TruePillarsIn the last few months I’ve 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 currently over 165 different loans and a current max exposure of 1.7%. New loans I purchase into now only account for approximately 0.7% of my TruePillars portfolio.
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 on a grade of one through five, with five considered the lowest risk. Below is the distribution of loan grades in my portfolio.
MoneySpotThis platform has been a consistent earner for us with no active involvement required from myself achieving annualised returns of around 12.8%. March 2020 was no different pulling in 13.22%. The one figure I will be keeping a close eye on is the default rate which currently sites at 5.77% for March. This was 5.33% in January.
I have continued to add to this platform in fits and burst which has consequently resulted in the returns currently a little depressed on some months. RateSetter is tracking close to where I expect it to be just below the 8% mark. All my investment to date has been in the 5-year lending market for maximum return. Over the next few months, I expect to continue to add some funds to increase the overall portfolio weight of this platform and at this stage has not shown any adverse effects from the last few months.
This platform I’ve made the call to not actively use and will see out the current investments only. As such I’m only on every month to track its progress and withdraw my available funds. The platform has achieved an average annualised return of 10%. Last month saw an annualised rate of 11.06%.
To keep track of the individual performance of each platform, I track them on a single graph below and then aggregate the results to give my overall portfolio returns.
We can see that the overall returns of the portfolio are tracking between 10 and 12%, averaging 11.2% return for the previous 12 months. Part of the driver for the return is the split in allocation weighting to each platform. The following graph below shows I still have about 70% of my funds in two platforms. While this is changing, I’ve not actively added as much over the last few months to even up the distribution. You’ll also note I will be tapering off the fourth platform out of the mix.
I feel the full impact of COVID-19 on the loan space is yet to fully materialise so am keenly watching the space to see how my investments continue to perform. As with all investments there is risk which is why we diversify into multiple loans and platforms.
Hope all are faring well and staying safe in these crazy times.