My Mintos portfolio diversification

I wrote short article on Mintos strategy with portfolio diversification included. This time, you can have a look how my portfolio looks like by countries, loan originators, and also term. You can always have a look at up-to-date statistics of my portfolio here.

First a fancy picture with a map of my investments. The size of the pie chart is the investment in EUR and for each country there is split by loan originator. You can see that I have investments all over, with Russia having the highest total investment.

Investment share (EUR) by country (map).

While the map looks cool, I prefer plain old table or horizontal bar chart to show the concentration for different countries:

Investment share (EUR) by country.

Here it looks like that I am little bit overextended in Russia and Poland as I generally would like to stay below 15%. It also looks like that I have way too much in the most riskiest countries: Armenia, Moldova, Albania. In total this is 28% which seems too high. Note that these countries are at the bottom of the list when comes to the rating provided by agencies, see this previous article for details.

Loan Originator

Now, let’s look by loan originator. The same rule applies – if possible, I would like to have less than 15% exposure to any single loan provider:

Investment share (EUR) by country.

Looks like this is working quite nice with only IuteCredit being slightly above 15%.

By Term

I also would like to consider remaining term for the individual investments as higher term means higher uncertainty regarding stability of both country of investment and the loan originator. This is the structure of remaining terms for my investments by loan originator:

Investment structure by loan originator and term (EUR), Null – past due investment

From the above I see that Capital Service is quite an outlier as it consists of loans that are 18+ months. I will need to look into it better to justify longer terms compared to other lenders. The other top lenders have remaining term for majority of my investments less than 12 months, which I like.

By Investment Amount

In my previous article I also recommended to only go for minimum investment. I admit that I was not meeting this, especially at the beginning as I wanted to place all the money to work ASAP. Only after I learned that stated interest rate does not always match the reality I started to invest 10EUR only in every single loan. Here is my current distribution of investments by invested amount and term:

While I don’t like any of the investments with 10 or more EUR I can see that majority of them will go away in next few months. Then I will have significantly more investments in the first band – less variance on interest rate, greater diversification, more insight.

Let me know how you diversify your portfolio.

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