It is hard to believe it is the start of a new year and a year on from when we first heard of COVID-19, yet here we are. 2020 has been a year like no other and while I’m glad that it is behind us, I suspect this year will also throw out a few challenges as the world continues to deal with COVID-19 and the impacts it is having both economically and personally on people’s health and wellbeing. This is the backdrop in which we invest in and as such I have been keeping a close eye on my P2P portfolio and the performance it has been achieving. Overall, the portfolio has performed reasonably well and am happy with the performance achieved to date. We will break down the individual platform performance and an overview of the whole portfolio.
I’ve found my portfolio of active loans in TruePillars has been shrinking over the last year with more loans paid out and a couple of defaults (more on this later) which has outpaced new loans on offer. So much so that by October 2020 I had 30% in cash which was pulling down my returns. As such I’ve pulled a fair chunk of this money out of the platform and redistributed most of it to Plenti (formally Ratesetter) to keep the money invested. The reduction is reflective in the number of loans I now hold compared with the last update (currently 137 vs 165 loans). This would be much lower had it not been for the 12 new loans since October which is great to see a pick-up in loan initiations compared with the 3 months prior. However, I will add back into the platform as loans start to exceed the repayments again to continue the diversification.
The 137 current loans are diversified across multiple industries. The following pie chart breaks out my portfolio diversification based on the allocated industries assigned to each loan.