Performance report for 2020 (and quarterly updates in 2021)

Hi all, it's time for what is becoming a traditional quarterly update. Each quarter, as an avid P2P'er, I'm trying to add something (hopefully interesting) that I'm doing with my P2P portfolio. And also to provide an update on how the past quarter has gone.

First things first: my overall all-time P2P XIRR has risen slightly from 7.52% to 7.56.

As a recap, I had a highpoint of 35 platforms, which is far too many. P2P provides my main source of income, and will need to do so until my main pensions kick in in another 7 years time, so this is a serious hobby for me. l have a healthy emergency fund in PBs and some S&S global index fund investments that could come to my rescue if all goes wrong.

I've recently been giving some thought to what my ideal mix of P2P platforms is, and to try and estimate what overall return that might produce. I've come up with the following list that would reduce my number of platforms to 14, so I'll be trying to move towards this position from now on.

The "Target %" column gives the desired percentage of my P2P portfolio that I would like to have invested in that platform.
The "Current XIRR" column states the all-time XIRR that I've achieved across all my accounts on that platform to date (i.e. combined Standard and ISA accounts).
The "Target XIRR" column indicates my best estimate of what return I could achieve on that platform (some of these are very difficult to estimate, and may change over time, but with over 4 years experience I think I'll get most somewhere near right. Feel free to discuss or disagree. I expect many will😬).

The order of platforms isn't relevant. It's actually the order of my current exposure to each platform from high to low. 



The capital weighted average using my Current XIRRs is 8.4%.
The capital weighted average using my Target XIRRs would be 11%. I'd be a very happy bunny if I got anywhere near this. 

A main driver to the Target % is the likely ability to achieve the desired exposure at my required level of diversification. There are certainly platforms that I would have favoured more if I thought that I would be able to deploy more funds there.
I've tried to allow for defaults where I think some are likely.

There are good arguments for adding other platforms that I quite like to the above list, but I'm trying to reduce the number of platforms, and I'm trying to increase overall returns without making myself uncomfortable with the risk. A few notable missing platforms are:

Assetz Capital - Currently new loan rates are too low for my perceived risk. I'm unhappy at their unwillingness to share the pain when loans go bad.
Assetz Exchange - I feel that loans here have become overpriced, so I'm withdrawing income and repayments.
SoMo - Loan rates have dropped too low. Recently a spate of second charge loans in 6% range. I'm also annoyed at them not paying out a referral bonus so far. (EDIT: They have now apologised and paid the bonus, but it took way too many emails, many of which went ignored).
Blend - Too much cash drag due to their crazy autoinvest mechanics. Why they don't recognise and fix this is beyond me.
Uown - Too few loans.
OnStep - Too few loans.

One of the problems with my chosen platforms is an over-reliance on property based Lending, so a large property crash could put me in difficulties. The percentages invested in the various sectors would be: 

Property 56%
Business (SMEs) 26%
Litigation funding 10%
Pawn 8%

Let the discussions/arguments/downright mockery begin 😉

Contrary applies too. I remember getting my Loanpad bonus in my cash account on the morning of my anniversary of my first investment. Really impressed me.

It currently represents under 0.1% of my P2P pot, so yes it's too small to be of any significance. I'm happy to let it run, but I expect the returns to fall nearer to the quoted expectations, so ramping up my investment there would be a drag on my overall returns. I'll keep an eye on them to see how they progress. It still seems to be running smoothly, but there's far too little visibility of the the loans for my liking. 

Did you post this in the intended thread mah? If so, I don't know which spreadsheet you're referring to. 

There's a thread on calculating XIRRs here p2pindependentforum.com/post/108511/thread. Happy to help if you can't make it work.