Synergy European Crowdlending Fund monthly review (May 2020)

We are continuing with the monthly report of the Synergy European Crowdlending 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: -1.46%
Result from the beginning of the year: -5.08%
Result from the start of the activity: +23.01%

Platforms, providing investment data publicly, through the month of May, funded EUR 188 million of loans and the Latvian platform – Mintos, funded EUR 63.2 million of loans (increase of 41% from the previous month).

Respectively, platform Ratesetter, which is registered in UK, were in the second place, financing 24.1 million EUR (increase of 9% from the previous month) of loans.

After Mintos, PeerBerry, Twino, EstateGuru, Iuvo-Group, Viainvest and Bondora financed most of the loans in Baltic States, respectively, 11.9 million EUR, 7.9 million EUR, 5.2 million EUR, 4.2 million EUR, 3.8 million EUR and 2.2 million EUR.

Platforms, providing investment data publicly and funding to Lithuanian businesses and individuals, collected EUR 3.62 million in May (decrease of 10.94% from the previous month).

The distribution of funded amounts of loans was as follows (brackets shows the changes compared to the previous month):

  • Paskolų klubas – EUR 1.4 million (increase of 24.31%);
  • Lenndy (Latvian based platform) – EUR 118 thousand (increase of 48.86%);
  • Finbee (consumer and business loans collectively) – EUR 934 thousand (decrease of 39.43%);
  • Savy – EUR 563 thousand (increase of 5.94%);
  • Profitus – EUR 602 thousand (decrease of 23.24%).

Synergy European Crowdlending Fund decreased by 1.46%. The net asset value at the end of the month was almost EUR 14.49 million. Since the beginning of its activity, the Fund has reached EUR 61.9 million of funded loans. The insolvent loans were written-off at the end of the month. The liquidity of the portfolio – 61% of the net asset value are investments with a maturity of 12 months or less.

According to current data we have, problematic written-off loans in the portfolio of the targeted fund company should be minimal at least for the couple months, therefore, our strategy step by step will move to normal annual return of 9-10 percent. A positive effect in the couple of upcoming quarters will also be given by not applicable success fee at least until the price of the units would reach its previous peak. Finally, partial recovery of written-off loans should be seen in the nearest future (when the mortgaged property is sold at auction or the solvency has been returned to the debtor) and following this, the end of this year should be profitable.