of November, and applies to amounts invested until that date.

Twino

Twino secured an investment brokerage firm (IBF) license from Latvia’s Financial and Capital Market Commission. It’s good to see that more and more platform are regulated !

ViaInvest

Just like Twino, ViaInvest joined the growing club of regulated platforms by receiving an IBF license. Ironically, the newsletter states that “For better user experience VIAINVEST intends to maintain the previous user interface as much as possible.”. As the platform has one of the worst websites in the P2P world, most investors probably had a great laugh when reading this sentence.

Individual platform performance​​

In spite of the decreasing interest rates, the performance for most portfolios remained stable.

Lendermarket

14.37%

It’s killing me that CreditStar didn’t release their annual report. Indeed, with a performance above 14%, I’m absolutely willing to increase the size of my Lendermarket portfolio. However, until we finally get a confirmation of the loan originator’s reliability, I prefer to be careful.

Robocash

12.79%

The performance of my Robocash portfolio is slightly down. Overall the current interest rates level is very interesting, so I plan to grow this portfolio at the expense of Mintos.

Mintos

12.63%

My Mintos portfolio is still doing well. Unfortunately, after the large wave of buybacks, I don’t have any loan from Iute left, and the shares of Eleving loans was greatly reduced. As a result, it has become very unbalanced – roughly 40% in Wowwo, 30% in Eleving Group, 15% in ESTO and IDF Eurasia -. I will thus reduce the size of this portfolio and reallocate the funds to Robocash.

Esketit

12.59%

The performance for my Esketit portfolio oscillates between 12.5% and 13%. It requires very little maintenance and doesn’t suffer from cash drags. Although Cream Finance isn’t ranked among the top originators such as Moncera‘s Placet Group or Robocash, I find the risk/reward ratio very convincing.

Afranga

12.37%

In terms of returns, my Afranga portfolio suffered a bit from the lack of loans. It was close to 13% last month, and has dropped significantly. I started investing in the secondary market in order to invest all my funds. The platform expects to grow the loan supply by 10-15% by next month; in addition, the auto-invest algorithm will be improved in order to achieve a fairer allocation.

PeerBerry

11.61%

Interest rates at PeerBerry are decreasing, just like everywhere else. My portfolio’s performance didn’t suffer yet, although I had to update my auto-invest to match the new interest rates and prevent cash drags.

ViaInvest

11.36%

Thanks to the increase of the loans volume and the decrease of interest rates, I don’t suffer cash drags anymore at ViaInvest. Performance-wise, my XIRR is again stable, slightly above 11%.

Kviku

10.55%

For some reason, I seldom mention my Kviku portfolio – it’s still tiny and I have no plans to grow it as I consider that better alternatives are available -. However, it still offers double-digit returns for loans for a reasonably reliable loan originator.

Moncera

10.39%

I’m a bit puzzled by the great performance displayed by my Moncera portfolio, as most loans currently yield less than 9% annually. However, many loans on my portfolio are long-term loans from late 2020, with 12% interest rate. I invested a bit in the Farmada real-estate project, as it has double-digit interest rates and is overall similar to the projects found at EstateGuru.

LendSecured

9.34%

The performance of my LendSecured portfolio still didn’t cross the 10% mark. I’m considering growing it a bit, as I’m satisfied with it – especially now that the platform should grow even more after merging with Lande -.

EstateGuru

8.57%

The performance of my EstateGuru portfolio is very stable and hovers around 8.5%.

Interest rates are down, just like basically everywhere else. In spite of this, I currently don’t have idle funds, although I didn’t change my auto-invest settings and still invest only in loans with double-digit rates. In terms of portfolio status, out of 42 loans, 33 are current, three have defaulted and the remaining loans are late.

BulkEstate

7.94%

Once again, it’s a bit hard to correctly track the performance of my BulkEstate portfolio, as partial repayments don’t seem to be handled correctly by the platform.

One more project was extended, while the situation for the latest Aleksandra Apartments’ loan is unclear.

ReInvest24

7.7%

The returns for my ReInvest24 are still stuck around 8%. I started reinvesting monthly interests through the secondary market, and plan to grow this portfolio soon to invest in the next stage of the “Seven heaven” project.

HeavyFinance

5.33%

The returns for my HeavyFinance portfolio are slowly increasing. As I added funds last summer, the funding delay means that the performance will take time to reach its theoretical value.

Global portfolio performance

3.51%

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

After the large wave of buybacks, I withdrew a large sum from Mintos for the first time ever. I reallocated some of it to Afranga, and will probably transfer the remaining to Robocash – although I’m also considering growing my HeavyFinance, LendSecured and Esketit portfolios.

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 didn’t open any new portfolio, and don’t expect to do so in the near future, unless some new originator’s platform pops up.

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