Wednesday, 10 July 2019

Pete2Peer Portfolio Performance


The last six months has seen the introduction of two addition P2P platforms into my investment portfolio.  With a growing portfolio of four peer to peer platforms I feel it’s time to give an update on how each has tracked and provide an overview of how the portfolio has performed as a whole.

TruePillars

In the last six months adjusted my focus on loan diversity and have been working to lower my individual exposure to a single loan: I’ve made great headway in this regard with just under 100 different loans and a current max exposure of 3.6%.  New loans I purchase into now only account for approximately 1.2 % of my TruePillars portfolio.  To date I’ve not had a single default although I am tracking a couple of loans that have experienced late payments. 

I’ve sliced data two ways to show the makeup of loan grades and the distribution of the industries I invest in.  TruePillars rates loans from 1 to 5 with 5 considered the lowest risk below is distribution of loan grades in my portfolio.


With 100 loans it allows for diversification across multiple industries.  Breaking these out based on the standard industries against each loan, the following pie chart shows my investment portfolio distribution.


Overall my TruePillars account is progressing well with some steady returns of just over 12%.

MoneySpot

This platform has been a consistent earner for us with no active involvement required from myself achieving annualised returns of around 12.6%.

RateSetter

I’ve continued to add to this platform most months which has resulted in the returns currently a little depressed compared to what I was expecting of them.  The returns are currently achieving around 6% which I expect should level out at around the 8% mark.  Over the next few months I expect to continue to add some funds to increase the overall portfolio weight of this platform.  

OurMoneyMarket

This platform is still relatively new for me and I’m still working to get funds invested with only 14 loans currently in the loan book.  The platform has required a lot more work on my part to diversify my funds across multiple loans – more than I expected and hence returns have been slow building up.  The reporting on this platform is also not user friendly to generate your own reports.  As such I’ve pulled the basic info from the site to show my current investment values in their respective loan grades.  OurMoneyMarket ranks loans from A+ to D grade loans with A+ considered lowest risk borrowers.  


While I’m still investing funds in this platform the returns have been low but I expect them to continue to grow.  It’s currently too early to project where I think my performance settle.  I’ll keep you posted and how it is tracking in about six months’ time for a relative comparison to the other platforms.  

Overall Performance

To keep track of the individual performances of each platform, I track them on a single graph below.  In addition to this I aggregate the results to give my overall portfolio returns.


We can see that the overall returns of the portfolio are tracking about 11.4%.  Part of the driver for this is the current overweight allocation to TruePillars and MoneySpot.  From the graph below we can see that two platforms currently make up 80% of my invested funds.  I’m working to change this over the next few months to see a more balanced portfolio moving forward.



Some might question why you wouldn’t just invest all your funds into the platform that provides the best returns, the need for diversification across platforms is important to ensure you are not exposed to the risks of a single platform.  These are my results achieved to date and everyone will be different based on the loans in the mix.  As always interested to hear other peoples’ experiences and returns.  

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