European Crowdlending fund monthly review (May 2019)

We are continuing with the monthly column of results of the European Crowd Lending Fund (the Fund) in which we briefly overview what is happening in the European P2P and crowd funding market and how it affects the performance of the Fund.

Monthly result: +0.69%
Result from the beginning of the year: +3.60%
Result from the start of the activities: +23.52%

Platforms, providing investment data publicly, through the month of May, funded around EUR 607 million of loans and the Latvian platform – Mintos, funded EUR 228.9 million of loans (increase of 20.3% from the previous month), widening the gap between all of the remaining European platforms.

Zopa and Ratesetter platforms, based in the United Kingdom, respectively, held the second and the third place amongst the European platforms, funding EUR 110.3 million (decrease of 6.5% from the previous month) and EUR 88.7 million (increase of 19.8% from the previous month) of loans.

Besides Mintos platform, most of the loans funded in the Baltic states, were funded by Twino (EUR 15.4 million), Bondora (EUR 10.9 million), Peerberry (EUR 10.6 million), Estateguru (EUR 6.5 million) and Viainvest (EUR 6.5 million). There were no changes in the sequence, except that both Estateguru and Viainvest have funded the same amounts.

Platforms, providing investment data publicly and funding to Lithuanian businesses and individuals, collected EUR 4.891 million in May (decrease of 2.73% from the previous month).

The distribution of funded amounts of loans was as follows:

  • Paskolų klubas – EUR 1.628 million (increase of 7.96%);
  • Lenndy (Latvian based platform) – EUR 877 thousand. (decrease of 34.66%);
  • Finbee (consumer and business loans collectively) – EUR 867 thousand (decrease of 2.73%);
  • Savy – EUR 520 thousand (decrease of 33.22%);
  • Profitus – EUR 998 thousand (increase of 44.85%).

The class B shares of the Fund increased by 0.69%. The net asset value reached EUR 14.142 million. Since the beginning of its activity, the Fund has reached EUR 35 million of funded loans.

The majority of legal entities provide annual financial statements during the months of May and June, which may lead to the changes in the distribution of the investments of the Fund during the upcoming months. The Fund regularly updates information about platforms and loan originators.

We have added a new category to the list of loan types – “forest purchase financing”, which previously was classified as “business loan with mortgage”, but as it reached a significant part of 5% of the Fund’s portfolio, it is now listed separately.

The insolvent loans were written-off at the end of the month. The liquidity of the portfolio remains optimal – 59% of the net asset value are investments with a maturity of 12 months or less. Cash drag at the end of the month was less than 1% of the net asset value of the Fund.