Follow Up on Pandemic P-2-P Portfolio – 2021

Almost one year ago, one year and two days to be exact, we released a follow-up on the Pandemic P-2-P Portfolio, that we have customized together. For the ones interested, the article can be found here.

Well, I think is time to do another follow-up to see how well P2P performed during the last year and do some necessary changes as I keep getting emails from Mintos.

We will have to change the following

So apparently we have a low diversification status now and we should upgrade our strategies. Before continuing with these two steps, let’s get back to a side-to-side comparison of the last year.

Past vs. Present

Last year, we have 1166.49EUR in our account with a NAR of 9.80%. Our Portfolio was having flexibility on 269 loans, with around 15% of the invested sum in late loans.

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21 November 2020
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30 November 2021

The first thing that we can see is the NAR is back to 10% and our account is toping at 1293.12EUR. If we did the math and considering that we did not deposit in P2P any more money in the last year, we have a gain of 126.63E which matches more or less a 10% return for a year.

What can be also observed, is that we have fewer loans that are late but at the same time, we have over 200E that is not invested, so they are not producing anything.

Taking a peek inside the investment strategies….they look bad, I should neglect it for so long. Maybe if I was a bit more active we would have a better return.

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The AutoInvest strategy is topped-up, so it increases the size only from the interest, without adding more money to it.
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And as expected the other strategies we stopped are all cleaned up. The Pandemic Secondary market is not picking any loans, and this could mean that no one is selling loans (at least with our desired configuration). The Short Term has also some small problems, probably because we are too picky with the settings.

After this small analysis, we can see where the problem was with the 200E not being invested. Now it’s time to up our game.

Alignment to new game rules

First things first, I will delete all old investment sets that were inactive, so the position 5-6-7 of the previous picture. The second step will be to increase the size of the AutoInvest portfolio, which, in my opinion, has a good diversification score, thus it has reduced risk, considering it targets’ 32 lending companies. The new target is not 650E and I already see the funds being allocated.

Now, I will just do the relocation of each of the three portfolios that remain. For them, I reconsidered the country and the type of loans I was willing to invest in. Another significant change was to remove the companies that for some reason lost the Mintos rating.

With the new settings everything is picking up and money gets invested. The only portfolio that is not starting up is the secondary market one and this is because no one is willing to sell the loans at a loss (-10-1% discounts). So I may consider buying them a bit more expensive but increase the yield I am targeting.

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30 November 2021

At this moment there are only 8EUR not invested and everything is in place. I plan to get back to this in 3 months to see what is happening and probably to reduce the amount of money in the AutoInvest (which has a smaller Avg. Return) so I can fill up the other portfolios.

Thank you guys for reading this. As future plans, even if this year was targeted to certain investments, due to our rebalancing portfolio strategy, I am not sure when we will set aside something for P2P. But if we do, I plan to open an account on another platform to have a better diversification score.

Disclaimer: I am not a financial consultant! All the information you find here are my decision, I have taken at that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money and you can have losses.

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