An update of my Iuvo strategy

Some 3.5 months ago I wrote about my new strategy with Iuvo. I think now is the time to make a first check and see if it was worth. I am aware that it is still early to evaluate, but the figures for now look promising. My yield used to be between 10 and 11 percent with prior to my change of strategy. Now I slowly approach a XIRR of 12 percent and hopefully more.

Loanbook

Really nice at Iuvo is that the primary and secondary market data is exportable and if you like analyze it in Excel for example. It is always good to have data to make some conclusions, but for me this data is too less detailed, especially in comparison to Bondora or Finbee.
Anyway, I was able to draw a picture for me out of the data. As you know, investors do not get any interest if the borrower does not pay. The loan originator “only” covers the capital, not the interest when a buyback occurs. We could argue if this is fair or not. In the end the investors decides if he wants to invest under this conditions or not. Even if this system looks inferior to other buyback schemes, it has its benefits. The loan originator is more stable in case of big defaults which need to be covered. Anyway, we have to accept the circumstances at Iuvo.

A figure of interest for me is in this case how many loans go into buyback without paying a single installement. In my portfolio I get 14.2 percent of these loans. As I only invest in loans with 14.9 interest rates in Euro and with weekly or bi-weekly installements. Taking this into account I compute a yield of 12.81% ((0.149 x (1-0.142)). This is just a snapshot. If I compare this to the loans on the primary market, with the same parameters, I get a yield of 11.95%. The defaults amount to 19.8% there. Now the question comes up, why is my non payer rate lower? There is only one reason: I am just pretty good 😉 Of course this is just nonsense, as I let the autoinvest do the work, so it is more hazardous. Or it is because of the snapshot. If many loans are bought back a day earlier to the snapshot, my current loan number is actually increased. Of course it could have also a statistical reason: I have less loans then the primary market, so I may be an outlier. I conclude out of my data (which I will monitor now monthly), that a yield of 11 to 13% is achievable with my settings. On top of the mentionned yields there are sometimes late fees, which improve the yield a bit.

Conclusion

The achievable yield with Iuvo lays in the middle of p2p marketplaces with buyback. I needed a long time to get acustomed to the fact that there are no interest payments out of the buyback. The longer I think now about this, the weirder it becomes to actually get interest out of buyback. What do you think about that? I am aware that other platforms handle this differently, which is not bad at all. We just have to deal with the cirumstances. In the end it is of course possible to achieve yields below 10 percent, if you are out of luck. Let’s hope this does not happen to us 😉 Just one side note for closure: the shown yield in your account is just the average yield of all your holdings in your portfolio. It has nothing to do with your actual yield.

Saving the best till last: Cashback offer up to 90 Euro

New investors can join Iuvo and benefit from a cashback promotion: 30 Euro Cashback (equals 3%) with EUR 1’000 invested, or 90 Euro cashback if investment is at least 2’500 Euro (equals 3.6% Cashback). After you invested the first thousand, you have 60 days to increase your ivnestment by 1.5k to 2.5k Euro total, to get additinal 60 Euros (or you just keep your 30 Euros already received). If you want to take advantage of this offer, drop me a message via contact form. I have to preregister you myself at Iuvo in the background with your email, after that you can register your account. As soon as I preregistered you, I will notify you quickly by email. To be clear: I get the same bonus by referring you, so you support my blog if you join through me. This is absolutely free for you.

Fastinvest: A post with mixed feelings

Fastinvest got my attention nearly a year ago due to this German thread. Back then the marketplace did not seem very interesting as the yields used to be much lower then today. Further, apparently there were people which clearly promoted the platform by impersonating as investors. You can see that in the mentionned thread. The postal adress was and still is in a building were virtual offices can be rented. The people behind Fastinvest are all from Lithunia and I guess they are working from there. Moreover the marketplace is under observation from Polish financial market authority.

Some weeks ago I was directly contacted by the platform’s marketing staff, as they wanted me to review their marketplace. I told them about my concerns by mentionning the above points. They told me they did not know anything about the fake users, which was the truth, as the guy in contact joined Fastinvest only recently.

Why do I now publish a post?

I really wrangled and am still wrangling, if I should write about them or not. Some days ago I had a conversation with a frequent reader of this blog, who is an investor at Fastinvest for nearly a year now. According to him everything is running smootly with the platform. After posting my German post I received an email from another legit investor who confirmed what the other guy told me. Lastly the marketplace was introduced by an affiliate provider who runs the schemes for Mintos and other p2p platforms. Bevore they let new marketplaces on their platform, they check the company and the people. Mostly the representatives have already been met in person. This gave me confidence. In the end it just might be that I am too prejudiced, but still I am not completely convinced. Therefor I remind interested investors to be careful and do not invest huge amounts to start. I got in with a few hundreds of Euro.

Registration

It is easy to register and pretty fast. Just click register and you will see below overview. It seems as Fastinvest is also developing a crypto exchange und you can participate in their ICO. This is another point which I do not like. Anyway, for p2p loans, just take the middle option.

After typing in your data you need to chose an account currency. Available are USD, GBP, PLN and Euro. Watch out, the currency setting cannot be changed by you. I chose USD, as I liked the opportunity to invest in Dollars. But there are no USD Loans at the moment as it seems. So I will go with Euro, which I sent there. By the way, they offer an fx exchange facility, with no fees… but with huge spreads I guess 😉

Buyback and yields up to 16%…

But only in Zloty 😉 Euro loans are up to 15% with a duration of 6 months. All loans are equipped with a buyback guarantee (reminder: a guarantee is only as good as the party which gives it). The loans can be sold back to the marketplace on a daily basis, but in this case you will lose all the interest. The buyback will be activated the day after maturity, so no waiting period of 30 to 60 days as we know it from other platforms. So we have an idea about the cash flows we will receive. From the loan side the platform looks promising.

Autoinvest und Portfolio

There is already an autoinvest feature or you can chose to invest in existing investment profiles. Investment profiles are already preset and you just need to activate it and are good to go.

Conclusion

I have to admit that I like the marketplace from a technical point of view and I am really happy with its features. It looks clean and smooth. There are a lot of features which other platforms don’t have. This is really positive. The odd gutt feeling didn’t disappear though. I cannot ignore the points I stated at the beginning. I wil run my testinvestment and will update my experiences in the coming weeks. Maybe I will know more about the employees by then. Follow me to Fastinvest.

If you have already some experience with Fastinvest, please leave a comment below.