My social lending portfolio (2014, 3rd Q)

The end of the year is drawing near (only 3 more months to go) and I’m starting to struggle with my investment goal for Bondora. I planned to increase my overall total investments to 4000€, but currently I’m at 2900€ (I’ve overcome last year’s invested amount though!). This means that the end of the year is definitely going to get interesting – I need to invest 1,1K to hit my goal. (1050€ if you take into account Moneyzen investments). Time to get cracking on some side projects it seems.

q3 pie

Overall I’ve managed to increase my portfolio surprisingly well. At the end of the month the account is pretty much dry, and I haven’t even invested into all that many B+ loans. Seems like the supply going up has worked out well for me.

q3 total investments

 

q3 returns

 

You can slowly start seeing the impact of me trying to add more money every month. The Bondora returns chart is hovering above 25% still, it’s been pretty much steady for more than half a year already. I hit a new high point for interest earned (62€ for the month of September), the following months should also bring relatively good growth due to increased monthly investments.

Overall in the past 3 months I have picked up a total of 72 new loan pieces. The breakdown is as follows:

– 71 Estonian loans, 1 Spanish loan

Out of those 71 Estonian loans:

– 9 B+ loans (unverified), 62 verified loans

The unverified loans are 2×600, 2×800, 2×900 & 3×1000 credit group

The verified loans break down as follows:

– 10xA1000, 11xB1000, 19xC1000

– 3xA900, 1xB900, 4xC900

– 2xA800, 2xB800, 1xC800

– 5xA700, 1xB700, 2xC700

– 1xC600

I quite like the B&C credit groups. There is very little competition and they give relatively good value as far as loans go. I could get into way more low level credit loans, but I’ve tried to keep it somewhat balanced. I open up the lower level portfolio builders occasionally to add on a few here and there, but overall I’m happy with how it’s going since I haven’t hit the point where I need to substantially rework my portfolio logic. I’m running on similar settings as before:

q3portfoliobuilder

Platform diversification

I mentioned before that I decided to diversify a bit, so I’ve put 50€ into Moneyzen as well, building a pretty conservative portfolio. The 50 euros was invested (a bit slowly, but still) and the first payments will start coming in in the middle of October. That means that by the end of the next quarter I will have some info to share on that as well. I will probably add in another 50 euros at some point to get a better diversification level there as well.

6 thoughts on “My social lending portfolio (2014, 3rd Q)

  1. While I welcome options for diversification, I still prefer something where I have the option to get out if I decide at one point that it’s not worth it.

    Without any track record it seems like a bit too long of a commitment for my funds. Especially after having one bad experience like this already :)

    1. I decided to give Moneyzen a chance because unlike Omaraha they have a hunger to do well. I hope that will work out for them. That said, I will be limiting my investments there heavily due to a lack of possible exit right now.

  2. In my opinion expanding your portfolio with Moneyzen is a good thing to do. Yes, today there is no exit options available, but neither did Bondora have it in the beginning. So let’s give them some time. Also it is worth mentioning that Moneyzen people are investing their own money to each loan. I’m not sure for how long they will continue to do so, but anyway this is good gesture.

    50€ per month is also my strategy for Moneyzen until I’m sure that this platform is sustainable (12% return).

    1. While I do put some money into MoneyZen also, I dont think “MoneyZen people CLAIMING that they are investing their own money to each loan” is not a guarantee that the platform will do well. Just saying. Currently my Bondora portfolio is doing much much worse than Omaraha for example. Like XIRR is 10 times worse. Its not all gold that sparkles :).

      1. How exactly does the whole forced cashing out thing work for Omaraha? Won’t the fact that you have to sell out your loans that are in the red start eating your your profits quickly?

      2. As I said then it is good gesture, not guarantee.

        There are several reasons why your portfolio XIRR is low:
        1) Too big proportion of foreign loans (their track record is much worse compared to Estonian loans).
        2) Too young portfolio – the more defaults occur in the beginning, the smaller the XIRR is.

        Just give it some time and it will improve. Also I would suggest to focus more on Estonian market, which has almost the same interest rates, but much smaller default rate.

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