Crowdestate: Autoinvest and secondary market explained

There are a lot of new features at Crowdestate during the last few weeks. After I did an update not long ago, secondary market has been released. Nice thing to offer a possibility to liquidate to the investors. Firstly I want to tell you some things about the autoinvest feature, as you have only slight chances to invest manually on the primary market, despite the recent increase of new projects.

Autoinvest

Projects yielding about 10 percent or more with a volume below 1 million Euro it is hard to bid manually, as all is sucked up by autoinvest settings nearly instantly. This means that sometimes not all investors using an autoinvest get their bit of the project if the demand is too big (which happened to me before). As per Crowdestate’s statement older (date of inception) are prefered to newer autoinvests. So I suggest you set up an autoinvest immediately after sign up. I set my autoinvest very wide barriers. All types of projects which yield at least 12 percent and have a duration of less then 24 months are allowed to invest. Maybe I will increase the duration as I got a secondary market at disposition. As new projects are announced 24 hours prior the first capped bids can be made, I still have a chance to pause my ai for that project if I dislike it (I am not sure if this would change my ai’s inception date though, but I don’t think so). Given there is only one project added at the time being. As per mentionned reasons I relinquish to fine tune my autoinvestment settings. But you can set it really subtle if you like to.

Secondary market is (still) lucrative

This week I discovered the secondary market randomly, I do not remeber having received a message about the implementation by Crowdestate. For the fun of it I put my project up for sale which I invested in a week earlier, with a premium of 2 Euro, which is 2 percent on my 100 Euro investment. I did not check if it has sold, and did not receive a confirmation. About 2 hours later I have received a message that my bid to the new project which went open for capped bids in the meantime was confirmed. In the background my sale went through within minutes and my autoinvest hit again with the money I just received form the sale. With a holding period of one week and an investment of 100 Euro I made 2 Euro, annualised the return would be over 100 percent. It is senseless though, as 2 Euro remain 2 Euro, annualised or not ;). As I had now another project in my portfolio I waited until it was sellable and tried to repeat. And voila, it sold this time for a premium of EUR 2.50 in less then a day. I pulled that one again, but with a premium of EUR 3.50. Of course it is not worth the hassle, but my play instinct awoke. I really hope this market situation does not last long as it prefers older investors over newer ones which is unfair. As I told you now about this possibilty I guess it will be over shortly anyway. As more people try this strategy, the lower prices should get, which would be fair.

Seling and purchasing is free at the moment, hopefully it stays like this. To be able to sell a project it needs the status as settled, then you can set the price by clicking sell. You need to confirm the sale by a code which you get delivered on your mobile phone.

Conclusion

I like Crowdestate more and more. I do hope that the supply of new loans increases, and of course we do not see big defaults. Follow me to Crowdestate’s registration.

Interview with Grid Wealth (Irish p2p)

Months ago I discovered Grid Finance and opened an investor’s account. Here and there I got a notification about new loans, usually in the range of 10 to 20k Euro. So far I haven’t invested, as the company representatives told me, they will not try to expand their p2p lending. I thought it would not make any sense to invest, although I really like the Irish p2p sector, due to my great experiences with Linked Finance and Flender. During the last few weeks I noticed an increased number of new loan notifications, so I thought maybe they changed their mind, but this is not the case. Nevertheless, I asked them some questions and got a nice reply from Andrea Linehan, the groups commercial director.

1) can you tell me when was grid business founded and by whom?

GRID was founded in 2013 by Derek F. Butler who is now GRID Chairman and CEO (https://www.linkedin.com/in/derekfbutler/)

2) how does business and wealth match together in one company?

GRID Business services the small business community in Ireland with funding solutions made up of one or more finance products. The capital for these finance products comes from a broad source of providers including institutional lenders, family offices and GRID Wealth’s retail lenders. GRID Wealth is a dedicated business unit representing and servicing retail lenders for our P2P product.

3) how many loans have you funded so far? How many delayd/defaults?

Default rate is at 0.25%

4) what are your goals for 2018?

We are adding additional finance products and capital providers to the platform so that we can service a wider range of businesses and with larger loan facilities.

5) who can invest with grid?

We work with national and international investors from institutional lenders, family offices, corporates and retail investors.

6) how do you separate from your irish competitors like linked finance/flender and one soon to enter player?

GRID gives Irish businesses access to a number of finance products fulfilled by a broad source of capital providers. While we do provide access to P2P as a finance product, it is only one part of a larger offering. We understand that the one-size-fits-all approach to finance does not work for Irish SMEs and a more bespoke designed solution is required to truly help a business to achieve their growth and expansion goals.

7) are there fees for investors?

Yes, investors pay fees also but each fee structure is different depending on the size of the funds, the product they are financing and the cost of their capital. The fees are deducted from the monthly payments, when received.

8) given my experiences with lending to irish business which are great, can you explain why irish borrowers mostly pay on time. What is the secret behind irish paying morale?

The very low default rate at GRID is due to a number of factors. Firstly, our credit model is exceptionally robust, meaning we only approve applicants that have a proven capacity to comfortably repay their loan. Secondly, despite when a proven capacity to repay has been demonstrated sometimes businesses get into difficulty. Our team work closely with our customers to help them navigate difficult times if they occur and offer advice on how to bring their repayments back up to date. Often times it is simple guidance on cash flow management that can lead to a loan performing again. Our experience is that business owners want to meet their obligations and having a supportive finance partner helps them to do this.

Thank you Andrea for your answers. What a pitty that Grid Finance is not trying to grow their p2p business. I believe there would still be room in Ireland to grow. Maybe they change their mind, if there will be more and more loan requests….

Grupeer accelerates the supply

It has been now over a year withGrupeer, since I found the marketplace. On February 17th 2017 I started my first investments on Grupeer. I really do like the marketplace, even if there are some shortcomings (read more below), although I have placed them in to the Top 3 of my Top 10 ranking.

Loan supply increases drastically

During the last weeks, there were always more loans coming to the primary market. Further the supply of Russian loans increased and should now be at about 200k per month. At the moment there are over 300k available on the primary market, all loans have 14 or 15 percent interest, some offer 1 percent cashback additional. You get the cashback paid out on your account, just after you invested. The loans have a duration of up to 12 months, some are only 4 months.

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The Russian loans are originated by two Russian companies where Grupeer holds the majority, they want to have the control over these companies so that they can intervene and monitor. There are no property projects at the moment, and I don’t have any information when a new one will be added. The first property project (Hotel Dominik) was repaid in time.

What’s missing

Still no secondary market available, although it was announced on the platform’s start. Ok, the loans are not long term, so we do not really need a secondary market. But I think a platform should have this feature, it is standard in my opionion. I cannot give you any indication when we will get a secondary market, but we will get one ūüėČ

As it seems all loans have been repaid early or on due date (we ignore the few cases where it was one to two days too late due to weekends). There comes the question to my mind: How can this be? I have no clue and did not receive a satisfactory answer to date. I will stick with it and inform, when I know more.

Latvians are excluded

Coincidentally I discovered that Latvians, better put: people who live in Latvia, are excluded from the platform. I was really surprised to hear that, as Grupeer is incorporated in Latvia. There is an easy explanation though. In Latvia it is forbidden to sell debt to private investors. I have written an article about regulation in Latvia here, and this is the reason why Mintos had to restructure their loan contracts. It seems that Grupeer just took the easier path and excluded the Latvians, as it seems there are not many of them investing on Grupeer.

Conclusion

As I already said I really like the Grupeer, but it seems to be still unknown to the majority of investors. There were only financed loans of about 1.5 Million Euros, which plays in one league with Robocash I would say. It would have been more, but the supply was not there during the first months. I will post a follow up when I know more about the non existing delays.. Follow me to Grupeer.

Crowdestate: Update after more than a year

After more then one year after my first investment with Crowdestate I can finally give an update. My first investment was repaid earlier than expected (after about 14 months). Yesterday I got noticed that I received my principal back plus interest. I received 17.04 Euro of interest on my 100 Euro investment which accounts for a great XIRR yield of 15.22%. It seems as the appartements from my development project sold better than anticipated. I am completely satisfied how this one went. They put together nice project material and gave periodic updates, as I expect it to be. The coming weeks and months will show how my other projects perform. Here you can read my first post on Crowdestate from a year ago. To date, my expectations have been met by the marketplace.

Who is allowed to invest?

The marketplace is open to investors from all over the world, you just need to make a wirement to the platform‚Äôs Estonian Bank account. If you can‚Äôt do an EUR wirement (or if it is ridiciously expensive) you can use Transferwise or Currencyfair (you get 40 Euro Bonus until first of April, no joke, if you transfer at least EUR 1’000.- or its equivalent in any other currency). Only restriction is that you need to be at least 18 years old, or be mature in your jurisdiction.

Now with autoinvest ‚Äď which is necessary

As I started to invest with Crowdestate there was no need for an ai. You had first 24 hours time to study the project and invest a capped amount. After 24 hours the cap was deleted and you were able to invest as much as you wanted.

The last projects which I saw were sold out within minutes after publication. This had to be done with an autoinvest. You can set the amount, duration and interest rate you would like to invest in. If you prefer you can further refine the settings and have different levels to choose from. In my opinion the settings are self explanatory. I will only set the top levels.

According to the platform there will be an increase of listings in the coming weeks (in my opinion the listings increased already during the last weeks)

Conclusion

I really like the marketplace, although you cannot underestimate the risks involved (you see that on the high interest rates for example). There are always a lot of things that can go south with development- and/or financing projects. As per the available documentation, it seems that the platform deeply checks all projects which builds trust for me. You can check out all the old projects to get a better understanding. In the end you are merely a shareholder than a creditor with most of the marketplace’s projects. Keep that in mind before investing. Follow me to Crowdestate.

Post questions here or use the contact form

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Viainvest reports solid earnings for 2017

Viainvest, or put it correctly: its parent company Via SMS Group, reported its unaudited financial statements for 2017. Unaudited means that this report has not been validated by a statutory auditor like pwc, ey etc. Let us assume, that the figures are correct ūüėČ My first thought: Why aren’t they capable to upload a nice copy of their statements? Or at least scan and upload it straight…? Does not change the figures though, but the first impression is somewhat dilletantic. Personally I would make sure that my figures are presented in a nice fashion.

Lower net profit due to expansion

Net profit decreased from more then 1.1 million Euro in 2016 to a bit more then 838k for 2017. This was expected as they invested in the Viainvest marketplace and went into new markets. You have to invest money to earn money ;). The figures look solid and I don’t want to go too much in to detail, as the interpretation is hard for externals. In bookkeeping (reporting) there is always the possibility to sugercoat. In the end, we are anyway scrapping only the surface.

Catching my eye

While screening the report I found it exciting that Via SMS Group is in posession of more then 2 mio in liqudity. Missing liquidity would be a warning sign. The situation is not that great though. If (when) there will be a recession, the defaults will rise and the capital buffer will diminish. There are not many assets in the balance sheet besides the loan portfolio. No(t much) property or any other bigger assets which store value and could be sold just in case. You can take a look at the balance sheet on page nine of abovelinked pdf report.

It gets really interesting from page 18 onwards…

…as there you see a lineup oft he loan quotas in the different (arrear) states. A bit more then a fifth is in the area of 90 or more days delay, and this number is deducted from the total portfolio. This is somewhat better then 2016, as you can see on page 19. We can therefor say: the expansion of the loan volume did not lead to a deterioration of the non-payer quota. Nice to know, we will see if this will be sustainable. Further you can have a look at the loan distribution per country, as well on page 19. On page 23 you have an overview of all subcompanies from the Group, which mostly belong completely to the Group.

Viainvest seems to penetrate into new business fields in 2018, as an e-money institution (like paysera) was founded. Plus, they do some sort of crypto secured loans…

Conclusion

As already said: sound results. Viainvest is for sure (together with Peerberry) one of the most (financially) sound marketplace in the Baltics.. One shall never forget that the the pack will be reshuffled during a recession. Further I want to express that if even 839k Euro in net profits sound very good, profit figures need to be taken with caution. Profits are not liquidity on the accounts, and liquidity is what keeps companies going. Profits can base on illiquid balance sheet positions, which maybe never can be liquidated (I know there are standards to avoid such things, but history has proven that this is not enough in any case ;)). I don’t want to talk down the annual report, but I think it is good to be reasonable skeptic and a good portion of common sense are never misplaced. All in all I have to say: Well done Viainvest!

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Insolvency of an UK platform, news and cashbacks

Today there is no new platform in focus, only some news and hints at cashback schemes.

Collateral in administration

This week it happened, Collateral was unreachable. The marketplace seems to be insolvent (?) and is put under administration. It seems like the FCA declined to give a definitve licence for operations to Collateral after the temporary licence expired (and they still operated for one month without licence afterwards)…. Anyhow, I will take a deep look at this case and roll it up. At the moment there is not much to do but wait as an administrator is put in charge. I too have some money there. If the current loans are serviced by the borrowers, there is a chance that investors don’t lose any money at all. But for now we have to be patient as the funds are locked in for an extended period. It comes to me as surprise that this happened in the European’s most established p2p market Great Britain. This case shows that diversification is crucial and that no money should be lent that is needed short-term.

Viventor offers 10 Euro Cashback

From now Viventor offers 10 Euro Cashback to new investors, if you invest at least 500 Euro for at least 30 days. If you went to Viventor through this blog, you will get the same offer after your 30 days are over. New investors can register here.

Currencyfair offers 40 Euro Cashback until April 1st

If you need to exchange some foreign currencies, now Currencyfair offers 40 Euro Cashback, if you exchange at least the equivalent of 2k Euro in any supported currency. This can happen with one ore more transactions, the only condition is that you use this link for registration. You can read here how Currencyfair works.

Estateguru now offers Spanish loans

Last week the first Spanish loan was funded on Estateguru. The property is located in Spain, but belongs to an Estonian Company. Therefor I don‚Äôt think we will see many Spanish loans in the near future. I stay in the Baltics with my investments, maybe I make an exeception if a ‚Äúnice‚ÄĚ Finnish loan turns up. At the moment new investors get 1% Cashback on their first three months investments. This will revert back to 0.5% as soon as there are 11‚Äô000 investors on the marketplace which should be the case in two to three weeks. Join here.

What can you expect from this blog in the near future?

I will make summaries of new marketplaces where I invested for a year or more (like Robocash for example). Plus there will be reviews of new marketplaces and an in depth look at Collateral. If you would like to have other topics covered, let me know.

One year Robocash with 14.44% yield

Robocash had its first anniversary on February 21st. I knew that I was one of the first five investors, but I could not remember if I really invested on the launch day. A glimpse on my account statement revealed that I funded my account on the first day, but my first investment was one day later. I guess this delay was caused due to my greed as I waited for the 17 percenters, which were announced but never showed up. So I decided one day later to go with the 14 percenters, which is a great interest rate for lenders.

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A lot has happened during the first year

Checking my account value showed me 1’144.40 Eurorobocash robot (although 1’360 were invested and 84.4 accrued interest). As I did not change a thing after my deposit of EUR 1’000, the yield calculation is really easy this time 1’144.40 / 1000 = 14.44%, so I do not need to calculate XIRR today ;). I find this yield very interesting, as if I assume that 14% is the monthly yield and I take compounding interest in to account, I could possibly go as high as 14.93% (theoretically). No lamenting, 14.44 percent is great (although I cannot factor the risk), even more as I had no business to do the whole year at all. I just asked myself where the difference comes from. It is explainable with a cash drag which occured somewhere down the road. I just let the money there and just checked irregularly if it was reinvest. There was a period of about 2 weeks were nothing was invested at all plus some weeks where I had some cash leftover on my account. As I see now this cost me 0.49 percent in yield (ok, this is not accurate as robocash loans have durations of less then 30 days Рif no buyback event occurs Рso my theoretical yield could be slightly higher then 14.93%. But hey, I let this be, as my actual real world yield is sensational with 14.44 percent ;)).

Robocash did improve their settings, but the surface looks not very different, which is nice I think.

The story of 10k Euro max investment

The deposit limit has been set to 10k Euro per investor. Pay in more was refused. Now it looks like this is a yearly limit, so every investor should be able to double his stake after one year of investing. So the max amount is now 20k, if you invested 10k for one year. Your remaining deposit limit is shown if you click add funds in your dashboard. In my case the number is not correct though… But you should be able to double your holding.

If there comes more money from exsting investors, could this lead to loan shortages? Theoretically yes, but practically I doubt it. If we look at the numbers: 1’800 investors invested 3 milions of Euros, equals 1‚Äô667 Euro per investor. Further I believe the 3 milion investments content reinvestments made. So my guess is that the average investment amount is lower. So I conclude that existing investors topping up their account will have limited impact on loan supply. But in the end, I do not know it ūüėČ

Conclusion

Robocash yielded greatly without me intervening once. This is passive investing at its best. No surprise I had robocash in my top 10 on a top seed.. Let us hope that the loan supply will be increased so that all investors get their funds invested. Further I hope that the first thousand investors will get some special promo as it was promised to us.

Viventor is back

Ok, Viventor never really disappeared but kept a low profile. I stopped investing beginning last year as my funds were not invested anymore over an extended period. The marketplace never tried to grow at all cost but managed it with a matter of prudence. (You can read here in German what their approach is). I always liked the platform, but what should I do when my money lies on my account for weeks, furthermore as there were alternatives? As it seems today’s situation is different, and Viventor emerged as an alternative to Viainvest of Swaper, where there are reports of cash piling up. For me the situation is not that bad as only 10 to 15 percent of my funds sit on my account. If this is not going to change, I will withdraw funds and send them to Viventor.

What sort of loans are available?

At the moment there are more then one thousand loans with buyback and 12 percent interest. The total volume is easily more then 1 milion. The loans duration is up to 3 years, but are amortised monthly, so that the effective duration of your funds is lower. Further I don’t believe that most of these loans make it to maturity. I guess most will be bought back down the road. Sometimes there are some loans with 14% yield, but don’t expect to get too many of them as they are in high demand ;). If you are investing with Mintos, then some of the loan originators will be familiar to you: Aforti Finance and Mybucks. My guess is that these loan originators want to diversify their sources of capital, to not being dependent to only one marketplace.

Viventor primary market loans
Overview of current 12 percent loans availability

What to consider?

I observed the loan volumina for some weeks now and I think it is stable. Of course this can switch quickly, but in my opinion Viventor follows a sustainable strategy so the current situation will remain. One really good thing is that you don’t need a certificate of taxation for Viventor. There will no interest be withheld. It used to be mandatory to have that tax certificate, but not anymore. Makes life easier. All you need for sign up is an utility bill and an identification document.

Conclusion

As I already have written: I really lkie Viventor’s approach. It is prudential and non hectic. They don’t want to do business with every loan originator and are willing to decline some, even if this means there is less volume on the platform. The platform runs very quickly and looks nice, the ai does what it should. The only reason why Viventor was not in my Top 10 is, that it was nearly impossible to get invested in 2017 until last October. If you would like to sign up, follow me. By the way, if you use my link and invest EUR 500 for 30 days you get 10 Euros cashback.

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An interim conclusion after half a year of housers

After nearly half a year of investing with housers it is time to take a interim counclusion. During my investment period a lot have happened at the marketplace. The first projects in Portugal have been financed, new Cities in Italy came in to the mix and besides all that a hotel was financed. Further the dashboard was revamped and one can find now lots of data and overviews to all investments made. I get detailled income statements, income splits and a lot more. The diversification index (see picture) shows me that I am only medium diversified (66 out of 100 points).Housers Portfolio Shame on me ūüėČ Objectively I must say that it is really hard to improve as some factors are limited by nature (type of investments/geographically distribution etc). There just aren’t that many types of investment possibilites other then buy to let (BTL), buy to sell (BTS) or development loans to invest in. So I guess my setup is not that bad at all ;). I think the spidernet graph is a little ahead in time and there will be new opportunities on the platform. Even I got a load of data know, I don’t see a total yield figure and this leads me to my next point

Data, everywhere data

The abundance of data is enormous, but mostly estimations. This alone does not matter to me, but it is really annoying to check if the projects yield as they should. It works for example by checking the account statement which is downloadable. I have to admit that my investment horizon with nearly six months is too short as the buy to sell projects are laid out for 12 months, so no property is sold in which I am invested. We can actually see the developments of the properties, there are actual photos. Some of my BTS projects our just out of the renovation period and are being marketed. It will be interesting to see whether the estimaed yield can be reached. Development loans are easy, they just pay a fixed rate (deduction of 1/10 as commission for housers). The rental properties pay their rent punctually, so I asked myself where that money comes from as most of them are just out of renovation and there are no tenants at the moment. The money is taken out of the funding, so the investors basically advanced the rent to them self. The system is called ¬ęinstant yield¬Ľ, plus the yield is guaranteed for the first year. The support did not explain to me where this position can be viewed in the business plan. I asked them 4 times but until today no detail explanations was received, I just asked to be told where I can find this information in the business plan. It does not really matter at the moment as it gets really interesting when the properties are rented by tenants. Then we will see if the income will rise or will be below estimations, at that point in time we will be able to determine if the estimations are ok or way off.

Increasing interest rates and porperty prices

In view of the occasion, as the stocks exchanges lose terrain as the yields go up. I did check the German housing prices and the yield evolution of 10 year German government bonds (see picture below). I was just wondering about the general coherence of property prices and interest rates.

Hedonische Immobilienpreise Renditen Staatsanleihen
Hedonic German Housing Index versus yield evolvement of government bonds

You can read everywhere that lower interest rates pump property prices. According to my graph (and the utilized instruments) we can see a coherence from starting 2011. While the blue line(Housing prices, left scale) increases, the yields (=interest rate, red line, right scale) decreases. It looks like as if yields fall below 2%, property prices are set to rise. This would make sense, as people want to get more as the 2 percent (above long term inflation goal) out of bonds, but this is just speculation.

What’s my point?

If we believe in a scenario where interest rates rise, property prices will decrease automatically. This would not be that good for my selling projects with housers as the estimated prices would not be achieveable. Further the same situation would apply on rents, so my yields would decrease. We are not there yet, one should just think about the possibility. I don’t believe that interest rates will go up dramatically during the next one to two years. But what do I know ūüėČ

Conclusion

I am generally satisfied with housers. If this status remains will be seen and depends largely if the targeted sale prices can be achieved or not. In some months I will know more and report back when the first properties are (hopefully) sold. New investors (Dutch investors are restricted from the platform, maybe other countries, if so let me know please) get EUR 25 Bonus, if you via this link and invest at least 50 Euro. You will need to invest the bonus to be able to withdraw it. You should therefor top up your account with 75 Euros, then you can invest in 2 projects. If you sell one of your projects on the secondary market, your bonus becomes eligible to withdraw.

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Impact of foreign currency investments on returns (view from an EUR Investor)

This post is not about a specific marketplace, but the impact which investing in foreign currencies can have on our yield. Especially Mintos offers a lot of currencies to their investors to invest in. I have checked the development of some foreign currencies against the Euro during the past 10 years. It is a view of an Euro investor who invested in different currencies.

Why investing in foreign currencies?

There are lots of reasons, but I guess the main goal is to get access to higher yieldings. Higher coupons look more attractive then lowers. Who does not want to invest in 5 percent bonds, if you get only one percent in your home currency (to make it easier, I set coupon = yield to maturity, which is only true, if the bond price is at 100%)? It is not that simple though. The difference of 4% (5 – 1%) is without risk, exchange rate risk, which you onboard. It can be very quick and your 4 percent yield advantage ends up in smoke (usually higher yielding currencies weaken because of higher inflation expectations etc), or you are lucky and your chosen currency increases in value. No one knows beforehand! Further you need to understand that every currency exchange comes at a cost which reduce your return. So you should check the offered exchange rates closely. Mostly the offers from transferwise, currencyfair or revolut are very good and you save a lot of money by using them.

What happened during the last 10 years?

Source Bloomberg / own depiction, monthly data (31.12.07 bis 29.12.17), indexed

Throughout the last 10 years we saw many crisis (financial crisis, euro debt crisis etc). So there was a lot of movement between currencies. Ultimatively I am surprised how many more or less stable currency pair there were, even there were outliers. Above you see an illustration with the performances of seven currencies against the Euro over a timespan of 10 years (31.12.2007 bis 29.12.2017). Below if have added a table with the yearly returns.

You see for example if somebody had changed EUR to Swiss franc, he would have made more then 40 percent. Ok this example is extreme. Against the safe heaven CHF, most currencies had not the slightest chance. The illustrations though shows that there were extreme movements, but over the years it relativise most of the times..

A closer look

Source Bloomberg / own calculations, yearly returns

I start with the table above. An Euro investor would have made profit from investments in CHF, but lost money with GBP and Polnish Zloty investments. This means conversely that GBP Investors made money by investing in Euro, same is true for PLN investors. This statement is only true in this 10 year context, just to be clear. What is really important is that in my calculations I have not included any yields, only price changes. This means that if you had invested in p2p or elsewhere which returned some percent annualy, there would not be a loss in any currency. If we take a holding period of 10 years plus reinvestments (compound interest) into the calculation, the outcome would be even better. You see, there are only 2 outlier years which have a massive impact on the total return.

From the following four currencies only the investment in Georgian Lari returned negative. A special case demonstrates the Danish Krona as the Danish National Bank pegs the DKK to the EUR. There are only minimal yearly deviations.

Source Bloomberg / own calculations, yearly returns

Conclusion

Investments in foreign currencies can be beneficial, but are risky. If you cannot swallow fluctuations should stay in his base currency, there are engough investment possibilities. I will update the performances of the currencies quarterly. If you want me to add further currencies, let me know. Again: I have not included any yield figures in my calculations. This means, if one had invested for 10 years with a yearly return of 2.5 percent only, there would be profit in any currency pair. This is not investment advice, but only as basis for your decisions.